CHEVYFAIL

As I’ve said before, in my opinion, the Nissan Leaf is the best of the new wave of electric and plug-in hybrid cars that will be hitting the market in the next few years. Chevy confirmed that yesterday when they announced that their Chevy Volt will carry a price tag of $41,000. You read that correctly: forty-one thousand dollars.

This sticker price is mind-boggling to me. Sure, there will be federal tax credits and possibly other rebates available, but let’s just get one thing clear: most people aren’t going to take on double the car payment just to double or triple their gas mileage and have their friends ooh and ahh over the fact that their car battery is charging on the kitchen counter. Even with the federal credit, $33,500 is a LOT of money to spend on a car. According to the article, the Prius tops out at $28,820 (still a lot, I would say) and the Leaf will be $25,280 (and possibly cheaper out here on the West Coast, if the $5,000 emissions test credit comes through as Nissan claims it will).

Get these cars to $20K and you have a shot at changing the way Americans drive.  That keeps short-term costs (car payment + fuel) manageable.  Keep them at $25K-$40K and you’re in trouble. The long-term benefits just won’t be apparent to people if they’re seeing car payments of $632 per month ($33,500 financed for 60 months at 4.99%). They’ll feel just as good about themselves driving a Versa or Corolla that costs half the price.