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The automotive industry is experiencing a paradigm shift as new electric vehicles (EVs) enter the marketplace at reduced rates. With the Government’s announcement of an electric car grant scheme, which could reduce the upfront cost of new electric vehicles by up to £3,750, the impact on car buyers and dealerships is significant.
In this AM Supplier Insight, Chief Operating Officer at MOTORS, Phill Jones, offered his insight into the effects of the grant – discussing changing attitudes to EV, implications on the used car market, and suggested areas of focus for car dealers going forward.
A major presence in the UK’s automotive retail sector, the MOTORS website connects prospective buyers with used car dealers in an online network, with millions of visitors every month.
With the prospect of reduced costs, the electric car grant is already having an impact on car buyers and their attitudes to EV.
Jones explained: “We ran a snap poll the day after the grant was announced, and 38% of new car buyers thought the grant will make them more likely to buy an EV, and that was corroborated by increases in searches on Google.”
Cost is but one factor that buyers must consider when looking at EVs, with access to charging and vehicle range also proving frequent concerns. However, Jones highlighted that measures taken to address these barriers, added to the momentum around costs no longer appearing so high due to the grant, improve the likelihood of prospective buyers feeling encouraged to consider EV cars.
However, with the grant being aimed at new cars, Jones expressed his frustration on behalf of the used car marketplace – maintaining that this segment of the sector requires more support.
“We think it’s a bit naive to think that everyone could afford a new car because they can’t,” he said.
Consumers, Jones noted, will likely see used EVs become cheaper as new car prices decrease, but dealers will be put into a position of increased risk as they deal with stock that could be going back in price.
“There are risks of people being caught with stock on their forecourt, if they haven’t priced it and move it to sell.”
With increasing numbers of potential first-time EV buyers, the importance of dealers and their ability in the showroom has only grown, with Jones explaining that 85% of people buy off the back of their showroom experience. However, with car buyers bringing unique concerns to their EV purchase, understanding the nuances is crucial.
“I think the sales teams need to be product evangelists,” said Jones.
“Take some time to understand what the consumer wants to do, how they’re going to use it, think about the range anxiety and such. It just takes a little bit more explaining. So, if you can do that, I think you can get more people on the road and EV.”
