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BMW Further Embraces Making Basic Features A Costly Subscription Service

[21][uses-of-technology.jpg]

[22](Mis)Uses of Technology

from the sorry-seatbelts-are-extra dept

Wed, Jan 11th 2023 05:22am - [23]Karl Bode

Last year BMW took ample heat for its plans to turn heated seats into a
costly $18 per month subscription in numerous countries. As we noted at
the time, BMW is already including the hardware in new cars and
adjusting the sale price accordingly. So it's effectively charging
users a new, recurring fee to enable technology that [24]already exists
in the car and consumers already paid for.

The move portends a rather idiotic and expensive future for consumers
that's arriving faster than you'd think. Other companies have also
embraced the idea, and BMW continues to find new options to turn into
subscription services. The latest: remote engine starting, which will
soon cost car owners an additional $105 every year. On the plus side,
[25]there's at least some flexibility with the pricing:

Most of these features are available through either a 1-month,
1-year, or 3-year subscription, or can be purchased outright for a
one-time fee. Motorauthority reached out to BMW USA and found that
the Remote Engine Start costs $10 for 1 month, $105 for 1 year, $250
for 3 years, or can be purchased for $330 for the life of the
vehicle.

Again, this technology -- and every other technology BMW is going to do
this with -- is already included in the higher-end price tag of BMW
vehicles. It's effectively double dipping (to please Wall Street's
insatiable desire for improved quarterly returns at any cost) dressed
up as innovation. It's not a whole lot better than your broadband ISP
charging you $10-$25 every month for years for a modem worth $70.

Once companies get a taste of fatter revenues from charging customers
for things they've already technically paid for, it won't really stop
without either regulatory intervention, or competitive pressure from
automakers that avoid the model. BMW's also turning a lot of other
features into subscription services, like parking assist, video driver
recording, and other features:

As for the Driver Recorder, it is available for $39 for 1 year, $99
for 3 years, and $149 for a one-time payment. Driving Assistant Plus
with Stop&Go can be added for $20 for 1 month, $210 for 1 year, $580
for 3 years, and $950 with a one-time payment. As for Parking
Assistant Professional, it is available for $5 for 1 month, $50 for
1 year, $130 for 3 years, or a one-time fee of $220.

Hackers are [26]already fiddling with ways to enable the technology
without paying a subscription fee, which will launch an entirely new
cat and mouse game that, if automakers get too creative with their
crackdowns (like claiming you're voiding your warranty by enabling
something you already own), could also run afoul of the FTC's
[27]tougher stance on right to repair issues.

Filed Under: [28]automotive, [29]car, [30]charges, [31]consumers,
[32]rip off, [33]subscription service, [34]vehicles
Companies: [35]bmw
[36]16 Comments[37]Leave a Comment
If you liked this post, you may also be interested in...
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Comments on "BMW Further Embraces Making Basic Features A Costly Subscription
Service"

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Anonymous Coward says:
[45]January 11, 2023 at 6:20 am

When car alarms first became big in the US, the manufacturers would
build in all the hardware and sensors, and the dealers would be able to
charge to "install" the alarm package as an option, ie, activate it.
Almost the same thing.

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David [49](profile) says:
[50]January 11, 2023 at 10:58 am

Re: It different

In your example, you pay once. BMWs new plan charges you every year.

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MickyN [54](profile) says:
[55]January 11, 2023 at 6:30 am

Recurring charge for modems?

I was a little surprised to see that broadband modems incur a monthly
fee from the ISP in the US.
I had assumed it would be the same situation as here in the UK, a
one-off fee when you subscribe with a provider and that's it. Typically
the cost price of the modem only.
Also, when I recently had issues with my modem my provider installed a
replacement - which was their top of the range modem - free of charge.

I have long been baffled by how US phone and internet providers get
away with the price padding they enthusiastically embrace. They would
not have a chance of doing this in the UK or EU without incurring
severe financial penalties.

