The 2025 Dealership Guide: Driving EV sales effectively

As electric vehicles (EVs) continue to electrify the automotive market, dealerships are at the forefront of managing a meaningful shift in the industry. From adapting sales strategies to streamlining financing and insurance workflows, dealerships must align with the changing landscape to remain competitive and deliver a seamless customer experience.

Why are EV sales accelerating?

Coverage of EV sales growth is everywhere from Auto Finance News to Bloomberg and even in studies from government agencies. It’s clear sales of electric vehicles are gaining traction, but why?

• Policy and consumer preferences drive growth: Government incentives such as tax credits, subsidies, and emissions regulations are making EV ownership increasingly attractive. Coupled with a growing consumer desire for sustainable transportation options, dealerships are witnessing a surge in demand for these environmentally friendly vehicles.
• Innovation in technology: Breakthroughs in battery technology and the expansion of charging infrastructure have significantly improved EV accessibility. Automakers are introducing diverse EV models, ensuring options across all price points—from economy cars to high-performance luxury vehicles.
• Economic and operational advantages: EVs offer lower operating costs, including fuel and maintenance, which appeal to cost-conscious buyers. However, dealerships must also educate buyers on the less-visible cost implications, such as higher insurance premiums.
  
  

What does this mean for dealerships?

The rise in EV sales introduces unique challenges for dealerships, particularly in areas like financing and insurance. Here’s what dealerships need to know:

Higher insurance costs and why they matter

Insurance premiums for EVs are often higher than those for internal combustion engine vehicles. Key reasons include:

• Costly Repairs: EVs require specialized parts and technicians, driving up repair costs.
• Battery Replacement: Batteries can constitute up to 50% of an EV's total cost, making replacement an expensive undertaking.
• Limited Repair Networks: A smaller pool of certified repair facilities adds to the expense.

For dealerships, these higher costs mean an increased need for precise and timely insurance verification during the financing process to protect assets and mitigate risks.

Complexities in collateral protection insurance (CPI)

Dealerships that offer financing must ensure borrowers maintain adequate insurance to protect the value of EVs as collateral. EV-specific risks, such as expensive replacements and unique coverage requirements, increase the complexity of CPI policies. Lenders and dealerships must work closely to ensure policies are up to date and accurate.

Operational strain during high-volume sales

With Black Friday and winter sales bringing in higher volumes of buyers, dealerships are particularly vulnerable to bottlenecks in processes like insurance verification. For EVs, these bottlenecks can be exacerbated by the added complexity of coverage requirements.

3 ways dealerships can lead the EV shift

1. Educate and equip sales teams

Training staff to communicate the financial implications of owning an EV, including insurance considerations, can help manage buyer expectations. A knowledgeable team ensures that customers feel confident in their purchasing decisions.

2. Streamline financing and insurance verification

Manual insurance verification processes are not equipped to handle the intricacies of EV policies. Automated tools, such as MeasureOne’s insurance verification solutions, can:

• Verify policies instantly to ensure they meet dealership and lender requirements.
• Update insurance details seamlessly when policies change.
• Reduce errors that can lead to financial risk or customer dissatisfaction.
  
  

3. Leverage technology to scale operations

With a surge in EV sales, dealerships must prepare for high transaction volumes while minimizing delays. Automated solutions not only streamline back-end processes but also free up resources to focus on delivering exceptional customer experiences.

The role of automation in EV insurance 

As EV sales grow, so does the demand for accurate and efficient insurance policy management. MeasureOne’s automated insurance verification platform offers a game-changing solution:

• Real-Time Updates: Ensure all insurance policies reflect the most current coverage details.
• Scalability: Handle increased sales volumes without adding administrative strain.
• Risk Mitigation: Protect dealership assets by guaranteeing policy accuracy for every EV sold or financed.

With automation, dealerships can confidently embrace the EV trend without sacrificing operational efficiency.

Don’t discount the strength of automated verification tools

The rise of electric vehicles is reshaping the auto industry, and dealerships are at the heart of this transformation. While challenges like higher insurance costs and policy complexities may seem daunting, dealerships equipped with the right tools and strategies can turn these challenges into opportunities.

By embracing automated solutions like MeasureOne’s insurance verification platform, dealerships can streamline operations, safeguard their assets, and thrive in the growing EV market. Ready to try it yourself?