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Consumers Want More Tech In Their Cars & They Will Pay For It

As Australians buy more cars than ever before, new research show that onboard tech is a key deal clincher when it comes to buying a new vehicle.

Consumers are also prepared to pay a premium price to get the latest tech drivers are willing to pay the highest price, according to an IHS Markit survey.

About one in 3 drivers surveyed in the annual Automotive Connected Services and Apps Consumer Analysis said they would pay for telematics, and Wi-Fi in future vehicles, preferring it to be included in the manufacturer price.

“They improve resale value of the vehicles,” Colin Bird, senior analyst at IHS Markit, explained. “And it usually denotes a more luxurious vehicle.”

Of the 5,000 drivers IHS surveyed who plan to purchase vehicles within the next three years, nearly all wanted tech features to be standard in vehicles and with cost included in the sticker price. They did not want the software to be available for an extra fee.

Nearly all buyers surveyed, with a familiarity in smartphone applications, said they were interested or somewhat interested in seeing apps linked with vehicles. Weather apps proved to be a popular choice, with about 40 percent of buyers showing interest, followed by various music apps, at 36 percent favourability.

Bird also found that consumers want systems such as Wi-Fi and telematic services to be built into autos but don’t want the specific features enabled at the time of purchase. For example, Tesla makes vehicles with built-in assisted driving systems, but drivers must prompt the service by paying a premium before it begins guiding them.

“As your lifestyle evolves, let’s say you add a kid to your family, you buy a house, you move somewhere more rural, the feature sets you need in your vehicle might change,” Bird said. “Now, instead of buying a new car, drivers just want the technologies to be adapted.”