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mcinsand says:
[59]January 11, 2023 at 7:37 am

Re: monthly modem charge ripoffs

The monthly charges on modems are actually worse than they first
appear. The providers have a recommended list of modems that are
acceptable, and they are all much better performers than the ones they
provide. The payback is about 8-10 months to buy your own, and the
purchased modems work far better.

They not only make money from the monthly charges, they also go cheap
to supply underperforming hardware for that price.

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Anonymous Coward says:
[63]January 11, 2023 at 8:58 am

Re:

Well the US is the land of the free, and that means companies are free
to rip off their customers. It is not helped by regulatory agencies run
by political appointees, which causes changes of direction with every
change of government.

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DannyB [67](profile) says:
[68]January 11, 2023 at 6:38 am

Monthly subscription features are well worth it!

By default the steering wheel allows the vehicle to make a 10 degree
turn.

Additional ten degree increments of tighter turning can be purchased
for $25 per month.

The basic car purchase allows use of the brakes up to 30 times per
month. Additional packages of 30 uses of the brake can be purchased for
an addition $25 per month.

It's all quite reasonable actually.

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Anonymous Coward says:
[72]January 11, 2023 at 6:56 am

In the US, we used to have a subscription fee for corporations. This
fee, aka income tax, was slowly eradicated but left in place for
aesthetic appeal.

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Ninja [76](profile) says:
[77]January 11, 2023 at 7:01 am

The concept of paying to access something already available in hardware
and equipment you purchase is already absurd enough but let's do some
mental exercise here: what if the person goes to a place without mobile
connection (or simply doesn't want the car connected)?

In any case, if I ever have enough money to buy a more expensive car
BMW will not be taken under consideration. If anything, cars with less
connectivity seem to offer more value nowadays. Because you get what
you pay for and no software update will lock you out of functions. In
fact there won't be functions locked behind software.

The future can be awesome but greed will always find a way to taint it.

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Eric says:
[81]January 11, 2023 at 7:15 am

I fixed one mistake

Most of these features are available through either a 1-month, 1-year,
or 3-year subscription, or can be purchased outright for a one-time fee

UNTIL WE DECIDE YOUR CAR HAS REACHED END OF LIFE AND THESE FEATURES ARE
NO LONGER SUPPORTED AT WHICH POINT YOU WILL LOSE WHAT YOU PAID FOR AND
NEED TO BUY A NEW CAR TO GET HEATED SEATS AGAIN
*************.

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Anonymous Coward says:
[85]January 11, 2023 at 2:10 pm

Re:

This is exactly what i was thinking.

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Anonymous Coward says:
[89]January 11, 2023 at 8:00 am

the best way is to hurt BMW in the pocket! dont buy their vehicles and
if you really want one buy one without these `added extras'! loadsa
manufacturers fit these bits and pieces for additional pre-purchase
costs. buy from them instead!

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Anonymous Coward says:
[93]January 11, 2023 at 8:06 am

Hmm... remote door locks, remote engine start... I'm really not in
favor of a car that someone can trigger, then hop in and drive off
while I'm waiting in line for my double espresso.

How much for the BMW that doesn't include this technology?

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Anonymous Coward says:
[97]January 11, 2023 at 8:33 am

What's that about downloading a car again?

I gues we are gonna do more than download a car...

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Haywood [101](profile) says:
[102]January 11, 2023 at 9:45 am

Really?

BMW is on the cusp of being irrelevant. They made some amazing cars
back in the day, high maintenance, but great. They were the standard
against others were judged, especially the M3. But that was long ago,
and now they are adrift, neither a performance, or luxury standard,
just a used to be / washed up has been.

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Anonymous Coward says:
[106]January 11, 2023 at 3:21 pm

Rent will be a differentiator, so maybe this makes someone some money
right now, at the expense of never being a high end brand again. After
a few years, it's more expensive too.

It's like the bait is a driving machine, and the switch is rental car
micro transactions.

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CupidStunt says:
[110]January 11, 2023 at 4:46 pm

Get ready

Soon we won't own anything ..
We will just be charged a recurring fee to use what we already own ..
Cars.. furniture.. whitegoods.. TVs and electronics.. IT and all
software.. water.. air.. streaming services oh wait-

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