Demand for electric vehicles is at an all-time high, and government incentives are helping put them within reach for more consumers.
As a result, manufacturers are putting more EVs on the market every day. Local auto dealers across New York are surely all in to meet this moment.
Approximately three dozen models are currently on lots statewide.
Dealers expect to have 70 new models available by the end of 2022, and 150 by the end of 2023.
A few EV manufacturers are trying to capitalize on this unprecedented demand by pushing Albany for special treatment that lets them circumvent consumer protections and maximize their profits on the backs of New York vehicle buyers and owners.
The Biden administration set the ambitious target of 50 percent of EV sale shares in the U.S. by 2030. New York aims to put 3 million EVs on the road by 2030 to help combat climate change.
Local auto dealers are already selling EVs, providing the same convenience and service to consumers on which they’ve long relied.
Dealers are accommodating consumers and their plans to purchase an EV. New car dealerships have inventory for test driving and purchasing, consumers can special order their vehicle in person or online; dealers have systems in place to allow for remote sales and create the individualized experience consumers want and need.
The direct sales model eliminates price competition, which drives up costs. That won’t encourage sufficient sales to help meet EV goals. Also, some EV start-ups have been experiencing numerous difficulties, such as production delays, bringing new models to market, resulting in excessive price increases, and failed sales targets.
New York’s franchise law specifically states that it was established to protect consumers from “frauds, impositions, and other abuses.” Letting a select few companies circumvent it will remove those critical protections.
The law also mandates agreements between dealers and manufacturers that require onsite service, which is especially important in the event of factory recalls or product defects. Local dealerships advocate for their customers and can hold manufacturers accountable.
Vehicle & Traffic (VAT) CHAPTER 71, TITLE 4, ARTICLE 17-A
§ 460. Legislative findings. The legislature finds and declares that the distribution and sale of motor vehicles within this state vitally affects the general economy of the state and the public interest and the public welfare, and that in order to promote the public interest and the public welfare and in the exercise of its police power, it is necessary to regulate motor vehicle manufacturers, distributors and factory or distributor representatives and to regulate dealers of motor vehicles doing business in this state in order to prevent frauds, impositions and other abuses upon its citizens and to protect and preserve the investments and properties of the citizens of this state.
Last year, New York dealerships generated almost $60 billion in total sales and paid $2.4 billion in sales tax. Directly and indirectly, they support more than 107,000 jobs statewide, many of which are union positions.
As the state continues to recover from the pandemic-induced economic downturn, it needs the business that dealerships generate – and the jobs they create – more than ever.
Local dealerships have established strong ties to their respective communities, supporting charitable organizations and playing an active role in events that support schools, kids, the environment, hospitals, and much more.
Upending the franchise model threatens the ability of dealers to survive in the long-term, which will have a far-reaching impact in the communities they call home.
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