$32,500: Is the Chevy Volt a dud or a deal?
Would you buy a $40,000 Volt that includes a $7500 tax credit?GM's Bob Lutz told David Letterman what most that have followed the Chevy Volt have known for some time - the Volt is going to start at $40,000. Add a $7500 tax credit and that brings the price down to $32,500.
Most polls I've seen indicate this is still too expensive for most consumers. Nonetheless, I believe there will be hordes of potential consumers lining up for the Volt, especially since production will probably be relatively limited for the first few years, minimally. And, of course, the limited tax credit will also inspire early adopters.
Regardless, what happens when tax credits for the Volt expire? Will GM have to sell the Volt at a significant loss until economies of scale eventually, hopefully, enable a natural price reduction?
Finally, are plug-in tax credits the right approach for stimulating plug-in sales? Why not an instant point of sale refund? Can't the government be more consumer friendly?
Labels: Chevy Volt electric vehicle concept, plug-in hybrid vehicles
posted by Dahcredyns at
1:36 PM
8 Comments:
I think that question can be answered 2 ways
1- IF your employed and making 125k or so a year YES its an interesting vehicle to consider for purchase
2- if your making below 100k or so, its probably too expensive for most people to seriously consider
ANY technology is GREAT :) that helps every company slowly move forward....I dont know how GREEN GM will make any money on the first car, just like HONDA in its first hybrid or TOYOTA - they lost big bucks for years - but look at them now :)
A $7500 tax credit is good but a $7500 point of sale refund is better.
Buying a car is very much a personal thing and not just a $ and cent thing issue. With the incentive, I would consider the Volt from the price prospective. However, without seeing and test driving the car, I can't not be sure if I would actually buy one. But I would certainly consider it.
Without the incentive, I'll probably won't do it. $40K for a Chevy is a little too much.
You need to owe at least $7,500 in federal tax in order to get the amount back.
If you are subject to AMT, you are not permitted to take the credit. That was the case with Prius. I am not sure if it will apply to Volt as well.
The Volt is suppose to be in full production around 2011 right ? Well the bad news for GM is that by THEN there will be at many many full lithium hybrid cars for the public to choose from, better equipped, much lower priced. Can you imagine that Honda, Toyota, China, Hyundai will be sitting still, and not having perfected their hybrids to MORE than compete with GM/Chrysler - both in quality but most importantly, price point ??
I agree that GM/Chrysler will have virtually no profits for couple years!
That is not even including the ONE YEAR minimum that both GM and Chrysler will virtually shut down and is expected to be IN COURT to hash out its survivability plans - in meantime the public will start to buy other manufacturers products.
Even NOW the Volt is advertised at around 10k MORE than a wonderfully equipped Civic Hybrid or Prius III ! I dont wanna beat up GM but it should expect 'losses' on its books for any hybrid thru 2013 or so, then here comes China full force to 'shock and awe' American public with its quality, pricing and technology :( , doesnt look good for any US manufacturers.
The tax credit will end up being bait and switch just like the last round (AMT). Since they're already investing so much in Detroit, why don't the feds just subsidize GM directly $7500 per each Volt produced. GM can then cut the sticker price for all to see.
Indigo Incarnates
I wonder if the price of the Volt will decrease in 2015 when the large-format battery patents that GM sold to Chevron finally expire..
As it is, the Volt does seem like a really nice piece of engineering (assuming, of course, that it ever gets made), but $40k puts it above the "mainstream" consumer price. People who can afford it probably won't qualify for the rebate because they make too much money.
This post has been removed by the author.
"That is not even including the ONE YEAR minimum that both GM and Chrysler will virtually shut down and is expected to be IN COURT to hash out its survivability plans - in meantime the public will start to buy other manufacturers products."
Anon, the above makes you sound like an investor trying to pump up a position.
On the facts, it is just wrong. Bankruptcy does not shut down a business. In fact, bankruptcy keeps creditors from shutting down businesses that default on their debts to those creditors.
Other than that, keep rocking, anon! :)
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