The EV Market Is Full of Misconceptions

The electric revolution is well underway. Sales of EVs are on the rise — in 2024, they accounted for 8.1% of the market, up from 7.8% in 2023 — and dealerships everywhere are adapting, installing charging stations, and training staff on the technology and selling points of these vehicles.

After conducting a recent survey of some 1,100 car shoppers, CDK discovered another area of EV education that dealers may wish to explore: false assumptions on both the consumer and dealer side. Below, we divulge what respondents told us about their perception of EVs (and shopping intentions) as well as how that differs from the reality of the situation.

People Believe EVs Are More Expensive To Own and Maintain

While EVs tend to cost more to purchase and insure than their internal-combustion-engine counterparts, a recent J.D. Power study found that, in most states, EV buyers actually come out ahead. That’s because EVs generally cost less to own — roughly $3,000 less over a five-year period — after you take into account factors like government incentives, lower fuel cost, and minimal maintenance.

And yet, that’s not what most survey respondents believe: 71% of gas car shoppers and 80% of hybrid shoppers think their vehicle is more affordable than an electric one. What’s more, most of the people we queried said they think EVs are the most expensive vehicle type to maintain, which isn’t the case. Electric cars don’t need oil changes, regular fluid flushes, or replacement belts and spark plugs.

Really, the only costly thing they need, maintenance-wise, is a new set of tires every 40,000 miles or so (versus about 50,000 miles for an ICE vehicle). Many consumers are unaware of that too: Almost half of gas car shoppers and more than a third of PHEV shoppers believe their chosen vehicles cost more to shod than other vehicle types.

These incorrect assumptions can be a significant barrier to EV adoption.

Many EV Shoppers Aren’t Aware of the Leasing Benefits

Perhaps of greater importance to dealers is the fact that, of those surveyed, 91% of EV shoppers said they entered the dealership with the intention to buy rather than lease. However, market reports indicate that between 50% and 80% of people choose the shorter-term option.

One reason for the discrepancy could be that, until they talk to a salesperson, many shoppers may not have all the facts. For instance, of those we questioned, 52% said they wouldn’t lease an EV because the automaker won’t allow them to buy out the car at the end of the term. However, some OEMs, including Tesla and Nissan, have brought back a lease-buyout option for their EVs; it’s possible consumers simply don’t know about that.

In addition, shoppers may mistakenly believe that their vehicle will hold its value, as so many did during the vehicle shortages of the past few years. But as things stand currently, EVs actually depreciate more quickly than their gas-powered counterparts.

It’s also entirely possible that the data is skewed by consumers who sign the paperwork for a lease and then immediately buy out the car. As dealers know, this legal loophole allows automakers to pass along the $7,500 federal tax incentive to buyers, irrespective of their income and the vehicle’s price, assembly location and battery source.

Shoppers Don’t Necessarily Want to Buy Their EVs Online

One last point worth mentioning is that, for all their tech forwardness, EV shoppers still prefer to put ink to paper when buying their car. Per CDK findings, only 6% of people in that group said they intended to purchase their vehicle entirely online. The rest wanted at least a partial in-person experience. While this may not surprise dealers, it runs counter to what EV-only makers like Tesla, Rivian, and Lucid permit. For consumers still mulling EVs, the notion that EVs require a direct-to-consumer transaction may still persist — and may be keeping them from the dealership.

Read the full Car Shoppers Battle EV Myths White Paper