Implementing EV charging solutions involves not just the location where you make the shift to electric but also attracting more clients to generate more revenue. You can bet that your competition is adding public EV charging stations to make their business more accessible.
You don’t want to get left out in the race. Your business needs to think creatively and implement a charging solution to boost customer value on each transaction. Turn your location into an electric charging destination and attract more customers along the way.
In this article, we’ll talk about how an EV charging station dealership can benefit you and your customers.
The Shifting Landscape for Car Dealerships
The electric vehicle market is skyrocketing, as the latest vehicle stats show. Electric car sales have increased to 186% in 2020 and electric vehicles made a record in 2021 in a market that’s 28.7% under pre-Covid 19 levels.
Overall, there are 1.65 million newly registered cars in 2021, still 1% up from 2020 records in spite of the global impact of the pandemic along with the shortage of semiconductor chips.
In spite of this, more BEVs or battery electric vehicles were sold compared to the last five years (2016-2020) combined, with 11.6% (190,727) registrations of the new car sales, while PHEVs or plug-in hybrid vehicles constitute 7% (1114,554) cars.
This entails that used electric vehicles constitute 18.5% of the newly registered cars in 2021. The electric vehicle transition has not only begun; it is gaining momentum.
While such a momentum presents certain challenges, it’s also a great opportunity for dealerships to connect with their customers, by adding more value, and boosting revenue while reducing carbon emissions and operating costs.
The Three Most Common EV Chargers
Electric vehicles must be charged regularly for effective use. As with the Department of Energy, electric vehicle chargers come in different varieties and levels of convenience and power for EV users.
It is crucial to know these EV charging level types, their charging rates, and general use of each to optimize your electric vehicle supply equipment or EVSE experience.
Level 1 Charging
Level 1 uses a standard 120-volt charger that’s accessible to the majority of households. An ordinary wall outlet is good enough for Level 1 charging but can only provide 4-5 miles of range per hour, which is quite slow. To some people, this is enough, since they don’t drive very often and can charge their car for many hours while not in use.
Plug-in hybrids contain smaller battery packs compared to purely battery-electric cars and may be excellent options for Level 1 charging. It is also worth remembering that Level 1 charging is restricted in some parts of the United Kingdom as most electric vehicle users are using a 220-volt electric source for their plug-in electric cars.
Level 2 Charging
Most of the charging stations at home in the UK are Level 2 chargers that receive an electric supply of at least 200 volts and charge an electrical vehicle at rates of 12 – 60 miles range per hour, depending on its power capacity and the amount of power the EV charger can provide.
In the United Kingdom, the majority of homes require 230 volts for appliances such as a dryer and watching machine, and the majority of commercial properties require three-phase power.
Level 3 Charging
Also called DC supercharging or a fast charger, this type is accessible in much higher voltages for charging plug-in EVs with as much as 800 volts. Unlike Levels 1 and 2, which depend on AC or alternating current, this level relies on DC or direct current.
This is the fastest way to charge EVs, but they aren’t found in individual homes and are generally available on public or commercial charging locations. These chargers can provide a range of at least 3 – 20 miles/ hour of charging.
The installation cost, nature of the cars, and frequency in which such electric vehicles require charging must also be considered.
Extra costs will be incurred while setting up the electric vehicle charging stations for customers in the beginning, but the benefits of using them are for the long term.
Benefits of Installing EV Charging Stations At Dealerships
Providing charging stations yields many benefits for both dealerships and their customers. Among the biggest obstacles for consumers looking to buy electric vehicles is the lack of understanding. They’re a new technology and buyers are worried about their efficiency and convenience.
These are some of the benefits of installing EV chargepoints for your customers:
- Enhance Customer Awareness
Providing EV charging stations will make customers more aware of the equipment, which is a great way to retain them by adding more education and value. Dealerships must make consumers aware of the benefits of electric vehicles and EV chargers.
It’s an easy way to make conversation about the different features of the equipment like smart charging, power requirements, renewable living and convenience. In the long term, this will increase your EV’s sales, which will benefit the car dealership.
- Create A New Revenue Stream
As more customers look to purchase their first electric vehicle, providing EV chargepoints is a fantastic way to add revenue by attracting new EV customers who are excited to buy and make the shift to electric vehicles.
Also, by having an EV charging facility, dealerships take in customers and find a way to begin proposing the purchase of electric vehicles in the future and sell additional products like charging stations.
- Encourages Repeat Business
Customers who enjoy more value from dealerships’ education and provision of additional service from an electric vehicle purchase will likely depend on the same car dealership for more purchases. This presents more opportunities for a dealership to enhance its relationship with its customers by encouraging future purchases.
- Introduce Financial Incentives
Through these benefits, dealerships can educate customers about leveraging financial incentives while installing EV chargepoints on their property. Dealerships will also benefit from these financial incentives.
The U.K. financial incentives grant funding for 30% of the entire cost of purchasing and installing an EV charging station. You can learn more about these grants in Workplace Charging Scheme: Applicant’s Guide
- Develop A Plan For The Future
The increasing demand for electric vehicles calls for a drastic shift from traditional dealerships. The Department for Transport (DfT) reported that there were at least 396,497 electric vehicles in the UK in 2020.
