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Published date: July 15, 2025

Fundamentals of a Healthy EV Business Unit

Fundamentals of a Healthy EV Business Unit

Variable Ops is becoming increasingly complex as Automotive Retail navigates a world with multiple powertrains: ICE, Mild Hybrid, Plug-in Hybrid, and full Battery Electric. Each powertrain has nuances throughout the Variable Ops process. Today we will focus on BEV.

Table of contents

Intro: EV Variable Ops Needs Its Own Playbook

Variable Operations in Automotive Retail is the beating heart of revenue. It’s the sales floor, the trade desk, F&I, lot management, digital merchandising, and everything in between. And when it’s running right, it hums….inventory turns, gross is healthy, and every deal feeds a long-term service customer.

But when it comes to EVs, the old Variable Ops playbook starts to break down. Here are 3 key reasons why:

A. EV Shoppers Ask Different Questions Traditional buyers walk in wanting horsepower, MPG, or monthly payment. EV buyers? They ask about range from their home address, public charging infrastructure, home charger installations, and tax credits. If your sales team can’t answer those questions fast, confidently, and digitally, good luck.

Customer Journey is EVERYTHING in EV-shopping.

B. EV Incentives Are Complex, But Mission-Critical Incentives used to be a handful of OEM rebates and maybe a finance special. Now, your PVR depends on mastering state rebates, federal tax credits, utility programs, and dealer cash that all change rapidly. A desk manager with a sharp pencil helps, but there is a ton of information available and your team and customers need this at their fingertips.

C. Inventory Turn Times Vary for EVs The standard benchmark is 12x inventory turns per year. But many dealerships are sitting on 100+ days of BEV supply because they’re using gas car merchandising tactics on electric inventory. EVs need their own merchandising strategy and KPI tracking — or else those cars just sit.

"The gap between days’ supply for EVs and ICE+ models doubled in March 2025, reaching 24 days. Days’ supply varied significantly by make." - Cox Auto EV Market Monitor

As the product mix shifts and EV volume grows, dealerships can’t afford to treat electric vehicles like just another trim level. It’s time to build a distinct, disciplined EV Variable Ops function — with its own tools, training, and strategy.

Main: The 8 Pillars of EV Variable Ops

I am likely missing important points here, feel free to fill in the gaps in the comments or DM me!

1. Training: Most sales teams were trained on the product specs of EVs, but being trained on how to sell them is a different story. EVs bring new objections: Where do I charge? How do I install a home charger? Explain this incentive to me? EV sales require confidence and fluency. The top stores now have EV Specialists, internal threads on tax credit updates, and dedicated EV walkaround videos built into onboarding.

2. Days Supply: 100+ days of EV supply is a warning light. Every day an EV sits, you lose margin and future allocation. Healthy EV units target 60 days or less by aligning inventory ordering, digital merchandising, and incentives with shopper demand.

3. Inventory Turns: Let’s say the dealership turns gas inventory 11x/year, but EVs only turn 4x. That’s not just lost sales, but a signal the store hasn’t adapted its process. Dealerships that nail EV turns don’t just lower prices; they answer questions before the lead form is ever submitted. That’s merchandising. Each community is different, and retailers should build towards the questions their specific community has.

4. PVR (Per Vehicle Retail): EV profitability is a different game in many ways. Front-end and Back-end gross come from maximizing incentives and tax credits effectively, which could mean more lease penetration and more room for additional products. EV business units that win PVR are the ones that treat the deal structure like a puzzle that meets a customer exactly where they are.

5. Customer Journey: EV customers want answers online, not just in-store. Does your VDP show range from my house, real savings over gas, or local rebates? If not, that shopper is back on Google or ChatGPT and you’ve lost control of the sale. You need tools that make your VDPs EV-native to increase engagement and conversions. Right now, go check if your EVDP shows miles of Range anywhere on the page.

If it does not, or if you do not believe this is prominently featured, let’s chat.

6. OEM Incentives: OEMs are investing billions in EVs and they expect results. EV volume bonuses and marketing co-op dollars are real, but they go to the dealers who sell and take the proactive approach. Tracking and activating these incentives needs to be a core part of EV Variable Ops strategy. Some OEMs are leading the way with certified EV tooling and we are proud to have innovated and created this space:

FYI, BMW Dealers can opt into their BMW EV Program here.

MINI Dealers can do the same here.

More OEMs coming soon...

7. State & Federal Programs: A healthy EV desk doesn’t just know how to work a lease, they know which ZIP codes qualify for which rebates, when clean vehicle credits change, and how to navigate the ID ME clean vehicle tax credit portal for qualifying new and used purchases. The Vehicle AND the Customer must qualify. This isn’t “nice to have” knowledge anymore in EVs, it’s the margin.

8. Customer Retention: EV buyers think long term. Many want to understand what their service experience will look like 2 years from now. If you don’t have a post-sale plan they’ll drift to someone who does. Battery health reports, tire changes, and assistance with home and public charging can lead to retention and positive customer journeys.

Final: How Lectrium Powers Modern EV Variable Ops

We are building Lectrium to give dealerships the tools they actually need to turn EV inventory, educate buyers, and unlock margin.

If you're running EV sales through the same Variable Ops process you use for gas cars, you're missing half the puzzle. Here's how our tools fill the gaps:

EV Range Map Shows real-world driving range from your dealership (or the customer’s home) with one click on your VDP. Also shows all public DC Fast Charging stations in the area (50+ kW). It’s the fastest way to eliminate range anxiety — and it works across all brands. https://www.lectrium.com/ev-range-map

EV Savings Badge Calculates total ownership savings vs. a gas vehicle, stacking federal tax credits, state rebates, and fuel savings. Shoppers see why this EV makes sense financially — before they ever submit a lead. https://www.lectrium.com/ev-badge

CO₂ Badge Answers the rising Gen Z/Millennial question: Is this EV better for the environment than a gas car? The CO₂ Badge provides a simple yes — with data to back it up. https://www.lectrium.com/co2

These tools are fully plug-and-play with your website provider and update automatically as incentives, ranges, and fuel prices change. And the best part? Brand new versions launch early June.

DM me “Mockup” if you’d like to see how these fit into your website!

Thank you for reading, and let's chat EV Variable Ops!

Lectrium upgrades dealership EV detail pages with impactful data and visuals for shoppers considering electric.

The EV Savings Badge: Join 300+ dealerships across the U.S. showcasing EV ownership savings on their website. Highlight federal and state tax credits, fuel cost savings, and maintenance savings for each EV and PHEV in your inventory.

The EV Range Map: Join 200+ dealerships addressing range anxiety by helping their customers visualize the range of each EV and PHEV inventory on an interactive map.

The CO2 Savings Badge: Our newest tool showcases the environmental impact of your electric inventory, providing easy-to-understand CO2 emissions savings data.

Enable shoppers to make informed purchasing decisions, and emphasize the value of your EV and PHEV inventory by bundling these tools on your website. Book a meeting with our team to get a full demo.

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