Auto resellers are about to wake up suddenly EVs are gaining traction because to sell EVs, dealers will obviously want to charge for them. The establishment of fast chargers at dealerships turns out to be more expensive and complicated than expected. In some cases, installing a fast charger can take up to two years and cost over $200,000 because Automotive News reports. For once, dealers are stuck waiting and paying more than they expected. Call it the cost of doing business.
Dealerships are running into costly problems as utility companies confirm that the electrical systems of many commercial properties are not that different from those of residential properties. Unless lots have a body shop or similar facility on site, AN reports, these locations “typically consume 24 to 48 kilowatts.” This is the power rating for which they were built.
But it’s not enough to Level 3 fast chargers, which require between 150 and 350 kW of grid power. These requirements doubled the initial estimate in the case of a GMC and Cadillac dealership in Florida. From Automotive News:
Orlando-based Starling Automotive Group has six dealerships, including GMC and Cadillac franchises, that need fast chargers, Starling said during the NADA Show and in a follow-up phone interview this month.
He realized that installing the chargers would be more difficult than it looked when the local utility company told him there was “a little problem”.
Starling said the utility company told her, “’We’re going to have to upgrade your service before we install these chargers. Your current arrangement is good for what you did, but not for that.
Starling said the power upgrade roughly doubled the original estimate to install fast charging capability for a total of around $220,000.
And the problem is widespread. A hyundai The New Jersey dealership encountered the same lack of capacity as the Florida GM dealership, pointing out that the energy toll of electric vehicles, which dealerships will soon face, was woefully unexpected:
“Rockland Electric Co. said, ‘We have to give you more power,’ because what we had from the street wasn’t enough,” he told the NADA Show.
DeSilva’s son, Mike, is co-owner and dealership manager at Liberty Hyundai. In a phone interview, he said the dealership was “on the hook” to pay for a new, stronger power line from the street to the dealership.
Mike DeSilva said the utility company is still “months” away from actual installation. He hopes the dealership will qualify for a local financial incentive for installing EV chargers, but there are no guarantees.
He said the concessionaire had decided to go ahead and submit its application to install the chargers without waiting for the final word on the incentives to avoid missing allowances. the next Hyundai electric vehicles. DeSilva said they did not receive an official estimate, but were told the service upgrade would be $50,000 to $100,000 in addition to the cost of chargers and work on the site.
This dealership would eat the higher cost for fear of getting fewer cars from hyundai. Of course, not all automakers require dealerships to install fast chargers on lots. However, as fast charging becomes a selling point, dealers without it will be at a competitive disadvantage. Car dealerships know the deal: you have to spend money to make money. Well, it’s either that or add a line item on dealer invoices for “L3 Charger Installation”.