Electric cars: Car dealers no longer accept electric vehicles

It has long been no secret that sales of electric cars are stagnating – and how. When the electric cars are sold, they often make painful losses. Now a survey by the trade magazine “kfz-betrieb” and Vogel Research has provided clarity: 68.7 percent – and thus more than two thirds of car dealers – do not accept used BEVs as part payment. For 51.1 percent of those surveyed, used electric cars are currently “virtually unsellable.” Red alert if you want to make money with cars.

The consequence is clear: In order to get these vehicles off the lot at all, the sellers have to offer hefty discounts. On average, it is 27 percent of the originally planned sales price. You don’t have to be an economist to realize that this business model cannot work for long. If you break down the survey results further, in June 2024 exactly 80.2 percent of dealers say they are in the red when selling used BEVs. 61.1 percent of car dealerships say they are making “high losses” and at least 19.1 percent speak of “slight losses”.

“From a trade perspective, used BEVs are therefore not a particularly attractive product. Good cars are only good cars if they sell well,” the German Automobile Trust (DAT) stated when asked. However, not all electric vehicles can be tarred with the same brush. Interest is growing, but only in the “young” BEVs that are no older than a year. This is bad news for the owners of leased vehicles, which are often two to three years old.

“Overall, however, it is mainly the currently high prices and the “fear” of purchasing outdated technology that are making end consumers hesitate,” says the DAT report from June, adding: “When the automotive industry talks about used cars, people are increasingly looking at BEVs. However, from the end consumer’s point of view, these are even less attractive as a concrete purchase option, which can also be seen in the low KBA unit numbers.”

Electric cars “victims of rapid technological development”

For Philipp Seidel, automotive expert at the management consultancy Arthur D. Little, this is not an unusual phenomenon: “In my opinion, the first generation of used electric vehicles are the victims of rapid technological development, especially on the used market.” These are the laws of the market. “Not long ago, used Teslas were as expensive as new ones because new ones had long delivery times. At the moment we have overcapacity again, so used car and residual values ​​are falling. The normal cycle,” reassures Seidel. In the long term, what counts for Seidel is the positive development that the core components of an electric car, such as the battery, are becoming increasingly cheaper.

This does not change the status quo. Anyone who owns a used electric car usually has difficulty selling it to a dealer. Ultimately, this is not a desirable situation for car manufacturers either. Every car that is driven by the first owner for longer than planned is one less new car that is sold. If you ask the car manufacturers, the German OEMs unanimously state that the dealer is an independent entrepreneur who is not bound by any instructions from the manufacturer. Only the Stellantis Group did not respond. BMW supports its dealers: “However, we have already launched a qualification offensive in used car sales in the trade, with a focus on BEVs, in order to enable our dealers to deal with the increasing number of returns and their remarketing. There is currently high demand for these training courses,” explains a spokesperson. Audi is also pushing ahead with the training measures.

Manufacturers react differently

This does not fundamentally change the difficult situation facing car dealers. If car manufacturers leave dealers in the lurch, the used BEV car business will soon collapse massively. Mercedes is confident in the quality of its products and therefore offers a five-year guarantee on selected models. Porsche is used to the fact that used cars are popular with customers with the 911. So Zuffenhausen is also using tried and tested sales tools such as the “Approved Guarantee”. It remains to be seen whether this is enough to boost resales of electric cars. VW has recognized the signs of the times and is trying to counteract this. “Using the Vehicle Lifetime model, Volkswagen Financial Services will keep electric vehicles in its own portfolio for as long as possible in the future in order to offer customers attractive used car leasing,” the Lower Saxony carmaker announced.

For Philipp Seidel, there is no doubt: “Used EVs will not become electronic waste. Yes, we have to expect that the first generation of electric vehicles will have a shorter life cycle than classic, established combustion engines. These were the manufacturers’ first attempts in a new environment. But this is not a problem with e-mobility per se, but is inherent in the introduction of any new technology. The residual value is already limited by the high value of the battery. Now other market phases are following that will be different. Car dealers and authorized dealers of major brands who refuse to embrace e-mobility will have a hard time.”