In a new episode of “Fresh Technology Hell,” car companies are testing the waters for subscriptions. First, it was BMW that wanted users to pay a regular fee for seat warmers. Now, Volkswagen wants users to pay for accessing all the car’s horsepower.
The version of a popular EV called ID.3 Pure is listed in the UK as having 168 horsepower (hp), but the fine print says that engine power is “148 hp standard” and 168 hp “if you activate the optional power upgrade for a fee.” The fee itself is the equivalent of $22.50 a month to unlock 20 hp, or $879 in total to have it permanently. That’s almost three times more than Netflix.
Buy the Car, Pay to Use It
For now, this seems to only apply to this particular model and for UK users (the model isn’t sold in the US). But it seems to be part of a growing trend to get users to pay various subscriptions on their cars.
Volkswagen says range doesn’t change no matter what you do. Because the car is registered at 168 hp from the factory, owners aren’t expected to update insurers, either. Volkswagen says it’s not uncommon for cars to have a sporty version; the only difference is that this one has both. In effect, VW is selling the “sportier” version via software instead of hardware, introducing ongoing costs and creating two tiers of otherwise identical cars on the used market.
“If customers wish to have an even sportier driving experience, they now have an option to do so, within the life of the vehicle, rather than committing from the outset with a higher initial purchase price. The car is presented on the configurator with [201bhp], with the option made very clear to customers,” a company statement says.
The company is betting that buyers will see this as a flexible option. You can try the extra power for a month. Keep it for a summer road trip or pay once and have it forever. Well, at least for as long as the car remains in your driveway. Because the lifetime upgrade is tied to the vehicle, not the person, it may help resale value, creating two tiers on the used market: identical ID.3s that differ only by a software key.
But for buyers, it really feels like you’re being sold a product that has the feature and asked to pay extra for it.
Cars are Becoming App Stores
Under the hood, the mechanism is straightforward. Electric cars are “computers on wheels.” The motor and battery can already support the higher output. But software limits how much power flows through the inverter, the device that controls the motor. An over-the-air update lifts that limit within safe margins, much like removing a speed cap on a treadmill. No new hardware is installed.
But this already leads to some fun questions. What happens if you jailbreak your car’s software? What if you “hack” it to unlock the extra feature, are you culpable for for that? Also, what are you paying for when you buy a car? It seems that car manufacturers believe you’re not just paying for the car itself, you’re also paying for ongoing services like security patches and performance.
In this approach, this is part of a broader shift toward “software-defined vehicles,” in which features can be switched on or off long after a car leaves the factory. Polestar already sells a similar downloadable performance boost. BMW experimented with subscriptions for features like heated seats in 2022, then backed away after pushback. The subscription model promises steady revenue for automakers, but it also tests drivers’ patience. Many expect to own the capabilities baked into their cars.
Essentially, cars are becoming app stores on wheels. That can be empowering because you can have features tailored to you, when you want them. But it can also feel like buying a house and discovering the kitchen runs on microtransactions. As manufacturers chase recurring revenue and drivers chase value, the next great horsepower war may be waged not in the engine bay, but in the terms and conditions.
