Do subscription fees risk putting people off? 85% of car buyers would consider a different car to avoid them

Elle Kiai

28 Mar 2023

An overwhelming number of people would be put off buying a car if the company were to charge extra fees for popular options, according to a survey conducted by Electrifying.com.

In a survey of nearly 3,000 people, 85% told us that they would consider purchasing a different car to avoid paying expensive monthly subscription fees.

As cars become more technologically advanced and increasingly connected to the internet, car companies are starting to charge for options such as heated seats, remote start and even performance boosts. But the experts are warning that costly extras could amount to hundreds each year, putting off already-stretched drivers.

While the subscription model is profitable for manufacturers, it could end up costing drivers a considerable sum each month. For example, if buyers were to subscribe to heated seats at £15 per month, CarPlay at £10 per month and adaptive cruise control at £10 per month, this could end up costing drivers hundreds each year on top of the price of the car.

One example of a carmaker going down this route is Kia, whose ‘Kia Connect Store’ system means that customers can choose which features they want and have them added remotely to their car. Although the features such as heated seats or parking sensors are factory fitted in the car, drivers will have to pay to activate them. Kia claims that the subscription model ‘reduces anxiety of making purchase decisions on the spot’. 

Not only this, when the owner comes to sell the car, they may not be transferable and the new buyer will have to choose their own options and pay for them again. Fisker and BMW are among others who are taking this approach, with BMW saying last year that it plans to charge for features such as heated seats and automatic main beam. 

Polestar and Tesla have also made performance upgrades available via ‘over the air’ updates for buyers who are willing to pay.

Founder and CEO of Electrifying.com Ginny Buckley said:

“Subscription services in cars are dividing opinion, with some people welcoming the move as a way in which to avoid unnecessary add-ons, while the majority of people are understandably frustrated at the thought of carmakers effectively cashing in twice at the expense of consumers.

“With people spending less on subscriptions overall and worrying more about their finances, this certainly feels like a controversial move for carmakers to be taking. What’s for sure is that manufacturers should think carefully before introducing this to the mass-market.”

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