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GM drops 2014 Chevrolet Volt price by $5,000

On the heels of a $4,000 incentive it had for 2013 models, the automaker wants to boost sales but risks lowering resale value even more.

By Clifford Atiyeh Aug 6, 2013 1:00PM
After a wave of price cuts by rival automakers, General Motors has cut the base price of the 2014 Chevrolet Volt by $5,000.

The $34,995 price, including destination charges, is actually just $1,000 less than the incentives GM had been offering on new 2013 Volts since June. The 2013 Volt was $35,995, but GM has now made its price equal to the 2014 model for all-cash buyers who don't finance through GM's Ally Financial.

Prices for new electric vehicles have been dropping nearly every month this year to boost the segment's low volumes. Electric-car sales comprise less than 1 percent of the total U.S. market. Automakers continue to struggle with high prices, limited range and technology that quickly becomes outdated.

In May, the Chevrolet Spark EV became the lowest-priced 4-door EV on the market, but the $27,495 subcompact is on sale only in California and Oregon. Nissan, Honda and Fiat have been cutting prices on their EVs to within dollars of a comparable gas-powered car.
The 2013 Nissan Leaf S starts at $29,650, a $6,400 price reduction over the base model 2012 Leaf. In July, Ford cut the Focus Electric by $4,000 to $35,995. In May, Honda dropped the lease-only 2013 Fit EV to $259-per-month from $389 and waived the down payment and mileage restrictions. The California-only Fiat 500e costs $32,500, the  Mitsubishi i-MiEV is $29,975, and the cheapest EV on sale is the 2-door smart fortwo Electric Drive at $25,750. The competition is tough.

The 2013 Volt lease, at $269 per month for 36 months (12,000 miles per year with $2,399 down) isn't as impressive as the deals for the Honda Fit EV or the Nissan Leaf. Even though GM purportedly is losing more than $40,000 off each Volt, dealers have enough cars stocked to last half the year – and that's reason enough for the slashed prices.

But a recent report from the National Automobile Dealers Association found that plug-in hybrids such as the Volt and all-electric cars such as the Leaf were losing far more of their resale value than similar gas-electric hybrids and gasoline-powered cars. For 2012, NADA estimated that all plug-in vehicles lost nearly a third of their value in one year.

By comparison, regular hybrids such as the Toyota Prius and gas-powered cars such as the Honda Civic saw significantly lower depreciation rates of 14 and 12.4 percent, respectively – or less than half that of pricier plug-in hybrids and electric cars. Battery capacity losses and newer technology have made new EVs a relatively poor investment compared with current lease plans, and the current price cuts will cause resale values to decline further.

[Source: GM]
282Comments
Aug 6, 2013 3:22PM
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Still too high for a car that only goes 100 miles on a charge
Aug 6, 2013 3:46PM
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I still won't buy it. Too expensive. I could buy a better, cheaper, all gas car that is more practical.
Aug 6, 2013 3:32PM
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cost to build, $84k. sale price, $35k. 1st years deprecation, $10.5k. Technology, outdated already.

Yeah, I'll take two.

Aug 6, 2013 3:12PM
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They might sell a few at $12K, but no idiot is paying the current prices.
Aug 6, 2013 4:08PM
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Let's see.. A new Volt for about $35,000, or a new candy apple red Camaro for the same price.

 

Boy, am I conflicted....NOT!!

Aug 6, 2013 3:01PM
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I will have to wait till I can afford a used one...

Think it will be about ? years and be on its 3rd set of batteries ...lol

It reminds me of the Polaroid Land camera..the camera was cheap..

they made their money selling the film...

Aug 6, 2013 3:16PM
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And the American Taxpayer's are making up the difference in the selling price and build price, especially the Government Motors Volt.

 

All in order to force the American Taxpayer into these electric hazards and nuclear power plant's best friend.

 

Only the wealthy and celebrities are buying these vehicles to show their "green", at the expensive of the Middle Class taxpayer's, who pay even more taxes when the celebrities and wealthy take all of the tax breaks given for these vehicles and charging stations.

 

Gasoline powered vehicles are still the most efficient and effective mode of transportation. The "dependence on imported foreign oil" propaganda is a scam - if we were importing oil from Israel there would be no problem with it, even though it is an Apartheid State.

Aug 6, 2013 3:03PM
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The assembly line for these stinkers has been shut down 18 months.  There are enough of them to provide supply for the current demand for 112 years.  Good luck.   F A I L

The Nissan Leaf toured the country (2 of them) as a promotional gag.  Accompanied with big diesel generator pulled by a diesel truck...and at 8 gallons of diesel per hour to run the generator:  The leaf was able to go 100 miles before needing another recharge.  Unless there were hills.  The Volt stinks similarly.

If wishing were horses, beggars would ride.  So to speak.

Aug 6, 2013 3:36PM
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Mike458:

You don't like any of the new Chevys....I love the volt, never could I afford one, I but $2000 cars not $30000 ones, but I like the new Malibu, the Impala is sharp, the Buicks are really cool and who doesn't love the Silverado.
Aug 6, 2013 4:07PM
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$5K  won't bring it down enough.  Maybe sell it for $10k
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