Most Dealers Are Not So Hyped Up About The EV Market

[billt460]

"Cummings said companies and the U.S. government are trying to push EVs with positive momentum and as a, "good gesture" to benefit the environment. However, he feels the current approach is "too aggressive" and "too fast."

Car dealers throw cold water on electric vehicles versus gas options: ‘I wouldn’t feel safe’

Car dealers have said that they are not yet convinced that electric vehicles should be the only car in the house as the Biden administration pushes forward.

www.foxbusiness.com

 

[jeepman3071]

Dealers are in the business of making money, if they felt EVs would make them more money than gas they would jump on board.

 

[JeffKeryk]

They forgot to mention that ICE cars maintenance and repair are a big part of their business.
And they don't much like the direct sales model becoming more common. Status quo baby!

 

[billt460]

Dealers are in the business of making money, if they felt EVs would make them more money than gas they would jump on board.

They have to be able to sell them in order to make a profit. Therein lies the problem.

 

[alarmguy]

Dealers are in the business of making money, if they felt EVs would make them more money than gas they would jump on board.

But there isnt anything to jump on board with except very expensive vehicles compared to the ICE.
Americans can buy an EV at any dealer, in fact some brands are sitting on lots unsold.

I do agree with you, they are in business to make money and an EV would have to sell for a lot more than the current price to make up for the profit on an ICE vehicle. Someone has to support the dealership and structure.

The proponents of EVs have to accept, Americans will pay for convenience and an EV does not offer the range of convenience that the ICE does, nor does it offer the price and size that you can buy with ICE. It's really that simple.

For some reason people expected an EV to buck the trend of "everything marketing" in the modern world. They built an EV that does the same thing as an ICE. Made the EV more expensive, smaller, less convenient and more heavy at a HUGE increase in price.
When in the history of a new product did that make sense!?!?

Typically, successful marketing makes a new product less expensive, larger or same size, more convenient and cheaper. Then it sells like crazy. Only reason there are any EVs on the road is the taxpayers are footing the bill for others to buy them

 

[billt460]

Another thing to remember, is that EV's, (and all other vehicles), are considered "sold" as soon as they are manufactured, and shipped out to the various dealers. Not when they are actually sold to the buying public. Because the manufacturer gets paid directly from the dealer.

This can give a false sense of demand, (along with inflated, bogus sales numbers), if there are a significant number of them lying around unsold on dealers lots.

Which is the case with a lot of EV's. These cars are reported to be "sold", when in fact they're really not.... At least not to the public. Which is the sale that matters.

What Happens To New Cars That Don't Sell?

What happens to new cars that don't sell? The answer is both simple and peculiar to the auto business, a business unlike any other in the United States.

www.jdpower.com

"So, the manufacturers' direct paying customers are car dealers, and the car dealers’ direct paying customers are consumers. Carmakers get their money from their dealers in exchange for the vehicles the dealers carry in inventory and then sell to the public."

 

[JeffKeryk]

Another thing to remember, is that EV's, (and all other vehicles), are considered "sold" as soon as they are manufactured, and shipped out to the various dealers. Not when they are actually sold to the buying public. Because the manufacturer gets paid directly from the dealer.

This can give a false sense of demand, (along with inflated, bogus sales numbers), if there are a significant number of them lying around unsold on dealers lots.

Which is the case with a lot of EV's. These cars are reported to be "sold", when in fact they're really not.... At least not to the public. Which is the sale that matters.

What Happens To New Cars That Don't Sell?

What happens to new cars that don't sell? The answer is both simple and peculiar to the auto business, a business unlike any other in the United States.

www.jdpower.com

"So, the manufacturers' direct paying customers are car dealers, and the car dealers’ direct paying customers are consumers. Carmakers get their money from their dealers in exchange for the vehicles the dealers carry in inventory and then sell to the public."

I believe that's not true in the direct sales model. Deliveries and registrations are used for metrics.

 

[demarpaint]

Dealers are in the business of making money, if they felt EVs would make them more money than gas they would jump on board.

Exactly! I've posted this a few times before, I still have friends from when I sold cars. They want to make money, and not have cars sitting in inventory that won't sell., or take a long time to sell. Maybe one day that will change for them but for now they're still passing on them.

 

[alarmguy]

PS, in other posts in here, GM blew the doors off earnings this morning fantastic. Updates and raises forecast for rest of the year.
Earnings per share up 51% 1st quarter of 2024 vs 2023

Tesla reports this evening after the close.

 

[Vercingetorix]

Anybody remember Sears?

 

[PandaBear]

I think the biggest problem is the unpredictable nature of the depreciation when you can't move it fast enough. Other cars with unpredictable residual value has the same problem, like those of orphaned brands.

Low maintenance is not a problem (look at Prius), direct sales is not a problem in used market either. Tesla has a habit of suddenly dropping price and dragging residual along, same for all those new models with more power or range dragging down price of other models without them.

The biggest problem is shown in Nissan Leaf. Massive depreciation and Nissan lost its shirt at the end of a lease.

 

[billt460]

Dealers are in the business of making money, if they felt EVs would make them more money than gas they would jump on board.

I agree that this sums it up in a nutshell. Sales and profit are the name of the game.... With ANY product, not just EV's. These things don't sell enough overall, and they're not very profitable when they do.... If at all.

We are constantly seeing articles about the government giving financial incentives to buy them, and many dealers turning a cold shoulder to them. Couple that to very high depreciation, along with the time they sit on dealers lots, and they are looking less attractive as time marches on.

And history has proven that most people run from most anything the government pushes. And the sad part is most of the time they have good reason to.