Electric car price war? Chevy chimes in with Volt incentives

Chevrolet Volt.

(Credit: General Motors)

Chevrolet is offering a sizable price incentive in the face of price slashing in the electric car market.

The 2013 Volt now comes with a $ 4,000 cash-back incentive and the 2012 model ups that to $ 5,000, according to Michelle Malcho, a Chevrolet spokeswoman.

That’s the largest Volt cash incentive that Chevy has offered to date, Malcho said.

Alternatively, a Volt can now be leased for $ 269 a month for 36 months with a $ 2,399 down payment.

The Volt is a plug-in hybrid (GM refers to it as an extended-range electric vehicle or E-REV) with a range of about 40 miles on electric power and another 300 to 400 miles on the range-extender gas engine.

The base price is $ 39,995 but — in addition to the new Chevy incentives — the Volt comes with other cash-back incentives and tax credits to effectively bring the price far below what’s on the sticker. That includes a federal tax credit of $ 7,500 (if you buy the vehicle) and a $ 1,500 cash incentive in California.