EVs are becoming more popular as drivers flock to the greener vehicles. But that doesn’t mean car buyers are having an easy time finding a dealership to buy one. A recent report from the Sierra Club found that 66 percent of US car dealers didn’t have any electric vehicles on their lots and 45 percent of those said they wouldn’t sell one even if they did have it available.
There are many reasons why dealers may be reluctant to stock EVs, from the lack of profit margin to the need for additional training to deal with complicated tax paperwork. But perhaps the biggest hurdle is the fear that an EV can be “difficult to work on.” This is a valid concern, but one that can be overcome with proper education and training.
For example, an EV’s complex electrical Find an electric car dealer systems require special equipment and specialized training to handle, so that dealership service departments can stay safe and offer the best possible customer experience. This is especially true for higher-priced EVs like the Tesla Model S and BMW i3. These cars can cost thousands of dollars to replace components and repair, as well as require more frequent maintenance such as brake pads and oil changes due to their more advanced drivetrains.
Similarly, the battery of an EV can create a fire risk, and the fact that the batteries are located under the floor of the vehicle means that dealerships must change their shop layouts to prevent potential problems. While this can be expensive, it is essential for ensuring the safety of EVs and their passengers.
Another concern for dealers is the need to adjust their inventory to reflect a greater variety of models and trim levels. This can be a significant challenge because a manufacturer’s EV offerings can be limited, and there are often delays between production and delivery. Dealerships should use data and analytics to optimize their EV inventory to match demand.
Other barriers to EV sales include a lack of public charging stations, the need to educate customers on how to charge their vehicle, and the difficulty in getting financing for new or used EVs. Some manufacturers are moving to address these issues by offering direct sales to consumers, which can cut out the middleman and make it easier for people to purchase an EV.
In addition, a few states allow dealers to negotiate lease deals on behalf of their customers, which can reduce the hassle and confusion that some buyers might face. The auto industry is changing rapidly, and many traditional dealers are grappling with new business practices as a result.
Despite the challenges, there are ways that dealerships can prepare for an electric future and serve as trusted partners for their customers. The most important step is to learn as much as you can about EVs and how they are different from ICE vehicles. This will help you better understand your customers’ needs and explain to them how an EV can be a great alternative to their ICE vehicle.