You Bought The Car. Why Are You Still Paying For Subscriptions? Automakers are turning vehicles into app stores, but drivers have already drawn a line between paying for connected services and renting hardware they own. You buy a new car. You pay the destination charge, registration fees, and taxes. Then you start to see your monthly payment roll in as well. Maybe a few months to a year later, however, the car asks for another credit card. Features that once came with the vehicle, or were purchased once as an option, can now be packaged through monthly or annual subscriptions. Navigation data, hands-free driving, extra performance, and basic convenience features are all potential sources of recurring revenue. Drivers may hate the idea, and rightfully so, but subscription features probably aren’t going away. Your Car Is Becoming an App Store Modern vehicles are packed with computers, cameras, cellular connections, and software that can be updated without a dealership visit. That lets automakers sell features long after the car leaves the factory. Tesla’s Premium Connectivity plan adds cellular access to features such as live traffic visualization and satellite-view maps for $9.99 per month or $99 per year. Tesla also offers "Full Self-Driving" for $99 per month on eligible vehicles. Ford takes a similar approach with BlueCruise. Its hands-free highway-driving system costs $49.99 per month, $495 per year, or $2,495 as a one-time purchase when the vehicle is purchased. The hardware already sits inside the car. Software decides whether the owner can use it. Why Automakers Love Subscriptions The traditional car business revolves around one major transaction. A manufacturer sells a vehicle, then waits years for that customer to buy another one. Or occasionally pop in for service visits. Subscriptions change the math. A software feature can generate revenue throughout the vehicle’s life.