The Australian Automotive Industry is in the midst of a massive transformation. Over the last 3 years, Australians have and continue to shift to Electric Cars in record numbers. With added government incentives and affordable prices along with the desire for a more environmentally friendly lifestyle, electric cars will continue to grow well into the future.
That brings us to the question, what impact will electric vehicles have on used car dealerships? EasyCars has put together the complete guide that outlines the different impacts that electric vehicles will have on used car dealerships and how your dealership can adapt and thrive.
Let’s get into it!
The Growing Demand for Electric Vehicles
Since 2020, there has been a noticeable surge in the demand for electric cars in Australia. According to the Australian Electric Vehicle Council, EV sales accounted for 6.6% of all new car sales in 2022. As of 2024, that number is almost 10%.
The main reasons why electric cars are continuing to grow in popularity include:
- Environmental Concerns: Many Australians are leaning towards a cleaner and more environmentally friendly lifestyle. Electric Cars in Australia produce zero emissions, making them an attractive vehicle choice for environmentally conscious car buyers.
- Government Incentives: Australia has set an ambitious target of zero emissions by 2040. To help fuel achieving that number, the government has implemented different incentives for Australians who purchase electric cars over diesel or petrol options. Incentives include rebates, tax exemptions, and grants for charging.
- Advancements in Technology: One of the biggest stumbling blocks for electric car buyers is the lack of battery and charging infrastructure. Over the last 3 years, battery technology and charging infrastructure have improved greatly and will continue to do so, making the transition to electric far more easy and convenient for buyers.
Changing Consumer Preferences
Australian car buying preferences change dramatically. The cars that Australians were buying in 2020 are much different from the cars that they are buying today. To be successful, dealerships need to change and adapt to changing customer preferences. As Australians continue to transition to EVs in record numbers, it presents a huge opportunity for used car dealerships to increase revenue and accelerate growth.
Opportunities for Used Car Dealerships
For Used Car Dealerships in Australia, there is an abundance of opportunities available to increase revenue and profits by adapting your offering to cater to electric vehicles. Here are some of the biggest opportunities for used car dealerships:
1. Diversifying Inventory
To cater to the changing demands of Australian Car Buyers, used car dealerships can diversify their inventory to include a selection of used electric cars for sale. The benefit of diversifying inventory is used car dealers can expand their market reach and attract customers no matter what their unique buying preferences are. Some of the best ways to source electric cars to sell is to build a relationship with electric car manufacturers, attend vehicle auctions, and offer electric vehicle trade-ins.
2. Offering Comprehensive Services
To increase revenue opportunity, dealerships can offer ongoing comprehensive services for electric vehicles beyond the initial vehicle sale. Here are some of the best electric car services used car dealerships can use:
- Maintenance and Repairs: Building a service department with trained mechanics who specialise in electric car maintenance is a great way to generate ongoing revenue and customer loyalty.
- Trade-In Programs: Another proven formula that all used car dealerships in Australia currently take advantage of is trade-in programs. Implementing trade-in programs for electric vehicles is a great way to source more used electric cars to sel.
Challenges for Used Car Dealerships
With every opportunity comes a challenge. Sourcing and selling electric cars at a used car dealership will present different challenges that will need to be overcome. Here are some of the biggest challenges for selling electric cars at a used car dealership:
1. Initial Investment Costs
To sell and service electric vehicles at a used car dealership will require ongoing and hefty upfront investment. Used Car Dealerships will need to source funds for buying electric vehicles to sell, installing charging stations, training staff, and if you are planning on offering a service add-on, you will need to source tools and equipment.
2. Market Education
Even though Australians are transitioning to electric vehicles in record numbers, many still have their concerns. Many Australians may not completely understand the costs involved, the benefits, charging options, and maintenance needs of owning an electric car. For used car dealerships, it is paramount that staff are trained and can help potential customers understand the ins and outs of owning an electric car in Australia.
Final Word
The impact of electric vehicles on used car dealerships in Australia is undeniable. As consumer preferences shift towards sustainability and electric options, dealerships must adapt their strategies to meet this demand.
DISCLAIMER – The content within this blog does not constitute professional advice and is intended to be general in nature. Please consult with all relevant parties prior to making any decision.
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About EasyCars,
EasyCars by Jeal is an Australian, web-based, dealer management system that automates the buying and selling of motor vehicles. Using the latest technologies, EasyCars removes frustrations experienced at the dealership and opens your doors for greater growth.
EasyCars features include Simple Stock Management, Automated Advertising, Integrated Accounting, Government Compliance, Business Reporting, Facebook Automotive Inventory Ads, Reviews Management, Dealership Websites and more.
To learn more about EasyCars Dealer Management System or to arrange a no-obligation free demo, contact us today on 1300 473 744 or submit the form below.