Chevrolet Bolt EV Gets Its First Lease And APR Offers
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With the very first units of the 2017 Chevrolet Bolt EV already delivered, and dealers being able to order the electric car in most U.S. markets, the launch of the Bolt EV is well under way. Recently, Chevrolet rolled out an official Bolt EV lease program, and it has also released a finance/APR offer for the vehicle.
Finance APR Offer
Chevrolet is offering well-qualified shoppers 2.9 percent APR for 60 months or 4.9 percent APR for 72 months on any Bolt EV model.
By comparison, the Bowtie is offering 0 percent APR on the Volt and most other Chevy models. As such, it’s likely that the Bolt will see a more competitive rate in the coming months.
Lease Offer
December marks the first month that Chevrolet has introduced a lease offer on the Bolt EV, with shoppers in California and Oregon having the ability to lease a Bolt LT from $359 for 36 months with $1,099 due at signing.
The lease allows for 15,000 miles per year of usage, which is significantly more than rivals.
According to CarsDirect, the effective lease cost of this lease program is $390/month, which makes it cheaper than the BMW i3 ($396 per month). However, the the Bolt is more expensive to lease than the 2017 Volt: in California and Northeast regions, the Volt LT leases from $261 for 39 months with $500 due at signing, which translates to an effective cost of $274/month.
The above offers are available in Southern California, but may vary in other markets, so it’s always a good idea to check your local incentives or with your local dealer.
Potential $500 Discount
Though Chevrolet doesn’t have any factory discounts or incentives on the Bolt EV just yet, General Motors typically offers a $500 bonus for current lessees of a GM vehicle or a competing automaker. The offer is typically applicable to most GM models, but the Bolt isn’t one of them just yet.
However, industry analysts believe that such an offer is on its way. In fact, Chevy started the offer on the Volt earlier in 2016.
Expiration
Currently, most Chevy offers are set to expire January 3, 2017. And though General Motors will likely release holiday deals on popular models, it’s not likely to release any new offers on the Bolt EV before the New Year.
Bolt EV Benefits
With over 200 miles of electric driving couples with the latest in-vehicle technology and safety equipment, the new Chevy Bolt EV is quite attractive as far as vehicle purchases go. And that’s not to mention secondary benefits such as:
- Clean Vehicle Rebate on most electric vehicles offered by the state of California
- A $7,500 Federal Tax Credit for qualified buyers offered by the IRS
- Single-occupant use of the carpool lane offered by the California DMV
So, if you’re interested in a new Chevy Bolt, then run to a Chevy Bolt dealer and either get yours, or place an order for one.
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Hi,
You mentioned in the article that the Bolt is available in most US markets. Would NJ be one of those markets? I thought it was only available in CA and OR.
Thanks
Hsiang
Keep in mind that if GM doesn’t meet CARB sales targets, they will have to slash these lease numbers… significantly.
My advice, wait.
If they slash lease numbers, they will almost certainly be offering similarly valued incentives to cash or conventional financing buyers.
I’m not so sure. With other EV sales, in CARB states, the incentives have been far better on leases. This is a form of price discrimination, because it allows the EV maker to tout a higher MSRP – but still sell under-the-table incentives to meet their EV emissions credit quotas.
The Fiat 500e incentives on leases, for example, were several thousands higher than retail. Same with Spark EV.
Plus with a low-mileage two year lease, the EV maker meets the minimum lease to get the credit for the sale, and then can re-sell the car later typically with only 20,000 miles on the odometer as a certified pre-owned car.
I’ve yet to see anything of the sort. What a lot of (most) EV leasers seem to not figure in is the $7500 federal tax credit, which the leasing company gets if you don’t claim it as a buyer. The leasing companies use that money to artificially raise the residual or lower the capitalization amount to reduce the monthly lease. You might see part of the tax credit come back to you that way, but not the entire amount. They can call it whatever they like, it’s really some fraction of your money they are giving back to you.
I think we’re beating around the bush here. The manufacturer-run finance companies bake in the $7500 tax credit, along with the $2500 tax credit into the 24 month lease. They then incentivize further to hit their target number (as in, the number needed to actually move the cars, and get the credits).
Even with $1,000 down, a Fiat 500e lease at $69 a month costs total under $3,000. That’s far less than an amortized two year ownership of a Fiat 500e.
Now, what we have to take into account, is that Bolt EV has a vastly different power system. It can go 300 miles. No “affordable” EV has done that before. That may help GM meet the sales volume enough not to have to dip into the subsidized $99 lease territory.
However, if gas goes down under Trump, and hits under $2/gallon in even in California… I strongly suspect GM may have to go that route.
I think this is the actual bush. 😉
So, right, the leasing company (it doesn’t have to be the manufacturer, but often is) claims the federal tax credit. They use these dollars to inflate the residual or reduce the capitalization cost. Either way it lowers the monthly lease, and they keep the entire $7500. They can’t actually claim the CARB rebate; it can go only to the buyer or leaser (30 month minimum). Some leases sneak that $2,500 into a downpayment, which is basically not an honest calculation because that’s your money to do with as you wish, and you won’t see it for months after you file your claim with the state anyway.
In terms of incentives, you will generally see these cash discounts stated in car ads, right next to the advertised lease price. If you don’t, you need to ask the dealer “what are the cash incentives for buyers?” If incentives are being offered for leasing, equivalent value incentives will be available for buyers. If the manufacturer wants to move a particular model they don’t care whether the incentive is built into a lease or paid out as cash. Both work, for different sorts of buyers. As far as the Bolt is concerned, we shouldn’t expect any incentives. Buyers are lining up for them now. Later, maybe.
I’d bet on the federal EV tax credit being gone by the end of 2017. Our national energy policy just took a hard turn away from renewables and towards oil, gas and coal.
The EV credit would be nearly impossible to repeal, you’d need 60 votes in the Senate, and that isn’t going to happen.
(I don’t see this bill getting repealed under Reconciliation – though it is financial, carving out the tax credit would take Senate time that McConnell has little interest in wasting for something that will already auto-lapse).
At current rates, even factoring in a Model 3 / Bolt sales surge, there are enough credits likely to last around till 2019. Longer if gas keeps falling.
I don’t think there’s any rush.
I hope you are right. I know the federal tax credit sunsets on its own, and in normal times politicos would prefer to allow programs like these to die a natural death rather than fight an unnecessary battle, but these aren’t normal times. I foresee a full court press to yank out all supports from under the renewables industry in favor of supporting fossil fuels. It will be interesting to see how the energy and automotive industries, which now have their feet planted in both camps, will react to this back-to-the-future policy.