EV drivers favor service and maintenance at the dealership

One of the biggest concerns that have emerged in the auto industry’s ramp-up to EVs is the loss of dealership revenue in the service lane. But new data suggests that dealerships have an edge when it comes to EV service.

Reality check: Despite, the lack of oil changes, timing belt replacements, engine repairs – you get the picture – EVs do need maintenance, just not as frequently.

• According to AAA, EVs cost a total of $940 per year, $330 less than a gas-powered car.

Driving the news: Yet, consumers see dealers as a crucial component of the long-term health of their vehicles.

• Over 75% of new car buyers would take their EVs to the original dealership they purchased them from for services to the powertrain or software.

The intrigue: While EV owners feel more confident in shopping around or trying out third-party providers for small jobs, research firm Escalent identified a growing need for one service that could combat this: maintenance subscriptions.

• 84% of EV intenders (customers 15x more likely to buy an EV) expressed a high interest in tire replacement subscriptions. 82% were very interested in brake replacement subscriptions as well.

• 74% of EV intenders said dealerships are the preferred providers for these services.

The big picture: In a time when consumers prefer third-party providers over dealers, on the whole, EVs are an opportunity to increase customer retention and establish dealerships as the trusted voices in EV care. But they have to do some things to get there.

• 82% of new car buyers say it's extremely or very important for dealers to discuss vehicle care, but only 62% say they received guidance. 

• 78% of EV intenders are more likely to return to a dealership for service if they receive maintenance guidance at the point of sale.

• A majority of EV intenders (82%) would use a mobile app to book service, while 74% would do so through the vehicle's infotainment system.

Key quote: “To maintain a central position within the BEV ecosystem, dealers must provide programs and resources that encourage buyers to return over the course of their vehicle’s lifetime, positioning the dealership as the natural choice for future purchases,” said Ben Lundin, Automotive & Mobility insights director at Escalent.

Zooming out: While it’s too early to tell if EV maintenance is really impacting the service department’s bottom line (only 2.4% of repair orders on average currently come from EVs), electrified models aren’t going away. With limited competition from third parties, dealers have the upper hand to position themselves as the go-to experts for EV care.

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How Toyota of Hollywood Doubled Tire Sales

UVeye partners with dealerships across the country to help improve customer satisfaction and unlock new revenue opportunities. Read more about how they helped Toyota of Hollywood increase tire sales by 100% in only one month.

Highlights from the case study:

• Tire sales doubled, rising from 1,000 to 2,000 tires sold, showcasing the benefits of UVeye technology.

• Alignment sales experienced a 50% boost, showcasing UVeye’s positive impact on service sales.

• Service lane collision work generated an additional $30K in revenue, making UVeye a key driver of higher collision repair income.

• The Customer Satisfaction Index (CSI) improvements reflect enhanced service quality and customer experience thanks to UVeye’s implementation.