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

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.

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Rear View Driving

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.

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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.

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Source Credits: Cars Direct

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