I was honestly looking forward to ordering a new mid-size truck and had settled on GMC's all new 2023 Canyon AT4. I just want my next truck to be made in America by an American company, I like (most) of what they've done in this redesign, and I have a good relationship with the GMC/Ford dealer. I haven't spoken with the dealer yet, and I will to confirm, but if true it's no deal. No way I want Onstar even if they PAY me to take it. Ford has their new Ranger coming out later next year so I'll focus on how it turns out.


General Motors is bumping up the sticker price on many of its new vehicles adding a mandatory OnStar subscription, whether you want it or not.

This equipment is on new Buicks, Cadillacs, and GMC vehicles. And on Wednesday GM said you have to take it for $1,500.

McElroy says GM is doing this because, at some point, car sales are going to stop growing. So how does a car company continue to grow its top line? Sell services.

"In fact, GM thinks that people will pay $135 a month above their car payment get all the services," he said. "And that turns out to be $10 billion a year."

With an 80 percent profit margin versus 8 percent for selling cars, look for other car companies to do the same.

But what's been the reaction charging for the mandatory OnStar option?

"Most of the reporting is negative," McElroy said. "I haven't seen anything that goes, 'Woo-hoo they're charging more."

https://www.q13fox.com/news/cu...6e791a1c2c0001d17c20

First I have heard of this

I found the option code on a Denali pickup

"R9M:
OnStar & Connected Services pkg. - 36 months"

I know Onstar is required to use "Super Cruise" the self driving feature but forcing people to have Ontsar for 36 months is stupid

BMW is getting flak for a subscription to use the heated seats

https://www.thedrive.com/news/...ats-subscription-fee



Toyota wants you to pay to use remote start

https://www.thedrive.com/news/...subscription-service


And plenty of other stupid ideas, at least it's not on Chevy yet

quote:

Originally posted by BigSwede:

Toyota wants you to pay to use remote start

https://www.thedrive.com/news/...subscription-service


And plenty of other stupid ideas, at least it's not on Chevy yet

At least Nissan only makes you pay for the App features, but it's still a foot in the door.

My Challenger has all the whiz bang tech, including Wi-Fi.
$20 bucks a month. And if that ever changes, I will opt out. A dollar a day ($30 a month) is my limit for this stuff.

Have a GMC Denali now, don't subscribe to OnStar and It would be a deal killer if I was looking to trade, GM will be out..

Problem is that GM controls the narrative (as does all other manufacturing companies) the world has changed for car sales, no more over production, on demand production will continue, they can dump labor costs, eliminate overtime, reduce insurance and retirement costs.

With low supply and high demand, people will see the Onstar similar to a factory option for a entertainment system or option package and just buy it, what's $1500 on a $80,000 Tahoe...

They just raised all vehicle costs by $1500, and they hope you never use it.

Just like BMW's subscription based seat warmers, you get the hardware, no matter what, on new units.

Subscription based models are coming on EVERYTHING. It's been like this on software such as OS, video games, security, and now it's moving on to hardware.

Sales will continue to wither until people will only lease. It's all part of the plan. You will own nothing...

I put a deposit in July on a Silverado 2500 and am waiting for an allocation. At the time, only 2022 MY was on the website. The salesman checked and said there were two GMC allocations and would I like to duplicate the build in a Sierra? I told him I didn't like the way GMC packages were bundled and it would be far more-but he could try.

A few minutes in (he had the 2023 MY pricing/guides) and he conceded he already was past the budget and still had options to select. He mentioned that there was the mandatory three-year OnStar subscription adding $1,500 to the price. Although I think the GMC HD look better, that forced subscription was a no-go. Even had it on base Pro models IIRC. I'm really hoping the allocation opens soon and Chevrolet doesn't force that, at least on base and mid-level trims (I ordered an LT).

quote:

Originally posted by Vgex:
Sales will continue to wither until people will only lease.

Hopefully they'll wither to the point where manufacturers realize forcing things on customers results in heavily reduced sales.

Nobody likes being told what to do. Or to buy.

quote:

Originally posted by ridewv:

McElroy says GM is doing this because, at some point, car sales are going to stop growing. So how does a car company continue to grow its top line? Sell services.

