Consumer adoption of EVs is growing and is poised to take off. With billions set aside for charging infrastructure built into the Infrastructure Bill, and surging customer demand – EVs are presenting a huge opportunity for dealers. NADA has developed a great resource, A Dealer Guide to Electric Vehicles, covering the key issues dealers need to be up to speed on when selling and servicing electric vehicles. Let’s spend today looking at some costs.
How much does it cost to maintain an EV?
Let’s look at the data. According to the Office of Energy Efficiency and Renewable Energy, battery electric vehicles are about 40% less when looking at maintenance costs per mile. Battery electric vehicles clock in around 6 cents a mile, while internal combustion vehicles total 10.
Scheduled Maintenance Costs
So, why is this?
In short, battery electric vehicles have fewer moving parts and fewer fluids that need to be topped off. A battery-electric vehicle lacks a conventional car’s engine oil, timing belt, oxygen sensor, spark plugs, and more. And, what you don’t have you don’t have to pay to maintain.
Hybrids tend to land in the middle, sharing some costs with conventional cars, but saving money on brake maintenance.
That’s part of the story. Labor and parts factor in as well.
According to analytics firm, We Predict, first-year service repair costs for EVs can stack up higher than conventional vehicles. In 2020, labor costs for EVs came in $40 higher than gas vehicles, and parts $75 higher.
Keep an eye on tire and wheel services
EVs tend to be heavier than gas vehicles and put more stress on their tires. And, the quieter vehicle highlight any potential road noise. EV buyers have the potential to come in more frequently for tire and wheel services, a potential profit center for dealers.
KPA’s Here to Help
KPA provides comprehensive consulting services, EHS, HR, and F&I compliance software, and award-winning training to help dealerships maintain a safe workplace, protect their reputation, and reduce costs. KPA’s expert consultants help dealerships proactively identify risks and stay current on evolving safety, labor, and industry-specific regulations. With KPA’s services, software, and training, dealerships can easily manage risk across the business, from the showroom to the sales desk, to the service department.
Want to learn how KPA can help your dealership? Contact us.