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How will dealerships make money on electric cars?
Tesla has done a lot to popularize buying an electric car online, and it seems like other EV startups and automakers are following suit. EVs also have lower and less frequent upkeep costs, meaning fewer trips to the dealership over time. How will dealerships make money on electric cars?
Allison Stone · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
The rise in popularity of
electric cars
has disrupted every part of the automotive industry, including the dealership
itself. Dealerships face a few challenges when it comes to selling electric cars:
- Sellers need specialized knowledge of EVs that may not be available to employees of third-party dealerships
- EVs require less maintenance over time, which is a large portion of the dealership business model
- Direct-to-consumers EV automakers are able to sell cars more quickly without price-gouging or markups
In order to keep up with a rapidly-changing market, dealerships will likely need to vastly adapt and change the way that they do business. It will be a complicated process, however, as dealerships are protected by antitrust laws which forbid carmakers like Rivian from selling directly to consumers.
Wherever you buy your electric car, you’re going to need a great car insurance plan to do with it. Sign up with
Jerry
to get the best car insurance
plan that delivers great coverage at a great price for your new car. Jerry is the easiest and most effective way to find a car insurance policy that is customized for you. We compare quotes from 55+ top insurance companies to make sure you’re getting the best deal—we’ll even help you cancel your old policy.
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- Gregory R.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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