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Volkswagen and Electrify America announced that ID.4 owners will receive 3 years of free charging included in the price of the car.


VW announced today that it reached a deal with Electrify America to provide “three years of unlimited charging” on the latter’s charging network included in the price of the ID.4 electric SUV.

Electrify America, which was founded through Volkswagen’s settlement with the EPA over the Dieselgate scandal, has been making direct deals with some automakers to include charging with their new electric cars.

Now, it has made such a deal with VW for the upcoming ID.4 electric SUV:

“Electrify America today announced an agreement with Volkswagen of America to provide owners of the all-new 2021 VW ID.4 electric SUV with three years of unlimited charging sessions on the nation’s largest open DC fast charging network at no additional cost to the vehicle’s purchase price.”

Giovanni Palazzo, president and chief executive officer of Electrify America, commented on the new deal:

“With a relentless commitment to driving the electric vehicle industry forward, Electrify America opened DC fast-charging stations at an accelerated pace of 1.2 per business day in 2019. As more and more electric vehicles are introduced to the market, and consumer interest grows, we are excited to announce this agreement with Volkswagen to deliver fast and accessible charging to ID.4 customers and a new wave of EV adopters.”

Scott Keogh, CEO, Volkswagen Group of America, added:

“The ID.4 was engineered, loaded and priced to win the hearts of SUV owners who are simply ready to go electric—and fall in love with Volkswagen again. By adding three years of fast charging at no additional cost through Electrify America, we are eliminating all barriers for mainstream compact SUV buyers to go electric.”
Electrify America currently has more than 470 charging stations and over 2,000 DC fast chargers in the US, and it will increase to approximately 800 total charging stations with about 3,500 DC fast chargers by December 2021.
 

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The ID.4 launch reveals the new VW EV comes with a heat pump for Canadian winters, but misses the Canadian federal rebate qualification by $400.00
 

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Volkswagen's Tesla competitor is finally here: Meet the ID.4, a cheaper alternative to the Model Y designed to sell against America's most popular cars

From the article:

"The ID.4 will start at $39,995 — a full $10,000 cheaper than the Model Y — but still above what most drivers pay for similar gas-powered cars. Plenty of $7,500 federal tax credits remain that would bring the starting price down to the equivalent of VW's 2021 Tiguan SEL. An eventual dual-motor version will start around $45,000 for a powertrain more on-par with the Model Y. "


see: https://www.yahoo.com/news/volkswagens-tesla-competitor-finally-meet-151500845.html
 

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VW has now officially introduced the ID.4.

Fully equipped with every option the AWD version has a MSRP of $49,675.

With a down payment of $2,340, with the $7,500 used as a cap cost reduction, the monthly payments for three years, 10,000 miles per year are $540 per month.

From the VW web site:

"$540/mo for 36 month lease. $3,579 due at signing. Excludes tax, title, license, options and dealer fees. No security deposit required. For highly qualified customers through Volkswagen Credit. Closed end lease financing available for a new, unused 2021 ID.4 AWD Pro with Gradient Package, on approved credit to highly qualified customers by Volkswagen Credit through participating dealers. Monthly lease payment based on MSRP of $49,675 and destination charges less a $7,500 Lease Incentive and suggested dealer contribution resulting in a capitalized cost of $40,973.90. Excludes tax, title, license, options, and dealer fees. Amount due at signing includes first month’s payment, customer down payment of $2,340, and acquisition fee of $699. Monthly payments total $19,440.15. Your payment will vary based on final negotiated price. At lease end, lessee responsible for disposition fee of $395, $0.20/mile over 30,000 miles and excessive wear and use. Offer not valid in Puerto Rico. See your Volkswagen dealer for details or, for general product information, call 1-800-Drive-VW. Offer is subject to change or terminate without notice. "

see: Check out the Volkswagen I just built on vw.com!
 

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VW has now officially introduced the ID.4.

Fully equipped with every option the AWD version has a MSRP of $49,675.

With a down payment of $2,340, with the $7,500 used as a cap cost reduction, the monthly payments for three years, 10,000 miles per year are $540 per month.

