Report: Hyundai Embracing Subscription-based Features, Buying Boston Dynamics

Following reports that Hyundai Motor Company managed to purchase American engineering and robotics firm Boston Dynamics from Japanese financial conglomerate SoftBank for a cool $921 million, we’ve learned that the South Korean automaker has also fallen into embracing on-demand features. The trend, which is sweeping through the automotive industry to our dismay, basically involves manufacturers hiding vehicle options behind a subscription paywall instead of just letting you purchase the options you wanted upfront.

That means tomorrow’s car shopper might find themselves buying a vehicle that’s already fully loaded from the factory only find themselves forced to unlock heated seats or an upgraded sound system via monthly payments. In our estimation, the whole concept is ludicrously wasteful, diminishes the private resale values of automobiles, and seems like the kind of corporate nonsense reserved for dystopian fiction novels.

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Tesla Clearly Confused About Secondhand Vehicle Sales

Last month we covered an alarming trend where Tesla appeared to be intentionally removing features from vehicles as they entered the secondhand market. Used automobiles are typically sold with their original equipment intact. The previous owner may have wanted to yank out the tape deck or remove the fuzzy steering wheel cover before handing it over, but these are things you probably negotiated before any money changed hands. Unfortunately, things have only grown more complicated in the (post)modern era.

Reports have rolled in of Tesla stripping cars of thousands of dollars worth of features (mainly Autopilot and Ludicrous Mode) simply because they’re in line for a new owner. This sets an ugly precedent for the industry and undermines the time-honored tradition of the private sale. However, there seems to be some amount of confusion surrounding the company’s official policy and its behavior.

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A Buyer's Dismay: Tesla Reportedly Removes Features From Used Model S

I’m a broken record when it comes to consumer protections. Environmentalism may be more fashionable but the green movement has already amassed a sizable army in the current year. Someone needs to be watching out for Joe Customer because companies are stepping up their game. While we’ve often focused on data privacy, right-to-repair laws, and the hidden perils of subscription services, ownership rights also deserve a bit of attention because they’re all sort of interconnected.

As products become increasingly digital, it’s becoming fuzzy as to who actually owns something. In previous decades, someone wanting to outfit their computer with the latest software meant they had to go out and buy it. Now you can simply download stuff over wifi, with no need to have the physical copy cluttering up your desk. But this convenience factor has ramifications. A subset of the video-game community is up in arms over backwards compatibility and the ability to truly own their purchases. With games and movies beginning to occupy internal storage almost exclusively, they’ve grown concerned that companies will attempt to force them to repurchase old games on new platforms to turn a quick buck.

Why is this being explained to you on a car website? Because the automotive industry may be about to engage in similar practices. Jalopnik recently published an account of a man buying a secondhand Tesla Model S, only to see it stripped of thousands of dollars in features.

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Swedish Pride: Is Volvo About to Return to the Stock Market?

Volvo has only recently started exhuming itself from its post-recession sales hole and pushing its disastrous fling with Ford into the past. Turning a corner, the company has sold over 470,000 cars so far this year, aided largely by the successes of its XC90 SUV. Operating earnings having tripled in the first half of this year.

Now, the company has raised 5 billion Swedish crowns — $532 million — from the sale of newly-issued preference shares to a group of Swedish institutional investors.

All signs point to a confident company that wants back into the stock market.

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Long-term Update: Four Months in the 2015 Honda Odyssey EX

They say the grass is greener on the other side. I say, just give me more grass on my side; any color will do.

I’m blessed with a job that enables me to work from home and drive a whole bunch of new cars. Strangely, even with a new vehicle delivered to my driveway each and every week, my desire to own a multitude of vehicles of different types – Miata and Wrangler, Mustang and Raptor, Suburban and M5, Volt and 911, Macan and GTI – only seems to increase. In other words, I’m not operating under the assumption that I’d find vehicular happiness if only I could have that vehicle. Rather, I’m under the belief that I’ll source vehicular happiness only if I own so many vehicles that I can always be able to exit my nonexistent garage/barn in the right vehicle for the right moment. This would require a Miata for sudden Friday night trips to the grocery store for children’s Tylenol, a Suburban for the holidays when all the family visits and wants to go out on our nonexistent boat, a Wrangler for those pointless off-road jaunts one takes when one owns a Wrangler, a Raptor for those pointless off-road jaunts one takes when one owns a Raptor and needs to pick up lumber on the way home, a Volt for the commuting I don’t do, a GTI for when we have a babysitter, a Macan for winter weekends away, and an M5 and 911 because, well, why not?

Alas, it is not to be. So we drive a 2015 Honda Odyssey.

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Toyota, Honda Dominate List of Cars Kept for More Than 10 Years

Nearly 30 percent of buyers who purchase a Honda CR-V, Toyota RAV4 or Prius car will keep that car for more than 10 years, according to data from iSeeCars.com.

Data from 400,000 car purchases was analyzed for the poll, according to the study group. The industry average for owners keeping their cars 10 years or longer was 13.5 percent.

Of those top 15 vehicles whose buyers keep them longer than a decade, nine of them were Toyotas; 5 were made by Honda. The Honda CR-V was tops at 28.6 percent of buyers who kept that car for 10 years or more.

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Tesla Ownership Vignettes

We’ve owned our 2013 P85 Tesla Model S since December, putting maybe 3,000 miles on it, so I thought TTAC readers would appreciate a long-term update.

Overall it’s still the grin-inducing ride that all owners like to be smug about. That said, there have been more than a few unusual experiences. To that end, I thought it would be useful to present this update as a series of individual stories, or vignettes, of the Tesla ownership experience.

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Are You Ready For: Peer-To-Peer Car Rentals?

With car sharing on the rise, my home state of Oregon is moving towards changing insurance rules to allow private “peer to peer” rentals by auto owners. The Oregonian reports that HB 3149 is headed for the Governor’s desk, having been approved by the state House and Senate. Sponsor Rep Ben Cannon explains

Most insurance policies prohibit people from using their cars for commercial purposes. This bill says someone can participate in car sharing without having to worry that their insurance will be canceled.

California is the only other state to have passed such legislation, and already Facebook-based peer-to-peer car rental firms like Getaround have popped up to fill the demand. With average car ownership costs reaching $8,000 per year according to the AAA, Cannon argues that research showing that cars sit parked for 90% of their lives proves the need for more car-sharing flexibility. And established car-sharing firms like Zipcar, which operate their own fleets don’t feel threatened by the bill, as they are not expanding beyond urban cores and as Zipcar’s CEO puts it, peer-to-peer rentals validate the car-sharing model. But would you rent your car to a stranger?

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