Michael Young, a self-proclaimed “car guy,” became intrigued by electric cars in early 2016 and decided to test drive the BMW i3. Despite encountering a salesperson hesitant to let him take it for a high speed test drive, Young went on to purchase the i3, a decision that led him to launch a website aimed at assisting consumers interested in electric vehicles. However, this encounter showcased the underlying issue which concerns car dealerships and their lack of preparedness for the electric car transition.
Electric vehicles are facing ongoing hurdles in the United States due to the unpreparedness of auto dealerships. Despite government initiatives and automaker investments, only around one-third of the country’s franchised auto dealerships are able to effectively sell electric vehicles, affecting the consumer experience and potentially jeopardizing the electric transition.
The origin of this predicament began post-World War II, when laws were enacted to protect car dealerships, making it difficult for manufacturers to directly sell to consumers. Although Tesla, which does not rely on car dealerships, has challenged some of these laws and managed to receive workarounds, most car manufacturers are still bound by the laws that protect franchised dealerships. This has led to inconsistencies in knowledge and training among salespeople, leaving many customers dissatisfied with their overall experience.
James Richards and Maya Batres underscored their frustrations with the lack of understanding from dealerships when purchasing their electric vehicles. They expressed how the dealership salespeople seemed ill-informed about the EVs they were selling, leading to misinformed advice and unnecessary suggestions during the buying process, causing confusion and skepticism.
Dealership personnel often seem unaware or uninterested in selling electric vehicles and some are not equipped or willing to provide the customer with sufficient knowledge or support. As a result, a significant number of dealerships have a poor or nonexistent electric vehicle inventory. Data revealed that at the peak of EV supply chain issues, 66 percent of dealerships didn’t have EVs available for sale. This lack of focus on EVs led to a surprising development of electric cars sitting longer on dealership lots in comparison to gas-powered vehicles, indicating a reluctance in selling electric vehicles.
Despite incentivization not being cost-effective, purchases being less frequent, and maintenance and servicing profits being reduced, there are exceptions to this rule. Dealerships like Claire McDonald’s Ford dealership in Waco, Texas are dedicated to educating and guiding their customers through their electric vehicle buying process. They view it as an integral part of their future business model.
Overall, the challenge lies in dealerships adapting and embracing the new technology and sales strategies. Electric vehicles offer a new, less maintenance-intensive future which leaves dealerships concerned about their bottom line. It is essential for dealerships to begin prioritizing customer education and satisfaction around electric vehicle sales in order to move the industry forward.
