Is your dealership ready for EV?
They are coming....ready or NOT!
Many agree that EVs adoption will continue to grow as the industry and the OEMs are predictive forecasting and investing heavily to that end. However, if there is still any doubt, let me try and evidence that for you with a cost analysis example and a recent consumer survey. What comes next will be a math example and if you are not a big math fan, skip down to the last two lines of the following paragraph for the answer.
TThis week I filled up my mid-sized vehicle with a 28.9 Avg MPG. The cost of that fill-up was $63, which should go 350 miles on average. I then went across the street and got an oil change because the vehicle told me it was time. That cost me an additional $89. If I add that up, over the three-month required maintenance period the total cost for me to drive my vehicle is roughly $845 every three months. Multiply that over a year, and the annual cost of operating my vehicle is just shy of $3,400. That does not include any other service or maintenance needed. Now compare that to the highest adopted EV sedan driving 350 miles a week with a conversion of 3.7 miles per kWh and the US average of $.24 per kWh cost seen HERE. That would cost $23 to fill up weekly or $272 every three months. That is a cost savings of almost $200 monthly or $600 every three months as a BEV doesn't need an oil change. In this example, with these miles-driven assumed, the annual savings by driving an EV is $2,400 or 19,200 over the EV's eight-year battery warranty period. That is a lot!
With the industry finally reaching the 5% tipping point in EV sales, the electric wave is here and only going to grow. You can see this just below. According to a Cox Automotive analysis of shopping behavior on its Kelley Blue Book and Autotrader websites, shopping for EVs soared 73% since January before gas prices began really rising. In addition, they are shopping for more fuel-efficient gas-powered models, like small and midsize cars, which increased by 33%. You can read more on that study HERE. With the TOC (total cost of ownership) of an EV showing more promise, as shown in the second paragraph, and with current incentives, reluctant shoppers are sure to take another look and EVs.
EV volume in the wholesale channel is growing yearly as well. The forecast is that that trend should show significant growth in the coming years. That will help dealers fill their lots with quality used cars year after year but understanding how to aquire an EV, retail an EV, and dispose of this unique asset will be critical for long-term success and risk mitigation. Don't get left behind.
Knowing shopper interest is growing for many reasons and that more and more are coming through the acquisition channels, the question is, are you ready? It is a crucial one. Dealers can undertake many important initiatives NOW to prepare for the upcoming EV wave. Here are a few questions you need to start asking as an operator, and there are many more.
How do I determine the battery's state of health?
How do I determine the subscription software add-ons and expiration date?
Considering the battery and software, how do I accurately take in an EV trade?
How do I certify the EV's ACTUAL state of health and value? Not a website's algorithmic assumption?
How do I train myself as a leader and my staff? How do I get us comfortable with the technology and that new EV conversation?
How does my sales process change in this new high-tech industry, and how do I recruit differently to meet this new industry need?
How do I market myself as the EV leader, market the EV itself and how do I train my BDC personnel to engage the marketing leads?
These are just a few questions dealers must ask. There are many more. OEMs will be looking for the best-in-class dealers to help them create a new customer experience that doesn't exist today. They are learning as they go too. Your goal is to become the dealer they look to for answers and the partner they need to help build an EV sales model.
The time is now to begin formulating a strategy that prepares you and your staff for what's coming. The VIO of the electric vehicle market is roughly 1.7 million, and aging Teslas make up approximately 1.1 million. As a result, out-of-warranty used EV vehicles will soon flood the auction lanes, trade desks, and dealer's service lanes. Will you be ready?
The sky is the limit. You only have to build the rocket ship! We can help.
The EV Guy!