Times are changing and so is the inventory we are seeing inside the dealerships. It is becoming more commonplace to see a line up of Electric and Hybrid vehicles on the front line of our dealer partners. Now have you thought about the protections you are offering with these vehicles?
I have visited multiple stores that are excited to have these vehicles in their lineup. Employees are excited to discuss stats from the range, features, and horsepower. When I start to ask about the service contract options available the tone of the conversation changes.
Does your service contract cover repairs at Tesla directly? Does your service contract cover the battery? Is the protection a reimbursement or does it pay the service shop or mobile technician directly? Customers are becoming more comfortable with the idea of their next vehicle being electric however a lot of dealerships don't offer protection plans to match their lineup.
Most dealerships offer a vehicle service contract that is designed to offer coverage on a vehicle ranging from powertrain to exclusionary coverage. This makes sense for combustion engines however when you see the contracts they are offering on an electric vehicle the coverage does not cover the battery. This is also where most customers will relate to a vehicle's powertrain coverage. This is a huge part of a customer's decision process to determine if they will purchase an electric vehicle. The idea of having to replace the primary battery on a vehicle is no different than replacing an engine.
Today’s EV batteries are built to last however will degrade over the years. This leads to reduced capacity, similar to what happens to the lithium-ion battery in your cellphone. You’ll still be able to drive your car but with less range due to time and usage. It’s estimated that the average EV battery will lose about 2.3 percent of its starting range annually. That’s not bad, but it is something to keep in mind if you plan to hold onto your car for a while.
Batteries are one of the more expensive components in an electric vehicle. And if you need to replace a battery after your warranty expires, it’s helpful to know how much you’ll be spending out of pocket. Currently, the average cost to replace a battery is $5,500. We recommend getting your battery installed at the dealership, which can source and install genuine OEM batteries certified by the manufacturer. "TrueCar Advisor"
Our team has been training and learning about the multiple options that are available for EV and Hybrid vehicle coverage. Contact us today to see how easy it is to offer coverage that matches your inventory and customers needs.