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Featured Why most car dealers still don’t have any electric vehicles

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by pakitt, May 11, 2023.

  1. pakitt

    pakitt Senior Member

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  2. bisco

    bisco cookie crumbler

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    That’s why Tesla rules
     
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  3. PriusCamper

    PriusCamper Senior Member

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    I saw this a couple days ago and I thought the one new bit of information in it was that Car Stealerships are making a big deal about building an expensive charging facility rather than just going for it and getting the cars sold despite that limitation... An yes it does limit how many EVs they can sell, but too many of them are heading faster to financial ruin than they think by using it as an excuse to not sell any EVs at all.
     
  4. hill

    hill High Fiber Member

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    Had it not been for the huge run up of Tesla stock a couple years ago, it may have likely been that Tesla would have faced Financial ruin. Their competirion though - have the advantage of trucks & SUVs profitability to support them .... they're still facing red ink?
    .
     
  5. bwilson4web

    bwilson4web BMW i3 and Model 3

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    My experience:
    • 2019 - used Tesla web page to specify the Tesla Model 3 wanted and identified the trade-in Prius Prime. Drove Prius Prime to Tesla Service Center, signed papers, and drove Tesla home. The car was built to my specifications.
    • 2017 - bought a Prius Prime in Rhode Island via the dealer internet sales. Flew up with check; bought car; stayed over night in a motel, and; left the next morning for a 1,200 mile return drive with a full tank and charge. It seems Southeastern Toyota Region are notoriously against hybrids and plug-ins. Plus they load up each Prius at their Jackson FL port with unwanted options.
    • 2017 - tried to buy a Prius Prime that I had test driven but it was not charged. The next day, I called to come over an buy it only to learn that the car was already sold. Would you like to buy the next trim up for an extra $3-4,000? Offered a Toyota Echo as trade only to be offered way under market value. Complaining with a co-worker, sold it to him for $1,000 which was $200 more than the dealer offered.
    • 2016 - wanted to buy an end-of-lease BMW i3-REx. Nothing at the local BMW dealer but eBay Motors found an 'auction' dealer in Charlotte NC for a fair price. Conducted the purchase over the phone and sent "the check is in the mail." First drive was 700 miles back to Huntsville AL. Request to have local BMW dealer check for updates ... was not done. One block from seller, coded car for sensible, EU operation of the range extender engine.
    • 2010 - got a deal through Toyota to buy a Prius through them. Had to take delivery at the dealer only to discover the safety recall for missing floor carpet clips had not been done.
    • 2005 - found on eBay motors a used, 2003 Prius. Flew out with check and picked up the car.
    • 2005 - was on a waiting list for a Prius when I got a phone message that the dealer was marking up the car an extra $1,000 and had to race to the dealer.
    • 2001 - test drove a Prius only to discover there was no cruise control!
    • 2001 - bought a Toyota Echo after three visits. Could not get the options we wanted so on the last visit, the sales manager said, "We sure have been working hard to not sell you the car you want." He found the car wanted and even installed an after market cruise control. But I still recalled the two earlier visits that could not get the Echo we wanted.
    My life and time has value but dealers:
    • Know nothing about the car technology which is obvious when taking the test drive.
    • Sell only what is on their lot and won't call around to find the car you want.
    • Waste half a day with 'see the manager' games instead of a real offer.
    • Chase off service technicians instead of promoting them to sales.
    Car dealers have destroyed any sales skill and credibility except for service and manufacturer warranty work.

    Bob Wilson
     
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  6. dbstoo

    dbstoo Senior Member

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    I looked at it from a different perspective. (You all knew I would :) )

    If there are an average of 4 car dealers in each town and only 27 percent of dealers had EVs in stock, that means that every town has a local dealer with stock ready to buy. That's a "good thing".

    But from my experience in 2022, the largest dealers in our "auto row" had only a handful of new cars for sale at their lots. In my city you can find a dealer for every established manufacturer within a 2 mile radius.

    I'm not sure how Tesla, Carvanna and other non conventional car sellers were counted. They don't have dealers, but they will sell their product just about anywhere.

    And, like many 2022 surveys, the 2022 data is outdated and covers a time with an aberration in the economy as well as the restrictions imposed by Covid. Take that same survey today and chances are that you will find a lot more Plug ins for sale today. Yesterday my Toyota dealer offered me a choice of two different PHEVs at only a $10,000 markup. The markup was a "market adjustment" because "they were so rare". He did not notice the irony of having unsold cars that are so rare that he feels a 25% markup is justified in addition to the markup already built into the MSRP. He had 7 BEVs on the lot, ready for the next buyer to drive home. Another 60 BEVs were available on the dealer lots within 20 miles. And those did not include the Teslas traded in for Primes... That's how the salesman explained the presence of the 5 teslas all in a row.
     
