Auto Dealers Who Invest in EV Infrastructure Now See Advantages
The automotive industry is rapidly transitioning to EVs. More customers are asking about EVs and purchasing them. Experts predict that 20% of vehicles sold will be EVs by 2025. Let’s view a few advantages to installing EV chargers at your automotive dealership sooner rather than later.
Rick Ricart, president of Ricart Automotive Group states, “being able to talk to an individual who’s an expert within your city, makes a big difference in the consumer’s mind and allows them to feel secure and trusted in their electric vehicle purchase.” Ricart who was certified as an Electrified Dealer, sees the competitive advantage of installing EV chargers at his dealership. And he is not alone. Many dealer owners are seeing the competitive advantage of investing in their EV structure now. For instance, dealers who start now as the “EV expert and supplier” will engrain themselves as the electric source in the future.
Smart dealers know how to play the vehicle allocation game. For example, being able to handle EV because you have the EV charger infrastructure shows the vehicle manufacturers you are serious and ready for the future. According to McKinsey, ‘the Biden administration wants a 50 percent electric vehicle target for 2030.’ And several automakers have committed to producing only EVs by 2030. With this type of pledge. dealers who see the writing on the wall early and show their manufacturer they can move EVs will see better allocation than those who are late to the party.
Reduced Fuel Cost
Auto dealers who install EV chargers now could see significant reductions in their fueling costs. Car and Driver did a comparison of the Mini Electric vs Mini Hardtop. Here are the results of the fueling cost based on 45,000 miles:
Mini Hardtop: $4,478 | 0.10/mile
Mini Electric: $1,939 | 0.04/mile
The math is clear here. The EV (electric vehicles) cost considerably less fuel than ICE (internal combustion engines). Auto dealers who are installing EV chargers will see reductions of up to 50% in their fueling cost.
For auto dealers branding is very important. “We spend a significant amount of money per year on branding and are now looking into branding ourselves as an EV leader”, explains Marissa McCoy, General Manager of Heidebreicht Chevrolet. They have decided to complete an EV charger assessment to see what it will take to bring EV chargers to their dealership. For auto dealers like McCoy, being branded an EV leader is an important part of their future business strategy. It also expresses a commitment to electric mobility and sustainability, which is an ever-growing issue for many consumers.
Many states offer time-sensitive subsidies and incentives for business entities, like auto dealers, who install specifically direct current fast chargers on their facilities. For example, DTE, one of the major utilities in Michigan is offering grants up to $70,000 for the purchase and installation of a DC fast charger that is publicly accessible.
On the federal side, the IRS is offering up to $30,000 in tax credits for businesses that purchase and install EV chargers until December 31, 2021. Dealers who install EV chargers now could save considerably.
Whether you are already selling EVs or ramping up for the future, Current Dealers can paint a complete picture of what it will take to be electric vehicle ready. Contact us today for an assessment and let us help get you prepared for the all-electric vehicle future.