Remember when buying a car meant paying once, grabbing the keys, and driving off into the sunset? That era may be fading fast. Automakers are quietly transforming the way drivers pay for their vehicles, and your next car could come with a growing list of monthly charges long after you have left the dealership.
GM Leads the Subscription Charge
General Motors is leading the charge, betting that subscriptions for features like navigation, safety systems, and hands-free driving will soon become a major profit engine, potentially generating billions of dollars a year and, in some cases, even more than selling the cars themselves. GM says its software arm keeps about 70 cents of every dollar it makes, a staggering level of profitability in an industry where selling a car typically brings in just 4 to 10 cents on the dollar.
Instead of paying upfront for everything, drivers now get certain features included for a limited time, often just a few years, before being asked to pay monthly or annually to keep them. In its latest earnings update on Tuesday, GM said it expects to generate $3.1 billion from digital subscriptions this year.
‘We think there is a growth opportunity there with very attractive margins,’ CEO Mary Barra told investors. GM already has around 13 million subscribers paying for various in-car services, and that number is expected to climb rapidly as more vehicles come equipped with built-in technology.
Popular Features Now Require Ongoing Payments
Some of the company’s most popular features, including its hands-free driving system Super Cruise and in-car mapping service Maps+, come with a free trial period. After that, drivers must decide whether to continue paying. GM said about 40 percent of drivers keep paying for Super Cruise after the trial ends, with the service on pace to reach 850,000 subscribers by the end of the year.
For consumers, it means the true cost of owning a car may stretch far beyond the sticker price and become a monthly expense. Premium subscription packages can cost more than $700 a year, and while not every driver will sign up, automakers do not necessarily need them to.
Ford Follows Suit with Paid Features
Ford has also started charging drivers for features that used to come as standard. Its 2025 F-150 no longer includes the SecuriCode keypad, a long-running feature that lets drivers unlock their truck without keys, unless buyers pay an extra $455. The keypad has been a staple on Ford vehicles for decades. Now, drivers must either pay for it or rely on phone-based apps instead.
Industry Experts Weigh In
Auto experts say this shift is not only here to stay but likely to accelerate. New York-based analyst Lauren Fix told the Daily Mail that US automakers pulled in roughly $2 billion to $4 billion in subscription revenue in 2025, with GM dominating the space. She added that total committed or deferred subscription revenue is already estimated at more than $5 billion to $8 billion and growing fast, while around 30 percent to 50 percent of drivers continue paying for features after free trial periods end.
However, Fix cautioned that while automakers are pushing the model aggressively, it is far from new, and consumers have pushed back before. ‘In the past, BMW tried subscription fees for heated seats, Mercedes charges for extra performance in some models, Tesla charges for Full Self-Driving at about $99 a month, and other brands like Toyota have experimented with charging for navigation,’ she said. ‘Consumers always push back, and so do dealers who are face-to-face with buyers.’
She warned that requiring subscriptions for basic features can frustrate drivers, particularly in areas with poor connectivity. ‘Having to rely on apps like Apple CarPlay or Android Auto is fine, until you only have one or two bars of signal,’ she said. ‘That creates frustration with the brand and erodes loyalty.’
According to Fix, the strategy could backfire if customers feel they are being ‘nickel-and-dimed’ for features that were once included. ‘The result we have seen in the past is that brands eventually roll these services back into the price because consumers will not pay extra,’ she added.
In GM’s case, she said the company is effectively unbundling services, charging separately for features like SiriusXM and navigation that were once standard. ‘Super Cruise and OnStar are strong products, but once you start stacking subscriptions, the monthly cost adds up quickly,’ she said. ‘Customers either skip them or complain, and that does not build long-term loyalty.’
She added that the broader push toward subscriptions is partly driven by financial pressure across the auto industry. ‘Automakers took huge losses trying to go all-electric, and many have not made profits there,’ she said. ‘Now they are looking to make up the difference with subscription services. Some will succeed, but if it pushes up monthly costs, that is a real problem.’
Future Outlook: More Bundling and Recurring Revenue
Looking ahead, retail and consumer strategist Jackie Swanson, managing partner at Gartner Consulting, said consumers should expect even more aggressive pricing models. ‘We are going to see aggressive subscription bundling across the industry over the next 18 to 24 months,’ she said. ‘Manufacturing is quietly becoming a recurring revenue business. The vehicle is the hardware, but the relationship, the data, the features, and the safety systems are where the ongoing revenue lies.’
She added that investors are already beginning to view automakers more like tech firms. ‘The metrics that matter are shifting. You should start reading automaker earnings reports the way you read SaaS companies,’ she said.
Meanwhile, Chris Neiger, a contributing auto analyst at The Motley Fool, said that while he believes GM is being ‘smart’ with its tactics, the company will need to strike the right balance when charging for new services and be transparent with customers. Echoing Fix, he added: ‘Nobody wants to feel like they are being nickel-and-dimed on features years after they have driven their car off the dealer lot.’
The Daily Mail has contacted General Motors for comment on its subscription rollout.
