Sell An Electric Car, Get A $250 Bonus – Might Become Reality In Oregon

BEVs

MAY 21 2017 BY STEVEN LOVEDAY 18

Salespeople in Oregon may want to start trying a bit harder to sell EVs, as the state is moving forward on offering a $250 bonus for every electric car sold.

People are still apprehensive about buying an electric car. This is partly due to the fact that they are expensive, even with the rebate. Also, it is new technology and people just don’t know that much about them. Aside from the Chevrolet Bolt, and the much more expensive Tesla models, range is still a concern.

Electric Car

2017 Nissan LEAF

Perhaps a larger issue, however, is that most dealerships don’t really push EV sales. Salespeople at a majority of dealerships don’t have to sell many (if any) electric cars, so they aren’t educated about the process. If dealers knew how to educate people about the electric car, its pros and cons, federal and local rebates and incentives, charging, etc., consumers may begin to feel more comfortable, and electric car adoption may come easier.

The state senate of Oregon is well aware of all this and has introduced a bill calling for $1 million, to provide fund to implement a $250 bonus for salespeople each time they sell and EV. This wouldn’t apply to Tesla, because the company only sells EVs, but should be valid at all traditional dealerships.

This bonus could be a substantial income upgrade to those that really put effort into selling electric vehicles. To put it in perspective, auto salespeople in Oregon average about $100 to $150 per car sold. If the car was electric, they would collect that figure, plus the additional $250. We can’t imagine that this wouldn’t turn into some kind of crazy competition at dealerships that have access to a large number of EVs. It might turn into a really bad idea if consumers find out that the salespeople will get extra money if they buy an electric vehicle.

Selling an electric car is more work for a salesperson. It is not often that someone will be willing to work harder, for the same money. It can also be detrimental to the salesperson’s reputation or relationship with clients if he/she tries to push a customer really hard, when the customer is obviously not interested.

There are still many skeptics, and there is no detail as to where the money is going to come from, but it is a worthy attempt by the state of Oregon.

Source: Green Car Reports

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18 Comments on "Sell An Electric Car, Get A $250 Bonus – Might Become Reality In Oregon"

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GeorgeS
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GeorgeS

The conservatives will scream. Luckily oregon doesnt have that many

JustWilliamPDX
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JustWilliamPDX

Rural Oregon is actually quite conservative, and scream plenty. They control most of the state by area. But the majority of voting humans live in Portland, Salem or Eugene and are overwhelmingly liberal as well as green.

Terawatt
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Terawatt

This would be an interesting experiment to try. If dealerships is a big part of the problem this could be the way to solve it. And perhaps when sales people have learned more about electric cars they find it easier to sell them even after the extra bonus disappears. Or the bonus could be reduced to $100 if the scheme proved successful. That’s still a substantial increase after all.

I hope it happens. At least it would be interesting to see the effect.

ClarksonCote
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ClarksonCote

True, this could sell more vehicles, and cost less from an incentives standpoint.

DJ
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DJ

If I was a tax payer in Oregon I would be pissed that my taxes are going toward incentivizing someone to do their job…

Mark.ca
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Mark.ca

….or you could be happy to support a great anti pollution cause. And besides, if you as an American want to be upset by how your tax dollars are used then ev’s should be at a bottom of a very very long list.

Tom
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Tom

If I were an Oregon tax payer I would be pissed my dollars are going to pay for someone else’s car.

Steven
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Steven

Considering the subsidies our government gives to oil companies, how do you feel about paying for the gas in someone else’s tank?

JustWilliamPDX
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JustWilliamPDX
Really? As a working and property owning citizen of the highest taxed county in Oregon, I consider this to be an inexpensive and worthwhile experiment. My personal share of the actual one million dollar cost would make a single fast food lunch look astronomically expensive. I have voted to pay many times more for mass transit, K12 education, and services for the homeless. Not because I utilize any of these services personally, but because I see them as valuable to the kind of community I want to live in. I’m not a prisoner. I choose to live here despite the ability and opportunity to keep much more in my pocket living elsewhere. Oregon was the first state to charge a deposit for an easily recyclable glass or metal container, and that was nearly fifty years ago. We kept at it because it actually encouraged recycling. It has worked for a generation, and yet there are MILLIONS of Americans who consider it a “liberal” or “Nanny state” policy to cover the very real costs of treating a legitimate resource as garbage. My suggestion, and even hope, is that we all appreciate and exercise our freedom to choose the occupation and state… Read more »
EVfreedom
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EVfreedom

my calculator tells me this bill would cover incentive for 4000 new EVs. I would lower the incentive to $100 dollars and have participating dealers attend mandatory EV education, also provide a transparent disclosure statement for display at the dealership.