From the VW web site:

"$540/mo for 36 month lease. $3,579 due at signing. Excludes tax, title, license, options and dealer fees. No security deposit required. For highly qualified customers through Volkswagen Credit. Closed end lease financing available for a new, unused 2021 ID.4 AWD Pro with Gradient Package, on approved credit to highly qualified customers by Volkswagen Credit through participating dealers. Monthly lease payment based on MSRP of $49,675 and destination charges less a $7,500 Lease Incentive and suggested dealer contribution resulting in a capitalized cost of $40,973.90. Excludes tax, title, license, options, and dealer fees. Amount due at signing includes first month’s payment, customer down payment of $2,340, and acquisition fee of $699. Monthly payments total $19,440.15. Your payment will vary based on final negotiated price. At lease end, lessee responsible for disposition fee of $395, $0.20/mile over 30,000 miles and excessive wear and use. Offer not valid in Puerto Rico. See your Volkswagen dealer for details or, for general product information, call 1-800-Drive-VW. Offer is subject to change or terminate without notice. "

see: Check out the Volkswagen I just built on vw.com!
Wow, a 41% residual. Thats worse than the Mach-E Options.
540*36=19,440+7,500 credit used for cap red +2340 down = 29,280 total non-fee payments.
MSRP $49,675 - 29,280 =$20,395 (41%) (assuming 0% lease interest rate, residual may be higher based on interest rate)

Nice car, but lease not so good. Its either a poor residual, or a high interest rate.
 

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Wow, a 41% residual. Thats worse than the Mach-E Options.
540*36=19,440+7,500 credit used for cap red +2340 down = 29,280 total non-fee payments.
MSRP $49,675 - 29,280 =$20,395 (41%) (assuming 0% lease interest rate, residual may be higher based on interest rate)

Nice car, but lease not so good. Its either a poor residual, or a high interest rate.
I think your assumption are not correct. I think you have them reversed.

The higher the interest rate, the more of the monthly payment goes to interest and less to depreciation.

In other words a zero interest rate everything goes to depreciation, resulting in a low residual.

The higher the interest rate, say 10%, the less of the monthly payment goes to depreciation and the higher the residual.

So without know the interest rate there is no way to know the residual.

What is important is the comparison of the monthly lease rate on both the Model Y and ID4 and the monthly payment of the Ford Option plan.

If you go back to my prior posts I said that the lease rate on the Model Y was not great and it may turn out that the lease rate on the VW ID4 is not that great either. But if the lease rates on the Model Y and ID4 are bad, then think how truly terrible the monthly rates on the Ford Option Plan are.

I truly think with regard to the MachE, Ford will:

  • Be forced to come up with a competitive lease
  • Will have an excellent finance plan - low interest rates
  • Will be giving incentives
All to make the MachE more competitive.

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I think your assumption are not correct. I think you have them reversed.

The higher the interest rate, the more of the monthly payment goes to interest and less to depreciation.

In other words a zero interest rate everything goes to depreciation, resulting in a low residual.

The higher the interest rate, say 10%, the less of the monthly payment goes to depreciation and the higher the residual.

So without know the interest rate there is no way to know the residual.

What is important is the comparison of the monthly lease rate on both the Model Y and ID4 and the monthly payment of the Ford Option plan.

If you go back to my prior posts I said that the lease rate on the Model Y was not great and it may turn out that the lease rate on the VW ID4 is not that great either. But if the lease rates on the Model Y and ID4 are bad, then think how truly terrible the monthly rates on the Ford Option Plan are.

I truly think with regard to the MachE, Ford will:

  • Be forced to come up with a competitive lease
  • Will have an excellent finance plan - low interest rates
  • Will be giving incentives
All to make the MachE more competitive.

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No, we are on the same page regarding residual vs interest rate. I just didn’t elaborate.

The residual is as low as 41% on the ID.4 if the interest rate were 0%.

I don’t believe VW would have an interest rate high enough to bring the residual over 44% (equivalent residual to MMe).

VW and Ford have to bring their residual north of 50%, and maintain low interest rates.
 
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No, we are on the same page regarding residual vs interest rate. I just didn’t elaborate.

The residual is as low as 41% on the ID.4 if the interest rate were 0%.

I don’t believe VW would have an interest rate high enough to bring the residual over 44% (equivalent residual to MMe).

