'They Want To Be The Gatekeepers': Car Dealers Are Stopping Customers From Buying EVs

[silvrsvt]

https://jalopnik.com/car-dealers-are-stopping-customers-from-buying-evs-1851017999

[Harley Lover]

Wow, an opinion piece trying to pose as news! Dealers that know less about the product than the customer? As if this is only true with EVs? LOL

[HotRunrGuy]

Better they spend that extra 3 hours playing Solitaire on their desktop PC, as I've witnessed walking into a Dealership,,,,

 

Dealers may have less economic incentive to sell electric vehicles. Buzz Smith, a former Chevrolet car salesman who now helps train dealers to sell EVs, says it can take much longer to sell an electric car than a gas-powered one. A gas car, he said, might take no more than an hour in a single visit to sell, yielding a tidy commission.

But for electric vehicles, “it was usually four visits, an hour each, before they would buy the EV,” Smith said. Customers want to make sure they understand the technology, how to charge it and more. “So I’m volunteering to take a 75 percent pay cut — and no salesman wants to do that.”

 

HRG

Edited November 14, 2023 by HotRunrGuy

[akirby]

It’s the classic “would rather sell what they have in stock” combined with ignorance of new technology and political stance.

[silvrsvt]

32 minutes ago, Harley Lover said:

Wow, an opinion piece trying to pose as news! Dealers that know less about the product than the customer? As if this is only true with EVs? LOL

 

Its getting its info from here-

 

Electric vehicles are hitting a road block: Car dealers

[silvrsvt]

18 minutes ago, akirby said:

It’s the classic “would rather sell what they have in stock” combined with ignorance of new technology and political stance.

 

Well apparently Ford has lots of Mach Es on the lot and well the reaction from our resident dealership workers here.....

[akirby]

8 minutes ago, silvrsvt said:

 

Well apparently Ford has lots of Mach Es on the lot and well the reaction from our resident dealership workers here.....

They do now but not earlier.

[Rangers09]

18 minutes ago, silvrsvt said:

 

Well apparently Ford has lots of Mach Es on the lot and well the reaction from our resident dealership workers here.....

 

Our local dealer has 32 mach-e's on the lot, with only 2 of them having green window stickers. They have 30 dealer stock, sitting on the lot like anchors, not because they don't know how to sell them, more that the average car buyer doesn't want them. They also have 7 F-150 Lighning with blue stickers sitting on the lot. Big turn around from a couple of years ago, when my Sales Manager mentioned his personal customer base had ordered 150+ Lighning and Ford gave them an allocation of 10.

 

In our local experience, the article you posted is certainly not factual, as a couple of years ago, our local dealer was selling huge quantities of both Mach-E and Lighning, unfortunately Ford couldn't build them, so few were actually delivered. Now as BEV shortcomings are more widely known, the market has significantly reduced. The local dealer knows how to sell them, it is just that few car buyers are now interested in purchasing them.

 

However, with HEV/PHEV, they can't get enough of them.

[Deanh]

1 hour ago, akirby said:

It’s the classic “would rather sell what they have in stock” combined with ignorance of new technology and political stance.

?...Perhaps Im mis-understanding...but thats rather a surprizing comment from you....doesnt matter if you know the product or not...if you dont have customers that want a product all the knowledge in the world is completely irrelevent....its NOT the Dealerships that control demand, as per Rangers09 comment " However, with HEV/PHEV, they can't get enough of them."....THATS where the demand is right now...blame the Dealers all you want, ultimately its the product.....BEVs right product wrong time?....perhaps...the reluctance may be backlash towards having the whole narrative rammed down ones throat, but Im not sure thats ALL that it is... 

Edited November 14, 2023 by Deanh

[silvrsvt]

23 minutes ago, Rangers09 said:

In our local experience, the article you posted is certainly not factual, as a couple of years ago, our local dealer was selling huge quantities of both Mach-E and Lighning, unfortunately Ford couldn't build them, so few were actually delivered. Now as BEV shortcomings are more widely known, the market has significantly reduced. The local dealer knows how to sell them, it is just that few car buyers are now interested in purchasing them.

