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this post was submitted on 11 Oct 2024
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Should they though? The average lifespan of a car is 12 years. Even if they got someone to pay the subscription the entire time, that's like 5% of the value of the car, spread over a length of time that makes it almost worthless. They could more easily charge an extra 1500 for the car, which is more money and it's money they get now and isn't picked apart by inflation.
It's not especially good financially in the short or long term and is harmful to the brand image and customer loyalty.
It's a revenue stream you can collect after the vehicle is sold. Continuous cash flow means long term revenue stability for the business.
And its the introduction of a model that can scale. Once you've got someone's account information, you can sell them more shit (or just sell their data to advertisers). This is just the tip of the spear. Tesla, BMW, and Mercedes are all experimenting with Vehicle as a Service product models.
Investors love the possibility of revenue growth, and these programs promise the possibility of high margin after market sales for the life of the vehicle.
Not when everyone is doing it