On Tuesday, InsideEV, an electric vehicle news outlet, reported that luxury car brands like BMW and Tesla have attempted to introduce subscription models, but these efforts have repeatedly failed due to consumer pushback.
The report details how, in 2022, BMW transitioned features like heated seats, steering wheel functions, and Apple CarPlay to a subscription-based model. This move sparked consumer outrage, with many questioning why they should pay extra for features they believed were already included in the vehicle’s price. Facing backlash, BMW scrapped its subscription model in October 2023.
Tesla faced similar resistance when it offered its autonomous driving feature for a monthly fee of 199 USD. Consumers preferred a one-time payment of 8,000 USD instead. Taking cues from these setbacks, Lincoln chose to avoid the subscription model altogether.
The automaker has chosen to include all features in the vehicle’s initial price for a four-year warranty period, after which any subscription costs would fall to used car buyers.
The automotive industry finds consumers skeptical of subscription-based vehicle features. While customers embrace subscription models for services like Spotify, they show aversion to paying recurring fees for basic car functions. Analysts caution that automakers must carefully weigh the potential for consumer backlash.
