GM today announced the price of its new Volt automobile, which will start at $41,000. The company is depending on the $7,500 rebates to soften the sticker shock. The reason the Volt is going to cost $41k is because, included in the price, is a 40,000 foot long electrical cord! LOL

In comparison the new Nissan Leaf, which is completely electric, will cost about $32,800 before government rebates. GM insists that the Volt is going to be a better value than what Nissan will offer. GM officials stated the following:

“You can drive it cross country, and our competition can’t do that,” Joel Ewanick, G.M.’s vice president for United States marketing, said. Nissan’s Leaf is expected to have a range of about 100 miles on a battery charge. The Volt has a small gasoline engine — which will require premium fuel, G.M. said Tuesday — that will give the car a total range of about 340 miles and allow drivers to fill up at a gas station if they cannot immediately charge the battery.

Both G.M. and Nissan are counting on the government’s $7,500 tax credit for plug-in cars to go a long way toward making their vehicles more affordable. The credit, which buyers must claim when filing their tax return, begins to phase out after the manufacturer produces 200,000 qualifying vehicles.

In the case of leases, the leasing company is eligible to claim the credit. Nissan plans to lease the base model of the Leaf for $349 a month for three years with $1,999 because of delivery. The Volt’s $350-a-month lease is also for three years, with $2,500 due at delivery.

At those rates, lessees would pay $14,563 over three years for the Leaf and $15,100 for the Volt.

As a side note, if you want a fully loaded Volt, expect to plunk down another $3,600 which will make the price of the car over $45,000.

As with any new technology it is going to take a while before the prices drop to a point that the average driver will be able to afford to buy one.

What do you think? Do you see a Volt or Leaf in your immediate future?

Comments welcome.

Source – N.Y. Times