Additionally, all new vehicles within the United Kingdom should be zero-emission by the year 2040, as confirmed by the government. This, along with the United Kingdom’s phasing out of diesel and petrol cars and vans presents a global-leading goal to end the selling of high-emission road vehicles in the next two decades.
As the electric vehicle and sustainable alternatives continue to flourish, dealerships will have to shift to EV sales and other alternative technologies to grow their business.
How Auto Dealerships Can Earn More With EV Charging Stations
Car dealerships have been stalling since many still don’t have charging stations to support EVs on their lot or the knowledge to sell them. So carmakers are thinking twice about sending their limited EV supplies to dealers who aren’t prepared to receive them.
As a matter of fact, the majority of car manufacturers require dealers to install EV chargers before they approve shipping the inventory.
A number of dealership owners do think that installing minimum infrastructure that meets the automaker’s requirements is feasible. But it’s crucial to spend some time thinking about strategy and how to apply your electric vehicle charging solution.
Installing charging infrastructure doesn’t just comply with the manufacturer’s requirements – it also future-proofs your business while the industry shifts to electric vehicles.
- A Strategic Way of Doing Business
Strategic, thoughtful planning ensures that your business continues to adapt, evolve and gain momentum irrespective of the field you’re in. It doesn’t just help car dealers prepare for vehicle delivery for new owners but also allows them to increase their offerings, control their business’ service and maintenance, and add new revenue.
Before investing, work with a partner who can simplify a complicated situation and help you benefit from electrification.
- Driving Vehicle Sales
Providing a charging solution directly can help customers overcome their doubts about shifting to electricity. Just like ICE or Internal Combustion Engine vehicle sales, customer experience is a major factor in closing the deal.
Just now, you are talking to a customer who may have doubts about switching to electric. Driving electric vehicles is different from driving traditional ICE vehicles. The sales team should understand these differences from the inside out to address any concerns customers have about the way they drive.
A recent survey made by the Land Transporation Office reports that range anxiety and access to charging stations are among the chief reasons why many UK drivers are concerned about shifting to electricity. Most of the surveys done by the dealerships indicate that they get the same concerns from their respondents.
The majority of the customers know how and where to keep an electric vehicle charged. But are you confident that the sales team would be able to answer these questions?
A knowledgeable salesperson will be able to provide better support to the customer. With on-site charging solutions, car dealers can provide drivers with information on how charging works. They can also demonstrate how to locate charging stations and explain that they can do something else like working or sleeping while charging their car.
Customers will choose dealerships that can walk them through the process of purchasing and using electric cars and EV chargers. Being able to speak the customer’s language and enhance their EV experience is crucial in building consumer confidence.
Such expertise will help you reach the goal of inspiring customers to consider buying your units – no more anxiety.
- Creating Operational Efficiency
Reckless charging infrastructure installation can negatively affect your operations. But if implemented strategically, you’d be able to control your EV business with a single proven system. A comprehensive charging solution will simplify the entire electrification procedure and allow you to maintain order in your business while you operate.
You may be wondering if it’s necessary to just keep your cars connected and charged. The truth is that networked charging stations do help you save money and energy over time by regulating your usage.
Custom-configured software will enable you to schedule charging and control access so when electricity costs are very low, you can potentially attract customers who want to charge. A power management system will enable you to balance and track energy usage on several chargepoints.
Adding chargers for your service provides flexibility in mechanics while driving vehicles as much as is required during maintenance. You may return the vehicles to the owners once they’re fully charged – a small incentive that helps develop loyalty.
- Guarantee Return Of Investment (ROI)
Do not take shortcuts just to reduce the upfront costs of executing an electric vehicle charging solution. The government offers several grants, tax incentives and rebates to help businesses come up with cost-effective solutions for establishing EV charging infrastructure.
Most businesses can fund much of the implementation expenses and start to see some returns on their investment fast, through increased sales and decreased maintenance and fuel costs.
The world is shifting towards the direction of BEVs or battery electric vehicles and their infrastructure requirements. It will be hard to compete in the market if you can’t provide the ability to charge.
But with the right partner and careful planning and implementation of charging solutions, you can grow your business with the adoption of electric vehicles.
- Gain a Competitive Advantage Over The Competition
Businesses that prefer to set up charging stations in the workplace are leading the curve and representing themselves as adopters of modern transportation. Providing workplace EV charging will enable businesses to enhance employee loyalty, generate extra revenue, retain talent, and represent a sustainable brand in your customers’ and employees’ minds.
Businesses looking to install smart electric vehicle charging infrastructure at work must partner with a reputable EV charging installer to make the entire process simple. A qualified installer will offer high-end charging solutions that include hardware, design, software, installation and services to implement trouble-free charging.
Electric vehicle charging stations are necessary for EV buyers, and lacking such a facility is one of the main reasons your potential customers are hesitant to make a purchase. This is where your dealership steps in to provide what they need.
Providing EV charging infrastructure will benefit your dealership and its customers. Providing chargers onsite will reassure your customers, relieve their worries, and give them peace of mind, knowing that they can always charge their vehicle.
Aside from this, dealerships can also increase revenue, and take advantage of financial incentives. By integrating EV chargepoints into the sales process, you can create a system that will sustain your business for the future.