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GM Thinks The Average Car Buyer Will Pay $135 Per Month In Subscriptions

Automakers have fallen in love with subscriptions as they open up a new revenue stream for existing vehicles.

Take the 2022 Toyota Tundra for example, which offers numerous subscriptions after the initial trial period expires. The $8 per month Safety Connect subscription provides automatic collision notification, stolen vehicle location services, and enhanced roadside assistance, while the $8 per month Remote Connect subscription allows you to remotely lock/unlock the doors, start the engine, and honk the horn from your smartphone.

There’s also the $16 per month Drive Connect subscription, which provides cloud-based navigation and an Intelligent Assistant. Customers can also opt for a $200 per year Wi-Fi Connect subscription that allows for Apple Music and Amazon Music streaming as well as a Wi-Fi hotspot for up to 10 devices.

That’s just one example, but it’s easy to see how multiple subscriptions can quickly add up. However, that’s a drop in the bucket as Axios is reporting that GM expects customers will pay an average of $135 per month for various subscriptions in the future. That’s a hefty sum and a recent study from Cox showed 75% of consumers don’t want to pay for subscriptions.

While a majority of consumers seem to despise subscriptions, companies have estimated they could be worth billions of dollars. In particular, Stellantis expects to make $23 billion annually from subscriptions by 2030, while GM believes they could make $25 billion annually.

Of course, consumers will likely have the final word as they’ll likely be forced to pick and choose which subscriptions – such as hands-free driving – are worth it.

Cadillac Super Cruise


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One Comment

  1. I hope it backfires big time and sales fall as customers choose the brand that isn’t raping the customers on top of already overpriced vehicles

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