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Car Subscription Traps: ADAC Warns of High Costs for Digital Extras

by Michael Brown - Business Editor
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Automakers are increasingly relying on subscription models for digital services, a trend that is catching many car owners by surprise with unexpected costs years after purchase. The German Automobile Club (ADAC) has raised concerns about this growing practice.

Munich – Many drivers are facing unexpected bills as features once advertised as standard with a new vehicle purchase now require ongoing subscriptions. Navigation systems may stop functioning, and remote control apps can become unusable without a paid subscription. This practice, while boosting revenue for automakers, is frustrating customers, particularly those who have invested significantly in premium vehicles. The ADAC has recently examined several of these subscription models.

The increasing reliance on subscription models for digital services is a growing concern for many car buyers. (Symbolic image) © Connect Images/Imago

The automobile club surveyed twelve vehicle manufacturers regarding their subscription pricing, revealing significant disparities. Mercedes-Benz charges up to €329 per year for digital extras, while Audi subscriptions range from €12.90 to €15.90 monthly – up to €190.80 annually. BMW is slightly cheaper at €9.98 per month. The ADAC warns that this issue is often downplayed during the new car buying process, stating, “The shock comes for many after a few years of use.”

Manufacturer Subscriptions: Varying Free Trial Periods

The length of complimentary trial periods also varies considerably between manufacturers. While Audi, Opel, and Volkswagen offer ten years of free remote access via smartphone app, Kia provides 7 years, Renault 5 offers 5 years, and Škoda only 3 years. The cost of these features after the trial period is often undisclosed. Škoda states that its “Škoda Care Connect” remote access service costs €60 annually. However, the Chinese manufacturer Nio offers lifetime free remote access – though these brands currently hold a minimal share of the automotive market in Germany.

Subscription Models Impacting Used Car Buyers

This practice particularly affects buyers of used vehicles, who often acquire cars where the free usage period has already expired or is nearing its conclude. “Used car buyers are often unaware of these additional costs,” the ADAC criticized. Dealers often lack information regarding these future expenses, making it “unacceptable” for drivers.

The automobile club is calling for full price transparency without requiring logins, as well as simple and easily understandable product structures. The current “subscription jungle” of numerous minor add-on services needs to be streamlined. Safety-relevant functions and software updates should remain free for the vehicle’s entire lifespan, and subscriptions should be transferable upon vehicle sale to avoid depreciation.

Alternatives to Manufacturer Subscriptions Available

Drivers seeking to avoid these expensive manufacturer services can utilize third-party apps, according to the ADAC. Most new car models now allow smartphone integration via Android Auto or Apple CarPlay, providing a readily available navigation alternative. However, the club also notes that true alternatives to fully integrated manufacturer navigation systems currently require paid subscriptions from third-party providers, with free versions often offering limited functionality – a potential issue for electric vehicle drivers relying on charging station planning. (Source: ADAC, internal research) (sop)

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