It’s no secret that EVs are much cheaper to own than gas-powered cars. What’s not always clear is that most car dealerships make about 80% of their profit from maintenance and repair, not new car sales. It creates an incentive for dealerships to sell gas-powered vehicles and not electric. This can be seen all the way down to the behavior of salesmen on the floor. Frustration can be seen across social media car communities. Here’s a recent comment from Reddit:
“I test drove a Subaru Solterra and asked the dude if it had one pedal driving. I was pretty sure it did but didn't know how to enable it. The salesman who tagged along for the test drive acted like I was a moron and was like "the car has two pedals".
Also, one thing I like about Tesla and Rivian is that nobody tags along for your test drive. I don't need some salesman who reeks of cigarettes and knows nothing about the car telling me where I am and am not allowed to take the car.”
One of the helpful responses was:
“Bottom line is that you should really do all your research BEFORE going to a dealership, since the dealer's primary motivation is to extract the maximum amount of profit from you. Dealers can provide useful information but it comes with that huge asterisk.”
Dealer Behavior and Consumer Frustration
Car shoppers are running into familiar problems that feel increasingly anti-consumer. Markups, forced add ons, and inconsistent sales experiences have become common. EV shoppers feel this even more intensely because many dealers seem uninterested in selling electric cars at all. Some buyers say they are pushed back toward gas models while others experience sales staff who do not understand basic EV features. These issues are creating a gap between what shoppers expect and what many dealerships are willing to provide.
Why Some Dealers Resist EV Adoption
Dealers worry that EVs will hurt their profits, which drives a lot of hesitation and unhelpful behavior. Many fear lower profit margins on EV sales, and some automakers have openly discussed reducing dealer margins to balance research and development costs. Other brands, such as Volvo in the United States, insist that margins will stay stable. That mixed messaging leaves dealers uneasy, which keeps incentives to sell EVs low.
Loss of Service Revenue
Service departments generate a major share of a dealership’s total profit. EVs require far less routine maintenance because they do not need oil changes or transmission service. This creates fear inside many dealerships because their service revenue helps keep the entire business profitable. The idea of selling cars that need significantly less maintenance feels like a direct threat to their most reliable income stream.
Required Investments and Uncertain Payoffs
Dealerships also face large upfront costs when they agree to sell EVs. Many stores have already spent fifty thousand to two hundred thousand dollars on chargers and electrical upgrades. These investments are required before they can even offer certain EV models. Dealers worry that they are spending substantial amounts with no clear guarantee of future profit. That tension makes EV commitments feel risky rather than exciting.
Growing Push Toward Direct to Consumer Sales
Traditional automakers are watching the success of Tesla, Rivian, and Lucid, which rely on the direct to consumer model that buyers increasingly prefer. Some car companies have hinted that they may follow a similar path. Ford created its Model E division for future EV sales, and several European brands are planning agency style sales models. Dealers fear that a shift to direct sales could eventually leave them out of the process entirely. These worries have led to pushback from dealer associations that warn they are prepared to fight to protect their traditional role.
Impact on Pricing and the EV Market
The conflict between automakers and dealers influences EV affordability. Many shoppers have seen steep markups that push vehicles like the F 150 Lightning or Ioniq 5 far beyond their original sticker price. The current dealership model creates uncertainty around future EV pricing, including high profile vehicles like the Chevy Equinox EV and the return of the Chevy Bolt. The tension makes it difficult to predict whether companies will be able to deliver on their promised affordable EV options.
The Subaru Solterra
The Subaru Solterra is Subaru’s first fully electric SUV and it launched in 2022 with a focus on all weather performance and everyday practicality. Like all Subaru’s, it delivers standard all-wheel drive and has the familiar Subaru feel that many longtime owners appreciate. This gives it a reassuring personality on rough roads and in snowy climates. The Solterra stands out because it blends EV efficiency with Subaru’s outdoorsy identity, offering good ground clearance, a spacious cabin, and a calm, predictable driving experience. It is one of the few electric SUVs that feels purpose built for people who enjoy weekend adventures while still wanting something easy to live with during the week.
Bottom Line
The EV transition is creating pressure across the entire auto industry. Dealers worry about shrinking margins, reduced service revenue, and enormous investment requirements, while automakers are exploring new sales models that may bypass dealerships entirely. These forces are shaping how easily consumers can adopt EVs and how affordable the next generation of electric cars will be. The decisions made today will influence both the cost and experience of buying and owning an EV in the future.
What Do You Think?
Have you had a moment that made you realize a dealership was not interested in selling you an EV?
Have you ever had a salesperson misunderstand a basic EV feature the way this Subaru Solterra rep did?
Chris Johnston is the author of SAE’s comprehensive book on electric vehicles, "The Arrival of The Electric Car." His coverage on Torque News focuses on electric vehicles. Chris has decades of product management experience in telematics, mobile computing, and wireless communications. Chris has a B.S. in electrical engineering from Purdue University and an MBA. He lives in Seattle. When not working, Chris enjoys restoring classic wooden boats, open water swimming, cycling and flying (as a private pilot). You can connect with Chris on LinkedIn and follow his work on X at ChrisJohnstonEV.
