Consumers’ Willingness to Pay for Car Technology Varies by Region, Says Report

More consumers globally desire advanced technology in their next new vehicle purchase, but their willingness to pay varies widely across the biggest world markets, an IHS Markit survey found. The company canvassed about 5,000 consumers in the U.S., Canada, China, Germany and the U.K. who said they plan to buy a new vehicle in the next three years, it said in a Monday report. American consumers are more likely than their counterparts in the other countries to opt for a rear-seat entertainment system in their next vehicle, and they’re willing to shell out $640 on average to pay for it, IHS said. Only 32 percent of consumers canvassed agreed that telematics would be a feature they would be willing to pay for in their next new vehicle, with in-car Wi-Fi desired by only 29 percent. “However, when asked about cost, both of these technologies were mentioned with a much lower price point by consumers willing to pay for them and different price points that varied by region,” IHS said.