Chevy Volt’s dream came true, $7500 tax credit is now law
By Matt Jansen
This is an exciting day for the Chevy Volt. For Americans, its purchase price essentially just dropped $7,500 in the form of a new tax credit just signed into law. That may be the difference consumers need to launch the Chevy Volt to stardom. That is, unless a competitor like Toyota captures the market before GM can produce enough Volts.
Now it’s a race against time for GM to produce Chevy Volts and explode its marketshare in “new qualified plug-in electric drive motor vehicles”. The new government tax credit will put “$2,500 plus $417 for each kilowatt hour of traction battery capacity in excess of 4 kilowatt hours” back into the driver’s bank account.
The government is acting aggressively to head off an economic downturn with credits like this one and a $7,500 credit that qualifies as an interest free loan for new home owners.
But if you want to qualify for the tax credit you’ll have to act quickly because only the first 250,000 vehicles sold are guaranteed to qualify. The idea is to usher in a new class of drivers who are using energy efficient, and economically sound vehicles.
GM’s latest pricing estimates hover somewhere under $40,000 for the Chevy Volt, which still makes it a hard pill for middle class America to swallow, but definitely more palatable. It’s also important to highlight the savings in gas, especially if barrels of oil continue to rise in price. Money currently slotted for petroleum could instead be used for part of a monthly car payment.
It behooves GM to keep its prices low, or it will risk losing an opportunity to be a market leader to competitors like Toyota and Nissan who have their own plug in electric vehicles planned.
This is certainly some good news for would-be Chevy Volt owners, let’s hope a car like this can convince consumers to act out their part and start spending some of that hard-earned cash!
Related:
Entry was posted
on Friday, October 3rd, 2008 at 8:29 pm
under
Read more entries by Matt Jansen.
Stumble It!
October 4th, 2008
If Volt isn’t in the low $20k’s, it simply won’t sell. Tax credits and fuel savings are far too nebulous to the average car buyer to consider when sitting in the showroom haggling with a sales rep (or doing the “talk to my manager” thing). And how does the buyer factore in that yes they will buy less gas BUT their home electric bill goes up and up the more they drive it! Electricity to charge it over night (no “free” solar when most of us sleep) isn’t free!
October 15th, 2008
Chevy plans to add options to the Volt where you can trade out the clear roof for a solar charging roof. Granted this won’t recharge your car to full when its sitting in the parking lot for 8 hours however it does capitalize on some of the free energy pouring down on our parking lots every day. It would also collect while you drive.
February 18th, 2009
Not everything has to be made in China for it to sell in America. I hope to buy one when it comes out because though I will pay more money initially, I will save money and keep a lot more money in the US. Besides, paying gas prices vs electricity prices isn’t even close in comparison. David B., you are basically calling the “average car buyer” stupid if you think that they don’t look at things like money back and gas mileage. I believe that America will support this endeavour.