Car dealerships could win big in the Biden administration’s push for electric vehicles (EV) due to their greater need for repairs and short lifespans, the Wall Street Journal reported Friday.
EVs spend much less time on the road before being replaced compared to gas vehicles due to battery degradation, insurers often preferring to replace EVs rather than repair them and rapid technological advancement, according to the WSJ. More frequent car replacements and higher repairs as more EVs hit the road could mean more sales for car dealerships.
Improving efficiency among newer EV models could be one factor that pushes more people to feel the need to replace their EVs after just a few years, according to the WSJ. The average age of gas cars on the road has hovered around 12 years since 2015, whereas the average age for EVs sits around four years.
EVs are more likely to be declared total losses by insurance agencies when involved in collisions, again leading to more frequent replacements, the WSJ reported. Since the sticker price of new EVs has been declining, it often makes it cheaper for insurers to simply replace the vehicle rather than send it in for costly repairs.
Son’s VW ID4 was hit behind rear passenger door and repaired. Several months later all sorts of electrical gremlins started in various locations. VW, insurer, repair spot got in the act; new wiring harness for repaired door ordered; came in eventually as wrong part; reordered. Conversation turned to replacing entire wiring harness with delivery some months later; they would have daily insurer paid rental all the while.
Result: totaled with 18k miles. The systems in the EVs do not appear to be robust. In a global sense, via increased premiums, we’re all paying for this and similar miscues.