BOLT EV – Why are the Huge Discounts Gone and Why That’s a Good Thing

What happened to $16,000 off MSRP!

Remember $16,000 off MSRP on a 2021 Bolt EV Premier with a $43,795 list price? And $19,000 off with Costco contributing a $3000 rebate! That was available in April 2021 from Donohoo Chevrolet as one of the nation’s price leaders. In August 2021, we have been out of 2021 Bolts for 4 months, but we now have the 2022 Bolt EV and its new cousin the 2022 Bolt EUV. Let’s put the EUV to the side for a moment and discuss a more apples-to-apples comparison in the Bolt EV. If you are reading this, you are already aware that the charging speed and 259 miles on a full charge are unchanged from the 2021. The seats and suspension are more comfortable, the infotainment is different, and the front fascia is refreshed. So why are the rebates only $500 in August 2021?

That $43,795 list price 2021 Bolt has a similar equivalent that has a $35,790 list price. That difference is $8,005, so Chevy has anchored, let’s call it, $8,000 in rebates into the new MSRPs on the Bolt EV. Due to MAAP (minimum allowable advertised pricing) policies, we are not allowed to show in our math box on our website a price below MSRP less current incentives.

We will not go on a tangent here about manufacturers and MAAP, but we bring it up so you understand why a lot of the strong pricing on Bolts has disappeared. But does that mean you can’t purchase this new Bolt for less than MSRP? No, Chevy cannot require us to sell it for MSRP. So we are offering $2,000 back of MSRP to those customers that reach out to us about a Bolt EV. Still, that leaves a price of $33,290 for this particular Bolt EV 2LT. And many of you were used to paying $27,795 for the 2021 Bolt EV Premier. So what else can you get with the 2022 Bolt EV? There is a pretty cool Chevy Charging Installation credit where Chevy will install a Level 2 charging capability in your home at Chevy’s cost! There are a few gotchas in the program. If your location is outside the house (separate garage) or you need infrastructure improvements in your electrical box to support the higher voltage, some of that cost will need to be borne by you, but for most people, Chevy is covering the full cost of installation. If you do not have Level 2 charging, that is a really good value delivered to you, so that bridges the gap some. The rest needs to be covered by your desire to have the fresh look. Additionally, your alternatives in the non-EV space have skyrocketed in price over the past year. How crazy is the price of a used Honda Civic or other OEM’s similarly sized vehicles? I don’t think we will see $16,000 off the 2022 Bolt EV because about $8,000 off is already embedded in the MSRP change from 2021 to 2022. So, at $33,290 with free installation of Level 2 Charging, is that compelling enough to buy a 2022 Bolt EV 2LT (similar to the Premier as 21 Bolt EV LT is like 22 Bolt EV 1LT and 21 Bolt EV Premier is like 22 Bolt EV 2LT)?

What about 2021 Bolt EVs?

Another note is to look at what a 21 Bolt EV that is left at a dealer would cost you. Chevy rebates are $8,000 with $3,000 extra for fast charge and $1,500 with GM Loyalty if you qualify. A quick search on Cars.com for all 2021 Bolt EVs available in the USA resulted in 188 units. Of these, 107 are Premier. Of the Premiers, the median price at a rough glance appears to be around $32,000. If we assume generously that the price doesn’t include the GM loyalty already, a median 2021 Bolt EV Premier is a little north of $30,000 if you qualify for a loyalty rebate. Additionally, good luck finding the color you want within a reasonable distance of your home. Vehicle supply and demand along with slightly reduced help from GM to dealers in cash to help move 2021 Bolts mean a 2021 Bolt EV is just more expensive than it was 4 months ago.

Is the 2022 Bolt EV a good value?

Ok, not as good as the 2021 Bolt EV was in April 2021. But think what you could have bought a Silverado 1500 crew cab for 6 months ago versus today? Some of this is general market inflation on goods and services that may or may not be transitory depending on whether you believe central bankers. With our $2,000 discount on offer and free Level 2 charging, we think our Bolt EVs are priced to bridge most of the gap. And that is our main aim – get our pricing to a place where good value for the current market gets delivered. Some of you may be worried about what your Bolt EV will be worth down the road should inflation be transitory or market conditions change radically.

