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Monday, April 22, 2024

Car dealers throw cold water on electric vehicles versus gas options: ‘I wouldn’t feel safe’ - Fox Business

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Car dealers have expressed both caution and optimism about electric vehicles, telling Fox News Digital that the technology still needs to advance and that they would not feel comfortable having one as the sole car in the household.

Abdul Cummings, the owner of Jersey City Autoland, told Fox News Digital that few people he has encountered feel confident buying pre-owned electric vehicles.

According to Cummings, electric vehicles typically require low maintenance and the cost of ownership is often as advertised. However, many potential buyers are concerned about the distance EVs can travel.

"There's a lot of range phobia when it comes to electric vehicles. I think that's still the main obstacle," Cummings said, suggesting that charging stations are still nowhere near where they need to be in many parts of the country.

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Car dealers on electric vehicles

Car dealers gave Fox News Digital their honest opinions on the electric vehicle market and how they fare against traditional gas cars.  (Fox News/Smith Collection/Gado/Getty Images / Getty Images)

Cummings also said he would not recommend electric cars as the only vehicle in the household, especially for long trips. He said EVs are most beneficial in commuting situations where the driver is going 50 to 100 miles at a time.

"I wouldn't take my wife and kids down to the shore for a two-week vacation with an electric vehicle," Cummings added. "I wouldn't feel comfortable. You know, in any situation, many things can happen. I wouldn't feel safe."

According to the U.S. Department of Energy, the number of EV charging ports in the U.S. nearly doubled in the past three years. However, many of these stations are located in California, Florida, New York, Washington, Texas and New Jersey.

Champion Auto Sales owner Amr Youssef said that while electric vehicles are growing in presence on the street, the majority of people are still looking for gas-operated vehicles. He agreed that the culture around EVs is currently more so among people looking for a second or even third car in the household.

He believes it will take some time for the proper infrastructure to be built in homes and across highways before EVs become mainstream. However, Youssef is already seeing increased demand compared to two or three years ago.

"It's an education process," Youssef said. "It's the same with like the solar panels. It's the same with any new technology."

"It will take time. It will have a market share. It's not going to go completely away," he contunued. "I don't think it's going to affect the car business that much in the short term. I think it would affect it in the long term."

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chevrolet bolts lined up at a dealership

Chevrolet Bolt electric vehicles (EV) at a dealership in Colma, California, on Friday, Jan. 26, 2024. (David Paul Morris/Bloomberg via Getty Images / Getty Images)

President Biden said in March that new Environmental Protection Agency (EPA) regulations should ensure the U.S. meets its goal that 50% of all new car sales will be electric by 2030.

Cummings said companies and the U.S. government are trying to push EVs with positive momentum and as a "good gesture" to benefit the environment. However, he feels the current approach is "too aggressive" and "too fast."

"Also, it takes us away from looking at other ideas that can also solve some of the problems we face in the auto industry. I like to stay positive, but I don't think the way the decision-makers would imagine it would be in 2030 or 2035, as promised—I think that's highly, highly unachievable," he added.

The Jersey City Autoland owner also believes car manufacturers and regulators should have experimented more with hybrid vehicles, noting that many models are still desirable to car buyers.

He further called the rapid shift towards electric vehicles a "risky bet" and said "trust issues" among the public regarding government perceptions could unintentionally push people away from electric options.

With the increased presence of EVs, Youssef has begun asking himself many questions. Do I have the proper access to charging? How will EV batteries be replaced? What is the cost to replace them? What will happen to the old batteries? Will the car perform the same way afterward? What will the impact be on the environment?

He said many of these questions should be addressed and considered by consumers who may need to read up before jumping all in on electric.

Concerns about potential unwanted data breaches in electric cars have grown as Chinese automakers have become a force to be reckoned with in the global electric vehicle market.

Chinese company BYD has overtaken Tesla as the largest EV company in the world this year. Some experts worry that when Americans start buying these vehicles, the Chinese manufacturers will be able to monitor them from overseas.

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Tesla's gigafactory in Austin, Texas

Electric vehicles parked outside the Tesla Gigafactory in Austin, Texas, on Thursday, June 23, 2022. (Jordan Vonderhaar/Bloomberg via Getty Images / Getty Images)

Cummings said that if someone can hack into his phone, he believes the same can be done to EVs.

"I think gas cars drive better than electric cars, in my opinion. I think they're safer," he said. "The amount of technology that goes into that car—it's a smartphone with wheels."

"Now, the problem with a smartphone with wheels is that car is collecting data about you and you don't know where that data is going," he continued.

The car dealer admitted that he does not stock a lot of EVs, but the decision is "nothing personal. He believes these automobiles depreciate significantly, and the services attached to them are currently limited. Cummings, who has bought and sold several Teslas, claimed it is a "nightmare" to have anything done on them, even under warranty.

"I've seen a lot of colleagues try to, you know, ride the wagon and buy a bunch of Tesla's and Ford Mustangs or any other electric vehicle, Lucid. Some luxury dealers try to have 30 or 40% of their car in EV and they took a bath. They lost a lot of money," he said.

Youssef had a different experience and said that they sell fast anytime they put low-mileage EVs on the lot. However, they typically only encompass around 4% of his inventory. He often tries to stick within five years of manufacturing, though he admits there are few options at auction.

He also noted that many cars, regardless of model or make, often have hot and cold periods during which depreciation and customer interest varies. The car market, he stressed, is highly variable.

THE ELECTRIC VEHICLE PUSH RUNS OUT OF POWER

electric car charging

Tesla cars charge at a Supercharger station on Culver Ave. in Irvine, CA on Friday, January 28, 2022.  (Paul Bersebach/MediaNews Group/Orange County Register via Getty Images / Getty Images)

Cummings and Youssef said they purchased EVs with low mileage that did not come with a charger.

Cummings, who personally drives a RAM pickup truck, often pays $70 to fill up his gas tank (a range of 400 miles). When he purchased his first EV, a Volkswagen ID.4, he was charged $35 to drive 200 miles at a fast-charging station. The cost per mile was the same despite common claims that EVs save drivers significant money on travel.

"I thought that was really funny. When you see that the whole narrative that gets pushed down on the consumer, when you try to apply it in real life, it just doesn't have that," he added.

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Youssef revealed that in some cases, electric cars can be cheaper to fill than gas cars but it can be more difficult to plan trips ahead of time.

In the end, Youssef said both electric and gas cars can be good depending on the situation. But he is not yet ready to depend on EVs as his first and only car.

"I think gas is more economical because time is money. If it's your only car and the car is not charged and you have to charge it, you lose a couple hours, and that affects your day," he said.

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Car dealers throw cold water on electric vehicles versus gas options: ‘I wouldn’t feel safe’ - Fox Business
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