The parameter that car buyers almost never check and that may affect its value
Today's vehicles are becoming more like smartphones, relying on manufacturer software updates to maintain functionality, relevance, and value over time. However, not all manufacturers provide the same level of support, especially for older vehicles. What should you check before buying?
The Israeli consumer is adapting to innovative automotive technologies at an impressive pace, especially when it comes to useful technologies like touchscreens, operating systems, charging rates, etc. But in today's smart and connected vehicles, there is another, almost hidden layer — the software layer, for which consumer awareness is still minimal. This is despite the fact that it has a critical impact on the driving experience, safety, and the vehicle's value retention.
The importance of this layer can be learned from the professional term used by the automotive industry for the current generation of vehicles — "Software-Defined Vehicles" (SDV). This refers to vehicles whose systems are controlled by data processors, and whose software can be updated remotely to fix bugs, upgrade performance, and generally extend their life, just like smartphones.
However, this layer is almost unregulated globally and in Israel, and the investment in it varies from manufacturer to manufacturer. So what should you know and check when buying a new or used car?
Not all updates are the same
Car manufacturers treat software updates for cars like smartphone manufacturers. That is, from their perspective, developing software updates over time is an expensive project for a product that often no longer generates revenue for them.
Therefore, most manufacturers invest in necessary updates, aimed at solving critical problems, mainly safety-related, or alternatively, solving serial complaints from customers and dealers that could damage the brand's image.
But as the vehicle ages, the manufacturer's interest in investing in software updates for it decreases. On the contrary, manufacturers have a business interest in having car buyers upgrade their vehicles to more sophisticated ones more frequently.
Even when manufacturers commit to long-term software updates, it should be taken into account that there are different types of software updates, and not all of them are performed for the consumer's benefit.
The most common and familiar type is software updates for the vehicle's infotainment systems. These include, for example, map updates, improvements to the user interface, and so on. Tesla, for example, has turned such updates into a significant marketing sales driver, and its customers all over the world wait for them.
The second type, which most manufacturers do not officially mention, includes firmware updates, i.e., in the operating software of the processors in the vehicle. Such updates can significantly upgrade the vehicle's performance over the years, improve battery utilization and reliability, air suspension, brakes, and more.
The problem is that sometimes car manufacturers use the concept to launch models that are not yet "fully baked," due to heavy competitive pressure. The working assumption is that it is always possible to fix "bugs" via software updates after the launch, without the customer being aware of it. Therefore, such updates are of critical importance for the vehicle's proper functioning.
Two examples: there are electric and "electrified" vehicles that arrive in Israel from the assembly line with an especially low air conditioning power, which requires a long time to cool the cabin. This is because manufacturers prefer less powerful air conditioning to achieve the highest possible electric range in WLTP tests.
Afterward, they solve the problem via a remote firmware update. But since the Israeli market is small, this does not always happen quickly, if at all.
Another example: batteries in electric and electrified vehicles tend to "age" over the years, shortening the vehicle's electric range after many charging cycles.
To solve this problem, and to reduce battery warranty claims, or to upgrade the resale ability of used vehicles, some manufacturers perform firmware updates in the battery management and engine to reduce the vehicle's performance in favor of preserving range and reducing warranty expenses.
What can the customer do?
The first rule is to track updates. In China, for example, there is extensive consumer and comparative coverage of the quantity and quality of software updates for vehicles from different manufacturers. The Chinese government also requires manufacturers to report and publish all updates.
In the rest of the world, the subject is still in its infancy, as is the regulation dealing with it. Car manufacturers are not required to report to the public on their software update history, and to detail what each update includes, although some do so "voluntarily." There is also no law requiring the car manufacturer to provide ongoing software updates over time.
Therefore, it is highly recommended to check when buying a new "smart" car what the manufacturer's declared online support policy is for that model. That is, does the manufacturer commit to developing software and firmware updates for it, and for how many years after the purchase.
This information can usually be found by connecting to the manufacturer's app, which is mostly built into the multimedia system, and the software version and update history usually appear there, at least partially.
Option B is to look in the "Connectivity" chapter in the owner's manual of the model you are buying, although it is not always written there which software updates the manufacturer commits to.
In some vehicles, there is a "Software Updates" menu in the operating system, which usually shows basic information.
Of course, you can also ask the salespeople when purchasing the vehicle about the manufacturer's commitment to software updates throughout the vehicle's life, however, sometimes this information is not available to the salespeople themselves, or they are not eager to share it.
Another source of information is informal forums dedicated to the brand or model online, where the history of software versions of a specific model is detailed. Here, too, you get an indication of the level of support of that manufacturer, which distributes an update once every few months, usually, and demonstrates a higher commitment to the customer.
Vehicles that incorporate the Android Automotive operating system (Android Auto), for example, also usually enjoy long-term support for security and application updates.
What happens when buying a used car
More and more "software-defined" vehicles are entering the Israeli used car market today, and these software updates are especially significant as the vehicles age, and even contribute to their value retention.
But here, obtaining the information is more complex. The accepted pre-purchase inspection does not include the detail of software updates, and often the seller themselves does not know what they are, even if they are the first owner. You can demand to see software updates from the seller, in the format of a confirmation from the service garage, although the seller does not always have a connection with the garage.
It is also recommended to ensure that the connection to the manufacturer's online service system transfers to you from the previous owner, and in general to ensure that the wireless connectivity, which is a condition for remote updates, is supported in the vehicle you are buying.
Assuming you do not have a connection to the importer's garages or its technical system, which can check the update history in the vehicle itself or in the importer's computers, the most effective way is to do "homework" on the update history of every used model you want to buy.
In the AI era, popular search engines can do a pretty good job for you in locating software updates and concentrating information about them, which has been published around the world, although they, of course, cannot determine whether a specific update was indeed performed on the used vehicle you are interested in.
Bottom line, software updates in new and used vehicles, and manufacturer support for them over time, are essential today no less than oil changes or regular maintenance in vehicles of the past, and perhaps more. It is recommended not to neglect this.
