The Big Problem Dealerships Need to Solve

The Big Problem Dealerships Need to Solve

Right now, most cars on the road run on gasoline. But that’s changing fast. Electric cars (EVs) are getting better, cheaper, and more popular every year. That’s a big deal—especially for car dealerships.

Gas Cars Waste a Lot of Power

Gasoline cars have a major problem: they waste most of their power. When you press the gas pedal, the engine burns fuel to create energy. But that energy has to go through a lot of parts before it can actually move the car.

1. The engine burns gas to make power.
2. That power goes to the transmission, which shifts gears.
3. Then it moves through the driveshaft, the axle, and other parts.
4. Finally, some of the power reaches the wheels.

But every step in that process wastes energy. In the end, only 14% to 30% of the gas actually moves the car. The rest is lost as heat or used up by all the moving parts. That’s a lot of wasted energy!

Electric Cars Are Way More Efficient

Electric cars work in a totally different way. Instead of burning gas, they use a battery and an electric motor. When you press the accelerator, the battery sends electricity straight to the motor, which turns the wheels.

1. The battery sends energy to the motor.
2. The motor powers the wheels.

That’s it! No complicated transmissions, no extra parts to waste power. Because of this, EVs are way more efficient. They use about 80% to 95% of their energy to actually move the car! That’s a huge difference.

What This Means for Dealerships

Right now, dealerships make a lot of money from servicing gas cars—oil changes, engine repairs, transmission work, and more. But here’s the problem: electric cars don’t need most of that maintenance.

• No oil changes
• No engine repairs
• No transmission problems
• Fewer brake replacements (because EVs use regenerative braking)

That means dealerships won’t have as much service work to do. And if they don’t sell or service as many gas cars, they’ll need to find new ways to make money—or risk going out of business.

The Future of Dealerships: What Will They Sell?

So, what happens next? If dealerships can’t rely on gas cars and repairs, they’ll have to change their business model. Here are some ways they might survive:

1. Selling Parts for Older Gas Cars

Even as EVs take over, plenty of people will still drive gas cars for years. Some will love their old cars and want to keep them running. Others might not want an EV at all. That means there will still be demand for gas car parts—like engines, transmissions, and exhaust systems. Dealerships could shift their focus to selling parts instead of new cars.

2. Selling Accessories and Crash Parts

EVs don’t need much maintenance, but they still get into accidents and need replacement parts. Dealerships could start focusing more on selling bumpers, fenders, headlights, and other crash parts for both EVs and gas cars. They could also sell custom accessories like new wheels, upgraded interiors, or performance parts for both types of vehicles.

3. Selling Used EVs (But There’s a Catch!)

You might think selling used EVs would be a big business, but there’s a problem: EV batteries are expensive—sometimes more expensive than the car itself. That means when an old EV’s battery goes bad, many people won’t want to buy it.

Instead of selling a bunch of used EVs, dealerships might focus on repairing or replacing batteries. Or they might find ways to help people recycle or repurpose old EVs rather than selling them like traditional used cars.

4. Building More Charging Stations

If gas stations are everywhere now, charging stations will be everywhere in the future. Dealerships could install fast chargers at their locations and charge customers to use them. That way, even if they aren’t selling as many cars, they can still make money off people who need to power up their EVs.

The Bottom Line: Dealerships Must Adapt

The car business is changing fast. Gas cars are on the way out, and EVs are taking over. That means dealerships can’t stay the same—they’ll have to sell different things, offer new services, and find new ways to keep customers coming back.

The dealerships that adapt will survive. The ones that don’t? They might disappear forever.