2023 Volkswagen ID.4 Getting $1,500 Price Increase

We have some bad news for shoppers looking to purchase a Volkswagen ID.4. Electrek, which received a letter that Volkswagen sent to reservation holders, reports that pricing for the 2023 Volkswagen ID.4 is going up. Buyers can expect an increase of $1,500 for every electric SUV that’s built on and after January 4. The price increase will also affect reservation holders.

Based on the price increase, buyers can expect to see these prices, which include destination, for the 2023 ID.4:

• Standard: $40,290
• S: $45,290
• Pro: $45,290
• AWD Pro: $49,090
• Pro S: $50,290
• Pro S Plus: $52,740
• AWD Pro S: $54,090
• AWD Pro S Plus: $56,540

Volkswagen claims that the price increase for the 2023 model year is because of an “increase in the cost of goods and supply chain shortages.” Consumers will see the higher prices for the ID.4 on VW’s website starting on January 4.

Increasing prices, especially for current reservation holders, is a terrible thing to do, but it’s become something of an industry standard for 2023. Numerous automakers are raising prices for their vehicles next year and are all blaming it on inflation and supply chain shortages. Most brands have decided to give reservation holders a pass since they agreed to purchase a vehicle before pricing went up. We’re sure some reservation holders will decide against going through with their original order and VW will probably hear an earful from disgruntled buyers.

Something similar happened last year. Volkswagen forced reservation holders with an order for a 2021 ID.4 into buying a pricier 2022 model. VW made things right, though, by offering consumers with an order for a 2021 ID.4 with a Customer Support Bonus Code worth $765 off of a 2022 model. The bonus code essentially wiped out the increase from the 2021 model to a 2022 model. Volkswagen hasn’t made any announcements of offering a similar bonus code for the recent price increase, but it is possible, especially if the automaker gets a lot of backlash.

There is some good news, though, as the 2023 ID.4 could be eligible for a higher federal EV tax credit. The U.S. Treasury has postponed when the government will officially enforce the tax credit requirements for electric cars that are a part of the Inflation Reduction Act until March 2023. With the all-electric ID.4 being built in Chattanooga, Tennessee, there’s a good chance that the vehicle will be eligible for the full $7,500 federal tax credit for the first three months of 2023. Before, consumers were only eligible for half of the tax credit.

VW is working on increasing production of the ID.4 by speeding things up at its plant in Chattanooga and because of a new battery deal with supplier SK. For the upcoming 2023 model year, SK will provide the battery packs for the Standard and S ID.4 trims. The battery packs from SK will allow for 170-kW charging capability, which means even quicker recharge times with 10% to 80% only take 30 minutes compared to 36 minutes with batteries from LG Energy Solution.

With Volkswagen looking to increase production of the ID.4, the automaker will also be ending the ID.4 reservation system on January 4, 2023. The German automaker expects to get a lot more vehicles to dealerships soon, which means that consumers won’t have to wait months for their orders to arrive.

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Source: Electrek