The biggest anguish to the dealership today is how their business will survive with the new electric cars being rolled out by companies. Today’s scenario is that there is a lot of awareness created by electric car manufacturers to use the electric car over the fuel based cars. The Electric Vehicles have gained a large fan club, and even the Environmental lists promote them as a smart way to cut dangerous emissions. Owners love their pep and the gas money they save. Apple and Google have jumped into the race to build next-generation battery-powered cars.

Auto dealers Electric & Self Driven Vehicles

Today, almost all new cars are sold through dealerships. To a large extent, dealers decide which cars they want to stock, and a salesperson can have a big effect on how someone feels about a prospective purchase.

This huge shift of selling electric driven vehicles over fuel based vehicles is going to cut into the profitability of the dealership on a large scale as electric cars have a very low maintenance cost compared to fuel based cars. Having a low profit from the manufacture and earning on servicing of cars & selling parts is the only way a dealership makes money. They assert that electric vehicles do not offer dealers the profits that gas-powered cars do. Dealers feel that EV’s take more time to sell because of the explaining required, which hurts overall sales and commissions. Electric vehicles also may require less maintenance, undermining the biggest source of dealer profits: their service departments.

There are many concerns for the quick adaptation of EV’s as dealers need to pay certification fees to automakers besides the heavy investment in building a charging station to be eligible to become EV certified.

So the future surely lies as to how the dealership will keep itself profitable when the transition is rapidly happening in the Auto dealership wherein the fuel efficient cars will be replaced with Electric Vehicles in the mere future.

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Tags: Auto dealerships