The true cost of driving: Car makers now charge to activate pre-installed extras

About ten years ago I attended the annual World Low Cost Airlines’ Congress in London.

It was full of low-cost airline bosses, such as Ryanair and easyJet, who had shaken up the airline industry with reduced seat fares but required customers to pay extra for extra services that would be part of regular airlines’ package.

Such charges, now commonplace, now cover a range of things such as: fast boarding, specified seats, luggage, onboard catering, drinks, preferred seats.

All this significantly increases the profits of airlines by many millions, usually reflected in their annual accounts under ‘accessories’.

Prune back

But now it’s time for motorists to brace themselves. Because as the cost-of-living crisis begins to itch, the “Ryanair effect” is starting to hit the auto industry as well.

The practice started most notably and controversially with German auto giant BMW. But it’s only a matter of time before others follow suit, especially as cars become increasingly digital.

It works like this. When you buy a new car, you generally specify at the source the non-standard, physical “extras” you want: upgraded equipment; sunroof; vegan chairs; carbon fiber finish; high end hi-fi; and so on, and it all adds up to the final price you pay.

The car you buy also comes with a basic palette of digital services available to the owner, similar to the apps available on your laptop or smartphone.

But there are even more services available – either embedded in the car’s electronic hard drive waiting to be unlocked, or downloaded over the air as software upgrades – if you’re willing to pay a premium for them.

Some can be tried for free for a month.

Add up

BMW customers are directed to the company’s online ‘ConnectedDrive Store’, where it says ‘you can equip your BMW with exclusive upgrades, expand your digital services and more’.

• Fancy a heated steering wheel during a cold spell. That will cost you £10 a month, £100 a year, £150 for three years or £200 for ‘unlimited’ use.
• Adaptive M suspension costs £399. It uses sensors to boost and enhance dynamic control, adapting to driving and road conditions in seconds, be it on a bumpy road, on a sharp bend or hard braking.
• High Beam Assistant, which automatically turns your high beams on and off when there’s oncoming traffic or a vehicle in front of you, costs from £10 a month, £100 a year, £150 for three years or £200 for unlimited use.
• Drive Recorder films your surroundings for up to 40 seconds with four built-in cameras. Costing £199, it allows the driver to capture dangerous driving situations in traffic, capture beautiful routes at the touch of a button and activates automatically in the event of an accident.
• Apple CarPlay preparation costs £265.

BMW says the ability to add new features to their car could be useful for owners who change their mind after purchase, adding that it was especially useful for those buying their car second-hand “as they now have the option to adding features that the original owner did not choose’.

Subscriptions also allow drivers to “experiment with a feature by purchasing a short trial before committing to a purchase,” it said.

Far and wide

Tesla also offers a variety of upgrades through an online option called Premium Connectivity, which costs £9.99 a month and includes a sentry camera for security, video streaming and internet browsing.

Music streaming and even a karaoke function are also available.

But there has already been a backlash, with critics on Twitter accusing BMW of being ‘money grabbing’, ‘insane’, ‘dystopian’, dismissing the move as ‘utterly ridiculous’ and ‘the most annoying thing I’ve ever heard’ .

One commented, “If you buy a car with heated seats, you don’t have to pay a subscription fee to use them.”

In a light-hearted swipe at the trend, budget carmaker Dacia announced: “In an effort to highlight its opposition to the growing trend in the wider industry to charge consumers for a subscription to access in-car features, carmaker Dacia is coming to the rescue in these cold months and giving away free hot water bottles called Heated Seat Saviors.’

The brand said: “Turning on heated seats, added maneuverability and turning on driver assistance features are all examples of some automakers’ latest attempts to charge consumers their cars are already built with.”

But it stressed: ‘Top spec Dacia’s Sandero Stepway, Duster and Jogger come with heated seats as standard… and you don’t pay to have them on!’