It has been a roller coaster year when it comes to EVs with sales and demand slowing down even as some automakers still push full-speed ahead on embracing a full lineup of EVs to replace their ICE-powered models. However, while the companies, the government, and some customers are enjoying the EV revolution, a new report suggests that auto dealerships are not happy and more of them are refusing to sell electric vehicles.
A brewing problem
According to a brand new survey that polled 250 “dealership leaders” many dealerships are either not excited about selling electric vehicles or only have lukewarm interest in doing so. A surprisingly large number of U.S. auto dealers say their sales staff aren’t enthusiastic about selling EVs,” the survey from auto retail software and data firm CDK Global reveals. The survey shines a light on a trend that has always lingered in the halls of dealerships nationwide with many salespeople not interested in selling EVs to potential customers.
The reasons for this vary but some salespeople are not familiar with EVs as a whole and might feel intimidated by them when tasked with selling one to a potential buyer. But while the survey says that their attitudes on EVs reflect similar feelings expressed by customers, that’s not often the case with other salespeople preferring to sell vehicles that generate a higher profit (and a higher commission) like fuel-guzzling SUVs and pickups versus an EV that might see some of their slice of the pay pie being thinned out by green credits and other discounts after everything is processed.
Dealer management is not helping either
Resistance to selling EVs in a typical dealership is often a top-down affair with the salespeople picking up on feelings and opinions said by upper management and dealership owners. A growing pool of these dealership owners are against installing charging stations and other EV-related infrastructure due to the high costs that often come with doing so especially in completely redoing the electrical systems of their building to facilitate safe use of these charging stations.
Profits also are a motivator and many dealerships prefer vehicles that generate a strong and steady flow of recurring expenses from parts and other services. EVs don’t do that due to these vehicles not having as many parts and recurring expenses as ICE-powered vehicles which causes service departments to make less money most of the time on EV service versus a traditional automobile. This causes some to actively push customers away from EVs with a few of them employing questionable tactics in order to achieve that goal. The sobering results of the survey also show why many EV makers prefer to have a direct sales approach to selling their vehicles versus having third-party franchise dealers that either won’t educate the customer properly on EVs or actively push them away (costing the firms money in the process.)
Shopping around is important
However, it’s not all bad news, there are some dealerships who are motivated to sell electric vehicles, but buyers will have to shop around and visit certain stores to find one that’s the right fit to help them start their electrification journey. That’s also true when it comes to finding a good price for an EV with the price varying from store to store.
As electrification continues to accelerate and navigate challenges to broader adoption, it will be interesting to see if dealerships will potentially change their tune on EVs over time especially as more mainstream-focused models enter the marketplace which might help improve the profitability forecast for concerned dealerships.
Carl Malek has been an automotive journalist for over 10 years. First starting out as a freelance photographer before making the transition to writing during college, his work has appeared on numerous automotive forums as well as websites such as Autoshopper.com.
Carl is also a big fan of British vehicles with the bulk of his devotion going to the Morgan Motor Company as well as offerings from Lotus, MG, and Caterham. When he is not writing about automobiles, Carl enjoys spending time with his family and friends in the Metro Detroit area, as well as spending time with his adorable pets.