Chevy Volt priced at $41,000 minus $7,500 tax credit

Post date: Sep 1, 2010 12:11:41 AM

Updated 7/28/2010 2:51

DETROIT — General Motors announced pricing on the Chevy Volt that could make it the winner in the electric car/hybrid car marketplace.By Sharon Silke Carty, USA TODAY

The Volt will have a base-model sticker price of $41,000. That sounds pricey until a $7,500 federal tax credit is applied. That brings the price in line with a fully loaded Toyota Prius.

PHOTO GALLERY: Images of the Chevy Volt

The Volt, due to go on sale in December, is one of the most anticipated cars ever. It is GM's first attempt at an electric car since the EV1 in the 1990s, and it has an auxiliary gasoline engine to recharge the batteries after they run out of juice.

Unlike a pure electric, such as the Nissan Leaf, the Volt has no range limitations.

"The Volt is a much more usable vehicle" than the Nissan Leaf, says Aaron Bragman, an analyst at IHS Automotive. "It's clearly the winner."

Both automakers are trying to reach a mass audience. Nissan said Tuesday that it's making the Leaf available through Enterprise Rent-A-Car in January, giving people the opportunity to take it for longer test drives.

A fully loaded Volt will go for $44,600. Nissan has priced the Leaf at $32,780, making the Volt substantially more expensive but also more capable.

GM started taking orders Tuesday at its website, www.getmyvolt.com. California will be the first state to get the Volt.

"This is one of the most important days we've seen in a long time for General Motors," said Joel Ewanick, vice president of U.S. marketing for General Motors, who made the announcement at the Plug-In 2010 conference in San Jose. "It's been 1,297 days since the introduction of the Volt concept car, and every day since we've been asked a single question: 'How much is it going to cost?' "

Ewanick says GM is packing even the base Volt full of premium content, including OnStar and the ability to connect with your car via a smartphone app. Leather seats and a rearview camera will cost extra.

Many customers will qualify for a $7,500 rebate off their federal taxes for buying the vehicle, which will go 40 miles on battery power alone and then use gas to power an electric generator for another 300 miles.

The best deal may be a cut-rate lease. People who would prefer leasing can get the electric-powered car for $350 a month on a 36-month lease, with a $2,500 down payment.

Ewanick says GM will tout the lease price most often in ads.

Jesse Toprak, vice president of industry trends for TrueCar, says the average lease price in the U.S. is nearly $500 a month. The average car loan cost is $450 a month. GM was able to offer such a low lease price because the finance company will be eligible to take the government's $7,500 rebate.

The low monthly cost will make the car appealing to a wider group of customers, Toprak says.

"Even if you're not an early adopter, or saving the environment is not first on your list of priorities, this lease payment is so attractive it starts to make sense from a purely financial perspective," Toprak says.

Over the first 18 months, the car will initially be available to Chevrolet customers in California, New York, Michigan, Connecticut, Texas, New Jersey and the Washington, D.C., area. A nationwide rollout will start later.

GM U.S. Marketing Vice President Joel Ewanick with the 2011 electric Volt.

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By Martin Klimek for Chevrolet

CHEVROLET VOLT VS. NISSAN LEAF | Story

General Motors and Nissan are racing to have two of the next-generation electric vehicles on the road by the end of the year. Here's how the two stack up: