In the end, the KIA car company made its cars into subscription models, I really hate this because in the end the car we buy with our own money doesn’t feel like it belongs to us.
Should we finally buy an old school car ? so as not to be affected by this subscription models or is there a way to crack the software installed in it ?
The issue is that with ongoing service across time, the longer the service is being used the more it costs Kia. The larger the time boxes Kia uses the bigger the number is and the more you’re going to scare off customers.
Using Kias online build and price, looks like the most expensive Telluride you can get right now is $60k MSRP, cheapest at 30k
Let’s assume Kia estimates average lifetime of a Telluride to be 20 years so they create an option to purchase this service one time for the “lifetime” of the vehicle. Taking in good faith the pricing Kia has listed, using that $150 annual package, and assuming that price goes up every year at a rate of 10% (what Netflix, YouTube, etc have been doing) across those twenty years you’re looking at around $8.5k option. At the top trim thats still 14% extra that is going to make some buyers hesitant, at the base model that’s 28% more expensive.
Enough buyers will scoff at that so Kia can either ditch the idea entirely as they’ll lose money on having to pay for the initial development and never make their money back, or they find some way to repackage that cost and make it look like something that buyers are willing to deal with.
To me the bigger issue is the cost of the service vs what you’re getting. Server time + dev team + mobile data link cannot be costing Kia more than a few million annually, mid to upper hundred K is more likely so they must not be expecting that many people to actually be paying for any of this
Oh yeah I pulled 20 years out of my ass. I could see some manager there saying to plan for it even though all the engineers expect a much shorter lifetime
Kia is actually among the most reliable brands now according to consumer reports (at least for EVs? I don’t have a CR subscription so I can’t check the overall numbers)
Assume the communication with the app it through Internet. The car must have a 4G chip (too early to see 5G in cars, I think?). So no matter what you pay, it won’t work when 4G is retired. With marketing pushing to get new standards always faster, 4G may not last another 20years.
Anyway, bear in mind that once you subscribe, they will most likely collect detailed data about how you use the features and sell that as well…
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The issue is that with ongoing service across time, the longer the service is being used the more it costs Kia. The larger the time boxes Kia uses the bigger the number is and the more you’re going to scare off customers.
Using Kias online build and price, looks like the most expensive Telluride you can get right now is $60k MSRP, cheapest at 30k
Let’s assume Kia estimates average lifetime of a Telluride to be 20 years so they create an option to purchase this service one time for the “lifetime” of the vehicle. Taking in good faith the pricing Kia has listed, using that $150 annual package, and assuming that price goes up every year at a rate of 10% (what Netflix, YouTube, etc have been doing) across those twenty years you’re looking at around $8.5k option. At the top trim thats still 14% extra that is going to make some buyers hesitant, at the base model that’s 28% more expensive.
Enough buyers will scoff at that so Kia can either ditch the idea entirely as they’ll lose money on having to pay for the initial development and never make their money back, or they find some way to repackage that cost and make it look like something that buyers are willing to deal with.
To me the bigger issue is the cost of the service vs what you’re getting. Server time + dev team + mobile data link cannot be costing Kia more than a few million annually, mid to upper hundred K is more likely so they must not be expecting that many people to actually be paying for any of this
Ay LMAO
Oh yeah I pulled 20 years out of my ass. I could see some manager there saying to plan for it even though all the engineers expect a much shorter lifetime
Kia is actually among the most reliable brands now according to consumer reports (at least for EVs? I don’t have a CR subscription so I can’t check the overall numbers)
Assume the communication with the app it through Internet. The car must have a 4G chip (too early to see 5G in cars, I think?). So no matter what you pay, it won’t work when 4G is retired. With marketing pushing to get new standards always faster, 4G may not last another 20years.
Anyway, bear in mind that once you subscribe, they will most likely collect detailed data about how you use the features and sell that as well…
Reminder buying isn’t owning anymore.
https://www.latimes.com/business/story/2023-09-06/carmakers-privacy-data-collection-drivers