BMW Further Embraces Making Basic Features A Costly Subscription Service
from the sorry-seatbelts-are-extra dept
Last year BMW took ample heat for its plans to turn heated seats into a costly $18 per month subscription in numerous countries. As we noted at the time, BMW is already including the hardware in new cars and adjusting the sale price accordingly. So it’s effectively charging users a new, recurring fee to enable technology that already exists in the car and consumers already paid for.
The move portends a rather idiotic and expensive future for consumers that’s arriving faster than you’d think. Other companies have also embraced the idea, and BMW continues to find new options to turn into subscription services. The latest: remote engine starting, which will soon cost car owners an additional $105 every year. On the plus side, there’s at least some flexibility with the pricing:
Most of these features are available through either a 1-month, 1-year, or 3-year subscription, or can be purchased outright for a one-time fee. Motorauthority reached out to BMW USA and found that the Remote Engine Start costs $10 for 1 month, $105 for 1 year, $250 for 3 years, or can be purchased for $330 for the life of the vehicle.
Again, this technology — and every other technology BMW is going to do this with — is already included in the higher-end price tag of BMW vehicles. It’s effectively double dipping (to please Wall Street’s insatiable desire for improved quarterly returns at any cost) dressed up as innovation. It’s not a whole lot better than your broadband ISP charging you $10-$25 every month for years for a modem worth $70.
Once companies get a taste of fatter revenues from charging customers for things they’ve already technically paid for, it won’t really stop without either regulatory intervention, or competitive pressure from automakers that avoid the model. BMW’s also turning a lot of other features into subscription services, like parking assist, video driver recording, and other features:
As for the Driver Recorder, it is available for $39 for 1 year, $99 for 3 years, and $149 for a one-time payment. Driving Assistant Plus with Stop&Go can be added for $20 for 1 month, $210 for 1 year, $580 for 3 years, and $950 with a one-time payment. As for Parking Assistant Professional, it is available for $5 for 1 month, $50 for 1 year, $130 for 3 years, or a one-time fee of $220.
Hackers are already fiddling with ways to enable the technology without paying a subscription fee, which will launch an entirely new cat and mouse game that, if automakers get too creative with their crackdowns (like claiming you’re voiding your warranty by enabling something you already own), could also run afoul of the FTC’s tougher stance on right to repair issues.
Filed Under: automotive, car, charges, consumers, rip off, subscription service, vehicles
Companies: bmw
Comments on “BMW Further Embraces Making Basic Features A Costly Subscription Service”
When car alarms first became big in the US, the manufacturers would build in all the hardware and sensors, and the dealers would be able to charge to “install” the alarm package as an option, ie, activate it. Almost the same thing.
Re: It different
In your example, you pay once. BMWs new plan charges you every year.
Recurring charge for modems?
I was a little surprised to see that broadband modems incur a monthly fee from the ISP in the US.
I had assumed it would be the same situation as here in the UK, a one-off fee when you subscribe with a provider and that’s it. Typically the cost price of the modem only.
Also, when I recently had issues with my modem my provider installed a replacement – which was their top of the range modem – free of charge.
I have long been baffled by how US phone and internet providers get away with the price padding they enthusiastically embrace. They would not have a chance of doing this in the UK or EU without incurring severe financial penalties.
Re: monthly modem charge ripoffs
The monthly charges on modems are actually worse than they first appear. The providers have a recommended list of modems that are acceptable, and they are all much better performers than the ones they provide. The payback is about 8-10 months to buy your own, and the purchased modems work far better.
They not only make money from the monthly charges, they also go cheap to supply underperforming hardware for that price.
Re:
Well the US is the land of the free, and that means companies are free to rip off their customers. It is not helped by regulatory agencies run by political appointees, which causes changes of direction with every change of government.
Re:
Give it a few years and they’ll be charging rental fees on the wires going to each person’s home.
Re: Re:
Thats what they call the “Internet Cost Recovery Fee”
Monthly subscription features are well worth it!
By default the steering wheel allows the vehicle to make a 10 degree turn.
Additional ten degree increments of tighter turning can be purchased for $25 per month.
