Everyone loves saving money, right? General Motors recently put out a press release examining just how much money you could save in fuel if you switched to the all-electric Chevy Spark. They claim a savings of $9,000 over a five year period. Or roughly $150 a month in savings by going all electric.
The Tesla Model S competes against luxury and sport vehicles. Electric cars like the Chevy Spark, however, are primarily competing based on either their green credentials or their eventual cost savings. GM looks to have narrowed in and decided where the Spark will compete: in saving customers money.
The Spark EV, at right around $27,500, is one of the cheapest electric vehicles on the market. With a $7,500 US tax credit, it’s a roughly $20,000 electric vehicle. With lease prices of $199 a month, Chevy is pushing hard at the price-conscious customer. This press release further confirms that GM is pushing that aspect of this car.
The regular Spark is a $12,185 car. It’s also a very price-conscious vehicle (and the different between $12 and $27,500 gives us an idea of the cost of the battery technology: some $15,000) that is $15,000 cheaper. A lot of customers who are not as interested in green technology may wonder if the savings in gas is worth $15,000 more on their bill ($7,500 more if the government EV tax credit kicks in).
Well, Chevy is appealing to this level of math. If you get the rebate, in five years the Spark will obviously start saving you money.
Even without the rebate, the car will save money at that rate, but not within five years. The Spark is said to save $1,800 a year, so without the rebate the battery pack would take 8 and a third years to cover its costs. With the rebate, an average consumer will find the car is certainly no less expensive than a gas car in terms of power needs.
It’s a clever pitch. It shows that GM has a sense of where the Spark EV fits in the market. Time will tell if it is a compelling pitch.