Monthly subscriptions and payments are a reasonable way to make large payments over time or get a service you don’t want to commit to long-term – streaming and food delivery services come to mind. To that end, it makes sense to have a monthly car payment, right? Let’s take a look at OnStar.

A monthly car payment makes much less sense when it’s for a subscription to OnStar that you don’t get to opt-out of. But that’s what’s happening to GM vehicles this year.

What’s happening with General Motors and OnStar, and how does this change things for the everyday driver?

That’s what we’re here to break down.

What is OnStar? The Company Behind the Controversy

OnStar is a subscription-based service primarily used for safety and emergency communication. Features of the service include remote diagnostics, data-enabled navigation, Alexa, roadside assistance, emergency services communications in the event of crashes or stolen vehicles, and much more, depending on your chosen plan.

The service has helped find stolen vehicles, provided emergency contact for drivers stranded in remote environments, and made driving a safer and more enjoyable experience for users worldwide.

GM’s New Buick, GMC, and Cadillac Models Get a Mandatory Upgrade

In June 2022, General Motors announced it was implementing a plan to make the previously-optional OnStar service a mandatory three-year subscription. This change would apply to their GMC vehicles, Buick models, Cadillac Escalades, and Hummer EVs.

In theory, that sounds like an extraordinary next step in GM’s technological advancements and creating a smooth driving experience! According to a spokesperson for GM, the addition of OnStar technology as a standard feature is supposed to “enhance vehicle ownership experience” and “provide more customer value and a more seamless onboarding experience.”

For customers, it feels more like a scam because there’s no way to opt-out of the subscription, which adds to the total price of affected vehicles. Adding the OnStar subscription, which costs $1,500 by itself, is raising the base price of the vehicles by different increments. For cars like the Buick Encore, it raises $1,500, while for GMC Canyon and Sierra pickups, it’s $1,675, and for the Hummer EV, there’s no price change.

Despite calling it an “option,” GM has confirmed that customers who don’t end up activating OnStar in their vehicles or don’t want the service won’t be offered a discount to negate the price increase they attribute the OnStar service to.

GM’s Bottom Line

There are ways to see this situation as a positive or a negative – increased safety and better communication technology aren’t bad things to have. On the other hand, being unable to opt-out of a service you didn’t ask for that comes with a hefty price tag can be upsetting.

No matter what side of the issue you fall on, it’s crucial to understand that this may not be a temporary move for GM. Soon, all GM vehicles may have mandatory OnStar services rather than just some new Buick Encore and Cadillac Escalade models.

It’s up to you as a customer to decide in the coming months if GM made the right move or not.