Update: * (that's a REALLY big asterisk; read below for details)
Those who follow me know that I've been a huge supporter of the Chevy Volt; not just because I live in the Detroit area, not just because of what it means for the U.S. economy, but especially because of the potential it has to help wean us off of oil.
Between the Volt, the Nissan Leaf and the Tesla Model S, electric cars are finally starting to be taken seriously.
However, in addition to range, recharge times, infrastructure and other issues, there's one problem that's been preventing them from going mainstream: The price. Not including tax credits, the all-electric Model S starts at $69,900; the extended-range electric Volt starts at $39,145; and the all-electric Leaf starts at $29,650.
My position has always been that the Volt (38 mile range electric only; 380 miles on gas) is going to have to drop down to below $30K before it'll go mainstream, and a pure-electric car (far lower range) will have to hit below $20K before most people will be willing to take the leap.
If you add the (up to) $7,500 federal tax credit, that knocks the above prices down to as low as $62,400, $31,645 or 22,150, which is excellent but not quite there yet.
Well, guess what?
Chevy Spark EV Priced at $19,995 After Federal Incentive; 36-Month Lease is $199 Per Month With $999 Down
Chevrolet announced today a low-mileage lease on the new 2014 Spark EV 1LT for as low as $199 per month* for 36 months, with $999 due at lease signing including security deposit (tax, title, license dealer fees extra), making the vehicle one of the most affordable EVs on the market. Spark EV’s Manufacturer’s Suggested Retail Price starts at $27,495 – as low as $19,995 net of the full federal tax credit which ranges from $0 to $7,500 – and includes $810 destination freight charge.
Yup, that's right--Chevy is pricing the new (fully electric) Spark to come in just under the $20K wire (assuming the full $7,500 tax credit). It has an 82 mile range on a charge (7 miles further than the Leaf), which is very good, although still limiting (the Tesla Model S gets 210-250 miles per charge, for comparison). And it's cheaper than the new Leaf, which has an MSRP of $28,800 ($21,300).
Of course, there's a caveat--they're only releasing it in 2 states for now: California and Oregon.
However, here's the best part: Once they expand it nationwide, take a look at some of the state level tax credits on top of the federal ones:
--New York: Qualifies for HOV lanes
--Utah: up to $600 credit
--California: up to $1,500 credit + qualifies for HOV
--South Carolina up to $2,000 credit
--Pennsylvania: up to $3,500 credit
--Illinois: up to $4,000 credit
--West Virginia: up to $7,500 credit
Yes, that's correct. Assuming that:
1. Chevy goes nationwide with the Spark,
2. You live in West Virginia, and
3. You make enough to have $7,500 in federal and state taxes (WV has a top rate of 6.5%, so you'd have to have $135,000 in taxable income to max out the credit),
...you could soon be able to buy a fully electric car with an 83 mile range for just $12,495!
On the surface it may sound strange that West Virginia has the highest tax credit in the nation, since WV isn't exactly the most environmentally-friendly state, to put it mildly. However, if you think about it, it makes perfect sense.
West Virginia doesn't give a shit about oil. They care about coal. Since EVs run on electricity, and most electricity is still generated by coal, it's to WV's economic advantage to encourage EV's for the time being.
Of course, as soon as we reach a tipping point and more electricity is generated via solar/wind/hydroelectric than coal, you can bet that they'll drop that $7,500 credit as fast as possible.
Update x2: I thought I made this clear above, but as jpmassar points out more explicitly in the comments, the "$12,500" price is only theoretical for now.
A more realistic scenario would be to a) use the U.S. median household income, which I believe is around $55,000 and b) Use a state without a tax credit, like Michigan (which is stupid since we're the home of 3 major automakers, including GM).
On $55,000 of taxable income, federal taxes are about $4,000; state taxes in Michigan are about $1,900 (but irrelevant without the credit).
So, the above cars would cost:
Tesla Model S: $69,900 - $4,000 = $64,000
Chevy Volt: $39,145 - $4,000 = $35,145
Nissan Leaf: $28,800 - $4,000 = $24,800
Chevy Spark: $27,495 - $4,000 = $23,495
So it seems to me that they need to be able to knock off about another $4,000 from the base price (NOT including incentives) for a large chunk of the population to take a bite.
Anyway, I'm absolutely giddy at the thought of switching to a plug-in EV. I'll keep driving my Hyundai until it falls apart, but when it does, it's my intention to buy an American-made electric car (though I need the range, so I suspect it would still be a Volt, since the Tesla will probably still be way out of my range).
UPDATE x3: Someone pointed out that the state list above is missing some states, because it only includes the tax credits that include the Volt; there are other states that include incentives for pure electric cars as well; here's the full list.
Most of the states just include minor perks like discounts on registrations, fuel/equipment tax credits and regulatory items, but Georgia and Hawaii appear to offer 20% tax credits off the vehicle cost (up to $5,000 in GA, up to $4,500 in HI), for pure electric cars.
As for Michigan? EVs don't have to be inspected for emissions. No shit, sherlock...yeesh.