The well accustom and or unimaginably incredible feeling of buying a new shinny sports car or the latest edition of the range rover might no longer be in existence in the next decade, stated by a new report that portrays a black and white future for automobile dealerships.
Studies from RethinkX which is an independent think-tank based in San Francisco, show a higher demand for electric cars along with ride sharing will all but annihilate dealerships.
At the moment, electric cars are pretty expensive but in the nearest future will cost less to operate compared to their gas powered counterparts. The precise moment will occur as soon as the battery range of the electric vehicle crosses 320 kilometers and price range drops to $20,000. The cost of a low end electric vehicle is currently in the $30,000 range.
Effectively, due to the electric engine’s composition, less time will be spent bringing cars to dealerships for servicing and repairs. The power train of an electric vehicle has 20 moving parts in contrast a gasoline motor has 2,000, so what could possibly go wrong.
According to statistics of the Canadian Automobile Association, maintenance of gasoline vehicle averagely cost $1,000 per year and even increases depending on age and distance traveled by the vehicle. Elastic vehicles have a longer duration time.
There’s a little irony to the RethinkX report, as it comes out concomitantly when auto sales in Canada have been nothing but outstanding and with a staggering increase in dealerships, which recorded a staggering 150,000 jobs during the first quarter of the year.
From an economics point of view, the usage of transport as a service will be four to ten times cheaper per mile than purchasing a new automobile, and two to four times less costly than managing an existing paid-off vehicle by 2020.