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October 7, 2025 • 17 mins

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Speaker 1 (00:00):
Seven o two the carfee juret car feet at time.
Nickel Lowe is here and in the building, well technically
in the building, excuse the pun. And we're going to
be chatting an issue that's brought to us. But we're
going to open up the lines so all of you
for all of your technical car issues, so get them
in quickly. Share with us what challenges you're facing with

(00:22):
your car. Might save you a visit to a mechanic
and save you some money. Oh double one double A
three h seven oh two in the WhatsApp line, Oh
seven two seven oh two one seven two, Nicol, how
are you doing?

Speaker 2 (00:35):
Hi? All good than yourself?

Speaker 1 (00:37):
I am doing well, thank you, and I'm so curious
about what we're going to be chatting about today. The
dealership business model.

Speaker 2 (00:46):
Yes, I think if you're an owner of a dealership
doing normal services on internal combustion engines, this topic might
be a bit of a shock, but rather sooner than later.
And what we're going to discuss is how the dealership
service model will change with the influx of electric vehicles. So,

(01:06):
just to put it into perspectives, so I went on
un Evolvo EX thirty launched a couple of months ago,
which is an electric vehicle, and the interesting question came up,
so what is the service interval for this car? So
the service interval is thirty thousand kilometers, which is quite
a bit, and then only every two years need to

(01:28):
go to the dealerships. So we'll just be a better
talk a bit about the technical points because there's obviously
massive differences between internal combustion engine vehicles and electric vehicles
when it comes to servicing. So if we look at
a traditional service model, we all know the OEM's the dealerships.
They make money from selling new costs, that's true, but

(01:50):
they also make a lot of money after market by
servicing vehicles. And if we look at the traditional servicing
of internal combustion engine vehicle petrol car for example, so
the service interval would be something like between ten thousand
and twenty thousand kilometers or once a year. And if

(02:10):
you look at what is actually gets done during let's
talk about a minor service that might be oil, oil filter,
air filter, petrol filter, spark plus, cabin pollen filter, those
kind of things. And then if you look at a
major service that might be bake pads, brake discs, the
break fluid chains, engine coolant change, changing of gearbox oil,

(02:33):
maybe even a Campbell change is expensive one. So if
you look at a large dealership at the moment, they
can easily service twenty five cars a day. And let's
lost around the numbers and say it's a four thousand
service on average each. That's like one hundred thousand rand
a day growth income on servicing of vehicles. Okay, so

(02:55):
that's a nice income stream for a dealership. Now we
look at electric vehicle calls. They only get serviced every
thirty thousand kilometers, They only need service every second year,
and why do they change what is involved with servicing.
So that is where the penny drops or no money
drops actually, because while you change cabin pollen filters, you

(03:19):
maybe do a diagnostic on the battery, You might look
at wiper plates. The problem is even with brake pads
and breakfast, they're using regent braking a lot of the
time to reach ouge the battery which uses electric motors.
So it's not the same where even on your brake
pads an internal combustion engines. So they're talking about changing

(03:40):
brake pads something like sixty thousand kilometers only, so you
can see where I'm heading with us. The income stream
is gone when it comes to electric vehicles and the
servicing thereof so great for the consumer, not so great
for the dealership. So I've also attended a dealer conference
that actually brought up this point where the service income

(04:02):
will just disappear with electric vehicles and dealerships will need
to adapt or they will need to close. There's there's
no alternative. So what dealerships can do to adapt where
there's new service model is I need to find different
ways of bolstering the income. So what can they now
do to do that? Sa?

Speaker 1 (04:23):
Can I ask you a question then, Nicole, I'm curious
as to what percentage of whatever their income is as
dealerships actually relies on that part of the business, because
we know selling causes the one part. But if we
get to that stage where it's all now eves and

(04:43):
that part of the business phases out, is it like
a fifty percent income loss? And I know we're just
speaking very vague testaments at the stage.

Speaker 2 (04:53):
Yeah, it's very broadly, but I would guess that fifty
percent does not far out comparing selling new cores versus
service income. So that's a major problem with you know,
one half drops away. So now they're trying to do like,
for example, chip and paint repair on vehicles at the dealership.
So we'll fatten your windscreen for you. They're looking at

(05:14):
replacing your tires at the dealership when you take a
car for servers to get that income, and I also
want to sell you a lot of aftermarket accessionies for
your vehicles, which might include rooftop tents and bullbars and
all sorts of things to bolster the income at the dealership,
even for example car detailing polishing. But still to try

(05:35):
to recoup all the money that will be lost with
all the service items on internal combustion engines. That's a
massive thing. So looking forward, looking ahead, I think the
dealership model will have to change completely if we move on.
I mean we're talking about quite a number of years,
especially South Africa. I mean we don't see that all

