RE: Scary view if you're a motor dealer29 Jun 2017 19:08
You could be right - but dealers highest profit margins are earned on servicing and selling second hand cars. Obviously petrol and diesel cars are not going to disappear overnight so a reducing number will continue to need servicing but once electric cars reach critical mass I suggest that petrol and diesel car values will plummet so profit per car sold will also plummet.
Electric cars need much much less servicing (they simply don't have anything like the number of moving parts) so annual servicing will become a thing of the past.
Just look at what's happened in other industries - clothing, houses, household appliances, almost everything really now sold online for wafer thin margins. I'm not sure that Mr Musk is going to be interested in selling Teslas through traditional dealerships.
The more I think about it, the more I wonder why I own shares in Lookers and Marshalls.