Electric Vehicle News

Cash 4 Cars Cleveland is where to scrap my car Lakewood, Collinwood and Eastlake. Those of us who scraps cars in Twinsburg, Linndale Village and Newburgh Heights are experienced in dealing with auto junk and buy scrap cars in cash. If asking yourself who scraps cars in Bainbridge, East Cleveland or Bratenahl—you have found us! We buy scrap cars 6 days a week in Avon, North Olmsted and Glenwillow. Our next topic discusses the electric vehicle market. In the November 24, 2015 edition of the NY Times, Matt Richtel wrote an article with the headline of ‘A Car Dealers Won’t Sell: It’s Electric’ which highlighted the following: “Seven years ago, President Obama called for 1M million electric cars to be on the road by this year. Environmentalists promote them as a smart way to cut dangerous emissions; owners love their pep and the gas money they save. Apple & Google are developing battery-powered cars also.

Car dealers are showing little enthusiasm for electric cars (EVs). Some buyers tell stories of dealers talking them into gas cars and of salespeople that lack knowledge of them. The former chairman of the National Automobile Dealers Association said that tougher fuel-economy regulations can mean pushing cars on consumers, when they really fuel-efficient gas cars. Former chairman, Forrest McConnell, cited a survey finding that 14% of buyers cited fuel efficiency as a key factor in buying a car. Mary Nichols, chairwoman of the Air Resources Board, said she believes that consumers want these cars but have been dissuaded by unenthusiastic dealers and bad sales experiences.

California has 150,000 electric cars, but must grow tenfold in the next decade to meet its environmental goals. Industry insiders say that dealers may also be worrying about their bottom lines, as EVs don’t offer dealers the same profits as gas-powered cars. They take more time to sell because of the explaining required, which hurts overall sales & commissions. EVs also may require less maintenance, undermining dealer service departments. The vehicles are not for everyone; as they go only 80 miles or so before needing recharged. Public charging stations remain limited, particularly outside California. Air conditioning & heat drain the battery quickly, so weather can affect performance.  EVs do have big selling points since owners can ignore gas prices. Government subsidies can lead to price breaks and they accelerate quickly. Dealers play a crucial role in the popularity of EVs; most new cars are sold through dealerships and they decide which cars to stock.

Ms. Chelsea Dell was in the market for an EV in Salt Lake City and saw online that a local Chevy dealer had a used Volt. She made an appointment to test-drive the car; when she arrived a salesman told her the car hadn’t been washed, so he readied a less expensive, gas-powered car. Dell was surprised since the Volt was a lot more expensive.” The complete article is available here.

It sounds like the dealers, particularly their salespeople, understand that the electric vehicles sell at smaller margins and produce lower commissions. In reality, most new cars earn salespeople a lower commission percentage when compared to the used vehicles. Since there are less used EVs in the market, the majority in stock will be new models. Another consideration could be laziness among salespeople on educating themselves on the details of EVs. The blame there should fall on sales management for not insisting that staff have a solid grasp of the specifics of the EVs that they have in stock. This article suggested that a root cause for lack of enthusiasm in the sales of EVs may be that the dealer service departments do not benefit from such. It seems hard for me to believe that a salesperson is going to care either way on what impacts that service department in the future. Manufacturers of EVs probably assume that dealers do not need large profit margins or sales commissions on these vehicles since buyers will be drawn to the dealerships with inventory specifically for the purpose of purchasing these (specialty) vehicles.

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