Honda Trims Monthly Payment on Fit EV to Boost Sales

In an effort to kick-start slumping sales on its electric car, Honda Motor Co. said yesterday it will lower the monthly lease payment on the Fit EV to $259 per month from $389. Additionally, there’s no down payment on the Fit lease, and the contract includes unlimited mileage, collision coverage, and a free home-charging station.

Honda’s EV dealer base in California, Oregon, New York, New Jersey, Massachusetts, Maryland, Rhode Island, and Connecticut will grow to 200 stores from 36 by the end of next month, according to The Detroit News.

Honda isn’t the first automaker to employ such a tactic to push EV sales. Nissan Motor Co. in January announced it was cutting the price of the entry-level 2013 Leaf by 18% to $28,800. That same month, Ford Motor Co. lowered the lease price of its Focus EV to $285 from about $350, with $930 due at signing. The EV Focus’ base price also dropped $2,000 to $37,995.

General Motors Co. said last week the prices on the 2014 Chevrolet Spark EV will start at $27,495. With the inclusion of the $7,500 federal tax credit offered for electric vehicles, the Spark EV could cost less than $20,000. The lease price on the Chevy Spark EV 1LT is $199 a month for 36 months, with a $999 down payment. The Spark EV will only be available in California and Oregon when it hits lots in mid-June.

GM is also offering $3,000 off the Chevy Volt plug-in hybrid as well as 0% financing for 48 months, or $269 a month for 36 months with $2,399 due at signing.

Even with that hefty tax credit, EV sales make up a small portion of U.S. auto sales. According to data from Ward’s Auto and Tesla Motors, automakers sold roughly 12,000 pure-electric cars through April, less than 1% of the 4.97 million cars and trucks sold that same period.

So, will these automaker incentives help entice car buyers to go electric? Or is it too late for EVs to see a sales bump? Let me know what you think.