It's been just over three weeks since the federal tax credits for new and used electric vehicles officially ended. For Alex Lawrence, founder and CEO of the independent used EV dealer EV Auto, that meant losing his biggest affordability lever.
His response: lean heavily into service to offset the margin pressure.
"Our service business is booming," Lawrence told Daily Dealer Live hosts Sam D’Arc and Uli de’ Martino. "I mean, we are full all day, every day."
The details: Lawrence's mobile service operation took six months to gain traction, but once it did, appointments filled fast.
"I've got certified Tesla mobile techs that worked for Tesla working for me now,” he explained. “Once we've got the word out now, guess what? Busy. Booked. I'm going to add another truck and trailer opening up in Orange County soon."
The advantage: Unlike new car franchise dealers, who have service bays that often need conversions or upgrades, as well as technicians who need constant training, Lawrence trims that overhead with targeted hiring and keeping things mobile.
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Between the lines: Lawrence's confidence in EV service extends to the used car inventory he sells.
He offers a fully unlimited battery warranty with $2,300 in upfront costs.
A large proprietary insurance company underwrites the product, and it expires once the owner sells the car.
"The data is overwhelming that these cars are being driven much longer than even Tesla predicted," he said. "The only reason [that product] is available is because the data says the percentage of batteries that need to be replaced versus the ones that don't, makes the actuarial math work.”
Worth noting: That same data is reshaping how lenders approach high-mileage EVs. EV-specific lenders are already financing six-figure odometer cars—something traditional auto lending is more hesitant to touch.
Bottom line: As incentives disappear, dealers who treat EV ownership like a lifetime customer relationship (not a one-time sale) will win.
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