Automakers have been eager to turn vehicle features into subscription-based services, hoping to tap into a steady stream of post-sale revenue. But there’s a problem: drivers—especially those spending big on premium models—aren’t buying it. Literally.
The pushback has been loud and clear. Whether it’s $15 per month for heated seats or $100 to unlock performance boosts, customers don’t want to pay extra for features that are already built into the car they purchased. They expect a full experience up front, not recurring charges to access what’s physically already there.
So how are car companies adapting? In some cases, they’re getting creative.
Lincoln, for example, has taken a different route from many of its competitors. Instead of hitting buyers with extra monthly charges, Lincoln includes features like hands-free driving (BlueCruise) and premium connectivity in the vehicle’s base price—at least for the duration of the factory warranty, which typically lasts four years. This approach speaks directly to what luxury buyers expect: a seamless, all-inclusive experience.
Dianne Craig, Lincoln’s outgoing president, explained it plainly. Customers who spend $75,000 on a high-end vehicle don’t want to be “nickel-and-dimed” for essentials. They’d rather pay once and enjoy the full value without surprises.
It’s a savvy move for another reason too. Most luxury vehicles are either leased or resold within four to five years—the same window Lincoln covers its features for free. After that, the second owner becomes the target for any ongoing subscription fees. In essence, Lincoln gives the first owner the premium experience, while quietly preserving a revenue stream from the next.
Other automakers are still experimenting. Tesla offers Full Self-Driving as an upfront $8,000 charge or a $99 monthly subscription. GM’s Super Cruise comes included for three years, then shifts to $25 per month. These companies are trying to find the line between value and overreach.
Not everyone is on board. Volvo’s CTO recently admitted that even he wouldn’t want to pay to unlock hardware already in the car—a sentiment echoed by many buyers. While consumers may accept subscriptions for data services like internet streaming or navigation updates, they’re far less tolerant of being charged to activate physical features like climate controls or seat heaters.
The industry is learning: when customers pay a premium for a car, they expect the experience to match. Subscriptions may have their place, but brands like Lincoln are showing that the smartest strategy is simple—give people what they paid for, up front.
