Consumers Want EV Test Drives, But Car Subscriptions Are Emerging
Depending on your area code, EV test drives at dealerships can be a challenge to find. EV car subscriptions could emerge to fill the gap going forward.
Caption | Triple A and Electrify America partner on an EV car subscription model that can range from 3 months to one year.
Finding EV models to test drive in your area can be difficult with many auto dealerships not stocking electric car models due to the glaring fact that electric cars dramatically reduce profit margins for dealers — 20 moving parts in an EV vs 2,000 in a gas engine vehicle. With EV model supply in question throughout the year, EV test drives at dealers can be hit or miss — for example, my local BMW dealers doesn’t have an i3 in stock.
Via our survey with EV Parade, we know traditional test drives rank third behind research from EV car bloggers (2nd) and receiving information from EV owners (51%, #1).
While this challenge can dampen EV adoption, utilities, automakers and charging networks are creating services and business models that offer an alternative way to “test drive” an electric car.
One alternative to the traditional test drive has been “short-term” electric car subscription models.
Recently, Calstate Triple A revealed an EV subscription program via its partner Electrify America, a charging network subsidiary of Volkswagen, for the Sacramento area. Triple A members can choose a subscription package that offers a 2018 Volkswagen e-Golf with insurance, repairs, maintenance and emergency roadside assistance all for one monthly subscription fee. (The e-Golf is a first generation vehicle with a 125-mile battery pack).
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According to the release, “terms range from three months to a year, with a number of monthly mileage options to choose from, allowing drivers to match their subscription to their lifestyle and needs.” Moreover, Triple A also advances a subscription program at a discount to low-income and disadvantage communities.
Another EV subscription service emerged in the Washington D.C. metro area, called called Steer, with the backing from Exelon Corp., an electric utility. This subscription company furnishes Tesla Model 3s, Hyundai Konas and Audi eTrons, to name a few, and plug-in hybrids (a guide coming soon on that topic!) that runs on electric and gas — a Chevy Volt runs 53 miles on electric and another 367 on gas.
According to the company, Steer’s subscriptions solve many consumer objections to EVs: fear of limited range, up-front expenses, fast-changing technology and understanding of charging. “They indicate subscriptions solve EV pain points by providing a variety of vehicles tailored to every driving need along with low-commitment month-to-month plans.”
The Steer subscription program is pricey, with multiple options exceeding $1,000 per month, and doesn’t hit a lower income demographic.
Other Options
One other option besides a pricey subscription model is Turo and its rental service model that provides electric cars. Many metropolitan areas with Turo offer multiple electric models, but the Tesla brand does win out on this platform. Most pricing starts around $85 and up for electric models. Check the reviews and take a ride.
While these subscription programs are just beginning, many utilities (Dominion Energy) are acquiring more renewable resources and, more importantly, acknowledge increased profit margins with 10% to 25% electric cars on the road in the U.S.
Also, EV ride-and-drive events have been annual staple for the Electric Auto Association clubs with the big event in September called National Drive Electric Week.
Has anyone tried a car subscription? Click below to leave a comment.
Charging Spotlight — Dallas Metro Area
(Source: Plugshare) Many EV owners are surprised to learn that Texas has such an extensive charging infrastructure, but everything is big in Texas, right? The state ranks number two in total number of charging stations deployed with more than 4,395, only second to California’s 20,992 as of March 2020. The largest metro area in Texas is the Dallas/Fort Worth/Arlington region and the area has more than 1,173 charging stations, of which 108 units are free. And growth has been tracking upwards over the last two years — 2018 & 2019 — with 473 charging stations added.