About a decade ago I attended the annual World Low Cost Airlines’ Congress in London.
It was packed with bosses from budget airlines, such as Ryanair and easyJet, which had shaken up the aviation industry with cut-price fares for seats, but required customers to pay extra for additional services that would be part of the package on mainstream airlines.
Such charges, commonplace today, now cover a range of things such as: speedy boarding, specified seats, luggage, on-board catering, drinks, desired seats.
All of this significantly boosts airline profits by many millions, usually found in their annual accounts under ‘ancillaries’.
Cashing in: Extras are available on the new BMW i7 – they are already built into the vehicle – but you have to pay for a subscription – or lifetime fee – to activate them
Cutting back
But now it’s time for motorists to brace themselves. Because as the cost-of-living crisis starts to bite, the ‘Ryanair effect’ is starting to hit the motor industry, too.
The practice has started most noticeably and controversially with German car giant BMW. But it’s only a matter of time before others follow suit, especially as cars become more digital.
It works like this. When you buy a new car, you generally specify at source the non-standard, physical ‘extras’ you want: upgraded trim; sunroof; vegan seats; carbon-fibre trim; high-end hi-fi; and so on, and that’s all totted up in the final price you pay.
The car you buy also comes equipped with a basic palette of digital services available to the owner — rather like the apps available on your laptop or smartphone.
But even more services are available — either embedded in the car’s electronic hard-drive waiting to be unlocked, or downloadable over the air as software upgrades — if you are prepared to pay a premium for them.
Some can be trialled free of charge for a month.
Adding up
BMW customers are directed to the company’s online ‘ConnectedDrive Store’ which it says ‘lets you equip your BMW with exclusive upgrades, extend your digital services, and more’.
- Fancy a heated steering wheel during a cold snap. That’ll cost you £10 per month, £100 a year, £150 for three years, or £200 for ‘unlimited’ use.
- Adaptive M suspension is priced at £399. It uses sensors to boost and improve dynamic control, adapting to driving and road conditions in seconds, whether on a bumpy street, in a sharp curve or when braking hard.
- High Beam Assistant, which automatically switches your high beams on and off when there is oncoming traffic or a vehicle in front of you, costs from £10 per month, £100 per year, £150 for three years or £200 for unlimited use.
- Drive Recorder films your surroundings for up to 40 seconds using four integrated cameras. Costing £199, it allows the driver to document dangerous driving situations in traffic, record beautiful routes at the press of a button, and is triggered automatically in the event of an accident.
- Apple CarPlay preparation costs £265.
BMW says the ability to add new features to their car can be helpful for owners who change their mind after their purchase, adding that it was particularly useful for those who buy their car second-hand ‘as they now have the opportunity to add features the original owner did not choose’.
Subscriptions also enable drivers to ‘experiment with a feature by purchasing a short-term 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- mode camera for security, video streaming and internet browser.
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 ‘cash grabby’, ‘insane’, ‘dystopian’, and dismissing the move as ‘utterly ridiculous’ and ‘the most annoying thing I have ever heard’.
One noted: ‘If you buy a car with heated seats, you shouldn’t have to pay a subscription fee to use them.’
In a light-hearted swipe at the trend, budget car-maker Dacia announced: ‘In a bid to highlight its opposition to the growing wider industry trend of charging consumers a subscription to access in-car features, car manufacturer Dacia is coming to the rescue in these cold months and giving away free hot water bottles, named Heated Seat Saviours.’
The brand said: ‘The switching on of heated seats, extra manoeuvrability and enabling assisted driving features are all examples of the latest attempts of some car manufacturers to charge consumers for stuff their car has already been built with.’
But it stressed: ‘Dacia’s top specification Sandero Stepway, Duster and Jogger are fitted with heated seats as standard… and you don’t pay to turn them on!’