12:45 pm, September 5, 2024
Selling used EVs requires traditional retailers to adopt a different mindset throughout the sales process.
That is according to EV Experts boss Estelle Miller, who has been explaining how the process differs between ICE and electric vehicles.
Speaking at Car Dealer Podcast Live, sponsored by Motorway, Miller said that dealers beginning to stock EVs should be prepared for a more ‘consultative sell’.
During the special recording at Milton Hill House in Abingdon, Oxfordshire, Miller added that price parity in the second-hand market is now making EVs a more attractive proposition for buyers.
She said: ‘For us, the big news for this year is obviously price parity. So now an EV that’s two or three-years-old in the used market is about the same price as its petrol equivalent.
‘Actually, if it’s a premium performance car you’re looking for – a BMW 3 Series or Audi A6 type of thing thing – in the used EV market, you can get something which is equivalent for five or six grand cheaper. That’s a reason to go into it.
‘Then, I guess the other thing to think about going forward is things like depreciation. EVs have been holding their price really quite well this year, after a brutal year last year.
‘I don’t know, but will diesels on the forecourt hold their price in the same way as perhaps a three or four-year-old EV would? ‘That’s what I would say selling an EV to a trader.’
She added: ‘The last month has been absolutely nuts. I don’t know who is out there buying electric cars, but they are all going way over cap right now. It’s been making buying quite interesting.
‘In terms of sitting on the forecourt, our experience is that it is a slightly longer sell, it’s more of a consultative sell, you have to put more hours into it and it is going to linger on the forecourt probably longer than you’re used to with your petrol and diesel stock.
‘You need to build that into pricing when you’re looking at how much you’re paying. Obviously, I think it’s worth it.’
‘EVs are providing buyers with stability’
During the podcast, Miller, who runs EV Experts with her husband Martin, was asked how EV buyer differ from traditional automotive customers.
She explained that electric cars are now appealing to an older demographic, who are on the lookout for stability.
She said: ‘We get lots of families, who I think they’re concerned about climate change and hey’re concerned about air quality in particular. So we do see a lot of families.
‘Then we also see a lot of people who are just going into retirement, who want something that’s not going to give them surprises when it comes to servicing and maintenance, and people who want to have a bit more control over how much fuelling the car is going to cost.
‘I guess when you’re going into retirement, you’re relooking at your family finances and you want some kind of stability and no surprises. I think that’s what EVs bring to a lot of buyers right now.’
According to Miller, another key difference with customers, is a lack of brand loyalty when it comes to EVs.
It is a trend which has benefitted the likes of Hyundai and Kia in recent years, and it’s one that Miller does not see coming to an end.
She added: ‘The other thing I would say is that you lose brand loyalty when you’re switching to an EV. So whereas before, I think someone might come in and be like “I want a BMW. I’m only looking at the BMW”, they’re coming on to our forecourt and saying, “Okay, I’m going to try three or four different ones. I want to test drive them all. I want to fully understand what they each bring.”
‘As a result, they do end up being quite lengthy appointments.’
The full episode will be available to watch later this week on the Car Dealer YouTube channel.
