Good news for the Volt

According to this article in the Wall Street Journal the Volt will soon qualify for California's $1,500 tax credit.  This confirms what my salesperson, Jim Moran, had told me earlier about the car qualifying for HOV lanes in March.  So the full cost of the car will be $32,000 after rebates.  With the very low interest rates now on the market, if you can arrange financing, buying a Volt is a good investment (unless you think gas prices will go way down). 

Access to carpool lanes is especially valuable.  My regular commute to San Francisco in a carpool cost $2.50 vs. $6.00 for non-carpools.  But as a driver, it normally takes 10 or 15 minutes of waiting to pick up riders for the casual carpools from the East Bay to San Francisco.  Plus, carpooling for the reverse trip is not so simple; most people end up waiting the long evening queue for the Bay Bridge. But just as an estimate, say that the carpool access saves $3.50 per day x 210 working days per year = $735 per year  savings in cash plus at least 10 minutes a day in time saved is worth another $350 (10/60 hours x $10/hour x 210 working days/year; yes, $10 per hour is very low, but some of us actually enjoy the time in cars--I like to work on learning my chorus songs where no one can hear all my mistakes).  So the carpool access is worth $735 + $350 = $1085 per year for commuters to San Francisco from the East Bay, like I did for many years.

How does that, plus the state rebate, affect the competitive price of a Chevy Volt?  The numbers are:
   Cost of the car:  $41,000
   Federal rebate:    -7,500
   CA rebate:          -1,500
   Cost:                 $32,000

Savings on fuel compared to our 1991 Honda Civic, which we traded:  $1,281 per year (see calculations at
our one year report on the solar panels and the cost of the car)
New savings due to the carpool access:  $1,085

Total savings: $2,366 per year.

At the current interest rate of 3.25% for 15 year loans, that is enough to borrow $27,835--i.e. almost enough to pay for the cost of the car!  (Capital Recovery Factor for a 15 year loan at 3.25% is .085;  2,366/0.085 = 27,835)

 "Save money--Save the planet" with solar power and electric cars.