The recent 22% decline in Battery Electric Vehicle (BEV) values has raised substantial concerns within the automotive market, igniting discussions about potential obstacles hindering mass BEV adoption. This downturn prompts a more profound exploration into the factors contributing to the trend.
Evolving Markets
The swift advancements in electric vehicle technology have propelled the market into a dynamic and constantly evolving sphere. While these advancements generally signify progress, they also introduce challenges regarding the perceived value and market demand for older BEV models.
Notably, pricing strategies implemented by industry leaders, such as Tesla’s frequent adjustments in new-vehicle prices, have wielded a significant impact on the overall economic dynamics, directly influencing the perceived value of used BEVs and contributing to the observed decline.
At present, only about 8,000 out of roughly 17,000 franchised dealerships in the U.S. retail used BEVs, underscoring the prevalence of wholesale practices among dealers.
The resale of BEVs poses multifaceted concerns, encompassing higher depreciation rates, battery degradation concerns, limited demand linked to worries about battery life and technology advancements, and the intricacies surrounding repairs and maintenance. These issues collectively diminish consumer confidence in purchasing used BEVs.
New Landscape, New Opportunities
Nevertheless, amidst these challenges lie opportunities. For dealerships specializing in used EVs, the availability of the $4,000/30% used-BEV tax credit stands as an appealing incentive for both dealers and buyers. However, the prevailing unawareness or hesitancy among the majority of dealers in harnessing this opportunity underscores a critical gap in industry awareness and implementation.
The collaboration with the expert marketing team at Strong Automotive brings a multitude of benefits to dealerships navigating the complexities of the used BEV market. Through strategic planning and targeted campaigns, dealerships gain a comprehensive platform to precisely and efficiently communicate the advantages and incentives associated with purchasing used BEVs.
Strong Automotive facilitates the creation of tailored marketing approaches, enlightening potential customers about the compelling benefits and incentives of opting for these environmentally conscious vehicles. Through data-driven insights and industry-specific knowledge, dealerships can craft compelling narratives that resonate with consumers, highlighting the economic advantages, environmental sustainability, and innovative features of used BEVs.
Rely on Strong Automotive
In this intricate landscape, Strong Automotive employs information-based marketing strategies to guide dealerships through these complex times. Leveraging our expertise, we assist in positioning dealerships for sustained growth and success amid the evolving BEV market. Contact Strong Automotive today to explore how we can assist you in capitalizing on opportunities and thriving in this transformative automotive environment.
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John Paul Strong
John Paul Strong combines his two decades of automotive marketing experience with a team of more than 150 professionals as owner and CEO of Strong Automotive.
