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?

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Answer provided by
Allison Stone
Answered on Jun 15, 2022
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.
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