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New Jersey legislators aim to ban most in-car subscriptions

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Re: New Jersey legislators aim to ban most in-car subscriptions

#3
I don't get it. People seem to think that if you ban this practice, you'll get the premium package for free. That's not going to be the case.

Currently, you can pay for heated seats all up-front or via a monthly subscription. This proposed legislation prevents you from paying for it via a monthly subscription. So automakers will stop allowing you to do that. All you've done is limit customer choices.

Re: New Jersey legislators aim to ban most in-car subscriptions

#4
post #3

I don't get it. People seem to think that if you ban this practice, you'll get the premium package for free. That's not going to be the case. Currently, you can pay for heated seats all up-front or via a monthly subscription. This proposed legislation prevents you from paying for it via a monthly subscription. So automakers will stop allowing you to do that. All you've done is limit customer choices.

Good, it shouldn't be an option. Killing the subscription model for cars in the crib prevents the subscription model from eventually being your only choice one day.

Re: New Jersey legislators aim to ban most in-car subscriptions

#5
post #3

I don't get it. People seem to think that if you ban this practice, you'll get the premium package for free. That's not going to be the case. Currently, you can pay for heated seats all up-front or via a monthly subscription. This proposed legislation prevents you from paying for it via a monthly subscription. So automakers will stop allowing you to do that. All you've done is limit customer choices.

Price discrimination often allows producers to capture more of the surplus for complicated reasons that mostly boil down to the fact that they are the party with more information.

A limit on complicated pricing models likely results in some deadweight loss, but may result in higher aggregate consumer surplus.

Choice isn't everything.

Re: New Jersey legislators aim to ban most in-car subscriptions

#6

Go New Jersey! Now get Texas and California on board so car companies don't bother offering these in the country at all

Aren't they suing California now for having "too strict" of emissions regulations because California's position in the marketplace makes it so that their rules become de facto law of the land? If that goes through, I'm not really sure if California can do really any automotive regulation that other states won't like.

Re: New Jersey legislators aim to ban most in-car subscriptions

#7
post #6

Go New Jersey! Now get Texas and California on board so car companies don't bother offering these in the country at all

Aren't they suing California now for having "too strict" of emissions regulations because California's position in the marketplace makes it so that their rules become de facto law of the land? If that goes through, I'm not really sure if California can do really any automotive regulation that other states won't like.

No post body was provided.

Re: New Jersey legislators aim to ban most in-car subscriptions

#8
post #3

I don't get it. People seem to think that if you ban this practice, you'll get the premium package for free. That's not going to be the case. Currently, you can pay for heated seats all up-front or via a monthly subscription. This proposed legislation prevents you from paying for it via a monthly subscription. So automakers will stop allowing you to do that. All you've done is limit customer choices.

Nope. The cost of the hardware is always necessarily still passed on to the customer before they even pay for the subscription to "unlock" it. It's double dipping.

It makes no sense to gamble that upsells will be successful in exchange for a more competitive price. There's guaranteed loss with that idea.

The components pre-installed must cost something and it's not possible for the manufacturer to get that money back unless they both installed inferior junk nobody wants and then baked it into the price.

Re: New Jersey legislators aim to ban most in-car subscriptions

#9
post #3

I don't get it. People seem to think that if you ban this practice, you'll get the premium package for free. That's not going to be the case. Currently, you can pay for heated seats all up-front or via a monthly subscription. This proposed legislation prevents you from paying for it via a monthly subscription. So automakers will stop allowing you to do that. All you've done is limit customer choices.

> People seem to think that if you ban this practice, you'll get the premium package for free.

No, no one thinks that. What people do think is that if they buy it, they will own it, and it will be theirs. Not a rental from a megacorp whose auth servers shit the bed on the coldest day of the year.

Re: New Jersey legislators aim to ban most in-car subscriptions

#10
> if an automaker or other associated party can prove that it costs money to maintain the feature and/or service in question, then it'd be legally allowed. This would include services like OnStar and such.

While I don't disagree with the exception here, I think they should outlaw mandatory subscriptions... like OnStar, which GM has started to add to most of their cars. It's not in the MSRP, but it's a required cost at the dealer.

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