The push to electrify the nation’s automobiles is well underway with aggressive government targets, large infrastructure investments by auto manufacturers, and a growing interest in electric vehicles from consumers. While there have been significant hiccups along the way (see lack of charging options, vehicle range concerns, etc.), the uptick in EV sales has been significant.
In 2023, approximately 1.2 million electric vehicles were purchased in the United States according to Kelly Blue Book. That figure saw the share of EVs on the road jump from 5.9% to 7.6% year over year. Even with the notable reluctance of some manufacturers and consumers to go “all in” on EVs, the sales trends suggest these vehicles are here to stay for the near future.
With the increasing number of electric vehicles on the road, it is important to consider the service requirements of these vehicles and the impact these requirements will have on consumers. Additionally, we should examine the role of dealers and agents in providing attractive F&I solutions.
EV Service Realities:
According to Consumer Reports, electric vehicles have 79% more reliability problems than gasoline- or diesel-powered vehicles, on average.
-Consumer Reports, November 2023
While electric vehicles offer benefits in fuel efficiency and environmental impact, it’s safe to say that not all the mechanical and technological kinks have been worked out. Those kinks can lead to consumer frustration as malfunctions and associated costs can mount. Some of the key issues that plague the EV market are problems with the vehicles’ batteries and charging systems, the increased cost of tire replacement, and ill-fitting body panels (according to a 2023 Consumer Reports survey).
The facts also show that EVs are more costly to repair when they do require service. Reliance on advanced computer systems, the typically smaller size of EVs (making them more prone to damage in an accident), and the fact that many EVs fall into the luxury category are driving this reality.
Protection for the EV Auto Market:
The changing vehicle landscape poses a challenge and an opportunity for Dealers and Agents. A chief priority is the ability to offer cost-efficient and effective vehicle service programs. Working with F&I program providers like AutoXcel, Dealers and Agents have found compelling solutions to the challenges posed by the new EV revolution.
Equally important has been the dealer's ability to position EV-specific service contracts in a way that makes sense to consumers. Helping consumers understand the associated costs of EV repairs and the value of a comprehensive EV VSC has become an area of focus for Dealers.
EV VSC from AutoXcel:
Recognizing the obvious government and industry signals, AutoXcel was an early entrant into the EV F&I space. To support Dealers and consumers in this important industry sector, AutoXcel offers a comprehensive Electric Vehicle Service Contract (VSC). The VSC covers critical electrical and mechanical components and is available in two coverages — the Powertrain Wrap package, which wraps around a vehicle's existing powertrain warranty, and the Exclusionary Wrap program, which provides even more extensive coverage of a vehicle's mechanical, electrical, and technology components. Battery Array coverage is also available for qualifying vehicles.
Offer Comprehensive EV Coverage with AutoXcel:
Help protect your consumers from costly EV repairs and give them the peace of mind they need to complete their EV purchase with confidence. Please contact us to learn more about our comprehensive EV VSC and supercharge your EV sales.