(05:56):
electric vehicles will just overtake the internal combustion sales soon.
So it's in the future. But I think what will
happen is your dealership model. The dealerships will have to
shrink a lot. The floor areas will need to shrink.
We might get to a stage where if it's all
electric vehicles, it might just send the little van out

(06:16):
to your house to come and service a day, because
what are they doing they plugging a diagnostic tool and
checking this and checking that they might not need a
dealership for servicing. We might even see dealerships moving to
shopping malls, for example, where the dealership might be there
with one vehicle on display, maybe augmented reality showing your

(06:36):
vehicle that you can spec there, and maybe it gets
delivered to your house. So yeah, I think the dealership
model we're looking at dramatic changes going forward. And I
think the reason obviously is that electric vehicles are much
less complex than internal combustion engine vehicles. What we can
hope is that the engineers won't start to engine and yeah,

(07:00):
some of these special service parts into an all electric
vehicle so that I can keep continuing the service after
market service income by replacing various components which maybe they
are engineered into the vehicle rather than a necessary replacement.
So I think we're in for a bumpy right if

(07:21):
you own a service center or dealership when it comes
to all electric vehicles. Yeah, it's a bit of an
unclear feature, and I'm.

Speaker 1 (07:29):
Glad that we're talking about it now, because we know
you don't wait until the market is saturated with electric
vehicles and you see the sales and money coming and
declining before you do anything about it. What do you
think that's going to mean, Nicole, Just in terms of

(07:50):
the training of the staff, is it quite a simple
thing for the same guy who was doing services and
that kind of work on a vehicle switching to electric vehicle.

Speaker 2 (08:03):
From a technical point of view, I think to move
a technician on from an internal combustion engine to electric
vehicle is actually quite simple because it's it's more simplastic,
and I know these days all the technicians are it trained.
It's all done through the computer, computer's plug in intels
exactly what they need to replace. But understanding all the

(08:24):
ins and outs of internal combustion engined vehicle, I think
it's much more complex and evy. I think more realistically,
what will happen is we will move onto a phase
of hybrid vehicles will which will have the electric system
combined with internal combustion engine. At least that will allow
the dealerships to continue servicing the vehicles and a steady
state of income. The technicians will need to start learning

(08:48):
everything surrounding electric power trains, battery packs, as the onboard charges,
single speed gearboxes which they might have. Yeah, your your
actually backs I mentioned before inverters, all those kind of
electric systems. That's that will be new, But I don't
think it's it will be too difficult to make the transition.

(09:10):
I think to make the transition from one hundred one
thousand rand growth a day to almost nothing, that is
the transition that is worrying.

Speaker 1 (09:18):
Okay, that's definitely something we'll be looking out for, and
you will let us know and update as Nickel as
things start to change and evolve. And I think you
are right that we're not going to need these massive
flaws to see, you know, different cars and different colors.
It's all going to adjust to get the operating expenses
to go down and for these businesses to be able

(09:41):
to survive. But now we open up the lines to
all of you for your technical car issues. A double
one double A three oh seven oh two in the
whatsap line oh seven to seven oh two one seven
oh two seven o two the car feature, and we
continue with the car feature eleven minutes to three o'clock.
We're with Nicolo, and the lines are open to you

(10:02):
for all of your technical car questions. So, Nicol, we've
got one that says, I have an automatic car. When
I put it in day mode, it drives, but in
night mode it goes nowhere. I wish I had more
information for you, Nickel beyond I have an automatic car.

Speaker 2 (10:20):
I think they should try the R mode for racing.

Speaker 1 (10:28):
So what could be the issue that night mode the
car doesn't move.

Speaker 2 (10:33):
No, I think it's a joke. ANYS for neutral, obficly
and these for drive or is for reverse. It's internal joke.

Speaker 1 (10:40):
Oh my god, oh my gosh, oh my gosh ah.
Rather than say, Semino, I'm having issues with my athletic
converter of my Mercedes Benz. Is there a cheaper way
to resolve the issue other than replacing it from B
and BLA GOWI.

Speaker 2 (10:59):
Yes, So a catalyst and exhaust is obviously to reduce emissions.
We talk about n X emissions. That's being reduced because
it's a chemical process that happens in a kaletic catalytic converter,
and it's obviously precious metals metals like platinum, for example,
that is used inside the catalatic catalytic converter on a

(11:23):
brick that does all the work. So it's a very
very expensive component. So you've got sensors pre and post
a catalyst to see if it's still doing its job,
and if it's not doing its job, it will it
will put on a light on an instrument cluster. It
might even put the vehicle in in lombo mode. We
will give you a bit of issues there. So you

(11:43):
take it to the dealership. They plug it in and
saying okay, no, the kalectic catalytic converter and needs replacing,
and that's very expensive. So if you want to do
the right thing for the environment, it's probably the right
thing to change over to a new catalytic converter. But
there is an option where you can take the catalytic
converter out of the equation basically fit the straight through pipe.

