Are electric car sales high for all car dealers?

May 30, 2023 0 Comments

As more and more Americans are choosing to go green than ever before, there seemed to be just as much enthusiasm around all-electric vehicles. Astonishingly, all-electric car sales increased by 58% in 2014. Despite this increase in overall sales, the all-electric segment remains incredibly small. What’s more, while electric vehicle sales saw an increase, green vehicles (diesel and hybrid) as a whole fell a total of 6.5% in 2014. What exactly is stopping sales from keeping up? of the predictions?

gasoline prices

Any car dealership will tell you that they aren’t throwing in the towel just yet to increase EV sales, but perhaps they are taking a long-term approach to their strategies. As the price of gasoline fell, many consumers opted to buy larger, less efficient models. With dramatic drops in gasoline prices below $3, interest in lower-mileage-per-gallon vehicles is increasing. Fortunately for these vehicles, cheap gasoline won’t be around forever.

unfamiliarity

Researchers from Indiana University and the University of Kansas conducted a survey with basic questions about plug-in vehicles. One of the most comprehensive surveys of consumer perceptions of electric cars in years, was conducted in multiple cities across the US The results speak volumes: 60% of the time respondents did not answer correctly, and 75% of those incorrect answers underestimated the advantageous aspects of these cars. Most of those surveyed were unaware that they require less maintenance than their gas-powered counterparts. They even underestimated the fuel savings of having one of these models. The complete inaccuracy surrounding them has definitely contributed to the small pool of ownership.

Lack of communication

The same survey reported that most people were unaware of state and local sales incentives. If all car dealers and policy makers increased education about the benefits and incentives available to buyers, sales would likely increase. Tax breaks and the ability to use carpool lanes on highways affect a consumer’s purchasing decision. Immediate, easily understandable purchase price reductions are more attractive to buyers than complicated, deferred benefits.

Public Demonstrations

With little knowledge or experience surrounding these vehicles, it’s obviously hard for anyone to be interested in them, much less inclined to buy one. By holding demonstrations at local malls, sports arenas, or large stores, a car dealership could benefit by changing public attitudes. In fact, one study showed that more than 71% of drivers said they were much more likely to buy an EV model after having had a chance to test drive one of the models currently on the market.

Additionally, the National Research Council released a report examining these same barriers to electric vehicle sales. Their report cited obstacles including limited model options, inadequate driving range on a single charge, high prices, a lack of charging infrastructure and the inconvenience of having to install a charging station in their homes.

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