ya saw that on FB... i think GM is making a mistake. that is $8,000 more than the Leaf. if Toyota brings their plug in out under $35,000, there will be no market leftover for them

That has been the purpose stated on my website since way back when I owned a Classic model. It's what I pushed when the Iconic model became available, a solution for mainstream consumers. And of course, the 2010 model is sweet... opening the door for a plug option... something realistically priced.

As for Volt, we knew it wouldn't be "nicely under $30,000" as originally hoped. That simply wasn't realistic with such a large battery-pack. But with all the bells & whistled added and so much emphasis on performance, the writing was on the wall. Price wasn't a priority.

Now what? The daily blog for Volt is already flooded with disappointment posts. This wasn't exactly what they had hoped for.
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Did you notice - "Premium fuel"!!! That goes with my expected 25-30 MPG Highway MPG. This is not a practical long range vehicle - the Prius is.

JeffD

Irony of ironies ~ had GM followed through with AT-PVEV certification, the Volt actually WOULD have cost under $30,000 in the Volt's largest market (California) because CA coughs up $5,000 in incentives.
(shaking head)

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Lease terms close to the Leaf (Volt lease is the way to go IMO)

Yeah, since many people are considering leasing (I think over half are planning on leasing the Leaf, with the Volt's leasing terms very similar to the Leaf (and better than the higher end Leaf) I suspect you will see a lot of cross shopping for people who normally drive less than 40 miles/day.

The 150k mile battery warranty required AT-PZEV is a real stumbling block, one I expect Toyota to have trouble with too. Li-x PH(ev) is not ready for the mass market IMHO. Anybody who buys a Li-x car now should be well aware of the risk that the battery will need replacing way before the car is dead. This is not old and reliable NiMH.

Why Do people still do this?

A "Federal Tax Credit of $7,500" Does not mean you get $7,500.00 cash from the government.

I means your income is $7,500.00 less on your Tax statement.
Net Result, this is equal to about $2,000 less in taxes you have to pay..

Unless this is a Federal Tax REBATE!
The price of a Volt would be equivalant to $39K not $33.5K

About a $5K difference.... (Depending on your tax rate.)

Russ

Russ, I don't think that is correct. The tax credit is just that, a credit off your amount owed (real dollars) not an adjustment to your Adjusted Gross Income (AGI). Otherwise it would be called a $7500 deduction.

It wasn't the Volt they promised. It looks different, cost more and late in arrival. The AT-PZEV model to come in 2012 is the real one. This model is being "beta tested" so they can keep their delivery date. They put it as "AT-PZEV model require additional engineering and would have delayed the project".

This Volt also has a planetary gearset with clutches and runs on premium gas! Totally unexpected.

And we wonder why GM failed to be a successful company? Personally, I think every US taxpayer should get a Volt for free or until the bailout funds have been repaid.

This is incorrect. You get $7500 chopped off your tax bill. This is not a deduction.

It sounds like they really don't trust those batteries. The car is priced to lease much cheaper than it is to buy. It's set to lease at the same price as the leaf. IMHO they will have waiting lists for the first years production. I don't want to feed into the conspiracy theory that they are leasing these just to crush them 3 years from now, but ....

The news really isn't much news. Its about the same car at the same price they were talking about in January, but with premium gas and a lower than expected lease rate.

For another point article -

Chevy Volt price: Chevy Volt to cost $41,000 before rebate - latimes.com

No - this tax credit is valid whether or not you are hit with the AMT.

Tax credits have nothing to do with AMT - except that you are not allowed to deduct certain tax credits if you do have to pay AMT.

The plug-in electric vehicle credit is allowed against AMT. There is no carryover if used personally, so an individual needs enough tax to use the credit against in the year the car is purchased. It is not a refundable credit.

If used for business, it is part of the general business credit (GBC) and does carry back one year and forward 20 years until used. The GBC can offset AMT is some cases, but at a glance it appears the plug-in credit for business use is not one of those cases.

One must reduce cost basis by the credit, unless electing out of the credit, so if used for business, you give back a percentage (your marginal tax rate) of the credit over the life of the car.

If you will not be able to use the credit, you should lease your PHEV or EV.

$41K?

I suspected they weren't serious about hybrids right now, and I was right. And that's with Obama's people breathing down their backs. That tells you something about Obama's priorities right now as well. .

The car companies will be pushing ICE cars for the next few years to clear their inventories. Don't buy a new one. It won't be worth much in trade when the new EPA rules become effective in 2015.

I'm going to give GM some credit. This is what is replacing the Hummer in essense. What they have done is replace one really death-causing screwup with ten major solvable screwups.

The big screwup has been ignoring the future car market till they went bankrupt. The major screwups are detailed in other posts. Let's hope they start fixing these fast. This really is a step in the correct direction and I'll provide one positive post.

No, this time they will let you buy at the end of the lease.