The automotive industry is facing a crisis of “feature creep,” where cars are being loaded with expensive and unnecessary features that drive up costs for consumers. According to data and industry analysis company AutoPacific, this trend is particularly problematic in the current economic climate, where consumers are being forced to tighten their belts due to high interest rates, inflation, and rising costs. As a result, buyers are becoming more intentional about the cars and features they purchase, and are seeking value for money.
AutoPacific’s research shows that many features that were once considered desirable, such as leather seats, moon roofs, and premium audio systems, are no longer in high demand. In fact, the company’s data shows that features such as all-wheel drive, memory seats, and heated steering wheels are more popular among budget-conscious buyers than luxury features like branded premium audio and head-up displays.
The problem of feature creep is not new, but it has become more pronounced in recent years. Automakers have traditionally used a trim level and options framework to sell cars, which can result in buyers being forced to purchase features they don’t want or need in order to get the features they do want. For example, a buyer may want a moon roof, but in order to get it, they may have to upgrade to a higher trim level that also includes features like leather seats and a premium audio system.
To address this issue, AutoPacific suggests that automakers need to get creative and rethink their approach to features and trims. One possible solution is to offer more streamlined and affordable entry-level and mid-tier trims, and to separate features into optional packages that can be purchased à la carte. Another option could be to bypass dealerships altogether, which would eliminate the need for them to profit separately from the automaker.
Overall, the automotive industry is at a crossroads, and it needs to adapt to changing consumer demands and economic realities. By reevaluating their approach to features and trims, automakers can provide more value to buyers and stay competitive in a rapidly changing market. As AutoPacific notes, “front wheel drive, base stereos, cloth seats with various manual adjustment, and analog gauges are ‘in’ for these more frugal shoppers,” and it’s time for automakers to take notice.