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Why Car Salesmen Don't Want To Sell Electric Cars

HughPickens.com writes: Matt Richtel writes in the NYT that one big reason there are only about 330,000 electric vehicles on the road is that car dealers show little enthusiasm for putting consumers into electric cars. Industry insiders say that electric vehicles do not offer dealers the same profits as gas-powered cars, they take more time to sell because of the explaining required, and electric vehicles may require less maintenance, undermining the biggest source of dealer profits — their service departments. Some electric car buyers have said they felt as if they were the ones doing the selling. Chelsea Dell made an appointment to test-drive a used Volt but when she arrived, she said, a salesman told her that the car hadn't been washed, and that he had instead readied a less expensive, gas-powered car. "I was ready to pull the trigger, and they were trying to muscle me into a Chevy Sonic," says Dell. "The thing I was baffled at was that the Volt was a lot more expensive." Marc Deutsch, Nissan's business development manager for electric vehicles says some salespeople just can't rationalize the time it takes to sell the cars. A salesperson "can sell two gas burners in less than it takes to sell a Leaf," Deutsch says. "It's a lot of work for a little pay."

Jared Allen says that service is crucial to dealer profits and that dealers didn't want to push consumers into electric cars that might make them less inclined to return for service. Maybe that helps explains the experience of Robert Kast, who last year leased a Volkswagen e-Golf from a local dealer. He said the salesman offered him a $15-per-month maintenance package that included service for oil changes, belt repair and water pumps. "I said: 'You know it doesn't have any of those things,'" Mr. Kast recalled. He said the salesman excused himself to go confirm this with his manager. Of the whole experience, Mr. Kast, 61, said: "I knew a whole lot more about the car than anyone in the building." "Until selling a plug-in electric car is as quick and easy as selling any other vehicle that nets the dealer the same profit, many dealers will avoid them, for very logical and understandable reasons," says John Voelker. "That means that the appropriate question should be directed to makers of electric cars: What are you doing to make selling electric cars as profitable and painless for your dealers as selling gasoline or diesel vehicles?"

4 of 482 comments (clear)

  1. Re:Easy solution by Firethorn · · Score: 4, Informative

    Which state would that be, as the ACs mention?
    From wiki:

    In the United States, direct manufacturer auto sales are prohibited in almost every state by franchise laws requiring that new cars be sold only by dealers.

    Customer Experience
    According to one survey, more than half of dealership customers would prefer to buy directly from the manufacturer, without any monetary incentives to do so. An analyst report of a direct sales model is estimated to cut the cost of a vehicle by 8.6%.[11] This implies an even greater demand currently exists for a direct manufacturer sales model. However, state laws in the United States prohibit manufacturers from selling directly, and customers must buy through a dealer.

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  2. Re: Easy solution by dgatwood · · Score: 4, Informative

    And yes owners, there is oil needed for your volt.

    Um, no. Electric cars use permanently lubricated bearings. There's no mechanism by which the dealer can add oil to anything. Eventually, those bearings fail, and you have to replace the motor, but not for a very long time.

    Electric cars do need tire rotation, brake pad replacement, and replacement of brake lights and other exterior lights (if they aren't LEDs). Beyond that, they should be largely maintenance-free.

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  3. Re: Easy solution by ganjadude · · Score: 4, Informative

    a vold is not a true electric, it has a range extender (AKA an ICE)

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  4. Re:Less service? by rahvin112 · · Score: 5, Informative

    Every car I've ever owned has had more than $4k in maintenance costs by the time it's 10 years old. The water pump, the timing belt, flushing the transmission, flushing the radiator, etc... amount to a pretty penny. But the oil changes alone are going to net you more than $1000 in that timeframe. You get one major part going out on a combustion car that requires the engine to be disassembled and you'll drop $1k before they even know what's wrong. Yea if you do all your own maintenance you can save money on stuff but mechanical engines break down over time.

    And from what I've seen of battery replacement information the only batteries failing at 8-10 years are the NiMH batteries in the Prius. The lithium-ion in the more advanced vehicles have not exhibited the same failure rate and currently have a very poorly understood failure rate because not many have failed.