General Motors is looking to drive up sales of the Chevrolet Volt through low-interest financing and subvented leases. The offers should make the vehicle more attractive to prospective buyers, but Black Book analysts Ricky Beggs said the lease offer will benefit second owners of the gas-electric vehicle as well.
In August, sales of the Volt spiked to a record high with more than 2,800 vehicles sold. But the increase came at a price, with GM lowering lease payments to about $269 per month. But the move has at least one fan in Beggs, who said “the incentive-heavy program will not have a de-valued impact on the Volt because it will carry a strong residual on the back-end of the lease term.”
Beggs projects the Volt, which has an MSRP of $39,995, will retain 58 percent ($23,325) of its value after a standard 24-month lease. “It’s a solid car, it’s going to be a good used car with only 20,000 miles on it in two years,” he said, adding that the offer is a good deal for the industry, lending institutions, dealers and consumers alike.
“This additional investment gets this product more visibility. That’s just what it takes to get it going,” he said. “It’s a win-win for everybody that’s involved with this.”