The price isn't only what you see on the sticker.
The 2021 Volkswagen ID.4 might be the most important vehicle to come from the People's Car brand since the original Beetle. It delivers an attainable, practical EV experience for the masses, with an 82-kWh battery to power 250 miles of range through a rear-mounted AC electric motor producing 201 horsepower and 228 lb-ft. Granted, at $39,995 for the rear-wheel-drive model, the VW ID.4 isn't the most affordable new car on the market today, but the price tag only tells part of the story.
During a recent call to talk about ownership costs, VW outlined why the ID.4 actually competes well with cars that are priced much lower.
"Price point is as much about the monthly payment as it is about the sticker price," said Dustin Krause, Director of e-Mobility North America for Volkswagen of America.
Though the ID.4 costs $39,995, the $7,500 federal tax credit for EVs in the US effectively brings the price down to $32,495. But that doesn't just help the price at retail; it also makes a difference in the lease price, as dealers can claim any applicable tax credits and apply them to lower the cost of the lease. VW says that it will offer a national lease price of $379 per month, with 10,000 miles per year - far less than you'd pay for a similar $40,000 vehicle.
Depending on where you live, state tax credits could bring the prices even lower. States like New York and California offer an additional $2,000 credit, while New Jersey offers a whopping $5,000. If you are leasing the ID.4 in New Jersey, you might end up paying less than $250 a month for the same 10,000-mile lease.
If you don't like leasing, VW says a typical loan on an ID.4 will run about $650 per month with the federal tax credit - or lower if your state offers additional tax credits. And then there's the fuel savings; since you won't be paying to fill the ID.4 up with gasoline, VW estimates you'll end up saving about $58 per month, or roughly $3,500 over five years of ownership. While most charging will be done at home, the ID.4 comes with three years of free charging from Electrify America, covering the entire lease period.
And not only is the ID.4 less expensive to buy and operate than an equivalent gas-engine car, but it's also easier to maintain. VW offers the ID.4 with the same four-year bumper-to-bumper warranty found on its other models, and includes two years of carefree maintenance. Aware that some buyers might still be concerned about the reliability of all the electric propulsion bits, high-voltage components are covered by a separate four-year warranty, while the battery has eight years of protection.