Pub. 20 2021-2022 Issue 2

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 13 new jersey auto retailer W W W . N J C A R . O R G This is a good thing! All dealers should be ecstatic that going forward, when we talk about how to foster adoption of EVs in the U.S., we won’t be talking exclusively about how to market expensive sports cars and luxury SUVs, but instead will be talking about how to best market electric pickup trucks and other moderately priced EV options. It’s the EV customers of the future we need to cater to if we are to have meaningful and broad EV adoption. And we can finally start to think realistically about doing so. We are essentially at the doorstep of selling a wide variety of EVs – real, functional, non-niche EVs – to mass-market car buyers for the first time. And to sell effectively to mass-market buyers, you need to capitalize on what has worked for mass- market buyers for generations. Things like consumer education about the product, help with comparing models, working with a customer’s budget constraints, financing assistance, helping with trade-ins, allowing test drives, and – yes – even good old-fashioned tire kicking. And this is all in addition to the new challenges specific to EVs, such as the complexities of charging – the fact, for instance, that electric rates vary based on the time of day and the level of charge – and other variables that don’t exist in the ICE market. Dealers are absolutely essential in this world of new EVs. Because once you get into the mass-market, you will not achieve broad acceptance of any product, regardless of how it’s powered, by rejecting the attributes of the sales and service process that mass-market vehicle buyers are accustomed to and depend on to confidently choose the right vehicle at the right price that best meets all their needs. Opponents of the franchise system have long said dealers are an impediment to EV sales in the U.S. This has never been true. And moving forward, this type of thinking will be dangerous if our goal is to sell a greater number of EVs to a broader segment of the American market. This is a critical juncture. It’s a good time for policymakers and stakeholders to think critically about what it will take to sell EVs in greater volumes to customers who haven’t yet experienced EVs. The reality is that it’s going to take a lot. It’s going to take a network of tens of thousands of retail and service points located in just about every corner of the country, not just a website. It’s going to take hundreds of thousands of knowledgeable sales staff, not just a 1-800 number. And it’s going to take hundreds of thousands of highly-trained technicians capable of providing professional service on the spot, not just mobile repair trucks. It’s going to take dealers. Fortunately, we’re already here, and we are raring to go. AUTOMOTIVE ADVISORS PROFESSIONALISM • QUALITY • RESPONSIVENESS Our team has over 30 years of extensive knowledge and experience with the automotive industry. Our firm provides individual attention to each client, helping to maximize their bottom line. • Financial Reporting • Tax Planning • LIFO Inventory Application • Performance Benchmarking Please contact one of our partners. Daniel J. Ferrari, CPA Amy M. Dillon, CPA John J. Entz, CPA 2755 Philmont Avenue, Ste 210 Huntingdon Valley, PA 19006 215-914-1400 www.danferrari.com