Subscription-based services in private cars is a topic that has generated a lot of debate recently, and consumers are strongly opposed to such things. Take it BMWclaims you get used to them in cars — when comments on our article if anything, the vast majority of you guys are vehemently against it.

In-car connectivity provider VNC Automotive, however, believes subscription services are here to stay and expects their popularity to grow over time. In a press release issued this week, VNC claims that consumers are now accustomed to the subscription model in their everyday lives thanks to services such as NetflixAmazon Prime and Spotify and that this familiarity will also smooth the transition to in-car subscription services.

Citing the ability for consumers to pay for features only when they use them – such as heated seats that are only used in the winter – VNC believes that consumers may prefer to activate and deactivate features according to their needs and budget, rather than “pay up front “. for expensive options.”

On the topic: The Audi owner receives a pop-up message reminding them that the climate function costs extra

This customization potential is presented as an advantage even for subsequent car owners, allowing them to activate the features they would like even when buying a used car. Another purported benefit is the ability for consumers to “switch between vehicles and move subscription features with them, with options activated according to each driver’s subscription package.” Of course, this method is desirable from an OEM point of view as this allows them to lock customers into the subscription ecosystem and thereby increase brand loyalty, at least in theory.

The basis for all this appears to be recent YouGov polling data which shows that 30 per cent of UK and US car consumers agree with the statement: “I don’t want to own a car because my needs may change”. The same survey appears to show that consumers are more open to a car subscription model than ownership, and that younger drivers may forego ownership altogether, viewing vehicles as a “transitional commodity.”

However, it is worth noting that a much larger majority of respondents still prefer to own their vehicles and are expected to prefer to be in constant control of their vehicles’ functions. The question of whether this opinion will significantly change in the opposite direction in the near future remains open.

https://www.carscoops.com/2022/10/subscription-based-automotive-features-boom-or-bust/

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