The 2016 Chevy Volt Will Cost $26,495 After Federal Tax Credit

With the 2016 Chevrolet Volt, General Motors aims to fix what was wrong with the first-generation model. And apparently lowering the price is one of those fixes.

Chevrolet announced Sunday the 2016 Volt would start at $33,995, or about $1,200 less than the starting price of the outgoing model. And that’s before the $7,500 federal tax credit the Volt still qualifies for, which lowers the starting price to $26,495. These numbers include the $825 destination charge.

And individual states are still offering additional EV incentives. In California, by far the largest market for the Volt, the state’s $2,500 credit brings the base Volt down to $24,995. Not surprisingly, that’s about where the current Toyota Prius starts.

Unveiled in January at the Detroit Auto Show, the 2016 Volt continues as an electric car with a range-extender engine, this time a 1.5-liter unit. Combined output is now 149 horsepower, and EV-only range up to an estimated 50 miles, a 31 percent improvement over the old car. The full-hybrid system found in the 2016 Malibu Hybrid is based on the Volt’s setup.

Other improvements over the first-gen Volt include a better quality interior that’s more easy to use, if less distinctive from other current Chevrolets. There’s also a provision for a fifth passenger, as the old car was a strict four-seater.

GM is looking for this new Volt to be more of a hit than the car that debuted in 2010. The company has sold about 75,000 Volts since its launch, although it was once expected to sell 60,000 units per year.

Look for the 2016 Volt in Chevy showrooms late this year.

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