Please – Seriously entertain a lease

We get it. In the southern United States, leasing is considered throwing money away. And it may be on some models where GM doesn’t support it well, but people lease like gangbusters in the Midwest and Northeast, and they can’t be that ignorant. A lease on a Bolt is a great opportunity to protect yourself from market movements on the vehicle as it ages. Chevy has stepped up in August on its leasing residual values. When you lease, you are trading purchase rebate cash today, $500 on a 2022 Bolt, for no upfront rebate on the price and a guaranteed trade-in value at the end of the 36 months of the lease. If you leased 10,000 miles per year, 30,000 miles total, Chevy has a residual value of 64% of the MSRP of a Bolt EV 2LT for August 2021. So, in the example earlier, $35,790 times 64% is $22,906. So here is the bet you are making. By giving up $500, you are betting that Bolt will be worth less than $22,906 in 36 months when you turn the Bolt back into Chevy. If that vehicle is worth $18,000 as a trade-in, then Chevy eats almost $5,000 in market value difference and it cost you $500. Of course, a lease versus purchase isn’t apples to apples because you have different APRs and fees between the two, but you can work out those numbers and should see differences that aren’t huge. If the vehicle is worth at the end of the leasing period $22,906, you buy it for that from Chevy through a dealer and only lost out on the $500 purchase cash. There are some additional upsides to the lease as well. If the vehicle is totaled, the lease comes with built-in GAP protection, so you have no worry about negative equity with your claim driving up your cash out of pocket on a totaled vehicle. If you get in an accident that shows up on the Carfax, that doesn’t impact the value of the vehicle when you turn it in. If you have ever traded a vehicle with an accident reported on the Carfax, you understand how that reduces the value. And if it says Severe Damage, lookout. If the vehicle is properly repaired at turn-in, there is no financial punishment for those accidents. Now, there is obviously some downside. What happens if you want out of the lease after a year. Yeah, that gets expensive to get out since you are committed to the remaining lease payments. And in some instances with leases, we have ways to minimize the financial impact at the dealership when you want to switch out as we want to keep you as a customer and make you happy. But that takes us to the next point.

Welcome to the Privileged Lease Club!

Chevy wants you to continue to lease vehicles from them, so they don’t like to leave customers flailing in the wind on a lease. One way to get out of the lease earlier is to take advantage of lease pull ahead programs that begin within a year or so of the end of the lease where Chevy will cover up to a certain amount of remaining lease payments to get you to lease again. Additionally, there are lease loyalty CCR (cap cost reduction) incentives – think of them as like cash off doing another lease. On current Bolt EVs, there is a $1,500 lease loyalty CCR for those that lease with GM Financial currently. That is a major reason why people in the Midwest and Northeast continue to lease. Once you start leasing, GM makes it financially attractive to continue leasing.

So I am intrigued about leasing – tell me more

We have another blog post that goes into deep detail about leasing a 2022 Bolt EV or EUV in August 2021. Click here to read greater detail about leasing examples of Bolts going on this month. Finally, if you have an interest in looking through our extensive Bolt inventory that blows away our competition’s offerings, please click here to see all of the Bolts on our website. And if you have a particular interest like the Super Cruise EUV units that will not get built until later this year, click here to see our orders that have yet to be built and will be available in the future.

Thank you Bolt customers!

Many of you are avid Bolt EV fans, and you have been through the experience of shopping for a Bolt and understand the incentives, rebates, and tax credits very well. How do we know this? At Donohoo Chevrolet, we have been stunned at the incredible knowledge of our Bolt customers. We sold more Bolts in 2021 out of Fort Payne, AL than any dealer in these major cities around us – Atlanta, Nashville, Charlotte, Birmingham, Chattanooga, Huntsville, Memphis, Knoxville, Montgomery, Jackson, and Mobile! And it wasn’t all that close. Our sales staff all have extensive experience with the Bolt, and many of you know more than our sales staff. Truly amazing enthusiasm and we appreciate all that you teach our sales staff in your interactions with us. And we thank you for doing business with us.

We understand the importance of growing the electric vehicle market, and a big part of that is getting customers in the vehicles to try them. We have evangelized 7 members of our dealership team that all drive them personally, and a couple of those folks were big skeptics – including a couple of truck-loving country folks. They rave about the experience of driving a Bolt. If you are interested in one, we have a few in our service courtesy fleet that can be taken for an overnight test drive. Additionally, we welcome you coming to our dealership to test drive one. We have plenty to choose from.

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