It seems that 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 features like heated seats, remote start, and Apple autoplay will be upgrades, and that these luxuries will come with extra cost when we buy our car – 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 money-making opportunities from 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 revenue streams, and though it comes at the expense of the consumers, subscription options are on the table.
Guarding against business practices that hurt New York customers is one of my top priorities, and it’s not hard to see why. 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 came standard, like 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.
Subscription pricing is growing increasingly popular in the automotive space, which is why I introduced legislation to stop it in its tracks. My bill, S.8393-A, will prohibit motor vehicle dealers and manufacturers from charging subscription fees for features 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. That’s where it should end, and I’m going to keep fighting to make sure it does.
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