The 2014 Chevrolet Volt gets a $5,000 price cut, making it more affordable than ever before.

General Motors has announced it will drop the price of the base model Chevrolet Volt by $5,000 when the 2014 model year goes on sale later this summer.

Now in its third year of production, the popular range-extended electric car will now start at just $34,995, including a mandatory $810 destination fee, placing it within reach of more Americans than ever before.

That’s before taking into account any federal or state incentives. For example, the combined $7,500 federal tax credit and $1,500 rebate for plug-in owners in California drops the effective price of a new 2014 Volt to $25,994. Those in Colorado will be able to drive off the dealer's lot with $6,000 in state and $7,500 in federal tax credits, reducing the effective price to a staggering $21,495 and making it effectively cheaper than a base-model 2013 Chevrolet Malibu in that state.

Unlike the 2013 model year, which received a slightly larger battery pack, an increase in EPA-approved all-electric range from 35 miles to 38 miles, some trim upgrades and some new color options, changes for the 2014 model are minimal.

These include adding a leather-wrapped steering wheel as standard, dropping the two-tone white-accented interior, adding the option of heated seats across all trim ranges, and two new color options: Ashen Grey Metallic and Brownstone Metallic.

There’s also a change to the charge port door on the 2014 models. Unlike previous years—which were fitted with a solenoid-operated charge port door release mechanism that proved somewhat unreliable in operation—the 2014 gets a simpler mechanical push latch similar to the one found on the 2014 Toyota Prius Plug-in.

In terms of efficiency, the 2014 model year boasts the same 38-mile EPA approved all-electric range at an efficiency of 98 MPGe as the 2013 model, and the same 37 mpg combined rating while in range-extended mode.

With Deals to Be Had, Will Volt Sales Pick Up?

The price drop, while a welcome bonus to anyone already considering a Volt as their next car, will also place the Volt in a much more powerful position in the marketplace.

Over the past few months, we’ve seen price cuts and incredible lease deals from rival plug-in automakers emerge, making the Volt a less attractive prospect than it once was. Specifically, the Volt has recently struggled compared to the 2013 Nissan LEAF—which received a massive $6,000 price cut when Nissan moved production from Japan to Smyrna, Tennessee at the start of the 2013 model year.

In fact, the 2014 Chevrolet Volt now has a powerful price advantage over cars like the $39,734 2013 Toyota Prius Plug-in Hybrid and the $36,240 Ford Focus Energi plug-in hybrid, making it a serious contender for anyone wanting the efficiency of an electric vehicle but the ability to go longer distances when needed.

If you’re in the market for a new Chevrolet Volt and desperately want the new charge-door release, leather-wrapped wheel or new color options, you may want to hold off a few weeks before placing your order. However, if you’re looking for a bargain, you may find one at your local dealer. Earlier this summer, Chevrolet dropped the price of 2012 and 2013 model Volts, offering up to $5,000 in an attempt to clear a massive 140-day supply of cars.

With the 2014 model just around the corner, the chances are you’ll be able to negotiate an even better deal, especially if your dealer has a few too many Volts sitting on the lot.