VaughanJB
Scrappy VIP
So the current trend is in subscription models. Negatively known as the "own nothing" model. So we have the likes of Spotify for music, Netflix for movies, and so on. The idea being that these companies generate recurring revenue - the buyer never stops paying.
So what do you think of this model creeping into the area of new vehicles?
Here is the thinking from a manufacturers perspective, using BMW as an example. BMW had to build several versions of its cars, from versions with no additions to the basic model, to top of the line models with all the bells and whistles. This makes the overall cost of making the cars more expensive. So they went with a new model. In this new model, every car bought and delivered was built to the spec of the top line models. All the features were built into the car.
For example - seat warmers. The coil to heat the seat was installed in every model, even those sold at a cheaper price that aren't supposed to have them. However, these features are then DISABLED in software. So, if you were willing to pay $18 a month, your seats could be warmed. If you didn't, they weren't. Other features (and this isn't solely a BMW issue, for example, Tesla have an "Acceleration Boost" option for around $2000 which is purely software controlled. Others have Adaptive cruise control, remote start, access to wi-fi hotspots etc.
So what do you think of this? Would you be happy to pay a monthly subscription to upgrade your car, knowing that the upgrades are already inside the vehicle you bought, but they're hidden behind a paywall to stop you using them. Another example of the future being a scary place?
So what do you think of this model creeping into the area of new vehicles?
Here is the thinking from a manufacturers perspective, using BMW as an example. BMW had to build several versions of its cars, from versions with no additions to the basic model, to top of the line models with all the bells and whistles. This makes the overall cost of making the cars more expensive. So they went with a new model. In this new model, every car bought and delivered was built to the spec of the top line models. All the features were built into the car.
For example - seat warmers. The coil to heat the seat was installed in every model, even those sold at a cheaper price that aren't supposed to have them. However, these features are then DISABLED in software. So, if you were willing to pay $18 a month, your seats could be warmed. If you didn't, they weren't. Other features (and this isn't solely a BMW issue, for example, Tesla have an "Acceleration Boost" option for around $2000 which is purely software controlled. Others have Adaptive cruise control, remote start, access to wi-fi hotspots etc.
So what do you think of this? Would you be happy to pay a monthly subscription to upgrade your car, knowing that the upgrades are already inside the vehicle you bought, but they're hidden behind a paywall to stop you using them. Another example of the future being a scary place?