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> Plus, automakers like VW have high aspirations for new revenue sources beyond just selling cars, and those, too, depend on software. These include features li
by dmm 4y ago
> Plus, automakers like VW have high aspirations for new revenue sources beyond just selling cars, and those, too, depend on software. These include features like connected cars, leveraging data, subscription features, integrating e-commerce and augmented reality into vehicles, virtual assistants, and other features that could redefine how we think of cars entirely.
I'm tired of being a revenue source, along with the associated non-consensual surveillance, telemetry, and updates.
- Arrath 4y agoI'd love a car company that was happy with the revenue of selling me the car in the first place, and would fuck off after that.
- Pet_Ant 4y agoHonestly, they were never that in the first place. Even a few years ago when I worked in the industry they were more interested in using the vehicles as a means of capturing car loans. Upgrades and accessories are essential. As is preying upon anyone whose loan has ventured into positive-equity and rolling them into a new vehicle. The vehicles themselves are basically loss-leaders. They don't actually take a loss (usually) but they aren't the business, they are the bait. source: worked as a developer on multiple inventory and pricing systems for OEMs.
- boppo1 4y agoWhat do you mean positive equity?
- qazxcvbnmlp 4y agoLoan balance = $15k Vehicle worth = $30k. Eg if they sold the vehicle now, they would come out with money as opposed to the vehicle being worth less than the remaining balance on the loan.
- Pet_Ant 4y agoIt's when the value of the vehicle is higher than the outstanding loan. So basically, if you sold off your car you could pay off your loan. Because cars immediately depreciate when you take them off the lot and never go to zero. it's an interesting set of curves. The idea is as soon as someone hits positive equity they can trade in that vehicle and use that as a down payment for a newer one. The idea is that you have a larger down payment and now for the same monthly payment can get a nicer model of vehicle. They present this as "free" because it's the same monthly payment. What they don't mention is that in your current vehicle you may be 12 months away from paying off the vehicle and never paying anything for it again, and now you are back to 48 months or whatever your term is. The idea is to never let you off of making payments and seeing car payments as a monthly expenditure like your utilities instead of as a financed purchase like a home. It's about that MRR.
- ElevenLathe 4y agoIt's been this way for decades, I've seen old film clips of Iacocca talking about it, I think in the early 80s not long after the Chrysler bailout. Probably even predates that.