The modern car offers more space-age features and capabilities than ever before. But what happens when a manufacturer releases a dealership-installed or over-the-air update that changes how well your vehicle drives or charges? And what might that do to its resale value?
Why it’s important to update cars with the right software
Cars are increasingly defined by their software, not necessarily their hardware. Most of the time, software ensures vehicles run as smoothly and safely as possible, but in older models, external OTA software updates might make some systems work in ways owners do not expect - nor like.
Software access is often out of the owner's control
In a world where cars are increasingly connected, drivers are at the mercy of carmakers and what software they make available to a given vehicle. So a car that has the physical capability to perform in a certain way may be limited by the software it has access to, or has been cut off from.
For example, early Volkswagen ID. cars were supplied with a VW software update that was buggy and thus reduced how well the vehicle functioned; it had the physical capability to drive well, but was limited by the software. Later VW software updates solved these issues, but the situation showed how important well-designed software is to the modern driving experience.
This stands in stark contrast to cars of many years ago, which were basically entirely under the control of the owner: they only had to maintain and repair the physical components as required.
Examples of when software changed the driving experience
Here are some more instances where software updates changed how a particular model drove:
Tesla Model 3 — regenerative braking
Braked less when you lifted off the accelerator pedal.
One-pedal driving using just the accelerator to stop and go became less effective, so drivers used the brake pedal more often.
Nissan Leaf — e-Pedal
Your preferred e-Pedal setting could be switched off.
Drivers had to turn it back on rather than getting the driving response they expected.
Polestar 2 — acceleration
Took longer to respond when you pressed the accelerator. The car felt less immediate and responsive.
Polestar 2 — regenerative braking
Braked less when you lifted off the accelerator pedal.
One-pedal driving using just the accelerator to stop and go felt softer and less satisfying.
Is there really a software-update depreciation effect?
There’s plenty of evidence that software updates have changed the driving experience in some models - in a both positive and negative way. But there’s less evidence demonstrating that certain updates have actually harmed resale values.
With this in mind, it might not be a topic to get overly concerned with.
Over-the-air software vs dealer-installed updates
A lot of software updates are now over-the-air (OTA). But some are installed by dealerships. With this in mind, if your updates are done by the dealership, you might be tempted to avoid or delay getting the update, if you’ve heard it might reduce the driving experience.
However, as mentioned, in most cases updates are there to enhance the driving experience, and crucially, may improve safety. So in the vast majority of cases, you’re better off getting the update.
Selling your car: Things to consider
Firstly, you should ensure your car has the latest updates - especially if they relate to safety. Even if you’ve heard from other owners that an older update offers a more pleasant driving experience, new updates may address other bugs or issues that aren’t immediately apparent.
And when selling, it’s important to be upfront about how any software updates have changed the driving experience. You should encourage any prospective buyer to take the car for a test drive, so they know what they might be buying. You can then sell it with a clear conscience.
However, even if a car drives a certain way today, it’s important to note that a future software update might change how it drives later on. Sadly, there’s not much you, nor any future owner can do about this.
