PODCAST: In-Car Subscriptions vs. Pay-Per-Mile

I get into a discussion with Massimo Pini about The New Hidden Costs of Driving

In today’s rapidly evolving automotive landscape, new business models are emerging that could significantly impact our driving experience. One such development is the rise of in-car subscription services, where manufacturers like BMW are considering charging extra for features that were once standard. But how do these subscriptions compare to pay-per-mile road user charges in terms of restricting our driving freedom? During a recent press drive of the new Nissan Qashqai in Portugal, my friend and fellow motoring journalist Massimo Pini and I got deep into this controversial topic. Our conversation highlighted the growing concerns among car owners regarding these new charges. You can watch the video, or read the full article below.



In-Car Subscription Services

“In-car subscription services, like those proposed by BMW, essentially require owners to pay extra to unlock certain features in their vehicles,” I noted. “Imagine having heated seats in your car but needing to pay an additional subscription fee to use them. This feels like a restriction on your ownership rights. You’ve bought the vehicle, paid for it, and now you have to pay more to use features that are already there.”

Massimo pointed out a potential justification for these services: “For people who finance their vehicles through leasing or personal contract purchase (PCP) arrangements, adding options can increase monthly costs. In a way, it’s similar to subscriptions, but I still see a fundamental difference.”

“Imagine having heated seats in your car but needing to pay an additional subscription fee to use them. This feels like a restriction on your ownership rights.”

Psychological Impact

One significant difference, as I argued, lies in the psychological impact. “Paying for a subscription service feels different because it’s a recurring cost. It’s like paying for a TV channel subscription; you pay the same amount regardless of how much you use it. But for car features, this model can feel like you’re being hit over and over again with charges for something you already own.”

Massimo added, “This approach seems to push us towards reconsidering the concept of vehicle ownership. Leasing and PCP already blur the lines, but subscription services take it a step further.”

Pay-Per-Mile and Road User Charges

Our discussion then shifted to pay-per-mile road user charges, another emerging trend. “Pay-per-mile charges are like a new form of taxation on driving,” Massimo explained. “It’s similar to the existing fuel tax, but more direct. You’re being charged based on the distance you drive, which can feel like an invasion of privacy and a constant monitoring of your movements.”

I agreed, emphasising the potential impact on mental health: “For many car enthusiasts, driving is a form of stress relief. But if you’re constantly thinking about the cost per mile, it changes your relationship with your car. You start to ration your driving, which takes away the joy and freedom that comes with car ownership.”

Implications for Car Owners

The implications of these new business practices are far-reaching. “If subscription services and pay-per-mile charges become the norm, it could fundamentally change how we view and use our cars,” I argued. “It might lead to a scenario where only the wealthy can afford to fully enjoy their vehicles, while others are left paying increasingly higher costs just to use basic features,” we agreed.

Massimo highlighted the broader societal impact: “These changes don’t just affect individual car owners. They have wider implications for our freedom and privacy. If we accept these charges without protest, it sets a precedent for more restrictive measures in the future.”

“If subscription services and pay-per-mile charges become the norm, it could fundamentally change how we view and use our cars, potentially making driving a privilege only the wealthy can afford.”

The Future of Driving

As we continued our test drive through the picturesque roads of Portugal, the conversation inevitably turned to the future of driving. “We are witnessing a shift in the concept of ownership.” Just as the desire to own a house is changing, so too is the desire to own a car outright. This could lead to a future where we no longer own our vehicles but merely rent them with various add-ons.”

Massimo added, “It’s a very capitalistic approach, but it could be good business for manufacturers. They sell the car once, but continue to make money off the features. It’s a steady revenue stream for them.”

However, we both agreed that this model has significant drawbacks. “It’s not just about the financial burden,” I pointed out. “It’s also about the principle of ownership. If you buy something, you should have full access to all its features without additional costs. This new model undermines that basic principle.”

Over to you – Raise YOUR Voice!

As car manufacturers and policymakers explore new ways to generate revenue, it’s crucial for consumers to voice their concerns. The rise of in-car subscription services and pay-per-mile charges represents a significant shift in the automotive industry. It’s up to us to ensure that our rights as car owners are protected and that driving remains an accessible and enjoyable activity for everyone.

Ultimately, the introduction of these new business models could reshape the landscape of car ownership. While they may offer convenience and flexibility for some, they also pose a risk of further encroaching on our liberties and turning driving into a privilege only the wealthy can afford. It is imperative that we remain vigilant and vocal about these changes to safeguard our driving freedom.


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