VW and Ford have to bring their residual north of 50%, and maintain low interest rates.
Thanks:

Having done the numbers I agree with you:


  • $540 a month, 36 months $19,440
  • Due at signing $3,579: Down payment $2,340, $699 acquisition fee, first months payment, so the $19.440 must be reduced by $540
  • Federal Tax credit $7,500

Total $29,979
MSRP: $49,675
Residual of $19,696: 41%

I agree this is not a good lease which confirms how really bad the Ford Option Plan, at close to $900 a month is.

The final question comes down to how much extra are we willing to pay now to go green vs. waiting 18 to 24 months when undoubtedly there will be many more options at prices competitive with ICE.

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Volkswagen and Electrify America announced that ID.4 owners will receive 3 years of free charging included in the price of the car.


VW announced today that it reached a deal with Electrify America to provide “three years of unlimited charging” on the latter’s charging network included in the price of the ID.4 electric SUV.

Electrify America, which was founded through Volkswagen’s settlement with the EPA over the Dieselgate scandal, has been making direct deals with some automakers to include charging with their new electric cars.

Now, it has made such a deal with VW for the upcoming ID.4 electric SUV:

“Electrify America today announced an agreement with Volkswagen of America to provide owners of the all-new 2021 VW ID.4 electric SUV with three years of unlimited charging sessions on the nation’s largest open DC fast charging network at no additional cost to the vehicle’s purchase price.”

Giovanni Palazzo, president and chief executive officer of Electrify America, commented on the new deal:

“With a relentless commitment to driving the electric vehicle industry forward, Electrify America opened DC fast-charging stations at an accelerated pace of 1.2 per business day in 2019. As more and more electric vehicles are introduced to the market, and consumer interest grows, we are excited to announce this agreement with Volkswagen to deliver fast and accessible charging to ID.4 customers and a new wave of EV adopters.”

Scott Keogh, CEO, Volkswagen Group of America, added:

“The ID.4 was engineered, loaded and priced to win the hearts of SUV owners who are simply ready to go electric—and fall in love with Volkswagen again. By adding three years of fast charging at no additional cost through Electrify America, we are eliminating all barriers for mainstream compact SUV buyers to go electric.”
Electrify America currently has more than 470 charging stations and over 2,000 DC fast chargers in the US, and it will increase to approximately 800 total charging stations with about 3,500 DC fast chargers by December 2021.
I think that the ID.4 looks like a pretty good offering.

Competitive in a lot of ways, and the free charging might sound like a big deal, especially to new EV customers who will equate it to "free gasoline for three years."

VW is clearly serious about EVs.
 

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From the article:

Before we detail our experiences with a preproduction ID4, though, let's take a quick glance at the competition—after all, electric SUVs are sprouting like weeds these days. At $39,995 before applicable federal and state tax incentives, the ID4 undercuts both the Tesla Model Y and Ford Mustang Mach E and offers more range than the base version of the Ford (250 miles to 230). A base Model Y is almost $10,000 more expensive, and even though it offers more range, some buyers might see that price gap as unbridgeable.

see: 2021 Volkswagen ID4 Electric SUV Prototype Review: On the Right Track

and

see: 2021 Volkswagen ID4 EV Crossover Interior Review
 

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From the article:

Before we detail our experiences with a preproduction ID4, though, let's take a quick glance at the competition—after all, electric SUVs are sprouting like weeds these days. At $39,995 before applicable federal and state tax incentives, the ID4 undercuts both the Tesla Model Y and Ford Mustang Mach E and offers more range than the base version of the Ford (250 miles to 230). A base Model Y is almost $10,000 more expensive, and even though it offers more range, some buyers might see that price gap as unbridgeable.

see: 2021 Volkswagen ID4 Electric SUV Prototype Review: On the Right Track

and

see: 2021 Volkswagen ID4 EV Crossover Interior Review
Yes, if your budget caps out lower than the Model Y or MME the ID4 fits in a nice niche. Tesla and Ford are aiming at entry-lux/performance-minded buyers like me. I think a more direct comparison to the ID4 would be the Kia Niro.
 

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Yes, if your budget caps out lower than the Model Y or MME the ID4 fits in a nice niche. Tesla and Ford are aiming at entry-lux/performance-minded buyers like me. I think a more direct comparison to the ID4 would be the Kia Niro.
I agree but would add, the First Edition at $59,400 must be both luxury and performance.

Entry level luxury cars are $50,000 and up. Below $50,000 "near luxury".