 

Also don't discount that special deals towards EVs from States ran out of money also. I know my state was offering rebates in addition to no sales tax and you couldn't get the Mach E or Lightning at the time. Then add in the changes in the taxes on the fed end and that screwed up possible buyers also.

 

I don't think its as much as shortcomings but a bunch of different items hitting at once-incentives running out/changing , high interest rates, and general economic issues currently all add up to a lack of demand. 

[Deanh]

56 minutes ago, akirby said:

They do now but not earlier.

again...its because all the hype has diesd down and reality is setting in.... 

[ice-capades]

58 minutes ago, silvrsvt said:

 

Well apparently Ford has lots of Mach Es on the lot and well the reaction from our resident dealership workers here.....

 

I finally saw my first Mustang Mach-E on the road just yesterday!

[silvrsvt]

8 minutes ago, ice-capades said:

 

I finally saw my first Mustang Mach-E on the road just yesterday!

 

I don't work at a dealership and see them daily? What your personal perception isn't actually indicative of the market either.

 

I seem not to be able to swing a dead cat and not hit a Bronco or Bronco Sport either around me. 

[Deanh]

8 minutes ago, silvrsvt said:

 

I don't work at a dealership and see them daily? What your personal perception isn't actually indicative of the market either.

 

I seem not to be able to swing a dead cat and not hit a Bronco or Bronco Sport either around me. 

electrics are a dime a dozen here as well...and maybe thats why weve noticed the decline in sales so significantly...that and several rows of unsold Mach E's and Lightnings...Ill leave the Transit BEVs out back out of the conversation, they were just a bad mistake.

[silvrsvt]

7 minutes ago, Deanh said:

electrics are a dime a dozen here as well...and maybe thats why weve noticed the decline in sales so significantly...that and several rows of unsold Mach E's and Lightnings...Ill leave the Transit BEVs out back out of the conversation, they were just a bad mistake.

 

Ice Capades is about 50 miles as the crow flies from me...so its not like we have a huge difference in markets/income either. That is why I'm slightly shocked he hasn't see any when I see one just about every time I'm out and about. 

[ice-capades]

11 minutes ago, Deanh said:

?...Perhaps Im mis-understnading...but thats rather a surprizing comment from you....doesnt matter if you know the product or not...if you dont have customers that want a product all the knowledge in the world is completely irrelevent....its NOT the Dealerships that control demand, as per Rangers09 comment " However, with HEV/PHEV, they can't get enough of them."....THATS where the demand is right now...blame the Dealers all you want...BEVs right product wrong time?....perhaps...the reluctance may be backlash towards having the whole narrative rammed down ones throat, but Im not sure thats ALL that it is... 

 

The other big factor is that Ford ultimately controls vehicle production regarding the model and trim mix. Some of it is based on supply chain and other commodity constraint issues but these factors are also part of the wholesale allocation plans that restrict Dealers from being able to get desired retail and stock vehicle orders scheduled.

[ice-capades]

15 minutes ago, silvrsvt said:

 

I don't work at a dealership and see them daily? What your personal perception isn't actually indicative of the market either.

 

I seem not to be able to swing a dead cat and not hit a Bronco or Bronco Sport either around me. 

 

Understood. I can only relate my own experience. I saw my first Mach-E yesterday and have only seen 1 Bronco and a maybe 2-3 Bronco Sports some time ago.  

[Deanh]

11 minutes ago, ice-capades said:

 

The other big factor is that Ford ultimately controls vehicle production regarding the model and trim mix. Some of it is based on supply chain and other commodity constraint issues but these factors are also part of the wholesale allocation plans that restrict Dealers from being able to get desired retail and stock vehicle orders scheduled.

hybrids of any sort have been exceptionally slow...could that be partly because of Ford prioritizing their BEVs?...cant answer that one...

[Joe771476]

I think the car dealers are doing them a favor!  These EV's catch fire, can't be insured if you park them in your garage, take too long to charge, aren't reliable in traffic jams and the list goes on!  Who wants to be on the maiden voyage of an electric jetliner?! Raise your hand! 

