Are Chevy Volt Sales Fueled By Deep Discounts, High Incentives? (Updated)
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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.
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per Automotive News the Volt has 0-3.9% financing with no rebates. The Cruze has 0-4.9%.
Traverse has $2000 rebate or 0%.
So at least per Auto News the Volt does not have any abnormal incentives.
Auto news is not always up to date… use the incentives page on Chevy.com.
Same incentives. 0% financing.
Guess Chevy is keeping Volt rebates under a basket.
Priced one out on the Chevy site. Even including a cover and every possible dealer installed option I could only get it up to $45k.
I did try edmunds and they show a $3000 rebate on the 2012′s with 0% which is not that high for an end of model year close out.
Volts in people’s driveways, the best way to promote the vehicle… Darn right there are some incentives… A volt on the road is volt in someones thoughts, hmmm that’s a volt maybe I need one of those… Volts on a car lot means nothing to a consumer, volts in there neighbors driveway means everything… Hmmm my neighbor has a volt, shucks maybe I need one of those… Let’s stop foolin ourselves incentives have there place…
yup. got my volt for 34 sticker was 49. 15K discount (dealer pls government green initiatives). I absolutely love it. have not used a drop of gas since driving. commute to work an hour driving each day. LOVE IT… BYE BYE BIG OIL
$3000 rebate is a huge rebate these days….
Yes but many are giving it: Mustang, Expedition, Lincoln MKZ MKX, 200, 300, Maxima, Quest, Titan, Tundra and a bunch more.
But it is at the higher end. Most are at $2000-$2500.
The mythical 10k figure no doubt includes the 7.5k federal tax incentive on leases averaged with only the standard incentives on sales. Plus there are some gm to dealer incentives going on. No one can go into a dealer and get 10k off MSRP when buying a volt.
Don’t forget, you pay the FULL tax amount on the FINAL selling price of the VOLT BEFORE you receive your tax “rebate”. Add 2k to the selling price for taxes, etc., and the “tax discount” really isn’t that much of an “incentive” for most people.
It’s a numbers game and the bottom line is that the Volt is still too expensive for most people to want to get in to, despite its promising technology.
What $2000 are you talking about? There are no federal taxes on vehicle sales. Some states do have a sales tax (It is $300 here on a $45k vehicle)
Yes Electrics are too expensive to be mainstream but then again there is another compact vehicle called a 3 series that sells for about the same money as the Volt. They sell about 8000 3 series in the US and now about 3000 Volts.
In the limited number of markets where the VOLT is available , most dealers have added a significant mark-up. The only time I found any dealers were willing to do engage in serious “negotiating” was toward the very end of the model year – when THEIR NUMBERS matter most to them.
Having purchased 4 new GM vehicles within the past 4 years, I checked with several dealers in our area (Wash. DC) and was “armed” with knowledge of List, MSRP, Dealer Invoice and GM Preferred Pricing. The “cloak and dagger” act has got to stop.
The point is moot in CA. Electricity is so expensive if you plug the Volt in your bill will climb from around $70.00 to over $400 per MONTH. That still buys a lot of gasoline. We have a lot of Liberals in CA. I like that other electric car better- the Dodge Charger!
Where I am, eletricity is $1.12 per KwH
Even if I was to completely depleate all the eletricity from a 8 hour overnight charge every day and then recharge every night…
1.12 x 8 hours = $8.96 a day
8.96 x 7 days a week = $62.72
62.72 x 30.4375 days a month = $1909.04
The problem for you (and those like you who think the Volt can fit the old “left vs right” bullshit game) is that I drive much, much less than the 60km range of the Volt.
Therefore I wouldn’t have to recharge every night. I estimate recharging every second night (with some gas consumption during charge sustaining mode).
1.12 x 8 = $8.96 per 8 hours
8.96 x 3.5 = $31.36 a week
31.36 x 30.4375 = $954.52
If I spent $1000 a month on gas instead of eletricity, I would willfully choose to be imprisioned for being so stupid.
The Charger, as nice as she looks, won’t save you.
Mind you, that $1.12 kwh is a AT PEAK residential rates. Overnight, it drops to something less than a dollar.
But you’re only looking at the monthly amount. Try running a Dodge Charger for a week on $32 worth of gasoline, and we’ll see just how “electric” she is.
Calling you out on your electricity cost (sounds like you are quoting the article from last year that had the conversion factor wrong) because the highest kwh rate in the US is about $0.17!
http://www.targetmap.com/viewer.aspx?reportId=9037
Actually, you’re right. I was off by a factor of 100%. After just checking my local providers page, it was actually $0.12 per KWh.
