3 (EV) Takeaways from NADA Show '22

Written By Cameron Wolf

March 18, 2022 | by Cameron Wolf

ZappyRide was fortunate to be able to attend the annual National Automobile Dealers Association (NADA) show this year, and what a show it was. Taking place in Las Vegas at the newly built West Hall of the Las Vegas Convention Center, this was one of the biggest and best auto-related shows that we've been a part of.

One of the new attractions at the show was the all-new EV Solutions Center. It featured subject matter experts that addressed issues one-on-one, provided comprehensive step-by-step processes to successfully transition into the EV marketplace, and answered a wide array of industry-specific questions regarding the transition to electrification.

Amongst the many hours spent talking about the budding of the EV to Dealer relationship, there were a plethora of points made. Here are the 3 takeaways from the ZappyRide perspective:

1.) V2B: Saving money in the long run

There is a chance you've seen this acronym before, most likely associated with the likes of V2G (Vehicle to Grid), V2H (Vehicle to Home), and even V2L (Vehicle to Load). The idea behind V2B is that dealerships can save costs on multiple levels, most notably, at the 3rd highest overhead cost for a dealership -- the energy cost.

Here's how it works: Larger batteries, such as those used in electric vehicles, must be built to store a greater amount of energy. During operational hours, when there is more electricity being used at peak times (typically 2 to 7 p.m., Monday through Friday), EVs both on the lot and plugged in by their owners can supplement power to the dealer's building to decrease load demand. Think of how much energy battery-stored power from an EV can help offset the electric cost when the HVAC cranks up on a ~80°F day in a dealer showroom.

When peak hours are not in place, this energy used from the battery storage can be supplemented back to the EVs. Rinse and repeat!

2.) Monetizing Charging: To Charge, or Not To Charge?

Monetization of charging has been a polarizing concept for dealerships. The case for monetization is that dealerships can install charging stations and then charge a fee for people to use them. This could be done in a couple of ways, one being a set price for a certain amount of time (similar to parking), or by kilowatt-hour usage. After all, someone still has to pay the utility bill, why not get some help?

On the flip side of the coin, dealers have also been keen to allow customers (and non-customers) the ability to charge for free. While there is no right or wrong mindset on this approach, it is worth noting that, outside of business hours, the dealer gets absolutely nothing out of this, besides low-level brand recognition which may not even apply to some EV, dealer-free drivers (Tesla, Rivian, etc.).

Regardless of monetization on the infrastructure, opportunity still exists within the space. If a dealer is looking to install charging infrastructure on their lot, it should be ensured that it's placed front and center. Have the flagship EVs plugged in and ready for V2G action, ready for test drives, ready for walk arounds, and overall, be sure to give them the curb appeal they deserve.

It’s also important to provide multiple charging spaces for outside EVs as well, regardless of brand or age! Give the EV drivers a coffee and give the sales people an opportunity to talk to them. That could end up being worth much more than charging revenue, monetized or not.

3.) Service process will change, but the service won't.

A key theme amongst the show was how dealers will make up for lost service costs. After all, with the advent of EVs, there are few fluids to change and fewer moving parts that need replacing.

The answer is twofold:

- Many dealerships are already selling service contracts that cover much more than just oil changes. Tires, brakes, and even wheel alignments will still be necessary as the miles rack up on a notoriously heavy EV. For example, quick acceleration and a lack of audible motor feedback to a driver when driving 'less than ideal for conditions' creates a need to replace tires more often!

- The service process will be different, but the need for service will not go away. The difference is that dealerships will need to get creative in how they structure their labor costs. One way to do this is by transitioning to a subscription-based model, where customers can pay a monthly fee for certain services. This could be done on a vehicle-by-vehicle basis, or even by model. For example, a customer may want to pay for an annual subscription that covers all the basic service needs for their EV, but would need to pay extra for more complicated repairs.

It's necessary to think outside of the traditional view of service. There are many other ways to bring people in for service visits, even if it's not to have work done on their car.  This could be something as simple as a free charge + coffee and donut in the waiting room, or even a monthly gathering for EV enthusiasts. The key is to find a way to keep people coming back, even if their car doesn't need anything.

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Overall, NADA was quite insightful on the perspective of EVs in the dealership world.  It is abundantly clear that there is a long way to go to reach perfection, but the groundwork has been laid out by early adopters. The next few years will be crucial in shaping how EVs are bought and sold, so it will be interesting to see how things progress.

One final note: If you are a dealership looking to get into the EV game,  make sure you have a good value add. You need to be able to explain to customers why EVs are worth their time, and more importantly, their money. The vehicles are still expensive, so make sure you can properly communicate the value proposition and Total Cost of Ownership. If not, you'll likely lose the sale before it even begins. A great example of explaining how TCO works can be found through the use of utility sites in a specified locality:




If there are any questions, please feel free to contact ZappyRide to provide insight and clarification on these processes. NADA was a great learning experience for all those involved and we cannot wait to see what next year brings.

Cameron Wolf
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