Advertiser Disclosure: At Slickdeals, we work hard to find the best deals. Some products in our articles are from partners who may provide us with compensation, but this doesn’t change our opinions. Our editors strive to ensure that the information in this article is accurate as of the date published, but please keep in mind that offers can change. We encourage you to verify all terms and conditions of any product before you apply.

Reading Time: 2 minutes

Owning a vehicle is already an expensive proposition. From insurance and oil changes to preventative maintenance, the hidden costs associated with cars can add up. Those costs might explode over the next year. Manufacturers dabble with monthly subscription fees for additional features. This includes heated seats or adaptive headlights.
Subscription fees are common in the world of consumer electronics. Spotify, Netflix and even Xbox Game Pass all require ongoing fees to access their portfolio of content. Monthly fees are much less common in the automotive industry. But with vehicles now more connected to the internet than ever, companies are starting to realize the program’s benefits.
According to a new report, prominent manufacturers such as Ford and GM are hoping to generate more than $20 billion a year from ongoing fees. That lofty goal is set for 2030, although they’re already well on their way to exploring what consumers are willing to pay for.
“I think we’re going to see some interesting ebbs and flows of what really sticks,” said Kristin Kolodge, an automotive analyst at JD Power. There’s no doubt monthly fees will bolster industry earnings. But consumers aren’t excited to pay more money for features already included in their car loan. Most owners indicated they wouldn’t be willing to pay even $5 for additional features through a smartphone app.
Some brands are already testing out monthly fees. That includes the ability to start your car through a smartphone app locked behind a paywall. It’s unclear how the market will react as this monetization method spreads to other features. But it’s clear the trend is just getting started.

What Monthly Fees Will Cars See in 2022?

Monetization plans are typically kept under wraps until they’re officially rolled out. But the automotive industry will likely be pushing these subscriptions throughout the rest of the year. Whether or not they stick around, however, is still up in the air.
A study from JD Power (conducted in December 2021) found that 90% of owners don’t pay for monthly apps currently offered by their car’s manufacturer. However, 28% of people are willing to pay for the service in the future. That’s if it meets their needs and is easy to use.
With billions of dollars on the line and plenty of opportunity for innovation, expect to see these monthly access fees tacked on to most cars released in 2022.
More to consider:

JB

Jon Bitner

Jon is a freelance writer who primarily focuses on topics related to video games, science, medicine and technology. Before starting his career as a writer he worked in the Biotechnology industry. He has a degree in Biology, and when he isn't writing he can usually be found traveling, playing video games or hunting down the latest deals.