New Cadillac, Buick And GMC Buyers MUST Pay For GM's $1,500 OnStar Subscription

Aug. 12, 2022 12:41 PM ET by Tyler Anderson Industry News / 18 Comments

On all GMC and Buick models and select Cadillacs too.

The $1,500 equipment is now included in the price of all new GMC and Buick vehicles
Owners don't have to use it, but a vehicle can't be ordered without it
Buick and GMC started in June, the Cadillac Escalade in July

There's no denying that General Motors is at a crossroads between the global supply chain crisis and the rise of inflation. It's affecting everyone in the process, from manufacturing to the buying customer. As a result, prices are going up mid-year to cope since the demand remains high.

So GM is trying something different. While most makers are upping the cost without additional features, GM is making OnStar mandatory and includes it in the sticker price. Since early June, folks who have bought a new Buick or GMC have the subscription service as standard. In theory, however, it is still a subscription service - you're just being forced to pay for it.

A GM spokesperson says that including the previously optional subscription as standard brings more value to the customer and ensures a 'seamless onboarding experience.' The kicker is they won't twist your arm to utilize the connected services. They also won't discount the vehicle if you have no desire to use it.

Every Buick gets a $1,500 price bump, as does the Cadillac Escalade. Base GMC models will also see an increase by $1,675, while more expensive offerings will see as little as $905.

Once the three-year subscription elapses, owners would need to resubscribe to have the same benefits, although it is not mandatory to do so.

The benefits included in the OnStar subscription are substantial, with turn-by-turn navigation, automatic crash response, emergency services, the OnStar Guardian app, crisis assist, roadside assistance, a voice service, on-demand diagnostics, Alexa built-in, connected navigation, and more all included in the full Premium bundle.

At present, the Premium subscription with all the features costs $49.99 per month, so effectively, GM's move makes it cheaper. OnStar services are included for three years to soften the monetary blow, equating to a monthly fee of $41.67. The downside is that you do not have the choice you once did.

Could GM feel the same wrath as BMW when it comes to subscriptions? Probably, though BMW insists customers will get used to it over time.