The basic car purchase allows use of the brakes up to 30 times per month. Additional packages of 30 uses of the brake can be purchased for an addition $25 per month.
It’s all quite reasonable actually.
In the US, we used to have a subscription fee for corporations. This fee, aka income tax, was slowly eradicated but left in place for aesthetic appeal.
The concept of paying to access something already available in hardware and equipment you purchase is already absurd enough but let’s do some mental exercise here: what if the person goes to a place without mobile connection (or simply doesn’t want the car connected)?
In any case, if I ever have enough money to buy a more expensive car BMW will not be taken under consideration. If anything, cars with less connectivity seem to offer more value nowadays. Because you get what you pay for and no software update will lock you out of functions. In fact there won’t be functions locked behind software.
The future can be awesome but greed will always find a way to taint it.
I fixed one mistake
Most of these features are available through either a 1-month, 1-year, or 3-year subscription, or can be purchased outright for a one-time fee
UNTIL WE DECIDE YOUR CAR HAS REACHED END OF LIFE AND THESE FEATURES ARE NO LONGER SUPPORTED AT WHICH POINT YOU WILL LOSE WHAT YOU PAID FOR AND NEED TO BUY A NEW CAR TO GET HEATED SEATS AGAIN
*************.
Re:
This is exactly what i was thinking.
Re: Re:
Next up: surge pricing. The monthly fee to be able to turn on air conditioning will be doubled if there is a heatwave.
the best way is to hurt BMW in the pocket! dont buy their vehicles and if you really want one buy one without these ‘added extras’! loadsa manufacturers fit these bits and pieces for additional pre-purchase costs. buy from them instead!
Hmm… remote door locks, remote engine start… I’m really not in favor of a car that someone can trigger, then hop in and drive off while I’m waiting in line for my double espresso.
How much for the BMW that doesn’t include this technology?
Re:
You just have to buy a used one that’s old enough. Problem with that is, now you have an old German car with no warranty.
What’s that about downloading a car again?
I gues we are gonna do more than download a car…
Really?
BMW is on the cusp of being irrelevant. They made some amazing cars back in the day, high maintenance, but great. They were the standard against others were judged, especially the M3. But that was long ago, and now they are adrift, neither a performance, or luxury standard, just a used to be / washed up has been.
Rent will be a differentiator, so maybe this makes someone some money right now, at the expense of never being a high end brand again. After a few years, it’s more expensive too.
It’s like the bait is a driving machine, and the switch is rental car micro transactions.
Get ready
Soon we won’t own anything ..
We will just be charged a recurring fee to use what we already own ..
Cars.. furniture.. whitegoods.. TVs and electronics.. IT and all software.. water.. air.. streaming services oh wait–
Re: Get ready
It will be the Rent To Own scam all over again — except without the “own” part even theoretically on the table anymore.
is hacking your own property still legal?
What if I just hack the software to turn it on myself? Unless they have something against that in the purchase agreement I cant see how they would prevent it.
And no they dont get to void the warrantee unless that was specified in the agreement.
Re:
You can be sued under the DMCA for breaking copyright protection.
I know they’d never do it, but if I was told that a product included hardware that I couldn’t use unless I paid a monthly fee, I’d tell them to remove said hardware and give me a discount on the price.
I’d say charge ’em to use turn signals, except BMW never do anyway…
Unless, of course, they’re insisting that you let them cut in front of you into your lane.
Coming soon: ads
I can see it now: not satisfied with recurring revenue, BMW includes ads.
Example:
You want to heat your seats? Please watch this unskippable ad for dietary gummies guaranteed to burn fat while you sleep.
You want to remotely start your engine? Watch this unskippable ad for a pill that will make you great in bed.
Sure, you might think these ads are annoying and probably for illegal products, but just think about all the money BMW is making!
After all, we’re not customers anymore, were ongoing revenue streams to be milked forever.
And no, I don’t think there will be market competition against this idea. In fact, I predict more companies will try it as they learn how much money BMW makes by basically doing nothing.
Thanks for sharing. It is very helpful for me and also informative for all those users who will come to read.