Car wash operators are used to customers who are pressed for time and intent on getting in and out as quickly as possible, but Jacy Everett envisions a time in the not-too-distant future when some customers will be happy to stay a while. To these customers, what’s in your parking lot might be almost as important as the quality of your wash.

Everett, the director of business development for Aetna Corp., said retail locations that have ample parking space should devote a small section to electric vehicle (EV) charging stations, believing they will give those retailers an edge over their competitors as EVs become increasingly popular. He said EV drivers will be more likely to come to your business if you have a few charging stations, and while their cars are charging, they are likely to grab coffee and a bite to eat and browse the knickknacks for sale.

Many car washes either don’t have the lot space to devote to charging stations or don’t offer enough food, beverages, car accessories or other retail products to truly capitalize on the browsing effect. But for those operators who have invested in driving other forms of revenue and making their car washes fun places to hang out, EV stations might be a good way to gain a loyal group of customers who have time on their hands and money to spend.

“I think many people would be surprised at the number of electric vehicles that are already on the road and the number of charging stations that are out there,” said Everett, whose company recently began installing and maintaining charging stations for retail stores. “As the prices continue to come down and the battery technology improves, you’re going to see a lot more people buying electric vehicles.”

In September, EV manufacturers hit a significant milestone when the number of EVs sold worldwide to date hit 4 million, according to Bloomberg News, and the rate of adoption is accelerating quickly. About a million EVs were sold just during the six-month period that ended in August. And in July, EVs accounted for 2.1 percent of all new-car sales in the U.S., the first month in which EVs had hit 2 percent.

Looking ahead, the International Energy Agency expects there to be 125 million EVs on the road by 2030.

Range anxiety and recharge concerns

Market research has revealed that consumers’ two main concerns about EVs are “range anxiety” – the fear that they will run out of battery power on the road – and a dearth of available charging stations. But as more EVs are sold, battery life is extended and charging infrastructure expands, those issues have become less worrisome to consumers, especially millennials, who are more likely to be environmentally conscious, according to a survey from the American Automobile Association conducted last March.

“Today, electric vehicles have mainstream appeal,” said Greg Brannon, director of automotive engineering for AAA. “While concern for the environment is still a major motivator, AAA found U.S. drivers are also attracted to the lower long-term costs and advanced technology features that many of these vehicles offer.”

Level 1 charging stations, which typically take eight to 12 hours to charge a fully depleted battery, are common in homes. Level 3 stations, the most expensive option, are commonly referred to as DC fast-charging stations and can give most EVs an 80 percent charge in half an hour or less, making them ideal for placement on major corridors to facilitate long-distance travel. For retailers, the sweet spot is right in the middle with Level 2 stations, which can charge a depleted battery in four to six hours.

Everett said car washes and other retailers can structure this amenity as they see fit and change it on the fly because most charging stations have a wireless connection to the Internet. Some retailers might want to allow free, unlimited charging, while others might want to attach a small fee to the service. Still others might want to make charging free for only the first hour to prevent abuse.

Everett said one retailer discovered that a resident living nearby was using its charging station for long periods late at night, so the store made the charging station free to use only during store hours and began charging for it after closing time. He said in the near future, retailers will be able to link the charging stations to customer rewards cards to encourage use, which might be attractive for car washes that have customer loyalty programs.

Everett wouldn’t provide an estimate of the typical cost for installation, saying it depends on a host of factors, including the number of charging stations installed, any electrical upgrades needed at the facility and the distance from the parking spots to the building, but he said the construction work needed often pushes the cost into the $10,000 range per space.

Locating charging stations

EV owners can use a host of Web-based apps such as PlugShare, which has a database of more than 50,000 charging stations nationwide, to find nearby charging stations, plan long trips and see whether charging stations are currently in use.

EV charging stations make sense for a wide variety of retailers but are especially attractive for stores where customers typically spend a good deal of time, such as big-box retailers, gyms, movie theaters, malls, grocery stores and restaurants. When a neighboring retailer installs charging stations, a car wash operator might want to pursue a cross-promotional deal, such as a discounted wash for drivers who pay for a charge.

“If you have charging stations at your location, people are going to find them, and that really gives that retailer an advantage,” Everett said. “The typical EV driver has a higher income than the average consumer, so if you want to attract these customers and you have a charging station and your competitor doesn’t, you can potentially influence that person to come to your site because you have that amenity.”

So far, EV drivers have needed higher incomes to make their car payments, but that is starting to change as more manufacturers enter the market, Everett said. According to USA Today, the five best-selling EVs in the U.S. for the first four months of 2018 were the Tesla Model 3 (base price: $45,000), the Toyota Prius Prime plug-in hybrid ($27,100), the Tesla Model S sedan ($74,500), the Chevrolet Bolt EV ($37,500) and the Tesla Model X sport utility vehicle ($79,500). Those prices do not include federal tax credits of up to $7,500.

The 2019 model year also includes offerings from Ford, Hyundai, Volkswagen, Nissan, BMW, Honda, Audi, Porsche, Volvo, Jaguar, Mercedes-Benz and Aston Martin. While manufacturers have thus far focused on compact cars and sedans, the selection of SUVs is increasing, and upstart companies like Workhorse, Atlis Motor Vehicles and Bollinger Motors are racing the big boys to get into the EV pickup market.

Electrify America, a subsidiary of Volkswagen Group of America, plans to invest $2 billion to create a nationwide network of charging stations by 2027, with $800 million of that total devoted to California, traditionally a leader in the environmental movement.

In April, the company announced plans to install DC fast-charging stations at more than 100 Walmart stores in 34 states by June 2019. Electrify America also has installed charging stations at retail locations for Target, Simon Property Group, Brixmor Property Group, Kimco Realty Corp. and DDR Corp. The company installs and maintains charging stations, with a minimum build of three parking spaces, at no cost to retailers through site-use agreements. Brendan Jones, chief operating officer at Electrify America, declined to give a ballpark estimate for the percentage of revenue a retailer could expect, saying the site-use agreements vary greatly.

“The premise is to provide customers with convenient, well-lit charging stations at a wide range of retail locations,” Jones said. “The number of EVs that are hitting the market is going to increase exponentially, and these EVs, which are coming from a wide variety of manufacturers, are going to have longer-range batteries and faster charge times.”

In the near future, retailers will be able to link the charging stations to customer rewards cards to encourage use, which might be attractive for car washes that have customer loyalty programs.

Measuring Consumers’ Views of EVs

With electric vehicles gradually gaining a foothold in the u.s., consumers are becoming more willing to embrace them. Here are some findings from an American Automobile Association survey of 1,003 Americans conducted last March.

20%

of Americans say their next car purchase is likely to be an EV, up from 15 percent in 2017.

80%

Concern for the environment remains the top reason for purchasebut respondents also cited lower long-term costs (67 percent) and cutting-edge technology (54 percent) as significant reasons. Women (90 percent) are more likely to cite environmental concerns as their top reason for purchasing an EV than are men (68 percent)

63%

Americans who are unlikely to purchase an EV are concerned that there are not enough places to charge, down from 69 percent in 2017. Among those respondents, 58 percent are concerned about running out of charge while driving, down from 68 percent in 2017.