Car owners act outraged at the idea of paying a monthly fee to use some car features. But a new survey says we’re not as opposed to the idea as we seem.
“The perceived outrage doesn’t match reality. Once consumers experience connected services, they are overwhelmingly satisfied and likely to resubscribe,” according to a recent survey of nearly 8,000 consumers conducted by S&P Global Mobility.
Related: Car Shoppers Wary of In-Car Subscriptions
Researchers surveyed 8,000 “global consumers” and haven’t explained how many were located in the United States.
Wait – In-Car Subscriptions?
Automakers are experimenting with a car ownership model that would see drivers pay subscription fees to access technologies in their cars. You’d still buy a car. But you’d have to pay a fee to access some of its features.
Fees could be monthly. Your car might come with 20 speakers. But you could turn on four, eight, 16, or all 20 for different monthly fees. BMW has experimented with monthly fees to access heated seats in some markets.
They could be per-use. Volkswagen officials have publicly toyed with self-driving software that charges ticket prices to different destinations.
They’re not all for creature comforts. Mercedes already lets owners of some of its electric cars rent additional horsepower by the month or year.
The idea could simplify building cars. Manufacturers could build every car with every feature, taking advantage of economies of scale to mass-produce their most advanced technologies. It could also give owners financial flexibility, letting them tailor their monthly costs by turning features on and off.
But it could also end the idea of ever paying off your car. Even once you’ve paid off the loan you used to buy it, you might be paying monthly fees forever. Used car buyers could have to pay the company that built their 20-year-old car several monthly fees for the use of features.
A Taste Makes Drivers Want to Buy
Many car owners, S&P found, had never heard of the idea. “More than 1-in-4 respondents — 28% to be exact — either did not know that connected services were available and/or noted the dealer did not offer (or even mention) them.”
But dealers could get drivers hooked by letting them experience the features for a while.
Of “about 4,500 respondents who had experienced a free trial or an existing subscription on a model year 2016 vehicle or newer, 82% said they would definitely or probably consider purchasing subscription-based services on a future new vehicle purchase,” researchers said.
Respondents: Safety Features Worth It; Comforts Not
Drivers also proved more likely to pay for some services than others.
Safety features like a built-in dash cam and high-beam assist earned the highest satisfaction rate — 89%.
Creature comforts like heated seats and steering wheels had the lowest.
Cars Lose Fights With Phones …
The main reason respondents cited for not wanting to pay extra for a feature was they already had it — on their phones. That makes features like navigation systems and music streaming services nonstarters for many.
Some automakers plan to eliminate smartphone projection systems inside cars anyway. Notably, GM (builder of Buick, Cadillac, Chevrolet, and GMC vehicles) plans to eliminate Apple CarPlay and Android Auto from its cars.
Consumers, S&P says, understand it’s about gathering data. “GM cannot get consumers’ usage data from the infotainment system if users only connect via third-party apps like Apple CarPlay and Android Auto,” points out S&P connected car services lead Fanni Li.
… Unless Buyers Get Something Free
So how can a company win them over anyway? Well, “74% of respondents are willing to share data in exchange for free services,” researchers say. However, Gen Z and millennials were more likely than older generations to share their data for free services.
