• Sep 6th 2007 at 10:53AM
  • 33
We told you GM plans to sell you the Volt and rent the battery to keep costs down. We have a few more details on the plan from Nick Reilly, the president of General Motors Asia Pacific, at the APEC summit in Australia. Nick says the payments will be weekly and cost about the same as gas. So, the operating costs for the Volt won't be much different than a normal gas car. I wonder why they went for weekly payments? Anyway, here are the comments:
  • "It looks as if it is going to cost a lot more to buy a car like this, however the fuel economy is enormous"
  • "People won't buy a full car. They will buy a car and rent or lease the battery and the cost of leasing the battery will be the same as, or less than, the cost they're paying today for petrol. So the motoring costs of an electric vehicle don't necessarily have to be much higher than the cost of today's vehicles"
  • "Before we were saying it will be an awfully long time before we can get the costs down so people can afford it, but actually if you offset the fuel costs, people can afford it."
Whaddya think?

[Source: Drive.com.au]

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    • 1 Second Ago
      • 8 Years Ago
      shooting one,s self in one,s own foot, I,d say.
      • 8 Years Ago
      Hassle? Never will allow an auto-draft? No bill is ever paid weekly?

      This is all part of some sick joke right?

      Are there that many people who are in a cash only profession, have no credit history and manage their money out of a sock hidden in their kitchen cabinet?

      Is most of the country still mailing out bills with stamps? Am I the only person who has heard of a debit card, EFT's, direct deposit and daily compounded interest?

      While I am curious to understand the actual cost benefit of paying for battery rentals on a weekly basis, this could easily make financial sense.

      Yes, if you not buying gas weekly, then paying for the battery weekly would make a $30K electric vehicle easier to budget for those who might have trouble making a single $500-600 payment.

      Now for the painful part:
      If you buy a $15,000 battery pack and pay $300/month ONCE or $75/week at the end of ONE YEAR you would have own $651.08 more of said battery pack. Or you could just pay about $62 week if it was a rental cost.

      Since the people posting on this blog paid for their house in cash please ignore this part too:
      A $200K mortgage at 7% with a $2K monthly payment - pay it via EFT weekly and you own/save $3371.42 in the first year. Plus $21.32 in stamps, $2.85 in envelopes, per check fees and an estimated 260 minutes of your life...

      Yeah, what a hassle.
      • 8 Years Ago
      I have been thinking about the what if I don't pay scenario. I bet they just turn off the battery with Onstar or something. Weekly payments may be explained if it's pay if you use the battery. I don't know. Nothing official but that's what it feels like to me.

      I still think it's a good idea. The car may start in the low, mid twenties. Sure, you probably lose the advantage of low operating costs with this model but you get range and a very clean car. I think there is a lot of people out there that will pay for that.
      • 8 Years Ago
      One thought. If you rent, you will have NO warranty issues and likely would get a full replacement free of charge if you start to lose range. I'd pay MONTHLY for that...if reasonable. Weekly is RETARDED. The administrative costs alone of keeping up with that will kill GM, let alone the electric car.
      • 8 Years Ago
      Wow, in one press release my interest completely plummeted, that is the lamest model that I think I have ever heard, no way they can get inertia with that... guess they are tying to still birth this like the EV.
      • 8 Years Ago

      This is the stupidest thing I've come across in a while. Let me get this straight. Pay a monthly car payment to GMAC and a WEEKLY battery payment to GM AND then I have to plug the thing in and pay a monthly payment to the power company (oh, not to mention the money to keep the range extender's tanks topped off). This is STUPID and I hope it isn't actually set in stone. I don't like the idea of a battery rental to begin with, but if they can't roll it in to a financing payment this is going to be a flop of enormous proportions. Hmm, it's as if they're trying to kill the electric car...
      • 8 Years Ago
      So how long is the lease on the battery? Is it indefinite? Or is a lease to own scenario where you eventually own the dead battery?

      If you pay the lease for 5 years @ `the cost of gas per week (using $40/week) you end up paying ` $10000 for the battery

      Plus, it's not like that lease is the only operating cost. As others have mentioned, there is the cost of electricity and you still need to put gas in the thing as well.

      Operating costs with this model could end up being double that of a conventional gas powered vehicle in it's target price range.

      They will not move their targeted 60K units with that kind of pricing scheme. People will be turned off because it comes across as deceptive when you look at the sticker price of the car and then you add in that 'extra costs' later.

      Better to turn the volt into a Tesla code name vaporware - er, I mean 'whitestar' competitor and target the luxury $50K + market.

      Add in some premium leather and brushed aluminum accents inside, and some chrome accents and LED head and tail lamps outside, position it above the Camaro and charge full price with no leased battery option.

      Position it as a high power, performance vehicle that delivers better millage then a prius in a segment dominated by V8s and they may have shot.

      Putting it in a segment dominated by fuel efficient 4 cylinders, and by the time the volt actually launches, extremely fuel efficient clean diesels will be readily available in North America and you have no advantage over the other cars in the segment with the proposed leased battery business model.

      This lease the battery idea is going to be the death of whole the E-Flex platform it look like.

      • 8 Years Ago
      one point. if it was originally budgetted to be 30K with batteries upfont payment, and now it looks like it wont come together...
      I'd expect the initial battery cost estimate to be deducted from the car cost. What was it again, 16KwH battery pack ? At $500/KwH bulk price of current lithiums, thats $30K-$8K = $22K for the car. Less if they estimated the battery to cost more, which they should have with all the conditioning and balancing electronics built in.

      At $20K it would not be a bad deal, maybe.

      • 8 Years Ago
      I think this is dumb. My philosophy is living green is a "luxury" lifestyle. I find it faulty for GM to try to make this car affordable to everyone. No one who is planning to drive an electric car expects an electric car to have a low price tag. Why is GM fixing something that isn't broke?

      • 8 Years Ago
      Well, there's always the jetta tdi...
      • 8 Years Ago
      The finance company has no objection to you making all the lease payments in advance on their $199/month, "absolutely $0 down" 48-month vehicle lease - I'm sure the same would be true of a battery lease.

      >I'm upset about making a weekly payment.
      • 8 Years Ago
      Two words, GM: No thanks.

      Roll the cost of the battery into a monthly payment. This weekly payment hassle ain't gonna fly.
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