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EVs: Customer Dealbreakers and Dealmakers

Tue, Jan 30, 2024

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There’s no disputing that electric vehicle demand is growing in Canada. According to S&P Global Mobility, zero-emission vehicles accounted for 1 in 8 new vehicles registered in Canada in Q3 2023. That’s a new record high, with EVs now representing 13% of the new car market. While recent growth may signify the beginnings of mass adoption, the fact is we aren’t quite there yet.

 

Our latest research shows most Canadian car buyers are still not ready to switch to electric. In fact, just 15% of buyers say they will only consider an EV for their next vehicle purchase. Used car buyers are a little more hesitant with only 12% being purely interested in EVs, compared to 18% of new car buyers. Hybrids, offering what many buyers see as the best of both worlds, continue to be the slightly more popular choice at 22%.

 

Why are so many Canadians still not positively electrified by EVs? We asked them for their top three EV deal breakers:

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69% have concerns about the high price tag
Sticker shock is still driving buyers away despite EVs becoming more affordable.
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59% have range anxiety
This deal breaker jumped up from 48% in 2021 when we last asked buyers this question. It’s one thing to go electric for your daily commute but a family road trip is another story.
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52% are concerned about the lack of infrastructure in their neighbourhoods
While charging infrastructure is growing in Canada, it can be sparse, depending on where you call home.

 

Car buyers have valid concerns about EVs, and these will likely remain barriers for some. But there are some buyers (26%) who aren’t exclusively interested in EVs right now but will consider them in addition to Internal Combustion Engines and Hybrids. These are the customers that may still be making up their minds by the time they reach out to you. So how can you demonstrate the value of EVs despite the potentially high price tag and major driving lifestyle changes?

Here are the top three EV dealmakers for car

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80% see the fuel savings
Gas prices have fallen recently but any major increases will push up demand for EVs.
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56% have concerns about the environment
Doing your part for the environment remains important for most.
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51% are looking for lower maintenance costs
EV owners can expect to pay less to keep their car running at top condition.

 

Fuel savings and concerns about the environment will understandably continue to be top of mind and they are certainly great benefits to highlight with your customers, but don’t sleep on EV dealmaker number three: lower maintenance costs. 

When we asked customers about their biggest challenges with owning any type of vehicle, their number one concern was future maintenance and repairs and how they’re going to pay for them. It’s easy to worry about what maintenance and repair bills might be lurking around the corner and, just like a carton of eggs at the grocery store, this work has become more costly.
Focusing on future savings as a selling point should get customers to come around more on EVS. We suspect the reason that only 51% selected maintenance savings as a dealmaker in the first place is that many car buyers might not be fully aware of this key differentiator.
 
Finally, as the EV market continues to grow, you will start to encounter less informed customers who may not fully appreciate all the challenges that come with owning an EV.  Be upfront with customers on potential dealbreakers and dealmakers to ensure they know what to expect and don’t regret their purchases down the road.

Explore how our research can be applied at your dealership to help you win more business - request a consultation with a CARFAX Canada Rep:

Driving Insights
Driving Insights takes your questions about Canadian car owners and finds the answers! Our proprietary research looks closely at the motives and behaviours of today’s car owners to uncover exclusive insights you won’t find anywhere else. To date, we’ve surveyed over 9,000 Canadians to identify their biggest pain points when buying, selling, and servicing their vehicles. If there’s a question you’d like us to address, email insights@carfax.ca and we’ll get you some answers!

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