Photo credit: Subaru media site
Comments
Time to remove barriers…
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Time to remove barriers preventing car manufacturers from selling direct. Get rid of the huge lots and pressure, what's on the tag is what the car sells for. Let me order a car online and pick it up locally. Encourage manufacturers to offer training programs for repair facilities.
I'll probably never own an electric vehicle as I don't but new, won't buy a used EV in today's market, and am at the age where I just don't drive that much so my existing vehicles will last, probably another 20 years. But the changes I'm suggesting could lower the purchase cost and encourage adoption. Many people didn't need a cross country vehicle and who knows what technology will bring in the next 10 or 20 years for those that do. Meanwhile, let's get the price down further and improve the car buying experience.
You realize that eliminating…
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In reply to Time to remove barriers… by John Fox (not verified)
You realize that eliminating local dealers means that you will have to ship your car back to the factory, every time it needs warranty service, right? Direct sales is not the answer.
Good riddance to the…
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Good riddance to the dealerships. I have an EV and PHEV (Honda Prologue and Clarity respectively). Love them both but hate the dealership. I bought the Prologue from them and while I LOVE the car, I hated the dealership experience (upselling pressure, negotiating price, etc) so much that have sworn my next will either be purchased at CarMax (where I bought my Clarity a few years before and LOVED the experience) or I will get a Tesla for the direct to consumer model. Aside from CarMax, I won’t be purchasing from a dealership again. It isn’t just the local Honda dealer either, Toyota, VW, Ford, all the same. I hate dealerships. For a time, I would take the Clarity in for its annual oil change (I drive about 95% on all electric in the Clarity). Every time I would take it in, I’d be swarmed by sales folks trying to get me to buy another Prologue or Accord when all I wanted was the damn oil changed. I’ve singed stopped going there and now take it to a local independent shop for all maintenance and repair work. I can’t wait for the day when dealerships largely become a thing of the past. They get what they deserve.
100%
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In reply to Good riddance to the… by Jim (not verified)
100%
I'm with you there Jim!…
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In reply to Good riddance to the… by Jim (not verified)
I'm with you there Jim! Banks, Lawyers, Car Dealerships - caveat emptor.
I've got the bz4x which is…
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I've got the bz4x which is basically the same car. For the one pedal it has something close to it, which allows to regenerate even more the battery while slowing it down depending on the speed/or if you have s car in front.
What it doesn't do it's a full stop (unless you have the cruise control on)
Anyway, I love my toyota bz4x and the soltera should be the same since they are based on the same platform.
(The bottom to enable it it's in the panel inthe kiddle between the seats, and it looks like a foot on a brake)
Missed opportunity by Subaru…
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In reply to I've got the bz4x which is… by Ricardo (not verified)
Missed opportunity by Subaru/Toyota. Once you've driven a car with one pedal driving it's hard to imagine going back permanently. Guess the Solterra comes off the list of potential Model Y replacements.
The salespeople don't care…
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The salespeople don't care what you buy. You act as if they own the dealership or are ownership partners. Second, that's completely false that dealerships make 80 percent of their profits from mechanics. Then why do they sell cars? The cars take up a bunch of space. If selling new cars is that unprofitable, they wouldn't keep hundreds of cars on their property to sell for little to no profit. And finally you say everybody knows electric cars are cheaper to own than gasoline cars. I beg to differ.
EXACTLY, salespeople just…
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In reply to The salespeople don't care… by Douglas Polentz (not verified)
EXACTLY, salespeople just want happy customers with no problems. Salespeople make nothing on service!
You are incorrect in most of…
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In reply to The salespeople don't care… by Douglas Polentz (not verified)
You are incorrect in most of your statement. Having done accounting for dealerships in the past, I can tell you they have so many new cars on the lot because the manufacturers make them. The profit new car can be as low as $1,000. The salesperson gets their cut, you gotta pay for overhead, you pay for interest to the manufacturer for all the unsold cars sitting on your lot. Repairs and add-ons during the sale is where all the profit is. Especially when you have the repair side charging you labor at "book time" not actual time. We had a guy at the Ford dealership who could do a head gasket change in half the time the "book" said it would take. He was paid based on book hours not actual work hours and would regularly get pay periods with 120+ hours of "worked" time.
You beg to differ? Based on…
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In reply to The salespeople don't care… by Douglas Polentz (not verified)
You beg to differ? Based on what?
I bought a used Model 3. I have in 3 years of ownership paid $180 for a replacement 12v battery, and put washer fluid in it. I will need tires soon, and while they will cost me more than the ones for my old Prius, they are far cheaper than the ones for my Tundra.
I spend about half as much on my electric bill to home charge as I did on gas in my Prius. It would be about a quarter of what I would spend if I commuted in the Tundra.
