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An overwhelming majority of those surveyed said that safety features such as lane assistance and automatic braking should be included in the purchase price an even larger number said the same about heated seats.Dublin CODING School is delighted to introduce Lavish Thomas, our new Lecturer in Data Analytics. A survey released in April by Cox Automotive found that three-quarters of car buyers don’t want to pay extra fees to activate extra features. “Companies simply should not be allowed to deactivate proven safety systems,” Wallace said.Īnd there’s one other major hitch - lots of consumers don’t like the idea. William Wallace, associate director on safety policy for Consumer Reports, said that a feature like this, designed to make driving safer, should be made available to all drivers, not as a premium option.

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will become subscription-based and only available to the limited number who are willing and able to pay for it.”įor instance, South Korean BMW drivers can pay an extra $8 a month or a one-time fee of $183 for a feature that automatically dims the car’s headlights to help oncoming drivers see better. So new safety features or energy-efficient benefits. Christine Hines, legislative director of the National Association of Consumer Advocates, said that “manufacturers may turn any new innovation into a subscription. Still, some consumer advocates worry that software-defined cars could put consumers at a disadvantage.

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The buyer can then pay for the software needed to activate any or all of them. He predicted that more and more cars will ship with every available option on board. “The cost of just putting it in is cheaper than the cost of putting it in some cars but not in others,” said Reimer. This might lead to losses if too few customers sign up.īryan Reimer, research scientist in the Center for Transportation and Logistics at the Massachusetts Institute of Technology, said that auto manufacturers can actually save money this way, because it’s so expensive to build multiple versions of the same car with different hardware features. The carmaker must build in the hardware, without charging the customer for it, and then hope that a large percentage of car buyers will pay extra for hardware activation. “The car evolves.”īut using software to activate unused hardware features, like a seat heater, comes at a cost. “If you own the vehicle several years, it’s not the same car all the time,” said Marc Amblard, former director of global product strategy and planning at French carmaker Renault.

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With software-defined cars, buyers can purchase a lower-priced model with fewer options, then download new features in the future. But GM is betting that Maps+ will attract a stream of new OnStar subscribers who will find it a better option than the navigation app on their smartphones. The service comes at no extra charge to drivers who already subscribe to GM’s OnStar network, priced at $14.95 and up. General Motors is offering Maps+, an upgraded navigation service that can run on GM cars built as far back as 2018. Happily, US customers get the fully capable version at no extra charge.

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But buyers in Germany get only a limited version of this feature, unless they pay about $575 a year for software to fully activate it, and Chinese owners must pay an extra $750 for full activation. Mercedes-Benz’s lavish electric EQS comes with built-in rear-wheel steering to help the car make tighter turns.

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Owners of the electric Porsche Taycan are able to install software priced at $12 a month that limits the car’s speed and extends its driving range. From now on, vehicles will get a free online connection for eight years after that, owners will have to start paying $10 a month or $99 a year. This week, Tesla announced that it would no longer include free lifetime Internet connectivity with its new cars. But Tesla owners can also pay $200 to activate the car’s heated rear seats in the company’s Model 3 sedans. Last year, Stellantis, the company that makes Jeep, Chrysler, and Dodge vehicles, said that it expects software sales to generate $22.5 billion in new revenue by 2030.Įlectric carmaker Tesla is the best-known purveyor of pay-to-play software upgrades, with its eye-popping $12,000 fee for the most advanced version of its Autopilot Full Self-Driving software. For carmakers, this is expected to become a major new source of revenue.

Since so many auto features are software-dependent, owners can add new features to a car years after it’s left the factory, almost as easily as installing new apps on a smartphone.

What is lavish software