Black Book Predicts Residual on Volt Will Push ‘Healthy Demand’
Black Book’s Ricky Beggs provided more insight into why General Motor’s Chevy Volt might be turning some heads in the near future.
With the current Volt lease deal, which boasts a monthly price averaging at $269, the vice president and managing editor at Black Book noted “the current lease deal should drive healthy off-lease demand based on a projected residual of 58 percent.”
And high gas prices may be forcing many consumers to look towards gas sippers, as well.
Explaining further the company’s prediction, Beggs shared, “The high price point on the full finance has been a leading reason why many shoppers have opted for other fuel-efficient cars in comparison to the Volt.
“The low lease payment makes the Volt competitive, and the typical used-car shopper interested in EV technology will drive plenty of demand for the Volt in 2015,” he added.
Black Book also expects the Volt’s residual to drive “healthy demand”, as well.
Based on a retail price of $39,995, Black Book estimates a 24-month residual of $23,325 (58 percent) is projected for the Volt.
And when compared to similar models from other OEMs, the Volt stands out, according to Black Book’s predictions.
In comparison, the 2012 Toyota Prius currently has a Black Book-projected 24-month residual of 56 percent.
“The Volt’s stronger percentage means it will carry a higher value in relation to what it costs new at the end of term,” officials noted.
And on top of low monthly payments, advertised Volt lease deals include a $2,500–$3,000 down payment with 10,000 miles allotted and a term of 24–27 months.
“Black Book believes the incentive-heavy program will not have a de-valued impact on the Volt because it will carry a strong residual on the back-end of the lease term,” company officials concluded.