Reading the article, it appears these features are still available for an upfront cost such as when ordering the vehicle, presumably. Who in their right mind would pay a monthly fee for such features if they really want them? Probably the same who have three credit cards maxed out, by a new phone every year on credit, and finance everything, I guess. I'll just be keeping my 11 and 21 year old BMWs, thank you.
Yes, all the outrage over this seems to miss that you can still buy them as an option, just like before. Much ado about nothing, really.
I see this as more of a way for people who don't want or need these things, to opt out, but when selling the car down the line those things are there if the next person wants them. Having the "equipment installed" even if it isn't used, likely helps standardize production for BMW as well.
The subscriptions for features like this have only just been added and only on some vehicles for now but given the potential for revenue growth it’s inevitable that brands will transition to it and away from options at time of purchase.
Yes, all the outrage over this seems to miss that you can still buy them as an option, just like before. Much ado about nothing, really.
I see this as more of a way for people who don't want or need these things, to opt out, but when selling the car down the line those things are there if the next person wants them. Having the "equipment installed" even if it isn't used, likely helps standardize production for BMW as well.
The subscriptions for features like this have only just been added and only on some vehicles for now but given the potential for revenue growth it’s inevitable that brands will transition to it and away from options at time of purchase.
From a company value perspective, ongoing subscription / SaaS type revenue is considered more reliable and consistent and thus more highly valued than revenue from product sales so the companies that don’t push their customers into that direction will suffer in terms of share price. Which ultimately tends to be the priority.
So the buyer doesn't purchase the extras initially as an option, but they are still fitted anyway for those who might want to subscribe at a later date. I can't imagine in my wildest dreams that the cost of installing the options isn't incorporated in the initial price of the car. so it's a way to generate additional income by the manufacturers to get paid multiple times for the same 'extra'. I would call that a scam, personally.
This is what burns me about this proposition- it’s the gouging. The option has been installed at the time of manufacture, it was absolutely incorporated into the selling price of the car- there is no reason to add a subscription as it’s not a “service” like XM or Nav.
Most cars come pre-wired for options that haven’t been spec’d, it makes sense to standardize the wiring. But if it’s already there….just greedy.
A middle ground would be to offer unlimited service for the original owner or some sort of timed service like 3-4 years (unlimited owners), then begin charging.
I read something about a person buying a used Tesla and losing features. Apparently the original owner had a feature they weren’t supposed to and Tesla shut it off wirelessly. New order was not pleased because they thought the car had the feature.
They’ve already done that. When free service for x years/miles became part of the sales pitch about 20 years ago, amazingly cars didn’t need service anymore! Fluids became “lifetime fill, and old changes went from the standard 3 or 5k interval to 10k miles….funny that.
