2023 VW ID.4 gets price bump, even for reservation holders

2023 VW ID.4 gets price bump, even for reservation holders

There’s definite bad news and potential good news for shoppers trying to put a Volkswagen ID.4 in the driveway. Electrek got hold of a letter VW sent to reservations holders informing expectant buyers that the 2023 ID.4 will cost an additional $1,500 for every unit built on January 4 and afterward. The company included the same information in a segment of its FAQ for reservation holders, confirming they’ll be charged the new amount due to an “increase in the cost of goods and supply chain shortages.” Updated MSRPs will hit the VW site on the appointed day; after the $1,295 destination charge, the sums for the entire model lineup will be:

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

The MSRP switcheroo is causing the expected consternation among those who have booked spots. The same thing happened last year after reservation holders for the 2021 ID.4 got bumped to the more expensive 2022 model year. In that case, though, the automaker sent buyers waiting for a 2021 ID.4 a Customer Support Bonus Code worth $765 off of a 2022 ID.4, representing the difference between the model year prices. There’s been no indication of a repeat, but we’re still a few days out from the main event.

What might offset that bump for some buyers is the chance of a larger federal tax credit. With the U.S. Treasury having postponed the enforcing the tax credit requirements in the Inflation Reduction Act until sometime in March 2023, ID.4 units built in VW’s Chattanooga, Tennessee plant could qualify for the full $7,500 amount until at least sometime in March. Previously, ID.4 buyers could only have claimed half the credit at most. 

The automaker’s making positive noises about increasing deliveries as well. Part of that comes from healthy production in Chattanooga, part of it comes from VW adding a second battery supplier. LG Energy Solution had provided all ID.4 packs until the 2023 model year. For 2023, SK On will provide the packs that power the Standard and S trims with the smaller 62-kWh battery, while the 82-kWh Pro pack could come from LG or SK. Charging time is the one key difference between the two batteries. The SK’s faster 170-kW charge capability means a refill from 10% to 80% takes 30 minutes instead of the 36-minute quotes for the LG pack that maxes at a charge speed of 150 kW. Reservation holders can find out which battery’s going into their ID.4 by looking at their reservation account. Buyers will find the specifics on the Monroney.

The VW letter said the automaker would end the ID.4 reservation system on January 4 now that it expects enough production for dealers to begin receiving inventory units in the near future. Reservation accounts will remain active until the keys for the last pre-booked ID.4 have been handed over to the owner. 

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