Quote:
Originally Posted by TheBingoBalls
I don't think much is going to change. Everyone will have to readjust on how they appraise used cars. If a car cost $50,000, depreciation/resale value will be based on that like it has been - no one should be appraising a car for what was enabled if BMW is going to disable features if a car is sold to a second owner.
Again, all of this is highly reliant on how BMW prices these "fully" loaded cars. The subscription part shouldn't be an issue.
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A lot will change. The cost for BMW will go up since they will be paying to put cruise control radars, heating coils, and cameras in every car. They'll have to make more money to cover this cost as well as make a profit. The money to cover the increased manufacturing cost will have to come from consumers. This could mean hundreds if not thousands more per car. It's simply impossible for either prices or ownership cost to not go up under the subscription model.
Yeah, people will readjust how used cars are appraised in that values will go down. Right now my X3 M40i with a bunch of options is worth more on the used market because when the next owner gets it they know they'll have adaptive cruise, heated seats, heated steering wheel, auto parking, heads-up display, premium sound system etc. Under the subscription model not only would I have paid for those features but my trade-in or resale value will be the same as a base model car with no options whatsoever. BMW is making more money by charging the next owner to unlock stuff already on the car and I'd be loosing out.
A loaded car that should be worth $50k with all the features enabled will now be priced as $45k base-model used car. Lower resale will also hurt lease residuals. That's money straight out of the pockets of people buying new BMWs and into the pockets of BMW corporate.