Goodbye to car subscription fees: New York wants to ban automakers from charging for built-in car features
New York lawmakers aim to ban automakers from charging subscriptions for built-in car features, a move that could reshape the auto industry.
New York is about to stop automakers from charging drivers for factory-installed car features, like heated seats and other basic comfort or safety features. The legislation, now awaiting the governor’s signature, would curb the growing practice of tying built-in vehicle features to subscription fees. For drivers, it’s a potential win. Once you buy a car, you won’t be asked to pay monthly to use what’s already there.
What the bill does
A1095 would prohibit vehicle sellers from charging a purchase fee or recurring subscription for any “motor vehicle feature” that uses components and hardware already installed in the car at the time of sale or lease. The bill further clarifies that the ban applies only when the feature “would function after activation without ongoing cost to or support by the dealer, manufacturer, or any third-party service provider.” If automakers are found to have violated the bill, the bill authorizes civil penalties to enforce compliance and deter subscription paywalls on hardware already provided to buyers.
What’s covered in the bill
Under the proposed bill, features that come factory-installed (like heated seats & remote start) are the clearest examples of what would be protected from “subscription gating”. The protection is intended to prevent companies from selling access to capabilities already included with a vehicle purchase via subscriptions.
What the law doesn’t cover
A1095 explicitly does not apply to services that require ongoing external support, like real-time navigation updates or telematics that rely on continuous network access. That means automakers can still charge for connected services that entail recurring costs or third-party licenses. Essentially, it’s more about banning subscriptions for features installed in a vehicle that don’t require ongoing cloud support.
How we got here
This bill feels like it’s been a long time coming, as automakers have experimented with software locks on hardware to create recurring revenue streams, arguing that subscriptions give buyers optionality and generate post-sale income for manufacturers. The backlash began when reports surfaced that some brands intended to charge monthly for features physically present in the car. One of them is BMW’s trial of paid heated-seat access, a case that drew major consumer anger and online ridicule.
Public reaction
Since the bill’s announcement, reactions on social media and car forums have been emphatic. Many drivers view subscription gating as double-charging and an erosion of ownership rights. In a Reddit thread titled “subscription fee laws”, one user commented, “Hope this passes. I can understand remote start with the app having a cost since it does require a cell connection, but locking remote start with the keyfob behind a subscription is awful.”
Another user added, “This is reasonable, and manufacturers should accept it’s reasonable. It doesn’t (from just reading the lede) prevent them from charging you subscriptions, though. You want to activate the heated seats already fitted in your vehicle at manufacture, but which weren’t included in the purchase package? Perfectly reasonable to charge a one-off fee. Unreasonable to charge a subscription.”
These comments reflect frustration and distrust, common themes in online reaction to feature paywalls.
What the bill would mean
So, if the governor signs A1095, automakers would face two clear choices. Sell features as one-time options, or stop pre-installing dormant hardware intended for monetization later. It could reduce automakers’ opportunities for recurring revenue, but simplify ownership for consumers. Manufacturers may accelerate development of genuinely cloud-based services that do justify subscriptions, because those services fall outside the bill’s ban and can legitimately incur ongoing operating costs.
The takeaway for buyers
A major thing to takeaway from this is if you’re shopping for a car now, read feature lists and dealer contracts carefully and ask whether any feature comforts rely on subscription activation or ongoing data plans. And until the law is final, consider prioritizing vehicles that offer permanent activation for features you value, or insist on documentation that any included hardware will remain functional without recurring fees.
New York’s A1095 draws a bright line between ownership and subscription. If the hardware is in the car and the function does not require ongoing third-party support, drivers should not be charged monthly to use it. Whether the governor signs the bill or not, the debate it has provoked has made one thing clear. The public expects to own the features built into the products they buy, not rent them back one month at a time.
