If Electrification is the Future, What About the Present?
- January 10, 2019
- Posted by: Alex Baker
- Category: Automotive Industry
You may notice them as you drive along, or you may pick them out in their charging spaces at the supermarket, but EVs are by no means mainstream.
In 2016 EVs made up 0.4% of new car registrations, by 2017 that number had risen to 0.5% and for 2018 it ended at 0.6%. This is reasonable growth, it’s just unfortunately on a low volume. In the used market in 2018, EVs made up just 0.2% of auction volume. The latter will naturally increase as the first number does however.
Approved Used is Favoured
As a result of this lacklustre performance on the block, manufacturers often send their used vehicles back through their dealer networks; they believe their own dealers have a better set of skills and understanding of the technology to sell these cars.
Manufacturers set up training programs to help their dealers identify the right customers for these cars and give them accurate and relevant advice to ensure the buyer is fully prepared for EV ownership.
Glass’s recent study found that on average EVs take longer to sell than their diesel and petrol counterparts, once again putting them out of favour with second hand dealers as a quick turnaround is key to maximising profits.
A further survey from Glass’s found that just 5% of dealers said they regularly stock EVs; their main concerns being the charging infrastructure, unfamiliarity with the technology and perception that EVs don’t represent good value for money.
Used Car Dealers Have to Keep Up
As more electric vehicles are sold, more will reach the used market; franchised dealers will quickly reach capacity and resort to selling them on through auctions and online traders. It’s therefore imperative that used car dealers adapt to this technology sooner rather than later.
Like those who didn’t optimise their business for the internet, they must keep at the forefront of technology or risk being left behind.
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