Consumers are increasingly resistant to paying for features they once expected to be included, yet automakers continue to push subscription models for in-car hardware and software. Built-in capabilities — from advanced driver assistance systems and cameras to navigation perks and Wi‑Fi — are being packaged as recurring services, but early attempts to lock these behind paywalls have met with limited consumer enthusiasm.
A recent S&P Global Mobility survey found that willingness to pay for connected vehicle services fell to 68% this year from 86% in 2024, a clear sign that many drivers are balking at another monthly bill. The report notes that subscription-based services such as navigation and in-car Wi‑Fi are running up against price-sensitive consumers who may not see the value in ongoing fees for features they rarely use.
Many in-car features have free trials
To persuade drivers, manufacturers are offering a variety of subscription tiers and trial periods. Consumers can subscribe to semi-autonomous driving, roadside assistance, in-vehicle apps, stolen vehicle recovery, and mobile hotspot access, often at separate price points. Those free trials—designed to showcase a feature’s utility—are a common tactic to convert users to paying customers.
Still, the cost remains a major obstacle. Subscription fees are added on top of the sticker price for new vehicles, and for many buyers that cumulative expense is a deterrent. For example, Ford’s hands-free driving option carries a 90-day free trial before an annual fee ranging from $650 to $900. General Motors’ OnStar service can reach $39.99 per month after its trial period, according to company information.
Automakers are hopping on the subscription bandwagon
Even brands known for value-oriented cars have joined the push toward connected subscriptions. Kia, for instance, offers a three-tier subscription structure after an initial three‑year complimentary period, covering services like charging-station locators, digital smartphone keys, and roadside emergency assistance.
Stephanie Brinley, associate director of auto intelligence at S&P Global Mobility, says the subscription model is still evolving: “We’re trying to figure out what consumers are willing to pay for, how much they’re willing to, (and) how they want it bundled.” Automakers are experimenting with bundles and pricing to identify the sweet spot that balances customer uptake with profitable recurring revenue.
Rather than retreating after early pushback, many manufacturers are doubling down by introducing new technology that they hope will justify subscriptions. Daniel Ross, senior manager of industry insights at Canadian Black Book, explains that the industry is shifting promotion toward features that are genuinely new to buyers. “It’s more on what’s new and what they’ve never had before,” he said, noting that fresh features create opportunities to offer upgraded software and services across new vehicle generations.
That pitch is straightforward: if a driver wants the latest advanced technology—something they can show friends and benefit from—subscribing may be presented as the easiest way to access it.
As technology scales, features could get cheaper
Industry analysts say the economics favor software-based services once platforms and capabilities scale. Brinley notes that after initial development costs, the margin on connected services can be high. The critical question for consumers is not connectivity itself, she says, but the practical value that connectivity brings to ownership: safety, convenience, or functionality.
Some buyers may find clear value in safety and security packages such as GM’s OnStar, which can automatically alert responders in a crash. Others may use hands-free driving or advanced cruise systems temporarily—such as paying for a month of a self-driving feature during a long trip. “The appeal of a feature is that it makes driving easier,” Brinley said.
Automakers are now more openly discussing revenue expectations from subscriptions, which suggests growing confidence in the business model. On recent earnings calls, GM projected revenue from Super Cruise to exceed $200 million in 2025 and to more than double in 2026. Ford has reported that the number of vehicles equipped with its BlueCruise hands-free system more than doubled over the past year to nearly 700,000 units, and executives are framing subscriptions as a way to extend customer relationships beyond the point of sale.
Relying on the trickle-down effect to sell subscriptions
One strategy automakers expect to drive broader adoption is the trickle-down effect: advanced features introduced first in premium models eventually migrate to mainstream vehicles. As these capabilities become more common, consumers may come to expect them as part of a modern driving experience or be willing to pay for short-term access when necessary.
Brinley observes that consumer expectations will shift as connected features become familiar. “If you have a car that has some of these features and then you go to buy the next car, you think that it just should be there,” she said. Over time, flexibility in how services are packaged and consumed—subscription, pay-per-use, or permanently unlocked—will likely shape purchasing decisions.
For now, automakers face the twin challenges of convincing reluctant buyers to accept recurring fees and proving the tangible benefits of connected services. Their path forward includes refining bundles, lowering costs by scaling platforms, and continuing to innovate with features that offer clear, demonstrable value to drivers.
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