While auto retailing is projected to shift toward electric vehicles by the end of the decade, that future is now for California dealers trying to keep up with demand for electric vehicles, both new and used.
A critical step for Del Grande Dealer Group in Northern California is speaking the same language as its customers across Silicon Valley.
Car buyers in the technology hub already have a lot of information about battery-electric vehicles and are looking for sellers who can talk in detail about battery life, charging and warranties.
Nearly 200 Del Grande Dealer Group salespeople received the latest installment of the group’s ongoing EV training in October, in addition to an earlier “I speak EV” course that focused on a third-party tool to analyze the battery health of used EVs.
“Electric cars are not the future — it’s here,” said Elwira Wilczynska, the group’s director of sales training. “We are seeing an uptick in people searching for EVs, submitting inquiries and going on waitlists. These cars are selling.”
Del Grande’s inventory varies week to week, but full EVs can make up 10 percent or more of its available new and used vehicles on any given day. The number would be higher if there weren’t such a backlog for popular new EV models.
Even brands the group sells that have yet to jump on the EV bandwagon can be an important sales outlet for used electric vehicles.
In early November, Capitol Mazda of San Jose had zero new EVs on its lot — but eight used Teslas, a Smart ForTwo microcar and one Nissan Leaf. And the Mazda store’s staff had access to nearly 200 used electric vehicles within the Del Grande group, including older models from Fiat and BMW.
Unlike used gasoline vehicles that are mostly judged on year and mileage by prospective buyers, used EVs require a lot more information exchange, Wilczynska said. Some are from the previous decade, when legacy automakers built EVs with limited range for regulatory reasons. Others are nearly new Teslas worth $100,000.
The first part of Del Grande’s training is focused on core shopper questions: What is the longevity of the battery? What range can I expect several years down the road? What are the details of the battery warranty, and does it apply to used vehicles?
“Buying an EV is different than buying a gas car,” Wilczynska said.
And while many U.S. dealerships may not be experiencing the EV demand that Del Grande sees in the heart of Silicon Valley, eventually many will. The goal for the dealership group is to stay ahead of rivals, which include both CarMax and Tesla, with its direct-to-consumer model for new and certified vehicles.
Laurie Johnson, Del Grande Dealer Group vice president of training, said that during coronavirus lockdowns in Northern California, Tesla was still growing its business by selling directly to customers, both new and certified.
“We understood that we need to know that market well,” Johnson said. “There are buyers in the Bay Area who are specifically looking for good-looking electric cars that are trendy, that are fun to drive and have the technology that they’re looking for.”
Buyers are also looking to avoid high gasoline prices, take advantage of EV tax incentives and gain access to commuter lanes for single drivers under a California program. That demand helps Del Grande meet its overall sales goals for new and used vehicles.
“There’s a certain amount of used cars we want to sell in a month, which is about 1,200,” Johnson said. “And we’re hitting those numbers because our team knows the products.”
The EV training at Del Grande, which also covers plug-in hybrid and standard hybrids, includes basics like the different levels of battery charging, explaining battery chemistry and how regenerative braking works, Wilczynska said.
“If you’re not selling a bunch of EVs, you might not know these topics,” Wilczynska said.
With dozens of new and used EV models on the group’s lots, salespeople are also expected to explore the ins and outs of the individual models through brand sales training and their own research.
“The idea is to get them excited enough about the electric market that when they go back to their respective stores, they’ll look across the inventory and learn about specific models,” Wilczynska said.
Johnson added: “What we’re saying to [salespeople] is they need to put their energy into this because more and more buyers in the used market will be considering an EV. If they don’t know the inventory, they’ll lose sales.”
Future training programs will cover the complex changes to federal EV incentives coming next year as part of the Inflation Reduction Act for both new and used vehicles, Wilczynska said. The new law includes a first-time federal credit for used cars that will cover up to $4,000 of the purchase price.
“We’re going to stay close to this EV market as it continues to change and develop,” said Wilczynska. “We’re going to have more classes around that EV conversation moving into next year because EV customers are different.”