We've had multiple reports on this forum of car dealers actively steering customers away from EV's. There must be a reason. If it isn't the service department, I'd love to hear a better explanation. Seriously, I'm not being sarcastic. If you have a better explanation please share it.
In the 1970's the front end or car sales made most of the profit for a dealership, as things progressed new car sales was a small percentage of total dealership profit. This is measured in what is called service absorption and in the last 20 years most of the profit is made in service and parts and used car sales. With the advent of the Internet anyone can find out the dealer cost of any vehicle, so the manufactures offer the dealers trunk money. People come into to a dealership and say I know your invoice is x amount, what will you sell me this car for. So the difference in what the dealer pays for the car and what he sells it for is a slim margin but gets those incentive from the manufacturer to help with the total profit margin. Dealers now expect the parts and service department to make up the difference as well as used car sales. You will find that most dealers have a fairly large used car department and this is another profit center. I still think that most dealers and manufactures have not embraced the EV market, there thinking is that it is a niche market and not something that will be main stream. I hope that they wake up because it is the future and the market will be the main indicater when the Gen 3 shows up.
