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New Car Buyers Don’t Want To Pay Monthly Fees For Certain Features

Connected vehicle technology is a big part of Ford’s future plans, as the automaker expects to generate $20 billion in annual revenue by 2030 from both its retail and Ford Pro business in that regard, as well as leverage that technology to reduce marketing and warranty costs. FoMoCo has already said that some of these features and services will be free, while others will be subscription based, but it appears that new car buyers have a very strong opinion on that topic, according to a new survey from Cox Automotive.


A full 75 percent of new car buyers surveyed by that organization said that they are not willing to pay an annual or monthly subscription fee for most features on their next new vehicle, and instead expect those features and services to be included in the vehicle’s sales price. In terms of which types of features and services new car buyers expect to be included, that list includes safety and comfort features such as heated and cooling seats (indicated by 92 percent of those surveyed), remote start (89 percent) lane-keeping assist (89 percent), and automatic emergency braking (87 percent).

Of the 25 percent of buyers that said they would be willing to pay for such services, more than 80 percent said they would fork out between $30-$35 a month for those same aforementioned safety features, $20-$25 a month for things like performance upgrades, over-the-air software updates, and stolen vehicle tracking, as well as $15-$31 a month for creature comforts such as heated/cooling seats and remote start.

While Ford CEO Jim Farley previously criticized BMW for its heated seat subscription model, The Blue Oval has launched some other subscription features, including stolen vehicle services in Europe. The automaker has also enjoyed a tremendously positive response to its FordPass and LincolnWay apps, which tout a 91 percent adoption rate and a total of 8 million users thus far.

We’ll have more on Ford’s connected vehicle push soon, so be sure and subscribe to Ford Authority for continuous Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. Greggt

    When Ford starts this money grab, I’ll be driving a RAM instead of my Lariat!

    Reply
    1. Lonnie

      Ram already does subscription services.

      Reply
  2. Michael

    I do not have any of those features on my 96 Ranger Splash, and I do not want them on my next vehicle, little alone pay a monthly fee to use them. A recession is coming, and hopefully that will put an end to all of this price gouging by the automakers and dealers, and all these fancy ideas of subscription services. Toyota and Mercedes have already tried this and have had to back off, and other subscription services like Netflix are loosing subscribers by the 1000s. The writing is on the wall.

    Reply
  3. David Dickinson

    Not one single dollar more. Ever.

    Reply
  4. NCEcoBoost

    For years, I’ve paid for OnStar (for GM vehicles) and for Sirius XM on all of our vehicles, but that’s as far as I’d ever go.

    Reply
  5. Johnb

    How can they charge a subscription for heated and cooled seats when you own the vehicle. I am the same as Gregg, Ram instead of Lariat. Talk about gouging!!

    Reply
  6. Richard

    I will NEVER pay a subscription for something that is mechanically built into the car like heated seats. That sounds idiotic. What is next? A subscription to lower your window. Heated Seats as a subscription is ludicrous.

    Reply
  7. Steve in Oregon

    When will Ford charge a fee to Ford Authority for info or to even use the name Ford and will Ford Authority then pass the fee on the readers? Looks like a new industry, programs to turn these things on without a fee.

    Reply
  8. JOSEPH MARSHALL

    No way I’d pay more for the subscriptions it’s bad enough to have a monthly payment you plan for and still have money left over for electric food home payments Ford would lose me after having Ford products since 64 I would be saden when this happens

    Reply
  9. newshoes

    Why not a fee to use the cabin heater, A/C, or turn-signals, or headlights?
    I can just see the customers reactions at the delivery when the F&I person says the additional monthly cost for subscription to use mechanical features is X$ . Personally I’d get up and walk out – NO SALE for you. Get real Ford.

    Reply
  10. Mike

    Not a chance I’d pay for anyone of those, monthly. I’d do $35 a month if all of them were included and it took several thousand off the sale price but that would never happen. They’d have to put them in all the cars in case someone wanted it, so it would become part of the base price. My Ford /Lincoln ownership would stop at 71 vehicles

    Reply
  11. Hugh

    I would walk first

    Reply

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