Anyone who has been following the saga of the Chevy Volt knows that the single biggest issue facing the plug-in hybrid is its high price. General Motors has said time and again it wants to lower the price of the Volt by as much as $10,000 for the next generation. For now, the 2014 Chevy Volt price has dropped by $5,000, meaning you can buy a 2014 Chevy Volt for under $30,000.
A next-gen Volt is still a few years out, and competitors like the Nissan Leaf, Smart ForTwo Electric Drive, and Fiat 500E have all entered the EV market with drastically reduced prices. The Nissan Leaf price dropped by a whopping $6,400, and with tax credits the Fiat 500E sells for around $22,500 in California (though most “sales” are actually leases).
With growing competition from lower-priced electric cars, the Chevy Volt suddenly seems like the MSRP outlier with a starting price of $39,995. The $5,000 price drop brings the entry-level Chevy Volt down to just $34,995, and with the Federal tax credit available nationwide the price is really $27,495. In California, which adds another $2,500 in state incentives, the Volt’s starting price is just $24,995. And in Colorado, which throws $6,000 on top of the Feds $7,500, you can get an entry-level Chevy Volt for just $21,495.
Suddenly the Chevy Volt looks like a much more value-oriented alternative to conventional hybrids or pure electric cars, offering the ability to squeeze 2,300 miles of driving or more from a single gallon of gas. No features have been dropped to get this lower price either.
With Chevy Volt and Nissan Leaf sales neck-and-neck for 2013, this drastic price drop could bring more customers into Chevy dealers. If you ask me, the $27,495 price point (thanks to the tax credit) is right where the Volt price needs to be in order to really penetrate the market. Americans are increasingly turning to hybrids and EVs, and the Volt’s new price point makes it much more accommodating to the Average Joe.
Is this price drop going to attract the number of buyers GM was initially hoping for? Sound off in the comments if you are suddenly considering buying a Chevy Volt.