And now you're going to say "wait until you have to replace the battery". Batteries in EVs are lifetime parts. You need to replace them about as often as you need to rebuild an engine on an ICE car. In the meantime, an ICE car will have transmission issues, engine parts go bad, need brakes every 30k miles (it's around 80k on an EV), oil changes every 5k, etc. The only major maintenance on a Tesla is a coolant flush every 100k. Battery life is somewhere near 200k, but it's hard to say exactly because the only examples we have seen of cars needing it are the early Model S, and by the time the 3 came out the battery tech was far more advanced so we aren't seeing them fail enough to get a feel for it yet. Refurb replacement packs cost about twice what a rebuilt engine on a commuter car costs, which does even things out at the 200k mark, but not a lot of people keep hold of a car for long enough to hit that point.
I don't quite understand the…
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I don't quite understand the Reddit comment, what does an unknowledgeable sales person has to do with the dealership don't want to sell EV? Like you have mentioned, in order for a dealership to sell EV, they have to invest lots of money for equipment, tools, training, chargers, etc., to ensure the dealership is capable of supporting the aftersales aspect of the vehicle. And if they have already invested so much money, don't you think they want to sell more EV to recover the expenses? The dealers that are worried and don't want to sell EV wouldn't even have made the initial large amount of investment to begin with, which will not be allowed to sell EV, and you certainly would not be able to test drive one and "feel" that they don't want to sell you an EV.
I keep hearing this in these…
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I keep hearing this in these “news” articles but it’s completely unfounded. The salesperson makes same commission on gas or EV. The salesperson wants a happy customer not problems. Fact is the EV’s have problems and are in the service department more making for unhappy customers. Dealers can’t get near enough qualified techs to handle the workload now.
So the salesperson that…
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So the salesperson that makes nothing on service is talking you out of an EV because it doesn’t require service. Please make that make sense! Or just maybe that salesperson wants to keep you a happy customer and the EV’s are problematic.
It’s not a new phenomenon,…
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It’s not a new phenomenon, the salesmen I’ve dealt with over the years rarely know more about the vehicles I’m interested in than I do. But I am one of those that thoroughly researches before I even go looking at the car lot.
Not just EV, but BEV. A…
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Not just EV, but BEV. A dealer 45 minutes away had the only BEV mini van in 100 miles. I snagged it a week before they even had it on site. They knew nothing about it. Closer dealers knew even less, even now, three years later. It doesn't have one pedal driving but you can switch to max regen (L) and it's close.
"It’s no secret that EVs are…
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"It’s no secret that EVs are much cheaper to own than gas-powered cars...."
Bruv... I own an EV, I can tell your right now, this isn't remotely true. Didn't even bother reading the rest of your first statement right out the gate is a lie.
EV's are not cheaper than…
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EV's are not cheaper than gas powered cars to maintain.
Just bought our 2026…
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Just bought our 2026 solterra. You have to realize that the last generation of the vehicle was pretty pathetic. Most dealerships never even sold one.
That said, if you show up to a dealership to look at ANY vehicle and didn't do your research... Shame on you. Here we are on the Internet. Home of all the information you could ever need. You should have done your homework before you got there.
But to answer the question NO the solterra does not have a true 1 pedal drive mode. It does 4 levels of adjustable regen braking though. Its pretty much the same except it does not come tona complete stop. Personally that is why we liked the solterra. We wanted an EV that is like a traditional car. No gimmicks, no space ship junk, just a car. We keep the regen on a low setting like 1-2 and love it.
This is full of false…
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This is full of false statements. While dealerships make significant money on maintenance, it is not being made on new cars, and it is not 80%. New car work is billed to warranty and that rate is typically different than when it's billed out of warranty. New EVs had incentives pushed by most manufacturers, so I can't see a salesman not pushing for one if there was interest in it. Solid customer interactions/impacts + sales volume is going to be the majority revenue.
Not my experience at all! …
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Not my experience at all! Sounds like maybe your experience just left you bitter. Don't know why a review need to call someone a moron or even use that word to simply and legitimately write this story. Give the immediate feel the author has a bone to pick and that usually mean bias! If that's not it... just to let you know that most of what I got!
There have been multiple…
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There have been multiple studies which have proven that the difference between one pedal driving and two pedal driving pedal driving is negligible. In terms of battery efficiency, there's virtually no difference and using one or the other is essentially preference and cosmetic.
To make a big deal about this is more akin to being completely bent out of shape because the manufacturer chose a color that wasn't quite light enough or dark enough for your taste and therefore the manufacturer is incompetent.
The very first line of the…
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The very first line of the article is blatantly false. EVs are not cheaper to own than fuel combusting cars. In addition to much higher repair costs, EVs have practically zero resale value, making the entire purchase a net loss.
I've definitely experienced…
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I've definitely experienced EV ignorance at car dealers and have heard of people being pushed back toward petrol & diesel models.
That sounds about right. I…
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That sounds about right. I'll be surprised if these big lot dealerships are around for my children. Shady ass sales people are the easiest and most beneficial to replace with informative apps and automation. Someone has to pay rent for those huge parking lots though.
The astroturfing and…
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The astroturfing and propaganda from the EV evangelists never ends.
You were shopping for an EV…
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You were shopping for an EV. The salesman was right to look at you like you were a moron, because only a moron would buy an EV in the first place.
Pagination