Electric Vehicles Are Taking Up Space at Dealerships Because No One Really Wants to Buy Them Anymore
As many problems the auto industry faces on a daily basis, electric vehicles are also feeling the pinch as more and more new EVs are piling up at dealerships for months on end. At one point, they were in high-demand, and dealerships couldn’t keep up with the lines of eager and hungry buyers. Not to mention how every major automaker like Ford, Toyota, Chevrolet, Nissan, and BMW decided to ramp-up their EV inventory in order to compete with Tesla. But now, it seems that there is such an overabundance of them, and now hardly anyone is interested.
Why Aren’t People Buying Electric Vehicles?
One reason why not everyone is in a rush to hop aboard the EV train is pricing. Electric vehicles are considerably more expensive than their internal-combustion counterparts, and most average Americans do not feel comfortable shelling out a large amount of money for a nearly-identical vehicle that they could get for thousands less.
Another reason is whether a buyer’s community has the infrastructure to support EV charging, where gas stations are literally everywhere you go.
According to a survey by Cox Automotive, 51% of participants have considered purchasing a new or pre-owned EV. It estimates that by the end of 2023, EV sales will reach 1 million sold and account for approximately 6.5% of the U.S. auto market.
Electric Vehicles Have A Demand Problem
But despite this, it seems that manufacturers may have overestimated the desire for EVs amongst average Americans. Production is up 350%, and as a result, there are over 92,000 EVs across the country just sitting at dealerships waiting to be purchased. That translates to an average of 92 days for a new EV to be sold at a dealership. For new gas-powered vehicles, it takes an average of 54 days for one to leave the dealership. Hybrids are doing exceptionally well at the moment, as new units are sold within an average of 44 days.
However, some specific models are taking longer than the overall average to see its keys be handed off to a customer. The Ford Mustang Mach-E with an MSRP starting at $42k is looking at an average of 117 days before being sold, though Ford believes that there will be an influx of interested buyers in the next quarter.
While new gas-powered vehicles are plagued with being in high demand and low supply, EVs are seeing the opposite and much less-desirable situation of having high supply and low demand. However, many believe that EV prices will soon be on-par with those of its gas-powered brethren by 2025. Whether this rings true or not, we will have to wait and see.