(12:08):
But then you have to bypass the diagnostics that's picking
up that it's not there anymore. So there's some companies
that will do it. As I say, unfortunately, those components
can be in excess of fifty sixty thousand ranks to replace,
so a lot of people will rather revert to the
method of just eliminating the catalysts altogether. So there's some

(12:31):
of the marketplaces that will do it for you. Obviously,
all the pins get more of the car mile, it's
all those kind of things, but it can be done.
It is theoretically possible. Unfortunately, you won't get the benefit
of the clean exhaust cast coming out if you remove
the catalyst, but that's something that you need to decide
for yourself.

Speaker 1 (12:51):
Okay. The next one says, I drive a twenty ten
Hunday Eye twenty. My steering wheels sometimes shake when I'm
going over one hundred kilometers per hour. What might be
causing this?

Speaker 2 (13:06):
Okay, So by brighting through the steering wheel when just
normally driving Nazie, not applying the brakes, that all points
towards either the wheel balance is out the tire balance,
So that's the easy one to check back. Therefore, wheel
alignment balancing, especially then on the front wheels, because if
it's the rear wheels, you're more feel it through the
seat than through the steering wheel. And normally when it's

(13:29):
the tires out of balance, there is sort of a
speed where the resonance happens and it sort of just
amplifies the movement of the steering wheel. But I've also
seen in some of the front wheel draft course when
your CV shaft is actually the dry shaft that runs
from the from the transmission to the wheel itself. If

(13:49):
that CEV shaft is on the way out, I can
also sometimes cause imbalance. So I would first do the tire,
do the wheel alignment and tire balance, and then after
that focus on the drive shops.

Speaker 1 (14:04):
Okay, we've got a voice note on oh seven two
seven two one seven two.

Speaker 3 (14:11):
Hi, guys, thanks for an interesting show. I just want
to find out overall which type of car is more polluting,
a internal combustion car specifically petrol or a electric car.

Speaker 1 (14:29):
Thank you, Nicole.

Speaker 2 (14:34):
How much time have we got.

Speaker 1 (14:37):
You've got about two minutes to explain this one, okay, so.

Speaker 2 (14:40):
Let's try to do it quickly. So with electric vehicles,
it's obviously no local emissions. It all depends then where
does electricity come from. If it's from a coal powered
fire station, then obviously the pollution happens there. With internal
combustion engine, you will always have the pollutants out the
exhaust pipe. So that is the main differences between running

(15:01):
an electric vehicle internal COOBADG and Indian from a polluting
point of view. So there's been studies done all over.
The thing is just you have to look at They
call it cradle to grave. So if you go really
deep into the calculations how much energy is used to
create the vehicle in the first place, run the vehicle
for its lifetime, and then recycle the vehicle in the end,

(15:23):
taking into account all the energy is involved, then the
story is a bit different and it's not so clear cut.
Electric vehicle that is the main concern, which is currently
happening in the world as well. So I think politicians
and someone has jumped a lot on evs, and evs
can be very clean if the power source is clean.
So if we use like SunPower, we use all the

(15:47):
solar array and you charge the batteries up with that
and then you drive your electric vehicle, that's all fine.
You still in sit with the lithium ion battery. That
is very sort of bad for VINT to create it
in the first place and to recycle in the end.
So my gatsiel is the electric vehicle will win. But
it's not so clear cut as you might think. If

(16:10):
you look, if you do the whole tradle to grave calculation?

Speaker 1 (16:14):
All right, thank you so so much for that question.
We have another voice note.

Speaker 4 (16:20):
High level hiler. This is miss from drobson Well. I
drive a Handay twenty twenty seventeen model. I can't use
the bluetooth function as the volume is just too low,
and I know it's not supposed to be like that
because I worked at a dealership before, specifically Handai. So

(16:41):
I just wanted to know is there a way where
I can get that fixed or what would be the
reason behind that, because I'd have to put my volume
up to forty or so, but still like it's hard
to hear the person on the speaker.

Speaker 3 (16:58):
Nicole.

Speaker 2 (16:59):
Okay, So I don't know of the vehicle is still
under warrant or not to two year model. I didn't,
so if it's still under warranty, I will definitely take
it back to a Hyundai and see if they can
find an issue. But if it's out of warranty, then
maybe an Orto electrician can just overlook at that. I've
also driven in a few cars where even if you
go full volume, it's still it's still not almost loud

(17:22):
enough with all the road noise. So some of these
systems are a bit old school and they don't work
that well. But hopefully there's even this this aftermarket radio guys,
they should also be able to know maybe there's a
setting that you need to go into amplify it a
little bit more. But yeah, I can't, I can't really unfortunately,
aside from you, Nicholas

Speaker 1 (17:42):
Thank you so so much for chatting to us, and
we'll be back together again
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