    #6 dbstoo, May 14, 2023
    Last edited: May 14, 2023
  7. mikefocke

    mikefocke Prius v Three 2012, Avalon 2011

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    Never cease to be amazed at how different two places can be. In Raleigh, my son was quoted over a year for a PP. Looked for other plug-ins. I did too. Willing to go 100 miles. No luck. Finally after doing some research, he decided on a Y after renting one for 2 days. Ordered but 6 week wait and stretching. This despite building more than selling reports. Maybe because he didn't buy any of the expensive driver assist options? But you all seem to have lots more availability than we do.

    My 5 local dealers (GM, Toyota, Nissan, Ford, Chrysler) seem to have trucks and not much else on the lots. Every once in a while I'm in for parts or service and I wander the lots looking. Surprised that things haven't changed much due to the rise in monthly costs for most folk.
     
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  8. Trollbait

    Trollbait It's a D&D thing

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    Local Nissan dealer actually has some Ariyas. Might even be discounted.
     
  9. Leadfoot J. McCoalroller

    Leadfoot J. McCoalroller Senior Member

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    Most automakers are still struggling to get all the parts for all the versions of models they build, and they have all focused on producing mostly (or only) the loaded trims. So if you want the top of the line, it may be on the lot or a short wait. If you want the value model come back next year.
     
  10. Zythryn

    Zythryn Senior Member

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    This is a great example of news giving different impressions.
    Tesla ‘inventory’ did indeed grow.

    Inventories are typically are expressed in “days of sales”. Tesla, as I recall, went from about 8 days worth of sales, to 16 as the beginning of 2nd quarter.
    Toyota is the ‘best’ off among the legacy dealers at about 27 days. Ford is sucking wind at about 72 days.
    (https://www.coxautoinc.com/wp-content/uploads/2023/04/March-2023-NEW-Inventory-chart.jpg).

    So yes, inventory at Tesla grew. Availability is still in short supply.
     
  11. dbstoo

    dbstoo Senior Member

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    I don't think that holds true for "Most Automakers". Some? Sure. Most? Maybe, maybe not. Are all focused on building only the most expensive models? No.

    Looking at the cars available in California, I'm seeing similar quantities of low cost models and high cost models, and that goes for Toyota too. The reason that I'm having a difficult time finding a car that want to buy is that I have a specific option set that is not very common ... yet. But I can wait.

    As far as the "come back next year" statement... Is that really what they are all saying? (see my first paragraph)
     
  12. dbstoo

    dbstoo Senior Member

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    If availability is in short supply, it would not be due to a lack of production (per zythryn above). According to this article by ArsTechnica, ( Tesla cancels all right-hand drive Model S, Model X orders | Ars Technica ) it's not because of demand either. From that article... In 2022, Tesla built 71,777 Models S and X but could only sell 66,705. That trend looks to be exacerbated this year; in Q1 2023, it built 19,437 Models S and X, yet almost half remain unsold

    It's too bad that Tesla does not have an official public relations department that could cohesive responses to statements. They'd be able to tell us if tesla really had no buyers for 5072 high end models last year, and that that number has doubled this year.
     
  13. Leadfoot J. McCoalroller

    Leadfoot J. McCoalroller Senior Member

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    It may have already gotten better than I've realized. My last car purchase was two years ago this month, and I'll admit that I haven't been watching as closely since then.
     
  14. bisco

    bisco cookie crumbler

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    be careful not to use online dealer inventory. most of it is what they have on order, not what is in stock.
     
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  15. dbstoo

    dbstoo Senior Member

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    I've primarily relied upon the SmartPath website to locate the cars, and then visited the dealer. If they had the VIN the car was usually where they claimed.

    Now if I can just find a way to search for the cars that have the solar roof installed, all would be happy in my world.
     
  16. hill

    hill High Fiber Member

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    Yes - we put so many of these stealerships on our email block list as they seem to have baited us w/ false inventory - only to obtain our info so that they could spam us with vehicles that we have no desire to purchase.
    ... and cars that aren't marked up over MSRP, and/or already being held on deposit by another. Little facts they try to hide - just to get you in there because they figure even though you can't buy it you might want to look at it. Such a joke process now days .
    .
     
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  17. pakitt

    pakitt Senior Member

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    My experience for my purchase of 3 cars (1 VW, and 2x Prius) in Germany:
    - go to (any) manufacturer's dealer and place order customized exactly to your liking
    - get old car checked by dealer to fix resale value (also based on used cars' database dat.de)
    - wait 2-3 months (more or less depending on demand and type of vehicle/option) - I never waited more than 3 months
    - pay MSRP; get a discount (around 2-4%) if you pay "cash" (paper cash and checks are not allowed in the EU since at least a decade beyond a certain amount, to avoid money-laundering; dealers also don't want checks or cash anyways as it is considered a liability and subject to theft if kept on premises; they prefer electronic payment, regardless)
    - pay "cash" via IBAN bank transfer (like an ACH), secure, fast and convenient. No fees. (I never financed as the interest rates have always been too high and I could afford paying cash.)
    - drive home.