Selling services is not the same thing as forcing them on people. The latter will only work if everyone does it.

With all the taxpayer money we gave them and then was ultimately lost forever, they should throw in the subscription for free.

Subscription services are continuing to grow. Tesla's premium connectivity is $99 a year or $9.99 a month. They are selling a million cars a year. If only half take it. You can do the math. It's easy recurring revenue.

But forcing it onto people. You can go F-Your self.

Link

Average new car loan hits a record $40,000 as vehicle prices surge

And here are some other shocking numbers on monthly payments, loan lengths, used cars

DETROIT — U.S. consumers are responding to surging prices for new cars and trucks by going deeper into debt, pushing the average new vehicle loan to a record-high $40,290 during the second quarter, credit monitoring company Experian said Thursday.

The average monthly payment for a new vehicle loan rose to $667 in the second quarter, up nearly 15% from a year earlier, Experian said in its latest report on the automotive finance market. The average amount borrowed rose 13.2%, Experian said.

The length of the average new vehicle loan stayed flat in the second quarter compared to a year ago at just over 69 months.

Used car buyers also are borrowing more. The average used vehicle loan jumped 18.7% to $28,534, with an average monthly payment of $515, up 17%.

Despite the Federal Reserve's efforts to cool the economy by raising interest rates, prices of new vehicles in the United States have been rising faster than overall inflation rate for much of the year. Automakers say they still cannot keep pace with demand because of shortages of semiconductors and other supply chain snarls.

The price of the average new car or truck hit a record $46,259 in August, market research firm J.D. Power said this week.

Experian said loan data show that more consumers are opting for a used car or truck as new vehicle prices rise. Used vehicles accounted for 61.8% of all vehicle loans during the second quarter, up from 58.5% a year earlier.

Of vehicles financed in the second quarter, 60% were sport utility vehicles, Experian said.

And interest rates suck right now.
IIRC my F150 & Mercedes were 1.9 & 2.9% respectively.

Last check, the same CU is in the 5.3-5.8% range

I'm all for OnStar and its connectivity, in-vehicle wifi, guidance, continuous connection where GM can directly monitor your vehicle, etc. It is a service they are free to offer. If the value is there customers can choose it, or not.... and they do GM can make additional profit. I choose not to have this, so since GM is adding it to the vehicle I'm wanting to buy as a "mandatory option", I choose not to buy a GM vehicle..... ever!

Remember when cars were simple? They had three pedals, a headlight dimmer switch on the floor outboard of the clutch pedal, might or might not have turn signals (open the window and make hand signals), vacuum operated windshield wipers that would barely function when going uphill and wipe really fast when going downhill. AM radio was an option. Much maintenance could be done in your driveway with a screwdriver and a few wrenches.

V-tail LOL I wish I wasn't old enough to remember all that!

quote:

continuous connection where GM can directly monitor your vehicle,

No thanks, I don't need some wazoo in India reporting my use, speed, oil change interval, seat setting, time of day, mileage, etc to governments, insurance companies, marketing people, dealers for service interval reminders.

Its about being connected, obtaining your information and selling it to marketing companies and others for big money.

You may speed from time to time, now nobody knows unless you get written up, but with continuous connection, GM can upload all your data, and sell that data to your insurance company and if you finance they have all your policy information, they can report daily miles driven, time of day, and total miles driven, where you carrier will then adjust and modify your rates based on real use vs the reported use by you to the agent..

quote:

Toyota wants you to pay to use remote start

^^^^^^^^^^^^^^
That is a good one. Maybe they could design remote start so the teenage thugs could not steal your car with a scanner. That is one of many options I do not want.

I have the Canyon’s Chevy cousin, the Colorado, 2018 model.Check the net to see comments about the transmission problems. Try some chevy forums. I had the notorious transmission “shudder” soon after purchase.

Dealer changed out the “break in” transmission oil. Problem solved.

My mechanic advised that the oil change is a temporary fix intended to last just past the warranty. “They tend to fail at 30-40k miles”, he said. He pointed to a Chevy truck in his lot. There’s one right there! He said.

Some internet reviews seem to echo my mechanics opinion.

I’ve got my fingers crossed. I’m retired and don’t drive much.

It’s a great truck otherwise.