A new study might make you cheer — or sigh in frustration. Smartcar’s 2025 State of Connected Car Apps report reveals that 76% of drivers are rejecting automakers’ subscription services — those fees for features like heated seats or remote start already built into the car.
This is a loud signal to brands like BMW, Ford, and GM. Are drivers done with the constant upsells, or could subscriptions still find a sweet spot? Here’s why consumers aren’t buying it, what automakers are missing, and how it shapes your next ride.
Smartcar, a company focused on connected car apps - not tied to Mercedes-Benz-owned Smart brand vehicles — surveyed over 1,000 drivers across the U.S. and Europe in early 2025. The findings: 76% won’t touch automakers’ connected services, free or paid.
Take Ford’s BlueCruise hands-free driving for example — $495 a year after a 90-day trial. Or Mercedes’ $1,200 annual horsepower boost for EQ electric models. Even Toyota’s $8 monthly remote start fee. After years of free trials and upsells, drivers surveyed in 2025 hit a tipping point — these features no longer feel optional but predatory. Yet, 56% happily use third-party apps like Waze, which deliver real-time traffic data without fees.
Of the 24% who subscribe, it’s nearly even — 49% pay, 51% get it free with the car. Meanwhile, 40% of drivers don’t even realize these services exist in their vehicles. Automakers expect 96% of new cars to be “connected” by 2030 - Wi-Fi, apps, the works — but with three-quarters opting out, their strategy’s hitting a wall.
The resistance comes down to a few key issues. Subscription fatigue is real — between streaming services and daily expenses, adding car fees feels like a breaking point. BMW’s 2022 attempt to charge for heated seats sparked outrage, and Smartcar’s data backs it up — 77% see these as pure profit plays, while 69% would switch brands to avoid paywalled features. Imagine buying a $40,000 car only to find the full stereo locked behind a $150 annual fee. It’s a hard pass for most.
Value’s another sticking point. Cox Automotive’s 2023 survey showed 53% might accept subscriptions if they cut the car’s upfront cost, but back then, only 21% knew the idea existed. By 2025, awareness has grown, but appeal has shrunk. AutoPacific data reveals EV buyers are slightly more open — 23% would subscribe — compared to 16% for gas cars. Still, that’s a small group. Drivers want solutions, not revenue streams for manufacturers.
Privacy adds a darker layer. Mozilla’s 2024 report gave all 25 major automakers a failing grade on security standards. Cars track speed, braking, even phone contacts if synced, sharing it with manufacturers, insurers, and third parties.
Data sent to insurers can raise premiums based on hard braking or late-night drives — a reality GM drivers faced in 2024 when habits were shared with LexisNexis without clear consent. Kaspersky’s 2024 survey found 72% of U.S. drivers reject this tracking, and 71% would opt for older cars to escape it.
Automakers argue that it’s about safety or innovation, but locking horsepower behind a $1,200 Mercedes paywall feels more like a shakedown. That explains the overwhelming pushback. They’re chasing big numbers — McKinsey forecasts $300-$400 billion in autonomous driving revenue by 2035, with subscriptions as a cash cow.
Tesla’s Full Self-Driving costs $12,000 upfront or $200 monthly, while GM’s Super Cruise is $25 a month after three free years. Over-the-air updates unlock hardware already installed, like BMW’s heated seats. Cox Automotive found 65% like short-term trials, but 49% would keep cars longer if features didn’t vanish behind paywalls later.
There’s a glimmer of hope for manufacturers — Smartcar notes only 11% are fully against subscriptions. Half would use more if prices dropped — say, $5 a month instead of $50. Volvo cut its Care program from $1,800 to $775 for some models after pushback. Brands like Subaru offer free Starlink safety alerts — crash detection, SOS calls — proving subscriptions can win fans when they prioritize drivers over profits. Navigation that outshines Google Maps or alerts that prevent collisions could shift the tide.
For your next car, expect a catch with 2026 models and beyond — more paywalls. Ford’s BlueCruise starts free for 90 days, then jumps to $495 a year. Skip it, and you’re fine, but the upsell pressure will linger. EVs lead the charge — Mercedes and Tesla are committed to pushing subscriptions — while gas cars face lighter fees, like Toyota’s remote start. The fine print matters.
If basics like heated seats or stereo features are locked, many would walk away. Used cars offer an out — 71% of Kaspersky’s drivers are eyeing older models to sidestep this trend.
The Smartcar report highlights a disconnect — 76% of drivers are drawing a line. Automakers have a chance to pivot, but it’s on them to prove subscriptions aren’t just another fee. Would you pay for these features, or is it a dealbreaker? Your take matters.
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Lauren Fix, The Car Coach is a nationally recognized automotive expert, media guest, journalist, author, keynote speaker and television host. A trusted car expert, Lauren provides an insider’s perspective on a wide range of automotive topics and safety issues for both the auto industry and consumers. Her analysis is honest and straightforward.
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