- Industry analysts say more Chevy Volts are likely to be leased than purchased.
- The Volt's $41K price tag is likely to be a sticking point for a compact car.
- It can be leased for $350 per month.
DETROIT — Don't bother calling Bob Barker, because as far as the Chevrolet Volt is concerned, the Price May Be Wrong.
That's the consensus of automotive-industry analysts, who say General Motors may have ensured that the first batch of its extended-range plug-in electric vehicles will be predominantly leased, as opposed to purchased outright, because of a base, pre-incentives sticker price of $41,000 that may appear extravagant for a Chevrolet sedan, new technology or not.
With fewer than 40 percent of U.S. vehicles priced at more than $40,000, GM, which has invested about $750 million developing the Volt, may alienate potential buyers who see a car that looks somewhat like a Chevrolet Malibu within the price range of German sport sedans or GM's Cadillac luxury badge, albeit with a $7,500 federal tax credit that brings the base price of the car down to $33,500, said Edmunds.com industry analyst Jessica Caldwell.
"If GM had launched the Volt when they started teasing us years ago, it could have successfully commanded a hefty price tag," Caldwell said, noting that there now are a wider range of vehicles in the Volt's price range with improved powertrain technology and packaging. "Tesla's Model S will start at $8,000 more and is better targeted at people who can afford to pay $40,000-plus on a vehicle."
That sticker price may not be that relevant, though, because of the Volt's limited production for the first calendar year — 10,000 vehicles — and a lease price analysts say may be far more palatable to potential customers.
GM's cheapest lease plan, at $350 a month over three years, matches that of Nissan's all-electric Leaf, although the Volt's $2,500 initial payment is $500 more than the Leaf's.
That $500 difference is a relatively small price to pay for what's essentially Volt's onboard gas-fueled generator and accompanying far greater driving range. And it's a tiny price to pay compared to the cost of purchasing a Volt, especially considering that the extended-range plug-in hybrid costs about $8,200 more than the Leaf, and Volt buyers won't be eligible for any of the thousands of dollars in rebates and tax incentives some states offer buyers of pure-electric vehicles.
Inside Line says: As long as the rebate remains in place, the Volt should find reasonable footing in the ever-growing electric car and hybrid segment. — Danny King, Correspondent
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wjtinatl says:
02:33 PM, 10/20/2010
$33,500 after tax rebate (my/our money anyway) back? At $550/month for 60 months I can fill my V-10 Excursion every week for 5 years and haul my boat and 6 friends with me! While I appreciate the Volt's technological innovation, I'm pretty certain most consumers are going to think they can get more prestige/performance/luxury/room and size for the same or less money in a conventional car or Hybrid. And I wonder when the public is going to tire of subsidizing a specific class or type of vehicle at the expense of traditional vehicle buyers who may need something besides the Fed's "preferred" mode of transportation. How is it fair to subsidize the Volt's purchase when you or I may need a Silverado or E-series van to maintain or grow their business? Highly undemocratic to subsidize only a specific product and leave competitive products out in the cold.
ralphhightower says:
03:41 PM, 07/30/2010
The Chevy Volt comes with 5 years of OnStar Directions and Connections. That is about $1,500 over 5 years.
tbone85 says:
01:55 PM, 07/29/2010
"Does it do anything better then a Prius, Insight,etc. that cost much less? No. "
I'd disagree with this part of your comments. I put about 30 miles/day on my car. In a car like the Volt, I'd use zero petrol for more than 95% of the days I operated the vehicle. With the other vehicles I'd burn gas every day. My fuel costs would be significantly lower. The "typical" commuter would probably use the EV mode exclusively for 75-80%. If one has relatively consistent driving patterns, the Volt could provide 12k or more miles/year in EV mode at a substantial savings.
Of course, it's priced too high for my taste and use, but the underlying concept with solid execution would be a no brainer for me-- if priced in the mid 20s. I'm curious as to how many "MPG" it achieves in electrical generation mode.
Coming to a conclusion that more people will lease a Volt @$349/month instead of buying it @ $41k takes some HUGE stones? These analysts are AMAZING! ;-)
to626n says:
11:48 AM, 07/29/2010
$41k base price!?! I'd like to know how much it actually costs GM to produce this car. Once you drive 40 miles and the electric mode runs out, it won't get better mileage than the Prius that costs well over $10k less. What a freakin rip.
iskch says:
08:52 AM, 07/29/2010
Looks like a Honda Civic. Will see if they get their money back... sorry... our money back (Gov. Motors)! Good luck.
gearhead1977 says:
08:16 AM, 07/29/2010
Just too much money. It just is for a Chevy. Does it do anything better then a Prius, Insight,etc. that cost much less? No. It is a nicer looking car in my opinion, but looks alone don't justify 40k for and having to wait for the tax credit in next years taxes.
I appreciate the made in America, GM's trying aspect, but the hype for this car was just insane. And it falls flat comparitively. I'll take Fords Fusion for an American hybrid (though it's made in Mexico)
ziggerman says:
07:12 AM, 07/29/2010
Kaman5066, you crack me up! First you insult poeple from the 'East' (whatever that means). Since I'm from Germany, I guess that includes me. And then you proceed to highlight your own limitless stupidity by saying the Volt can only go 40 miles. It has a gas engine good for another 300 miles or so, you moron!
"kaman5066 says: 08:23 PM, 07/28/2010
are you folks all from the east or something! How can you even talk about about a car that goes 40 miles max! Its an embarrassment to our technology that after all the hype - THIS is the result!
fisaw says:
06:59 AM, 07/29/2010
stingray454, while the volt is an impressive car, you can't laugh at people who are judging the car negatively without seeing it and then judge it positively yourself without seeing it or driven it (unless you somehow have, which I'd highly doubt). impressive or not, it's a significant car for GM and I'm betting the first year production will be sold/leased out. it's the next few years we'll have to see about.
gmt450 says:
06:36 AM, 07/29/2010
So it would appear that most of you people have no idea what this vehicle is. It IS NOT a Nissan Leaf. The Internal Combustion Engine activates AFTER 40 miles to give you a total of a 340 mile range. "Where GM is getting this price from" is the fact that they have to establish an entire network for these vehicles. It's the first of it's kind - it's going to be expensive. Name me one other vehicle that can acheive a 40 mile trip and not use any gasoline or diesel AND THEN HAVE ANOTHER 300 miles. Stop worshiping the Japanese and get your heads out of your Toyota's...
stingray454 says:
06:27 AM, 07/29/2010
The lease is definitely more palatable to most people, as it's a decent monthly rate for a $34,000 car. It would be interesting to see what residual GM assumed for that lease rate. They must be predicting the resale value will be fairly high in the used market. When fuel prices go up again (and they absolutely will within a 3 year period), the value of the Volt will increase substantially. Remember when used Prius' were selling for more than the sticker of a new one when gas hit $5/gallon? Same thing will happen all over again, and the Volt will be included, especially when considering it's higher average MPG, and its ability to completely not run on gasoline if you choose.
I laugh at all these comments saying it's too much money, when none of you have seen what the Volt can do yet, and many of you have never even seen the car in person. The Volt will be a seriously impressive machine when it comes out, and it will have no problem earning the respect of many.