Hoping for a buyback, some dealers are scooping up Chevy Bolts despite battery issue
The reputation of all-electric Chevrolet Bolt EV has been marred by battery fires over the past few months, forcing General Motors (GM) to recall thousands of units of the EV. Surprisingly, some dealers are still buying up 2021 model year Chevy Bolt.
Speaking on the condition of anonymity, some dealers revealed that they recently bought 2021 model year Bolt EVs for more than $28,000, which is more than the price they retailed for just a few months back. They also revealed that they continued to buy the disgraced EV in hopes for a buyback.
Demanding anonymity, one of those dealers said that GM would likely announce buybacks, which would be cheaper for them. Speaking on the topic, the dealer said, “They GM are already going to pay half the value of the car with the new battery. Buybacks will be way cheaper for them.”
It is worth-mentioning here that the last buyback program, which was performed on more than 100,000 vehicles by Volkswagen in wake of the notorious Dieselgate scandal, featured federally directed buyback offers that were highly generous to vehicle owners as well as dealers.
A defect in the battery pack of the Bolt EV has thus far resulted in more than twelve fires, which left at least three people injured. However, the financial risks are minimal with a voluntary buyback on all Chevy Bolts. It becomes crystal clear when we learn that prices for the controversial EV are soaring in the wholesale markets instead of coming down. The six-million-vehicle-strong Manheim Auctions suggest that a 2021 Chevy Bolt will not lose more than $100 in value over the next one-year period. As the opportunity for a possible buyback program on all Chevy Bolts seems to quite strong, dealers are trying to scoop them up.
However, one should not forget the fact that worldwide shortage of semiconductor chips is also playing a role in keeping the prices of new and used cars up. The prices of the Chevy Bolt EVs have also remained strong and steady despite the battery issue.
Anyhow, such a situation proved to be a death blow for many brands and models in the past. For instance, Ford had to recall thousands of its then-best-selling Ford Explorer SUVs in the 1990s due to defective Firestone tires. Following that massive recall, the SUV could never reach its pre-recall sales numbers.