Automakers Charge Subscriptions for Car Features You Already Own

New Jersey and New York fight back with new legislation against 'subscription extortion'

Mar. 16, 2026 at 2:48pm

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Major automakers like BMW, Volkswagen, and Mercedes are testing monthly subscription fees for features like heated seats, horsepower boosts, and acceleration improvements that are already installed in vehicles. This practice has sparked backlash from customers and lawmakers in New Jersey and New York, who have passed bills to prevent automakers from charging subscriptions for hardware that customers have already paid for.

Why it matters

The subscription model for car features represents a fundamental shift in car ownership, turning vehicles into more of a 'rented' experience like smartphones rather than fully owned hardware. This raises concerns about transparency, fairness, and consumer rights when it comes to accessing features in cars they have purchased.

The details

BMW pioneered the subscription model by locking heated seats behind a monthly paywall, leading to swift customer backlash. Volkswagen and Mercedes have also experimented with subscription-based horsepower boosts and acceleration improvements. Even basic features like remote start are now subject to monthly fees from some manufacturers. Lawmakers in New Jersey and New York have passed bills to prevent automakers from charging subscriptions for features using hardware already installed in vehicles, calling the practice 'subscription extortion'.

  • In 2026, BMW began testing monthly fees for heated seats in several markets.
  • In 2026, Volkswagen offered 27 additional horsepower for $22 monthly through software unlocks.
  • In 2026, Mercedes experimented with subscription-based acceleration improvements.

The players

BMW

A German multinational corporation that manufactures luxury vehicles and motorcycles.

Volkswagen

A German multinational corporation that manufactures automobiles and commercial vehicles.

Mercedes

A German luxury and commercial vehicle brand of Daimler AG.

New Jersey

A state in the Northeastern United States that passed legislation preventing automakers from charging subscriptions for features using hardware already installed in vehicles.

New York

A state in the Northeastern United States that followed New Jersey's lead and passed similar legislation targeting 'subscription extortion' by automakers.

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What they’re saying

“Buying a car used to mean owning everything inside it. Now automakers are flipping that script, putting features you've already paid for behind monthly subscription walls.”

— Al Landes, Tech writer (gadgetreview.com)

“The logic cuts through corporate doublespeak: if you paid for the hardware during purchase, manufacturers shouldn't charge you again to activate it.”

— Al Landes, Tech writer (gadgetreview.com)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This practice by automakers represents a troubling trend of turning car ownership into more of a 'rented' experience, raising concerns about transparency, fairness, and consumer rights. Consumers must now research subscription policies before purchasing a new vehicle and budget for ongoing monthly fees alongside traditional ownership costs.