Citing figures from TrueCar.com, a report by Boston.com states that the Chevrolet Volt carried steep discounts in August — some as much as $10,000, or 25 percent of the car’s sticker price (which is inaccurate; see postscript below). TrueCar estimates that the discounts were more than four times the industry’s per-vehicle average, while Edmunds.com and J.D. Power and Associates cite Volt discounts being three times the indsutry average.
Dealers, who have confirmed the steep discounts to Boston.com, have said that the deals are partly responsible for improved Volt sales compared to those a few months ago. In August, the Volt sold 2,851 times in the U.S., and, 2,831 in September.
According to the report, the incentives consist of low-interest financing, customer cash, sales bonuses to dealers, and subsidized leases. General Motors confirmed to Boston.com that incentives on the Volt do exist, but didn’t offer details. It is not clear whether the $10,000 amount includes the $7,500 federal tax rebate available to buyers of electric vehicles.
As of this writing, the Volt has two officially-publicized nation-wide offers, including:
- 0% APR for 60 months for qualified buyers
- Low-Mileage Lease for Qualified Lessees:
$299/month 36 month lease.
$1,529 due at signing (after all offers). Includes security deposit.
Tax, title, license, dealer fees and optional equipment extra.
Mileage charge of $0.25 /mile over 36,000 miles.
The GM Authority Take
$10,000 off a $40,000 vehicle sounds like wishful thinking to us… unless, of course, the steep discounts are real. This would mean that General Motors, its dealers, or both have created specialty discounts on the vehicle — which is a rare occurrence, but does happen from time to time. The steep deductions could also mean that GM is losing even more on the Volt than it would have without the offers.
So, are you a Chevy dealership selling the Volt with a few special discounts? Are you a customer who has been offered ten large off a new one? Let us know in the comments.
Postscript: it seems that the Boston.com report is combining the 7,500.00 Federal Tax Credit and a GM Consumer Rebate for the Volt ($2,000 for the 2013 Volts and $3,000 for the 2012) in determining the $10,000 discount. Since the Federal Tax Credit is not distributed by General Motors, but rather by the U.S. government at the time of tax season, it is not a discount at all. Could it be that the folks at Boston.com failed to understand the difference between a tax credit and an actual discount? In any event, we digress.
Hat tip to Neal D. for the clarification above.Google+