2016 Chevy Volt Priced At $33,995, $1,175 Less Than 2015 Model

GM has released a ton of technical information on the 2016 Chevy Volt, but it’s kept the price of the all-new plug-in hybrid (or “extended range electric car” as GM calls it) a closely-guarded secret. This led some to speculate the price might be higher than the outgoing model, especially given all the improvement. Surprisingly, the MSRP for the 2016 Chevy Volt is just $33,995, which is $1,175 less than the outgoing model.

The actual MSRP is $33,170, plus a $825 destination fee, compared to the $34,345 (plus destination) of the 2015 model. If you factor the $7,500 federal tax rebate into the equation, the 2016 Volt could be had for as little as $26,495. While you still have to lease the full purchase price, even at $33,170 the 2016 Volt has a much more competitive price than its predecessor. The 2016 model also adds a 50-mile all-electric driving range, a 41 MPG rating, and a (small) fifth seat; it’s also a much nicer looking and feeling car, especially the interior, all the way around.

How can GM do it? Lower battery costs likely play a big factor, as GM is finally making good use of the battery factory they built with partner LG Chem. The Voltec technology is also being homogenized across GM’s lineup in vehicles like the new Chevy Malibu Hybrid with a claimed 48 MPG. The Volt’s corporate cousin, the Cadillac ELR, also received a (much larger) price cut recently, along with a bevy of improvements that aimed to make it a more appealing and competitive vehicle. The 2016 Cadillac ELR is an all-around much better car than the car it replaces.

GM’s second (third?) generation of electrified vehicles is ready to hit the mainstream, and the 2016 Chevy Volt is leading the way with a greater emphasis on value and efficiency. If GM can keep its promise about pricing the all-electric Chevy Bolt at around $37,500 before the tax rebate, it could have the one-two punch needed to compete with Nissan and Tesla as the electrification leader.