Bill Kalahurka
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Bill Kalahurka

There’s an easy way to fund this. Put a flat tax of ten dollars on every new ice car sold. Once the ratio of ice cars to evs goes less than 25:1, declare mission accomplished, and then you can phase out this incentive system.

guyinacar
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guyinacar

While mathematically sound, I fear that’d be a good way to ensure a lot of EVs get “accidentally” keyed in Oregon’s parking lots. In the minds of the other 98% of vehicle owners, we already have a big enough problem with “smug emissions.”

David Murray
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David Murray

This is actually a really good idea. In fact, I wouldn’t mind if the $7,500 credit were reduced by $250 so that the salesman got that…. That would probably do more to sell these vehicles.

I’m sure it is different depending on where you go. But many of the dealers I went to around the Dallas area literally had no EVs in stock, and when I spoke to a salesmen they were ignorant of the vehicles and tried to steer me to look at a gas car (which I wasn’t the least be interested) but I can only imagine how many EV sales are lost because somebody on the fence about an EV could easily stay with a gas vehicle when they don’t see any on the lot and the salesman isn’t interested in them.

Josh Bryant
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Josh Bryant

I agree the $250 to the salesman is a bigger dollar for dollar effect than the credit to the buyer.

It would also work around dealers from discouraging sales since the cash doesn’t come out of their pocket.

Oregon is a good test bed. OEMs should consider this over money on the hood.

JustWilliamPDX
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JustWilliamPDX

Thanks Josh! I can’t speak for any Oregonian but myself, but I live and love life here precisely because a majority of citizens consistently vote to approve “radical” experiments at their own expense.

As just one example, we VOTED over and over again to defend the ability for cognizant citizens with terminal illnesses to end their own personal suffering with the help of a sympathetic physician. Like any regulation worth a damn, it isn’t easy or universal, but it affords room for those who earn their legitimacy.

I genuinely thank you. Not because you seem to be for or against an expensive ballot measure in my home state, but because you are supportive of just one, relatively modest proposal that deserves a shot.

Mark.ca
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Mark.ca

That would be hard to implement since the $7500 is a federal credit. This can be easily done with the state credit, for example, split the CA $2500 credit and send $500 to the sales person. An experiment worth trying.

Jimmy Seko
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Jimmy Seko

This is a horrible idea. From the article,

“…It might turn into a really bad idea if consumers find out that the salespeople will get extra money if they buy an electric vehicle…” I’d like to know exactly how consumers would NOT find out, unless they only watch reruns of Gilligan’s Island.

“…It can also be detrimental to the salesperson’s reputation or relationship with clients if he/she tries to push a customer really hard, when the customer is obviously not interested…” Consumers are well accustomed to dealing with pushy car salesmen. I avoid using the word salesperson because most car salespeople are men because men are naturally better at being pushy.

“…There are still many skeptics..” Because most people aren’t complete idiots.

guyinacar
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guyinacar
An annuity model would be better than “big game hunting” with a large payout. Treat it like royalties or residuals in the entertainment industry. Give sales people $10 a month for each car still registered in Oregon, for each of 24 months. That spreads the payments into the future for the state, it creates the right incentives for sales behavior, and it could become a quite large annuity check. It also won’t piss off ICE drivers, who will see the value of cleaning their air too, while reducing peak load on the grid. It is also likely to demand-shift gasoline, and make it cheaper for them, through time. So take a salesperson who always sells five EVs per month: by early 2019 (20 months from now), she might see a $10x20x5, or a $1000 per month kicker. Of course, that’s taxable income, so part of it rolls right back to the State. 🙂 But a “Psst, hey… how’d you like to make another thousand a month, even after you quit?” incentive almost sells itself. She doesn’t have to go crazy on any one buyer, but simply be fair about pros and cons of EVs with each buyer.