Volkswagen has announced its third price hike of the year, raising the cost of 2023 ID.4 models by $1,500. The new total for the electric SUV is now $38,995, which is still below the EV industry’s average of $66,000.
Volkswagen is certainly not alone in raising price tags on new cars. Vehicle costs rose steadily throughout 2022, until they reached an all-time high in November. The brand did not provide a reason for the increase, even though the ID.4 is now $3,000 more expensive than originally calculated.
However, for customers looking to purchase the ID.4, the price increase will not apply on units made before January 4. Some current customers who receive their vehicle in the final weeks of 2022 will be spared the extra $1,500, but many with reservations set to arrive next month may be surprised to see the hike applied. Volkswagen has noted that reservations are not price guarantees.
However, the automaker did have some good news to offer. After December, the company will no longer require buyers to use the reservation system to purchase an ID.4, as it expects to be able to fully stock inventories thanks to its production efforts. While this may not immediately help customers stuck with their order, it does spell good news for the global car industry, which has been hesitant to make any promises for 2023.
Additionally, the Biden Administration’s EV tax credits will become available to consumers starting next month. Ordinary the ID.4 would not apply for these incentives, as the automaker is based in Germany, and only vehicles made in the U.S. can qualify. However, thanks to a new Tennessee plant, all purchases of models made in 2023 will receive the new tax benefits.
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