Why the hell I thought it was a $1.12 per KWh I can’t even answer. My bad anyway.
Nevertheless, with a new and PROPER power rate figure, the math would only be more in favour of the Volt and other EV’s.
Watc out for dIsinformation and lies. Find out for yousef. It costs ABOUT 1.70 TO charge. Financing It i pays 250/mo. And mots OF All im not playing 100$/week in GAS !! I have not used à drop commuting 100Km Each day. ITS real.
i really don’t get the critics. either they work for big oil or are just jealous bums. just go down to a f* dealer and find out for yourself. its all back and white if you calculate the costs out. if your commute distance falls within the volts range, its a f* no brainer. i use it every day and i will never go back to gasoline. never. its the greatest thing I ever bought in years. people cheer at me on the highway. “no more gas!”. the cost comparison is insanely stupid. gas prices are so high and there not coming down. the volt is simply a game changer. i am not left or right, i hate the inhumane bastards who had me 100% dependent on there fuel. now i can say FU Big Oil every time i pass one of there crack houses. My bank account isn’t depleted from $100 it costs to fill my tank twice a week. so don’t listen to these f* aholes who say its not economical. it doesn’t work. it costs you arm and leg in electricity. its all bullshit. just go find out for yourself. do you own research. it took me listening to the volt owners group. they were protesting the disinfomation. all of them super happy with it. going down to the dealer to find out about the costs. and i was sold. and its been beyond my expectations. amazing ride. and NO F* GAS. nuff said.
Don’t get me wrong. I’m not a nay-sayer to the VOLT. I WANT for it to succeed!
HOWEVER, the fact is, many dealers are placing a premium mark-up on the VOLT because they’re saying it’s only available in limited numbers and in limited markets – that’s the “line” that was “recited” by 3 different Chevy dealers when I made my inquiries in-person at these dealerships with pricelists in-hand. I suppose it’s all about “supply and demand”. No one is asking GM or the dealers to give the VOLT away but where in the hell in their mission statements does it mention “to serve the community” in which they operate their businesses?
BTW, many dealers perpetrate this identical BS mentality when they tell you a convertible costs more to purchase during the Spring / Summer months and is worth less in trade-in during Fall / Winter months – but still consts the same over-inflated price during crummy weather – they do what they want in order to prop up their #’s. That’s a crock and that’s the bottom line – also based on in-person research. Oh, probably because more people are interested in buying a convertible during fair weather than during non-top-down weather.
Electricity carries different costs in different markets. You’re absolutely correct, nonetheless, that electricity to charge the VOLT – even a full charge on a daily basis is still much less expensive over the cost of 1 year than putting ~$50-$75 worth of gasoline in a tank weekly – regardless of how “economical” a gasoline engine may be – it all depends on how many miles are driven and the manner in which they are driven. The most economical manner in which the VOLT can be used is with the maximum number of miles driven in the most economic manner and purely on its charge without using any gasoline and with a MIMIMUM of other electrical accessories – no heated seats, A/C, et al. Owners, I’m certain can attest to this.
For me, a VOLT or a Nissan Leaf would be great – then again – My roundtrip from home to work is 10 miles – and that’s coming home for lunch and then going back to work. So 2.5 miles each way. So, frankly, I could take it or leave it. Gas ain’t killing my budget.
I’m certain “Big Oil” is way ahead of the game and have started diversifying into other areas of alternative fuels – which I’m confident they have without being able to cite specific examples. The future is alternative fuels sources to gasoline. Unfortunately, I’m confident the electric companies are setting their sites on raising rates as soon as enough electric vehicles are sited in garages, carports and they’ve gathered their counties registration #’s through the DMV or dept. of tax administration – if “Big Oil” hasn’t bought out the electric companies by then – it might be their “cheapest” way to gain control of the market. As most folks know, electricity is heavily subsidized. Otherwise, we’d be paying as much for current as we are for gas.
for all you non-believers, i’ll make a youtube video of my daily commute. there and back. see for yourself
ok finally made the video. here is my full commute no gas…….. love my volt!!
( sigh ) Boston.com – just another “news” outlet getting their facts about the Volt
wrong.
When will it end?
If salesman would not mislead the customer like to do in Miami Florida everyday. Chevrolet sales of the Chevy Volt would exceed Toyota what’s the problem with that is that nobody’s is being held accountable for a corrupted salesman. in Miami Florida salesman are encouraged by management to cheat the public.Iin lieu of a big commission.