The question is when comparing the MME to an ICE car, what do you do with the $7,500 Federal rebate?

For example a Mercedes E 350 AWD has a MSRP of $56,700, with options $61,250 and is usually discounted by 10% which brings the actual selling price down to $55,000. I think we can all agree that the E Class is both luxury and performance.

After both the Federal and State tax credit, the FE is $49,990.

As I posted I do not expect the interior of the MME to have the fit and finish of a Mercedes E Class, but I do expect it to have the ride, handling and performance of the E Class.

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As I posted I do not expect the interior of the MME to have the fit and finish of a Mercedes E Class, but I do expect it to have the ride, handling and performance of the E Class.
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Well I hope it isn't as creaky-squeaky as some modern Merc interiors, but I'll digress on that. The biggest things for me are handling and performance. Those are the only things that have held me back from a BEV purchase before now. That's what drew me to the MME in the first place - other than high-end luxury/performance brands nobody has taken a swing at Tesla's dominance. They've all been cranking out boring compliance cars.
 

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I agree but would add, the First Edition at $59,400 must be both luxury and performance.

Entry level luxury cars are $50,000 and up. Below $50,000 "near luxury".

The question is when comparing the MME to an ICE car, what do you do with the $7,500 Federal rebate?

For example a Mercedes E 350 AWD has a MSRP of $56,700, with options $61,250 and is usually discounted by 10% which brings the actual selling price down to $55,000. I think we can all agree that the E Class is both luxury and performance.

After both the Federal and State tax credit, the FE is $49,990.

As I posted I do not expect the interior of the MME to have the fit and finish of a Mercedes E Class, but I do expect it to have the ride, handling and performance of the E Class.

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I don’t want to get too far off topic, so i will just say I feel It is difficult to use ICE cars as price-points for BEVs, the market is not at price-parity yet.

Most of the price of a $50k EV goes towards the battery and EV tech. Adding a luxury-class interior will just add to the price of the vehicle.

Unless something new is announced, no need to discuss financing or discounting again, we have beaten those topics into the ground.

Back on topic: As far as the ID.4 goes, i agree with @pca371, it is more comparable to the Kia.
 

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From the Volkswagen Canada website: The VW ID.4 will not be available in most provinces until 2022.

"For the first year following its summer 2021 launch, availability of ID.4 will be limited to select dealers located primarily in Ontario, Quebec, and British Columbia. Specific information and a list of participating dealers will be published closer to the vehicle’s introduction.

Volkswagen Canada is not accepting pre-orders or deposits at this time.
In 2022, production of the ID.4 will move from Germany to our factory in Chattanooga, Tennessee. Following this move availability will significantly increase, and we look forward to offering ID.4 at Volkswagen dealerships across Canada. "
 

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From the Volkswagen Canada website: The VW ID.4 will not be available in most provinces until 2022.

"For the first year following its summer 2021 launch, availability of ID.4 will be limited to select dealers located primarily in Ontario, Quebec, and British Columbia. Specific information and a list of participating dealers will be published closer to the vehicle’s introduction.

Volkswagen Canada is not accepting pre-orders or deposits at this time.
In 2022, production of the ID.4 will move from Germany to our factory in Chattanooga, Tennessee. Following this move availability will significantly increase, and we look forward to offering ID.4 at Volkswagen dealerships across Canada. "
And there my wife and I, depending on how the US elections went, were considering moving to Canada!

Darn!

Sorry you will not be getting the VW ID4. I assume the Audi Q4 eTron, based on the same architecture, will also be delayed.

That leaves you with the MME or Model Y or wait.
 

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Id4 AWD dual motor Statement Package equipped to match Model Y AWD dual motor or Mach-E AWD dual motor is $48,175 (w/o paint and trim extra) with no mention of range increase or decrease over base model.

Free charging will be of limited value if not close to worthless to those that charge at home or are distant from Electrify America chargers.
 

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Id4 AWD dual motor Statement Package equipped to match Model Y AWD dual motor or Mach-E AWD dual motor is $48,175 (w/o paint and trim extra) with no mention of range increase or decrease over base model.

Free charging will be of limited value if not close to worthless to those that charge at home or are distant from Electrify America chargers.
Very likely that dual motors will reduce range, I think. It always does with other vehicles...?
 
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