On the latest episode of Auto Marketing Now, host Brian Pasch tackles the primary issues dealers face on a daily basis. These headwinds consist of sticker shock due to higher payments and the complexity of selling electric vehicles (EVs) to anxious consumers.
It’s no secret that electric vehicles are not as hot of a commodity as the government hoped they would be to satisfy their zero-emissions rule by 2035. Unfortunately, both dealerships and customers alike have revolving concerns. Concerns such as range anxiety, cost of ownership, lack of proper infrastructure, and smaller selections.
Key Takeaways:
1. Prior to the 2019 pandemic, dealers kept cars on their lots for a reasonable amount of time, had adequate inventory levels, and vehicle prices were well below sticker prices. However, as the pandemic persisted globally, the sector experienced a significant transformation.
2. Today, dealers see floor plan interest rates ranging from $50,000 to $100,000 a month. They have EVs that people either don’t want to buy or can’t afford, and the future remains unknown due to the UAW strike, OEM profitability, and the pace at which EV infrastructure is being deployed.
3. Pasch encourages dealers to inform consumers when they come off of lease that the “cheese has moved.” Additionally, Pasch delves into the main approaches that dealers might use to educate customers about the rising expenses of ownership, but he notes that the dealer should always be there to help.
4. Pash recommends dealers to first consider their plans for assisting consumers in dealing with these higher prices. “Video is, in my opinion, the most effective medium for educating consumers today,” he says.
5. If dealers or consumers are concerned about the growing technology, keep in mind that leasing is a great way to purchase an EV, especially if you drive locally and don’t travel frequently. “Leasing limits any risks or mental concerns that consumers may have,” Pasch states.
6. Finally, Pasch asserts, “We can complain all we want, but if your current video marketing strategies aren’t moving your vehicles at a timely pace, maybe it’s time to fill in some of the gaps that are preventing barriers to purchase for your local consumers.”
“I want to encourage dealers to rethink their future marketing strategies, especially if you’re working with an OEM brand that has made a major commitment to move most of their vehicles to an EV charging structure.” – Brian Pasch
