GM’s ‘Optional’ OnStar plan is actually a mandatory US$1,500

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If a company tells you something is ‘optional’ and then includes it on your bill with a charge and won’t remove it, even if you tell them you don’t want the thing, how would you feel? Lied to? Ripped off? Or maybe you think the company is just doing good business? 

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GM’s ‘Optional’ OnStar plan is actually a mandatory US$1,500 Back to video

GM has been forcing this question onto its customers along with a US$1,500 three-year OnStar and Connected Services Premium Plan that’s listed under “options & pricing” but is in fact not optional at all. The Detroit Free Press reports since June 2 of this year, all new Buick and GMC vehicles in the U.S. have included the plan as standard, with the US$1,500 charge being added, regardless of the buyer’s choice to activate it or not. 

That’s right. Some GM and Buick drivers are paying over a grand for an optional three-year plan they’re not even using. 

Is it coincidence that GM told investors last fall that it predicted its software subscriptions would generate some US$80 billion for the automaker and that consumers may be paying US$135 a month for various subscriptions on top of their monthly car payment? Maybe, but it’s pretty convenient, if that’s the case.

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In addition to OnStar’s roadside assistance and emergency services, the plan also includes a remote key fob, Wi-Fi hotspots, vehicle diagnostics, and unlimited data. 

“We’ve had people very confused about it asking why they have to pay $1,500 for something that says it’s an option,” said Lynn Thompson, president of Thompson Buick GMC Cadillac in Springfield, Missouri, in an interview with the Free Press. “We say, ‘We’re sorry, but we don’t price the cars.’ We wish they would put it as part of the car, having an option being standard is a problem for us. Don’t put something as an option that’s not an option.”

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GM, meanwhile, stands by the choice to force feed its customers pricey options. “Providing this connectivity standard is more convenient for our customers and provides a more seamless onboarding experience,” GM spokesman Patrick Sullivan wrote in an email to the Free Press. Some buyers disagree and, as the Detroit Free Press reports, have already changed their mind and gone with another brand after being “jerked around.” 

When the publication asked for clarification about why the package is advertised as “optional,” GM OnStar spokeswoman Kelly Cusinato said, “It is an option, but it is not removable as it is delivered from the factory with it included just like an upgraded powertrain, or upgraded interior materials, or upgraded infotainment system.”

Driving has reached out to GM Canada to clarify whether Canadian buyers are also subject to the mandatory ‘option’ and we will update this story when we know more.