What do you drive? Why do you drive it? These questions and more contain the reasons — logical or not — that your customers formulated when they bought their new car or truck. The decision to spend $20,000 to $100,000 or more on their ride was to them the right one. Used car buying customers had similar reasons, but maybe in a different order. The least expensive vehicles could have been a gift from a family member or some dilapidated piece of rolling scrap iron because they had little financial resources. The tires they choose often match the reasons for buying their car.
Now consider why someone buys a new electric car. Those reasons may seem strange to you. Knowing the motivation of someone else is hard and the only way to get a handle on it is to ask them, so that is what I have been doing for over 22 years.
On Friday, Oct. 15, 1999, I drove my 1992 Acura Legend to Lundgren Honda, walked in the showroom and ordered, sight unseen, a new Honda Insight Hybrid. What was my motivation? I was a repair shop owner/technician at the time and the 17 city miles-per-gallon (mpg)/22 highway mpg Acura I was driving — I bought it used from a customer — was producing too much carbon dioxide.
The Insight was rated at 49 city mpg and 61 highway mpg. The Insight took 1.9 gallons of gasoline to travel 100 miles, while the Acura consumed 5.3 gallons for the same 100 miles — a huge difference. My top two reasons for buying were less global warming gasses and my love of technology. Number three had to do with my fascination with all things Honda. It is not always style and status for everyone, but those reasons are just as valid as my own. People buy what they want.
I was at the New York City Auto Show in early-April. I traveled to the commuter rail stations from my home in Worcester, Mass., with Aiden Neary, our Automotive Career Development Center (ACDC) Tesla geek. Aiden is young and we took his car, a 2006 Honda Civic Si six-speed. He bought it used last year for $5,000. Aiden loves his car. (His company car is a 2020 Tesla Model 3, but he prefers to drive his Si. Go figure.)
At the auto show, there were many new hybrid (HEV), plug-in hybrid (PHEV) and battery electric (BEV) models to choose from. These three types we call “EMVs.”
When you look at the used car market, reasons for buying change a lot. Cost is a large factor. Otherwise, many consumers would have bought new. There are some very old hybrids that are not worth fixing. The PHEVs are no more than 12 years old and many newer PHEVs that used car buyers purchase are good vehicles. Used BEVs are mostly Nissan Leafs that need a battery pack.
According to Anne Lusk, who has a doctorate in architecture and is on the faculty at Harvard in Cambridge, Mass., the reasons people cite for buying an electric vehicle are the following:
- The electricity for recharging an electric car is cheaper than the cost for gasoline;
- If an electric car recharges at home overnight, time and money are not wasted driving to get gas or charging at a more expensive, less-convenient public charging station;
- Solar and wind power electricity are getting lower in cost and will be greatly lower than the cost of gasoline in the near future;.
- More electricity is produced using renewable resources each year. In fact, Massachusetts consumers have an option to buy completely “green power.” (This may not be true where you live);
My reason of carbon dioxide reduction can be read into the Harvard study, but the reality is, this is not the number one motivator for most people.
What do you need to do to attract and retain EMV customers? The same thing you are doing now. The four “Ps” of business still apply: product, place, promotion and price. Are you ready with tooling and equipment? Have you trained yourself, your sales team and your technicians? Is your dealership equipped with charging stations? Does its signage attract EMV owners? Will your website appeal to owners of electric cars? Once you have that all together the price is easy to calculate. But you need to be in this for the long run.
Be ready for EMV customers and respect their views, as they may be very different than yours. There was a time when Prius owners were made fun of in this industry. Making fun of anyone different from you is childish. Tesla owners will need you not just for tires, but more.
Don’t treat EMV customers differently than anyone else. They have the same needs that gas and diesel-powered vehicle customers do.
