Saturday, February 15, 2014

Fisker of Bellevue, Washington, dealership in October 2012 [photo by Bill D via Foursquare]

The stories abound: A car buyer walks into a dealership, educated about the electric car she wants to buy...and the salesperson tries to convince her she doesn't want that car after all.

She really wants a gasoline car, he argues.Hundreds of cases have been reported of customers walking into a Nissan or Chevy dealer to buy a Leaf or Volt, then being aggressively steered toward a Sentra or Cruze.Doom, danger, dire predictions

A buyer will run out of charge and be left stranded at the side of the road, he hears, or that very expensive battery will have to be replaced in five years.

Then the electric demo car hasn't been recharged, so its electric range is minimal on the test drive. And so forth.

A recent discussion in a Facebook group prompted us to write, once more, about how car dealers work--and what motivates them to sell specific vehicles.The salient point is that it takes much longer to sell a plug-in electric car, today, than it does a gasoline or diesel vehicle.

Maximizing profit

And dealers maximize their profits by exploiting the difference in information about complex financial transactions between buyers who do it once every five or six years, on average, and salespeople who sell multiple cars a day.
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