[akirby]

1 hour ago, Deanh said:

?...Perhaps Im mis-understanding...but thats rather a surprizing comment from you....doesnt matter if you know the product or not...if you dont have customers that want a product all the knowledge in the world is completely irrelevent....its NOT the Dealerships that control demand, as per Rangers09 comment " However, with HEV/PHEV, they can't get enough of them."....THATS where the demand is right now...blame the Dealers all you want, ultimately its the product.....BEVs right product wrong time?....perhaps...the reluctance may be backlash towards having the whole narrative rammed down ones throat, but Im not sure thats ALL that it is... 

 

The scenario is someone trying to buy an EV and being redirected to other vehicles.  Has nothing to do with overall demand.

[akirby]

1 hour ago, Joe771476 said:

I think the car dealers are doing them a favor!  These EV's catch fire, can't be insured if you park them in your garage, take too long to charge, aren't reliable in traffic jams and the list goes on!  Who wants to be on the maiden voyage of an electric jetliner?! Raise your hand! 

Don’t let facts get in the way of your biases.

[Deanh]

1 hour ago, akirby said:

 

The scenario is someone trying to buy an EV and being redirected to other vehicles.  Has nothing to do with overall demand.

actually...we were basically informed by Ford Trainers no less, to question customers to see if an EV was fully suitable for their needs....if not then to suggest alternatives....doesnt rerally pertain too much to me, but was rather refreshing to tell the truth....

[rmc523]

1 hour ago, Deanh said:

actually...we were basically informed by Ford Trainers no less, to question customers to see if an EV was fully suitable for their needs....if not then to suggest alternatives....doesnt rerally pertain too much to me, but was rather refreshing to tell the truth....

 

That's how it should be really - give the customer something that suits their lifestyle/needs, and they'll come back next time around.  Do the opposite and they'll say "that dealer talked me into product X, I hate it, I'm not buying that brand again!"

[rperez817]

14 hours ago, Harley Lover said:

Dealers that know less about the product than the customer? As if this is only true with EVs? LOL

 

While the lack of product knowledge among sales personnel at franchised new car dealerships is an issue with both BEV and ICE cars, BEV are particularly ill suited to the dealership business model. Quotes below are from the Washington Post article that silvrsvt shared earlier in the thread.

 

Some dealers, however, don’t seem to want to offer electric cars: According to a survey that the Sierra Club conducted at the end of 2022, 66 percent of dealerships did not have an EV available for sale. That was at the height of EV supply chain problems, but 45 percent of those dealers — or 30 percent of all dealers surveyed — said they wouldn’t offer an EV even if they could.

At the same time, car dealerships make most of their overall profits from providing service for vehicles — not selling new cars. According to an analysis from the U.S. Bureau of Labor Statistics, just 16 percent of dealers’ gross profits came from new car sales, while 43 percent came from parts, labor and service. (The rest of the profits come from used car sales and financing and incentives.)

That could also discourage dealers from selling EVs. Gas cars have 100 times more moving parts than electric vehicles do, and studies show that EVs have lower maintenance costs. An average gas-powered car, for example, needs an oil change about every six months, or every 5,000 to 7,500 miles. But many electric cars don’t require a major service until around 150,000 miles.

“They’re all terrified of that loss of maintenance,” Smith said.

Others — like Crane, who has submitted legal briefs supporting direct-to-consumer sales — say that the dealership-only model simply isn’t suited for the electric future — and may add to a car’s price tag.
“Dealers don’t want to change the model,” he said. “They want to be the gatekeepers.”

[Rangers09]

21 hours ago, silvrsvt said:

 

Also don't discount that special deals towards EVs from States ran out of money also. I know my state was offering rebates in addition to no sales tax and you couldn't get the Mach E or Lightning at the time. Then add in the changes in the taxes on the fed end and that screwed up possible buyers also.

 

I don't think its as much as shortcomings but a bunch of different items hitting at once-incentives running out/changing , high interest rates, and general economic issues currently all add up to a lack of demand. 

 

We have similar Govt grants. In BC, we receive CAN$ 9,000 from the governments for purchasing a BEV. This isn't a tax credit, it is a rebate available to all, which is applied at time of purchase. The dealers claiming the money directly from Govt. Even with this level of rebates the BEV's are still not selling.