Dealerships must innovate when selling an electric vehicle, or they run the risk of falling into oblivion.

• The Tesla sales model removes the car dealership from the sales process.
• Many legacy sales professionals do not know how to sell EVs to new customers.
• Dealerships spread rumors and misconceptions about driving and charging EVs.

If trends continue, a Tesla vehicle (probably the affordable Model 3) will be the best-selling passenger car in the United States in the upcoming year.

The other models will finish in the top ten. Why do drivers choose the Tesla EVs instead of EVs or gas-powered vehicles from Ford, General Motors, Volkswagen, or other legacy automakers? Some choose a Tesla because it’s an EV, while others choose it for its innovative technology and unique styling. Others like the Tesla brand because it isn’t a legacy brand – it’s something new. It’s even got its very own charging station system – the Tesla Supercharger.

Many want a Tesla simply because they don’t have to buy it from a dealership. Not dealing with a dealership makes the Tesla brand of electric vehicles especially compelling. Could Tesla EVs be outperforming non-Tesla EVs simply because of the dealership experience?

Dealerships Spoil EV Shopping and Ownership Experiences

According to stories around the interwebs, people shopping for EVs at dealerships often come away disappointed in the information they glean from salespeople. Around the country, legacy automakers, like Ford, General Motors, and the rest do not know how to sell their EVs. Because of this, EVs are piling up on dealership lots.

As an owner of a Kia EV6, I had to deal with a dealership. I needed to test drive the GT and GT-Line to determine which model I wanted, then I purchased my GT-Line AWD at one of the three local dealerships that had my trim and color. I knew more about the vehicle than my salesperson, but I had to work with one because that’s how Kia works.

When I called to schedule my 8,000-mile service visit, the service advisor told me that I didn’t need my first oil change until 10,000 miles. Then, he reminded me that the first oil change was free. After I reminded him that I have an EV6, he told me the computer – programmed by Kia – did not have the 8,000-mile service requirements in the system. Come on, Kia. You can do better.

Dealerships Spreading Rumors & Helping Themselves

My experience with dealerships seems to be commonplace. According to a variety of sources, car dealerships don’t know how to sell their EVs, and many sales teams are pushing drivers away from purchasing an electric vehicle with rumors and lies. Sales professionals tell shoppers that the power grid can’t manage EV charging, or that they don’t understand how to charge an EV, telling drivers that their EVs need hours to achieve a full charge. (My salesperson had no idea that the EV6 charges in about 18 minutes).

Dealerships have several revenue streams, including the service center. While EVs have higher sticker prices than most gas-powered cars, they have fewer moving parts. And the most expensive component – the battery – is covered for 8 to 10 years or 100,000 miles. This issue is preventing sales teams from aggressively selling EVs.

According to the U.S. Bureau of Labor Statistics, 43 percent of dealership profits come from labor and service, while only 16 percent comes from new car sales. My Kia EV6’s 8,000-mile service included a tire rotation and a new cabin air filter change. It was a $120 service visit, while the oil change for my son’s Kia Forte is usually about half that price.

Salesmen often complain about the time it takes to sell an EV, especially compared to a gas-powered car. EV shoppers need to test drive the vehicle, and they also need training on the technology and charging features. No one needs training on filling up a gas-powered car, making the time to sell an EV less lucrative for sales professionals.

Relying on Owners and Kiosks

Fortunately, some groups, like Tesla owners and Chargeway, are trying to make headway at showrooms and dealerships. I attended an EV ownership meet-up in my community and learned that Tesla owners enjoy helping people make the switch from gas to electric. They also help the local Tesla showroom (not an official dealership) by helping new drivers get to know their vehicles.

Veteran Tesla owners help rookie Tesla owners learn how to work the technology and get the most out of charging. It’s quite a happy little family. Legacy brands should take advantage of their owners – as we know more about our EVs than the salespeople who tell lies about them.

The Chargeway app is trying to educate potential EV drivers with its charging kiosk. Car dealerships can show shoppers how to maneuver the world of charging. The Chargeway Beacon kiosk functions like the smartphone app but on a bigger scale.

Rather than sending new EV drivers out into the world not knowing how to fill up their vehicles, dealerships can educate their customers with this helpful tool.

Why We’re Stuck with Dealerships

The car dealership experience dates to the 1950s, and not much has changed since then. Before car dealerships opened in the 40s and 50s, people bought their vehicles from department stores. Then, dealerships worked with state governments to establish laws, and their agreements prevented direct-to-consumer sales.

Those laws still exist, and legacy automakers have a lot of sway in all levels of politics. Their dealership models aren’t going anywhere. If you want to buy an EV from Ford, Kia, Hyundai, or any manufacturer not named Tesla, you’ve got to go through a dealership. Most of the dealerships are doing a poor job of training their sales teams on EVs and their technology. Some clearly don’t provide any training at all – my salesperson didn’t even know what type of EV charger was available at the dealership.

I’ve had similar issues with my Jeep Wrangler 4xe PHEV. Yes, it has a gas-powered engine, but it also has an electric motor and a lithium-ion battery pack. The last time I got an oil change, the service advisor tried to sell me a prepaid oil change program. The price was fantastic, but when the service advisor tried to ring up the sale, he apologized to me because the deal wasn’t available for plug-in hybrids. That was five minutes I’ll never get back.

Breaking the Dealership Model

Now that supply chains are moving again, EVs are clogging dealership lots. According to Cox Automotive, dealerships have two months or more of EV supply on their lots. Sales professionals don’t know how to sell them because they don’t understand them. But not Tesla.

The automaker has showrooms around the country to give customers a hands-on opportunity to test drive each model and explore the features. But the showrooms don’t handle sales – because Tesla does not want to comply with the dealership model. Instead, customers order their vehicles online and then take delivery at the showroom.

The newest EVs have similar features to the innovative Teslas. They have over-the-air updates, innovative camera and sensor systems, and impressive torque. The Tesla showroom has a service center, as all vehicles need some form of service. My Kia dealership can service my EV6, even if the advisors don’t know what to enter the scheduling system. I’d rather bring it there than to an independent service center.

Get Out of the Way or Innovate

If sales professionals can’t sell an electric vehicle, maybe the dealerships need to develop new sales models. The Tesla model works well, and Hyundai has begun selling vehicles at Costco and online through Amazon. EV shoppers will want to take test drives – and once drivers get behind the wheel, most dealerships find the EVs sell themselves.

It’s time for dealerships to innovate. They could connect rookie owners with experienced owners (I love to talk about my EV6), or they start concierge services to answer questions. They could also help new EV owners with charging station installation services for an additional fee. According to AAA, first-time EV owners said they are more likely to purchase another EV when they are ready for a new car. 

Electric vehicles are here to stay, so legacy dealerships need to figure out how to make their services worthwhile for sales professionals and car buyers. Bureaucracy is tough to change, and the legacy automotive dealership system is an established system with little wiggle room. It’s time for change, but the eventual changes will be slower than EV adoption in North Dakota and the Upper Peninsula of Michigan.