New-Car Buyers Wary but Curious about Features They Have to Subscribe to

• Most new-car buyers are unfamiliar with subscription-based options, although they’re interested in learning, according to a study by Cox Automotive.
• Of the 2000 surveyed shoppers, most said they prefer the ability to try out on-demand features before making a long-term commitment.
• The study suggests there’s skepticism about subscription services when they’re mandatory or appear to be money grabs.

New-car buyers have long had to pay extra for certain options, from cold-weather packages that add heated seats and steering wheels to driver-assist suites that bring blind-spot monitoring and other similar tech. But what do shoppers think about the trend of subscription-based options that some automakers are trying? A new study conducted by Cox Automotive suggests a majority of new-car buyers are unaware but interested in on-demand features.

Unfamiliar Yet Curious

For the folks who are unfamiliar with what’s going on, some automakers in recent years have started asking shoppers to pay monthly or yearly subscription fees for various features. Most recently, Mercedes allows owners of select EV models to pay for an “Acceleration Increase” subscription; the upgrade is also offered for a one-time fee. However, other instances have been more restrictive—like when BMW tried charging $80 per month for Apple CarPlay in 2019. In that case, BMW eventually made it standard (a.k.a. free) after facing negative feedback.

With the goal of better understanding what consumers think about these types of subscription services, which are also referred to as features on demand, Cox Automotive says it surveyed 2000 shoppers currently in the market for a new vehicle. Although 79 percent said they’re not familiar with the features, 41 percent said they’re interested in them.

A majority of surveyed shoppers said they see some benefits to on-demand options, with the biggest perk being the ability to try out certain features before making a long-term commitment. Other top benefits according to the study include the ability to upgrade or downgrade a vehicle anytime, if the vehicle’s base price is lower as a result, and if free trials are offered. Interestingly, the study suggests those who are most open to on-demand options are those considering Ford, Dodge, Jeep, and Tesla models.

Curious Yet Skeptical

Despite interest from the new-car buyers who were surveyed, the study also suggests there’s skepticism. For example, people said they would be put off by on-demand features that are either too expensive or required.

“To gain consumer acceptance, automakers must ensure consumers perceive subscription-based features as a good value and not just a money grab,” said Cox’s Vanessa Ton.

Along with not being a good value, the study suggests new-car buyers’ are also concerned about data security and privacy.

What Do Buyers Want?

Current on-demand options that surveyed shoppers are most interested in are remote start, vehicle locator, heated seats, a dash cam, and a digital key. Future features that draw the most interest are streaming services, virtual assistant, driver-awareness monitoring, vehicle usage alert, and facial-recognition software.

Considering not that long ago we discovered subscription menus in a 2023 BMW X1 we were testing, plus the myriad past and present examples, it appears inevitable that automakers will continue to try to implement these on-demand options. The question that remains is whether the majority of consumers will be open to it.

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Source: Motor - aranddriver.com