Imagine having to fork out money just to be able to lock and unlock your car using an app, which is what car companies are offering to buyers.
Or paying extra to have heated seats if you’re in a cold country. As cars become more connected to the internet, automakers are capitalizing on this to make a profit. This gives car makers a recurring revenue stream for years to come and as well as possible customer and brand loyalty. Owners can add features from an a la crate menu of subscription based apps depending on their needs and budget. This is made possible thanks to computerized cars enabling tweaks to be made from a distance, according to a report fromBrands that are jumping on the bandwagon of locking and starting the cars remotely through an app include Lexus, Toyota and Subaru.
Vice president and head of auto benchmarking and mobility development at J.D Power, Kristin Kolodge said, “I think we’re going to see some interesting ebbs and flows from what really sticks.”According to a study by Cox Automotive it was found that 75% of consumers are not willing to subscribe to most vehicle features. Some 92% of people said that heated and cooling seat options should be included in a the car’s price up front and 89% said the same thing regarding remote-start up functions.
Kolodge said that automakers run the risk of making customers feel like they’re paying twice – once for a function to be built into a vehicle and again to activate it. They will probably have more luck asking people to subscribe to a brand new service rather than familiar features.