It feels like subscription prices are everywhere nowadays, but the last place we expect to find them is in our cars. Especially the cars we’ve already paid for. Most of us accept that features like heated seats, remote start, and Apple autoplay will be upgrades when we buy a car, and accept that these luxuries will come with extra cost. A one-time cost. But in the last few years, we’ve seen a move toward automakers treating cars like software, and using updates to open up a new way to get money out of their customers.
As both new and used cars became more expensive during the pandemic, there was a freeze in the market in response to global shortfalls in the supply chain. Now that we are coming out of it, carmakers are looking for new ways to make money, and though it comes at the expense of the consumers, subscription options are on the table.
It’s imperative for me to guard against business practices that hurt New York customers. In countries that failed to take action against this rising tide, companies like BMW began charging car owners exorbitant monthly costs for features that used to be a one-time cost, or even come standard. One of the first such microtransactions tried was an $18 monthly heated seat subscription. Other companies charged subscription fees for similar features, sometimes without the consumer knowing until after they had already purchased the vehicle.
While there has been customer pushback, subscription pricing is growing increasingly popular in the automotive space, which is why I introduced my bill, S8393-A. This will prohibit motor vehicle dealers and manufacturers from charging subscription fees for features currently installed in the vehicle at time of purchase. If it doesn’t present an on-going cost to the manufacturer, there’s no need for you to keep paying for it. This bill will enhance transparency in pricing for consumers, and I expect to see a vote on the legislation this week. When that happens, I’m going to fight to see it passed, and New Yorkers protected.
