So, hey, what's up with all these plug-in vehicle price drops? The 2013 Nissan Leaf kicked off the trend with a $6,400 decrease in January. Since then, we have seen lower and lower lease prices for EVs and the 2014 Chevy Volt just joined the party with a $5,000 drop last week. The lower prices have sparked a big increase in plug-in vehicle sales this year, compared to last, so, hey, what's up with all that?
It could be argued that flex-fuel vehicles are simply a product of government subsidies and the automotive industry's self-conjured up image of environmental saviors. What does this mean? Well, vehicles capable of running E85 receive CAFE credits that help automakers offset some of their less fuel-efficient offerings. This allows manufacturers to continue producing gas-guzzling vehicles while also keeping the government at bay. In addition, production of flex-fuel-capable vehicles is a relativel
What is a plug-in vehicle worth? When it comes to CAFE credits, the answer to this question is a bit complicated. As we discussed in our Greenlings look at CAFE, the system allows for credits. One effect is that automakers who build vehicles that can burn E85 – even if these cars don't actually use the biofuel – get a bit of a pass for their dirtier vehicles. When it comes to EVs, a potential "sell one, get one free" deal is in the works.