New York lawmakers are attempting to protect car buyers from a growing trend: subscription fees for features already built into vehicles. A new bill, Assembly Bill A1095, aims to prevent automakers from charging monthly fees for functionalities that should work out-of-the-box. However, significant exemptions could undermine the law’s effectiveness.
The Problem with Car Subscriptions
Modern cars increasingly rely on software to control core functions, and automakers have begun locking some features behind paywalls. What once came standard—like heated seats, advanced driver-assist systems, or even basic engine performance enhancements—now requires a recurring subscription. This practice frustrates consumers who feel nickel-and-dimed for features they already paid for with the vehicle’s purchase price.
How the Bill Works (and Doesn’t)
The proposed law would prohibit automakers from charging extra for features that function fully with existing hardware. If a car has the physical capability, the manufacturer couldn’t force a monthly fee to activate it. This targets obvious cases where a feature is deliberately disabled after purchase.
However, the bill includes broad exceptions that weaken its impact:
- Navigation Updates, Entertainment, and Connectivity: Subscriptions for navigation, satellite radio, Wi-Fi, and telematics are untouched.
- Software-Dependent Features: Crucially, the law exempts driver-assist systems like GM’s Super Cruise, as well as any feature reliant on cellular or data networks. This means automakers could legally continue charging for advanced safety and automation tools.
Automakers’ Likely Response
The exemptions create a clear path for automakers to sidestep the law. By tying more functions to software or data connections, they can justify ongoing subscription fees even for features that were technically available at the time of purchase. Over-the-air updates, while improving vehicles, are inherently software-dependent and therefore fall outside the bill’s protection.
“Automakers will likely exploit the loopholes to continue monetizing features that should be included with the vehicle,” says industry analyst Ben Carter. “The bill is a symbolic gesture rather than a real solution.”
What’s Next
The bill has passed the New York legislature and awaits the governor’s signature. Even if enacted, its impact will likely be limited by the existing exemptions. This highlights a larger issue: the increasing power of software in modern vehicles, and the ability of manufacturers to control access to functionality long after the point of sale.
The move to curb car subscription services may not be as effective as hoped, but it raises the question of whether car buyers should own their vehicles outright or merely rent features from automakers.
