How dealerships are using EV battery testing to boost sales

Over the last couple of years, used electric vehicle sales have been growing exponentially. This presents opportunities for car dealers, as well as risks.

The secret weapon for tapping into exponential growth

Dealerships are increasingly looking for ways to tap into the growth in the EV market and position themselves as leaders in their field. Research conducted by the Green Finance Institute on how to grow this market, shows that battery health certificates are the number one factor that will help. Indeed, 62% of buyers are held back from buying an EV because of concerns about the battery. But it is now possible to address those concerns...

“Having some kind of paperwork that a professional has looked at and confirmed that the battery doesn’t have a problem would be great.” – Fiona Love, EV Driver

What is an EV Battery State of Health certificate?

Electric vehicle batteries degrade over time. An electric vehicle battery State of Health (SoH) Certificate is a document that assesses the current condition of an electric vehicle's traction battery. The traction battery is the main battery that powers an electric vehicle. The certificate provides transparency and assurance into the health and performance of the vehicle's battery.

Given that the battery is a fundamental component influencing the vehicle's range and reliability, understanding its state of health is important. For those considering the purchase of a used EV, the SoH certificate is invaluable in making an informed decision, ensuring that the battery is in good condition and will meet their needs. By offering this level of transparency, the SoH certificate fosters confidence in the longevity and functionality of electric vehicles.

Why is SoH certification essential for car dealers?

State of Health (SoH) certificates for electric vehicles (EVs) play a pivotal role in transactions between EV owners and car dealers, particularly when buying or part exchanging vehicles. The certification offers a comprehensive assessment of the battery's condition, which is a crucial factor in determining the fair market value of an EV. By providing an accurate depiction of battery health, the SoH certificate ensures that both the buyer and seller have a clear understanding, which means dealers can:

• Improve stock turn: Given the choice between two identical vehicles, one with a battery certificate and one without, buyers will generally choose the vehicle with the certificate as it gives them greater reassurance.

• Access new buyers: As sales of EVs move from early adopters to the early majority, battery health certificates are the number one factor that can reassure the next wave of buyers. Read the Green Finance Institute's research here.

• Improve margins: EV buyers are willing to pay a significant premium for the knowledge that a vehicle's battery is in good condition.

• Reduce risk: Be confident that a vehicle's performance is not being mis-stated in how it is marketed (a vehicle that can do 85% of its range when new is very different to one that functions exactly as new).

• Acquire vehicles with comfort: Be sure that you are not acquiring vehicles with batteries that have been mistreated, have factory issues or are close to end of life.

Protecting all parties involved, the SoH certification serves as a safeguard against potential future disputes. Buyers can rely on the certificate to confirm that they are receiving a vehicle that meets their expectations, while sellers can use it to demonstrate the true worth of their EV. This mutual assurance is invaluable in maintaining positive relationships between EV owners and car dealers, ultimately contributing to a more robust and transparent market for electric vehicles.

Talk to us to learn more about how Generational battery certificates can help your business.