For more than a century, automakers have relied on a simple business model. Build a car, sell a car, then hope the owner comes back years later for another one. But GM discovered a few years ago that there’s a much more lucrative option hiding in plain sight. Charge customers every month instead.

 

The numbers are eye-opening. According to GM, its software and services business keeps roughly 70 percent of every dollar it generates, Business Insider reports. Compare that with the razor-thin margins often associated with vehicle sales, where manufacturers can sometimes hold onto just 4-10 cents from each revenue dollar, and it’s easy to see why executives are excited.