Volkswagen ID.4 Has A Major Advantage Over Mustang Mach-E

Apr. 17, 2021 12:32 PM ET by Martin Bigg Electric Vehicles / 6 Comments

This is why you should think twice before leasing a Mustang Mach-E.

Deliveries of the Volkswagen ID.4 recently started in America, where it will go head-to-head with the Ford Mustang Mach-E. As VW's first fully electric model available in the US, there's a lot riding on the ID.4, but initial sales have been very encouraging. Both models start at around $40,000, making the ID.4 and Mustang Mach-E two of the most affordable electric SUVs on the market that undercut the Tesla Model Y.

However, the ID.4 has a major advantage over the Mustang Mach-E if you prefer to lease. Both electric SUVs are eligible for a $7,500 federal tax credit, but CarsDirect has discovered that Mach-E dealers aren't offering this incentive for customers who choose to lease the electric SUV.

By contrast, VW is offering a $7,500 "Zero Emissions Bonus" in lease cash for the ID.4, but there is no equivalent incentive to reduce the cost of the Mustang Mach-E for lessees.

"Due to complex tax realities, Ford Credit would get less than the $7,500 federal tax credit that the typical owner would realize if they purchased the car," a Ford Credit spokesperson told CarsDirect. As noted by CarsDirect, the tax credit goes to the lender, meaning that EV lessees have to rely on automakers to pass it on.

As an alternative, Ford offers its own lease-like Options Plan, but it's up to the customer to make sure they qualify for the full amount. The Mustang Mach-E starts at $43,995 including destination charges, while the ID.4 starts at $41,190. This makes both models more affordable than the Tesla Model Y, which starts at $51,690 with a destination after a recent price increase.

Leasing options were only recently made available for the Mustang Mach-E, but Ford doesn't list these options online. VW, on the other hand, is currently offering a lease deal for the 2021 ID.4 Pro at $379 for 36 months with $3,573 due at signing, while Hyundai is offering $10,750 in lease cash for the Kona Electric.