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GM Won’t Cut Chevy Bolt Price Amid Lower Tax Incentive

The Bolt won’t follow Tesla in a price war as its federal EV tax credit gets cut in half

There will soon be less incentive to buy a Chevrolet Bolt. On April 1, the U.S. tax credit for General Motors‘ battery electric vehicle will be cut in half, from $7,500 to $3,750 as the automaker will have crested the 200,000 mark for EV sales in the country. But there are no plans to absorb some of the financial burden by lowering the sticker price on the electric hatchback.

According to Reuters, GM won’t follow a pattern set by Tesla earlier this year by cutting the base price on the Bolt as the federal incentive gets reduced and eventually goes away altogether. A spokesman for GM said on Thursday it would be easier to work with dealers on incentives than it would be to change the manufacturer’s suggested retail price on the vehicle. For 2019, a base Bolt LT starts at $37,495 before any local or federal incentives.

The Chevrolet Volt is also affected by the incentive cut to GM’s EVs, although that car went out of production in February and dealers are already selling off the remaining vehicles with a raft of incentives.

It’s a sharp contrast from Tesla’s move in January to cut prices by $2,000 across the board when its federal incentive dropped to $3,750. That price drop has since been followed up by other price and equipment adjustments.

GM’s EV tax credit will be cut again in October, to $1,875, and go away altogether in April 2020. Both GM and Tesla have lobbied the federal government for an extension of the incentive, but it hasn’t gained any traction among lawmakers, who have before threatened to cut it altogether in a bid to curb government spending. For now, GM is likely to throw more cash and attractive lease deals on the Bolt to keep it viable as rivals such as Hyundai and Kia release new EVs that are still eligible for the full $7,500 credit.

While that’s fine for the short term, the Bolt may need more support to prop up its U.S. sales.

Source: Reuters

This article originally appeared on Inside EVs.

azred

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Apr 12, 2016
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The Bolt won’t follow Tesla in a price war as its federal EV tax credit gets cut in half There will soon be less incentive to buy a Chevrolet Bolt. On April 1, the U.S. tax credit for General Motors‘ battery electric vehicle will be cut in half, from $7,500 to $3,750 as the automaker...
[WPURI="https://teslamotorsclub.com/blog/2019/03/29/chevy-bolt-price-tax-credit/"]READ FULL ARTICLE[/WPURI]
They are selling so few anyway, I am sure the company has bigger fish to fry than the Bolt. Perhaps they will eventually have real competition for Tesla Model 3 that doesn’t come packaged as a fugly econobox.
 
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steelydev

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Mar 30, 2019
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Little Deer Isle, ME
Not only that, I went to my local Bolt dealer (not all Chevy dealers can sell the Bolt) and asked about a lease so they could pass the tax incentive to me. They would not subtract the $7500 from the lease deal. They would only give me $4250. So I had to walk. Ford gave me the $7500. Hyundai gave me the $7500. VW gave me the $7500.
 

ewoodrick

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Apr 13, 2018
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Not only that, I went to my local Bolt dealer (not all Chevy dealers can sell the Bolt) and asked about a lease so they could pass the tax incentive to me. They would not subtract the $7500 from the lease deal. They would only give me $4250. So I had to walk. Ford gave me the $7500. Hyundai gave me the $7500. VW gave me the $7500.
Whoever you talked to was an idiot. They will get the credit.
 
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ewoodrick

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Apr 13, 2018
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Buford, GA
The Bolt won’t follow Tesla in a price war as its federal EV tax credit gets cut in half There will soon be less incentive to buy a Chevrolet Bolt. On April 1, the U.S. tax credit for General Motors‘ battery electric vehicle will be cut in half, from $7,500 to $3,750 as the automaker...
[WPURI="https://teslamotorsclub.com/blog/2019/03/29/chevy-bolt-price-tax-credit/"]READ FULL ARTICLE[/WPURI]

If everyone would read the article, they aren't adjusting the list price, but they will be reducing the selling price. Tesla has an essentially one price purchase, GM has a list price, which is seldom the price that the car is sold at. They'll just start providing larger rebates to the dealers to offset the differential.
 

fbitz777

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Apr 6, 2016
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Wexford, PA
Bought my second Bolt today for 11k off MSRP...that dealer sold over 20 of them in 2 days.

