Inflation is a challenge for the bulk of business sectors, but auto dealerships get hit harder than most. Auto supply has slowed, high interest rates make cars less affordable, and the cost of electricity keeps rising with no end in sight. Added to the mix is the increased production of EVs (electric vehicles) which require additional electrical consumption in order to charge them. Auto dealership profitability is further slashed by the need to ensure that showrooms, parking lots, and service stations are extremely well lit.
Auto dealerships that embrace solar energy to increase their profitability can reap the financial benefits of a decreased bottom line, predictable monthly utility bills, the opportunity to invest in their business with a guaranteed ROI (Return on Investment), and distinguish their brand to auto buyers who value sustainability.
Listed below are 4 common roadblocks to auto dealership profitability that all have a single, cost effective solution: SOLAR ENERGY.
Roadblock # 1: Decreased Bottom Line Due to Utility Inflation
The first benefit of installing solar energy systems on your auto dealership is the reduction in monthly operating costs. By generating your own electricity, your dealership no longer has to rely on fluctuating power grid pricing. This is particularly beneficial for auto dealers who struggle with higher energy demands than most commercial properties. By installing solar energy, auto dealerships have is dramatically decreased utility bills and increased profitability.
Roadblock # 2: Unpredictable Utility Bills is Challenging for Long Term Fiscal Planning
Auto dealerships struggle with precise annual budgeting as electric bills are a large part of their operating costs. Solar energy systems allow for a predictable monthly utility bill and makes energy usage a reliable line item. Once your auto dealership switches to solar energy, your dealership will be less dependent on unpredictable utility rate hikes. All of these factors result in more accurate forecasting and predictable monthly energy savings which boost to your auto dealership’s profitability.
Roadblock # 3: Need for Safe Investments
It doesn’t matter if the market is Bear or Bull, a solar energy system increases the value of your dealership property. Additionally, the increased property value (resulting from your solar energy installation) is tax exempt. That makes solar a safe investment with a guaranteed ROI, and a method for auto dealerships to add tax-exempt profit to their property. Ultimately, a solar energy system allows auto dealerships to invest in themselves. Most commercial property appraisers now include solar energy systems as an added factor when appraising properties. If you choose to sell your property, you can take the profit at the sale or you can retain ownership of the solar energy system and sell the energy back to the new owner for profit.
Roadblock # 4: Distinguishing Dealership from Competitors
Car buyers are becoming increasingly aware of the need for businesses to practice sustainability and are more likely to choose companies that prioritize it. By installing a solar energy, auto dealerships will demonstrate its commitment to sustainability and appeal to a broader range of auto buyers. Use solar energy to power your auto dealership, brand it as sustainable, grow your customer base, and increase customer loyalty.
Geoscape Solar is uniquely positioned to clear away roadblocks auto dealerships and help increase profitability. Geoscape Solar has over 15 years of experience in commercial solar and works closely with auto dealerships to design, finance, and install their solar energy systems. Geoscape Solar is an expert in qualifying auto dealerships for available solar tax credits and incentives which reduces the initial investment and shorten the ROI timeframe. Contact us at 1.877.GEO.SUN.1 or click below to get started now on your dealership’s path to increased profitability.