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It’s no secret that EVs are much cheaper to own than gas-powered cars. What’s not always clear is that most car dealerships make about 80% of their profit from maintenance and repair, not new car sales. It creates an incentive for dealerships to sell gas-powered vehicles and not electric. This can be seen all the way down to the behavior of salesmen on the floor. Frustration can be seen across social media car communities. Here’s a recent comment from Reddit

“I test drove a Subaru Solterra and asked the dude if it had one pedal driving. I was pretty sure it did but didn’t know how to enable it. The salesman who tagged along for the test drive acted like I was a moron and was like “the car has two pedals”.

Also, one thing I like about Tesla and Rivian is that nobody tags along for your test drive. I don’t need some salesman who reeks of cigarettes and knows nothing about the car telling me where I am and am not allowed to take the car.”

One of the helpful responses was:

“Bottom line is that you should really do all your research BEFORE going to a dealership, since the dealer’s primary motivation is to extract the maximum amount of profit from you. Dealers can provide useful information but it comes with that huge asterisk.”

Dealer Behavior and Consumer Frustration

Car shoppers are running into familiar problems that feel increasingly anti-consumer. Markups, forced add ons, and inconsistent sales experiences have become common. EV shoppers feel this even more intensely because many dealers seem uninterested in selling electric cars at all. Some buyers say they are pushed back toward gas models while others experience sales staff who do not understand basic EV features. These issues are creating a gap between what shoppers expect and what many dealerships are willing to provide.

Why Some Dealers Resist EV Adoption

Dealers worry that EVs will hurt their profits, which drives a lot of hesitation and unhelpful behavior. Many fear lower profit margins on EV sales, and some automakers have openly discussed reducing dealer margins to balance research and development costs. Other brands, such as Volvo in the United States, insist that margins will stay stable. That mixed messaging leaves dealers uneasy, which keeps incentives to sell EVs low.

Loss of Service Revenue

Service departments generate a major share of a dealership’s total profit. EVs require far less routine maintenance because they do not need oil changes or transmission service. This creates fear inside many dealerships because their service revenue helps keep the entire business profitable. The idea of selling cars that need significantly less maintenance feels like a direct threat to their most reliable income stream.

Required Investments and Uncertain Payoffs

Dealerships also face large upfront costs when they agree to sell EVs. Many stores have already spent fifty thousand to two hundred thousand dollars on chargers and electrical upgrades. These investments are required before they can even offer certain EV models. Dealers worry that they are spending substantial amounts with no clear guarantee of future profit. That tension makes EV commitments feel risky rather than exciting.

Growing Push Toward Direct to Consumer Sales

Automakers are watching the success of Tesla, Rivian, and Lucid, which rely on the direct to consumer model that buyers increasingly prefer. Some car companies have hinted that they may follow a similar path. Ford created its Model E division for future EV sales, and several European brands are planning agency style sales models. Dealers fear that a shift to direct sales could eventually leave them out of the process entirely. These worries have led to pushback from dealer associations that warn they are prepared to fight to protect their traditional role.

Impact on Pricing and the EV Market

The conflict between automakers and dealers influences EV affordability. Many shoppers have seen steep markups that push vehicles like the F 150 Lightning or Ioniq 5 far beyond their original sticker price. The current dealership model creates uncertainty around future EV pricing, including high profile vehicles like the Chevy Equinox EV and the return of the Chevy Bolt. The tension makes it difficult to predict whether companies will be able to deliver on their promised affordable EV options.

The Subaru Solterra

The Subaru Solterra is Subaru’s first fully electric SUV and it launched in 2022 with a focus on all weather performance and everyday practicality. Like all Subaru’s, it delivers standard all-wheel drive and has the familiar Subaru feel that many longtime owners appreciate. This gives it a reassuring personality on rough roads and in snowy climates. The Solterra stands out because it blends EV efficiency with Subaru’s outdoorsy identity, offering good ground clearance, a spacious cabin, and a calm, predictable driving experience. It is one of the few electric SUVs that feels purpose built for people who enjoy weekend adventures while still wanting something easy to live with during the week.

Bottom Line

The EV transition is creating pressure across the entire auto industry. Dealers worry about shrinking margins, reduced service revenue, and enormous investment requirements, while automakers are exploring new sales models that may bypass dealerships entirely. These forces are shaping how easily consumers can adopt EVs and how affordable the next generation of electric cars will be. The decisions made today will influence both the cost and experience of buying and owning an EV in the future.

What Do You Think?

Have you had a  moment that made you realize a dealership was not interested in selling you an EV?

Have you ever had a salesperson misunderstand a basic EV feature the way this Subaru Solterra rep did?

Chris Johnston is the author of SAE’s comprehensive book on electric vehicles, “The Arrival of The Electric Car.” His coverage on Torque News focuses on electric vehicles. Chris has decades of product management experience in telematics, mobile computing, and wireless communications. Chris has a B.S. in electrical engineering from Purdue University and an MBA. He lives in Seattle. When not working, Chris enjoys restoring classic wooden boats, open water swimming, cycling and flying (as a private pilot). You can connect with Chris on LinkedIn and follow his work on X at ChrisJohnstonEV.

Photo credit: Subaru media site

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