As a matter of fact I traded my '17 for a '19 and it was a zero cost to me after the tax credit and PA incentive

I wish I could do the same with my '17 X75.

IMG_8505.jpg
 

srs5694

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Jan 15, 2019
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Woonsocket, RI
Bought my second Bolt today for 11k off MSRP...that dealer sold over 20 of them in 2 days.

I test-drove a Chevy Bolt the same day I test-drove a Tesla Model 3. I came away with a slightly better impression of the Bolt than I had going in, whereas my impression of the Tesla was about the same (maybe a little lower in one or two areas). I ultimately went for the Tesla because of its vastly better DC fast charging capabilities and software upgradability, but the Bolt is a good car. I hope you enjoy it!
 

steelydev

New Member
Mar 30, 2019
2
5
Little Deer Isle, ME
Whoever you talked to was an idiot. They will get the credit.

I know. Both the salesperson on the floor and the general manager claimed GM leasing set the terms and they could do nothing about it. When I called to set up the test drive I specifically asked if leasing would kick thru the $7500. (I don't make enough money to pay $7500 in fed taxes) They told me yes and then when I got there it was only $4250. So GM leasing (or the dealer) (who do you believe) is getting $3000.
 

ItsNotAboutTheMoney

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Jul 12, 2012
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Whoever you talked to was an idiot. They will get the credit.

Ironic post. ;)

The poster meant that either the $7,500 is not fully deducted from the payments, or that the $7,500 is deducted from the residual, rather than the lease payments. I believe Tesla is similarly stingy as well, because they recognize that the value will be relatively low at the end of the lease, and the lessee will almost certainly walk away from the vehicle.

Realistically, if a leasing company is passing through the whole $7,500, the manufacturer is heavily subsidizing the lease.

This is not the time of year for good lease deals. The BEV lease deals come later in the year when the manufacturers know better what ZEV credits they need to earn and they need to move inventory. You are much more likely to get good deals on purchase of holdovers.
 
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twonius

Member
Feb 28, 2016
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380
San Diego CA
Bought my second Bolt today for 11k off MSRP...that dealer sold over 20 of them in 2 days.

As a matter of fact I traded my '17 for a '19 and it was a zero cost to me after the tax credit and PA incentive

I wish I could do the same with my '17 X75.

View attachment 392030

Wow. I just checked used values around me and there's a few CPOs with 30k miles on them for $27k. Seems a bit high considering. I would've expected to see at least a few in the low 20's high teens. but nope.
 

srs5694

Active Member
Jan 15, 2019
1,024
1,148
Woonsocket, RI
Wow. I just checked used values around me and there's a few CPOs with 30k miles on them for $27k. Seems a bit high considering. I would've expected to see at least a few in the low 20's high teens. but nope.

I seem to recall seeing news stories recently about how EVs in general are holding their values better than they used to. (I'm afraid I didn't save any URLs, though.) The fact that GM, like Tesla, is in the sunset period for its tax credits may have something to do with this.
 

twonius

Member
Feb 28, 2016
464
380
San Diego CA
I seem to recall seeing news stories recently about how EVs in general are holding their values better than they used to. (I'm afraid I didn't save any URLs, though.) The fact that GM, like Tesla, is in the sunset period for its tax credits may have something to do with this.

Yeah seems like a combination of the end of truly crazy lease deals ($99 eGolfs) and cars finally packing more usable range (200 miles). Although you can still get Leafs at CarMax all day for $7500 which is kind of a screaming deal.

At least we're starting to see at least some EV for every budget
<10k - leaf
10-20k - i3
20-30k - Bolt, Leaf
30-40k - M3, Kona / Niro
40-50k - M3 LR
60k+ - iPace, ETron, S/X etc. etc.