‘Cost prohibitive’: Michigan Drivers Reject Digital License Plates
In a surprising turn of events, the ambitious plan to modernize vehicle identification through Digital License Plates has hit a major speed bump in Michigan, primarily attributed to its prohibitive costs. The technological advancement, spearheaded by California-based company Reviver, was met with cool reception as the company has now discontinued their sales in the state.
Contractual Dispute Leads to Termination of Digital Plate Sales
The decision for discontinuation follows a termination of the state’s agreement with Reviver. The official halt of sales commenced on August 10, 2024. The termination is due to a complex mix of issues. The primary reason cited is not the disappointing sales figures, but rather the alleged failure of Reviver to adhere to its agreed obligations and the state law. The Michigan Secretary of State, Jocelyn Benson, upon finding these breaches, decided to terminate the agreement with Reviver. However, Reviver’s founder and chief strategy officer, Neville Boston, maintains that any violations or misunderstandings have been properly addressed.
Dismal Sales Figures
Irrespective of the disagreements and misunderstandings, the sales figures of digital license plates were quite dismal. Based on the information provided by Department of State spokesperson Angela Benander, from the debut in 2022 until now, approximately 1,700 digital plates had been sold in Michigan. This significantly low number accounts for only about 0.02% of the total 8.26 million license plates registered to Michigan vehicles.
Apart from the high costs, the lack of customization options was also cited as a reason for the low sales. While Reviver aimed to offer personalization of digital license plates, it would require an expansion of the current legislation, which was seen as a long and daunting process.
High Cost Plays a Major Role in Rejection
The major reason for the outright rejection of the digital plate concept by most Michigan drivers seems to be the extravagant costs associated with it. As indicated by Benander, the high cost was the chief deterrent preventing customers from embracing this new technology. The digital plates by Reviver were priced at $699, with an alternative subscription option for $39.95 per month. Alongside this, an annual fee ranging from $35 to $145 was imposed, depending on the service plan selected. This price stands in stark contrast to the one-time fee of $5 for obtaining a standard license plate.
Looking Forward
Although digital plates are currently labeled as “temporarily unavailable” in Michigan, it appears that Reviver maintains a hopeful outlook for its future in the state. On their website, the company stated, “We are actively working with the Michigan Secretary of State’s office to once again be able to offer the digital license plate to Michigan residents.”
Despite the current state of affairs, it remains to be seen how the saga of the digital license plates unfolds in Michigan. With the right approach, legislative changes, and consideration of customer preferences, perhaps digital license plates could bounce back and represent the future of vehicle identification.
