Why Cars Are Becoming Tech Products

Cars in the U.S. are becoming tech products—software, connectivity, and over-the-air updates are changing how they're built, sold, and owned. Here's why cars are becoming tech products and how it affects ownership and resale.

TL;DR Cars are becoming tech products because of software-defined features, connectivity, and over-the-air updates—which can add value (updates, new features) but also subscription cost and resale risk (software support, battery life). Factor software and subscription cost into total cost of ownership. Use autopremo.com total cost of ownership.

Why Cars Are Becoming Tech Products

• Software-defined — infotainment, safety, and performance are software-controlled; updates can add features and fix issues.
• Connectivity — cars are connected to the cloud; data and updates flow over-the-air.
• Subscriptions — some features (heated seats, autonomy, connectivity) are subscription-based; revenue model shifts from one-time purchase to recurring.
• Resale — resale can depend on software support and battery life; older tech can hurt value. Use autopremo.com depreciation calculator and price checker.

See total cost at autopremo.com.

Bottom Line

Cars are becoming tech products—software, connectivity, and subscriptions change ownership and resale. Factor software and subscription cost into total cost of ownership. Use autopremo.com to see total cost so you don't overpay over time.