    My experience in the USA: good luck getting the car you want at MSRP without extra features/options/add-ons no one ever asked for to be added, wait a random amount of time if it is not on the lot, be at the mercy of the dealer to even get one.

    Added "bonus": in Germany I paid 36EUR to register my Prius, as registration fees are linked to CO2 emissions and engine displacement and type (gas vs diesel). In the USA to register my Prime in CO, almost $1000, as it is based on MSRP. To register my husband's i4, almost $1300. Hence, no incentive to buy cleaner, more efficient vehicles (EVs or not): you are going to pay a lot of money, regardless (no wonder there are so many people driving here with expired license plate tags, even on new vehicles, and out of state (Texas) expired tags - it doesn't help that nobody is fining them for driving unregistered vehicles....)
    In Italy, it is slightly different, you pay registration fees based on kW/HP and you pay extra if the MSRP is beyond a certain level (i.,e., it is considered a "luxury vehicle"); if you drive a Bentley in Italy you pay about the same as in CO, which only marginally less than registering a Prius here in CO. I didn't know that the Prime was a luxury vehicle in the USA...
     
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  18. Trollbait

    Trollbait It's a D&D thing

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    The dealers in the US got states to pass laws banning factory direct sales of cars. Which is why Tesla still can't sell cars in some states.

    What you pay to register in CO isn't actually all registration fee. That is based on weight and age. It appears to be under $30. Pa is a flat rate going up to $45, with higher for trucks, but SUVs are 'station wagons' for the fee. Most of your fee is actually a property tax based on the car's value. Pa doesn't tax that, but many other states do.

    With hybrids and EVs having a higher price than the equivalent ICE model, it is a disincentive that is slightly ameliorated by being deductible on federal taxes. A country in Europe may not have annual property taxes on a car, but they likely had a higher sales tax rate on the purchase than in the US.
     
  19. pakitt

    pakitt Senior Member

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    You read read correctly and I wrote not what I meant. By "any manufacturer's dealer" I meant any private entity that sells vehicles of that brand only, like it happens in the USA. You also have dealers selling multiple different car brands. I am not aware of any direct sales of vehicles from the manufacturer through their fully owned dealers, other than Tesla. I remember as a kid seeing FIAT direct sale points in some cities around Italy, but to my knowledge, they have been long gone.

    As for the taxes, I checked my receipt - about 80% is Ownership Tax, which is linked to MSRP and then to the residual value the following years. Then there is a $50 or so for EV Fee, and the rest are registration fees/surcharges. From a taxpayer perspective though, I don't care about where the overall charge goes or for what reason, as I cannot not pay it.
    So no matter how you look at it, the registration fee/tax, right to own the vehicle, however one calls it, mostly comes from the MSRP and residual value of the vehicle and it is not linked in any way to how much the vehicle is "environmentally friendly". Which means that the buyer is not incentivized in any way to buy any less pollutant vehicles as that will not affect the taxes it has to pay each year. Not only, I have to pay $50 more because it is an EV/Plug-in to recover the taxes they don't get from me getting as much gas as driving a gas guzzler.

    If it weren't for the federal and state tax credits (which are NOT refunds), buying an EV in the USA would be completely un-incentivized at the state and federal level, if not even "punished" (see latest extra fee in Texas for EVs).
    The Prime is priced around $30k-40k, that is certainly more than your average Corolla, which BTW has an hybrid version starting at $23k, but most ICE vehicles that are available out there are starting at well above that price. The Corolla non-hybrid is just $1350 cheaper than its sibling, while being 20mpg less efficient. Why am I not seeing Corolla Hybrids everywhere it is a mystery. Oh wait, because that's all the dealers have on their lots and because gas is so cheap that on average nobody notices really how much gas they put in their gas guzzler, until a war on the other side of the planet makes the gas price increase that it starts to hurt. But of course, it is Biden's fault, not your poor choice or the dealer not caring at all what you want.

    I'm not too sure that there are that many new trucks/SUV/Crossovers that are selling ever below $40k nowadays.

    In many ways to me buying a car in the USA reminds me of East Germany - you get what we give you and you have no choice. Because in the end, you cannot order anything BTO. Either it is on the lot, or it is arriving based on what the dealer decided to get for its own reasons, or you are left dry.
     
  20. Leadfoot J. McCoalroller

    Leadfoot J. McCoalroller Senior Member

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