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Adapting to declining used BEV prices

As the prices of used battery electric vehicles (BEVs) decline, new car dealers have the opportunity to adapt to this changing market landscape. With the correct strategy, you can attract new customers who previously couldn’t afford a BEV. Here’s how dealers can make the most of this opportunity.

Upheaveled in the BEV Market

Automakers have bet big on BEVs and are producing them in record numbers. With cooling customer demand, the days’ supply of BEVs far exceeds those for ICE-powered vehicles.

At the same time, the prices of used BEVs have plummeted, with many sources now reporting that purchasing a used BEV is less expensive than buying a comparable ICE-powered car.

Strategic Pricing

Leverage market data and analytics to set optimal prices for used BEVs. It’s essential to consider the total cost of ownership (TCO), highlighting the long-term savings on fuel and maintenance. Successfully pricing BEVs involves transparency and emphasizing these TCO advantages to potential buyers.

Targeted Marketing

With this new category of customers emerging, targeted marketing becomes critical. Your dealership needs to focus on identifying and understanding these consumers. Emphasize the numerous benefits of used BEVs, such as significant operating cost savings and government incentives.

Craft marketing messages targeting cost-conscious buyers; digital marketing and social media are powerful tools for reaching these audiences. On these platforms, you can demonstrate how a BEV can be a more practical solution than a traditional ICE-powered vehicle.

Enhancing Dealership Services

Offering specialized services for used BEV buyers is a key differentiator. Battery health is a primary concern for many potential buyers, so conducting thorough battery assessments and educating customers on battery lifespan and maintenance can build trust.

Keeping BEVs in inventory up-to-date with the latest software is another essential service. Free periodic software updates as part of post-sale service help ensure that customers’ vehicles remain at peak performance.

Additionally, offering extended warranties can give buyers peace of mind. Presenting charging solutions and home installation services adds value and convenience, making the transition to BEV ownership smoother for new customers.

Training and Development

Training your sales staff to communicate these advantages effectively will help convert buyers on the fence. Service staff should be proficient (or, better yet, certified) in servicing and maintaining BEVs, ensuring they can handle any issues. Ongoing education on the latest BEV technologies and market trends is vital for keeping your team ahead.

Customer Engagement and Education

Engaging and educating customers is critical. Host informational sessions and test drive events to introduce potential buyers to the BEV experience. Create informative online content, including blogs, videos, and Q&As, that explains BEV ownership benefits and addresses common concerns.

Conclusion

By implementing strategic pricing, targeted marketing, and enhanced services, dealers can attract new customers and maximize profitability. Implementing these strategies will help your store navigate the current market shift and position your dealership for long-term success in the growing BEV market. Take advantage of this opportunity to cater to a broader audience and solidify your dealership’s reputation as a leader in the electric vehicle space.

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Arthur Michalik
Arthur Michalik
Arthur Michalik: Even before graduating with a degree in Journalism, Art was already contributing to the automotive industry. He’s worked as a freelancer, staff writer, magazine editor, ad agency exec and Tier 1 marketing leader. Art focuses on developing engaging, informative content for several automotive-specific sites.

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