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Auto Manufacturers Weigh Charging for Options and Traditionally Free Services

March 17, 2023 by Jeff Lewis

Could auto manufacturers make you pay a monthly service fee for traditionally free services, such as air-conditioning, heat, or the brakes or the ability to steer? Those last two aren’t likely to happen, but Connor Mahoney of Mahoney Asset Management in Chestnut Ridge says auto manufacturers could be driven to some crazy extremes…

GM recently started forcing buyers of their brands to cough up $1,500 for the mandatory “option” of buying three years of OnStar service. OnStar had been optional since 1996 when GM introduced it. Toyota’s reportedly started charging $8 for drivers to have the ability to use their key fob to remotely start their cars, a formerly free feature. It all began with Tesla, which charges about $10 a month for music streaming, satellite maps and other services.

Filed Under: News

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