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Discussion Starter · #1 ·
I am a loyal VW customer. My first VW was a 1967 Beetle. I currently still own a 2011 Touareg.
I have an ID.4 FE on order. I ordered 15 minutes after the online reservation system was opened.
I am a Certified Public Accountant by profession.

1. The dealership I have assigned the car to ( a very high volume dealership) has transferred my file three times.
and never has an answer to any of my simple, straightforward questions.
2. I called Customer Service of VW America. Not much help either. The rep. had to put me on hold to answer every question.\
3. I asked about pricing and possibly transferring the reservation to a different dealership. No answer if that can be done.
4. Now all buyers are at the mercy of each dealership for pricing. That is really too bad and will create bad will for VW.
5. Hopefully, as forum members purchase or lease, they will post the amount and terms to help others.

There will be buyers that cancel their orders...and the volume dealers will be sitting with inventory.
It may be better to wait to negotiate.

I just want to get a fair price.....no higher or lower than other buyers.

Any comments or suggestions will be appreciated.
 

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Proud FE owner
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I would recommend going on the vw.com chat. I have found them consistently well-informed about the ID.4 reservation process and other general VW terms. I've spoken with "Mia" several times and her knowledge is outstanding. They helped me switch dealers.

There are constraints within the franchise dealer system which, by Federal Trade Commission rule, puts limits on how involved a manufacturer can be in the pricing arrangements made between a dealer and the buyer. Someday, the dealer network will go away a la Tesla, but that's a ways off for VW. VW will steer clear of communicating any pricing other than MSRP with a buyer. They have, however, urged dealers to not play games with fees and markup.

The ID.4 will likely be in high demand into 2022 and cancelled units arriving at dealerships are unlikely to be discounted. Many dealers will chose to offer these units to customers with reservations in-waiting first, before offering them to the general public at MSRP.
 

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Discussion Starter · #3 ·
I would recommend going on the vw.com chat. I have found them consistently well-informed about the ID.4 reservation process and other general VW terms. I've spoken with "Mia" several times and her knowledge is outstanding. They helped me switch dealers.

There are constraints within the franchise dealer system which, by Federal Trade Commission rule, puts limits on how involved a manufacturer can be in the pricing arrangements made between a dealer and the buyer. Someday, the dealer network will go away a la Tesla, but that's a ways off for VW. VW will steer clear of communicating any pricing other than MSRP with a buyer. They have, however, urged dealers to not play games with fees and markup.

The ID.4 will likely be in high demand into 2022 and cancelled units arriving at dealerships are unlikely to be discounted. Many dealers will chose to offer these units to customers with reservations in-waiting first, before offering them to the general public at MSRP.
Thank You
 

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ID.4 FE Blue
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My contact at the dealer has been really responsive. I am supposed to take possession of my FE later this week. I asked and it was confirmed that I will pay MSRP. If I decide to finance the car through one of VW's approved lenders, I may get a small discount. Will let everyone know what happens. I agree that negotiating a price after one has waited for 6 months is extremely frustrating.
 

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ID.4 FE Blue
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I am assuming that financing the ID.4 will not affect the $7.5K tax credit? Could someone please confirm? Thank you!
 

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ID.4 ProS Gradient Dusk Blue waiting in North Hills?
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I am assuming that financing the ID.4 will not affect the $7.5K tax credit? Could someone please confirm? Thank you!
As in Purchase financing? I would bet not.
 

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Dusk Blue ID.4 FE
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Might be a good thing to note for anyone who hasn't looked into the Federal EV tax credit. Financing (not leasing) will not affect the tax credit, but also the tax credit will not affect financing. The tax credit will not reduce the amount borrowed or the monthly payment amount. The $7500 doesn't come into play until around this time next year when filing 2021 taxes.
 
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Mythos Black FE- Reservation January 13 (Previously Pro S), Jan 13, 9:45 AM PST
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So, those buying will have a higher payment until they receive their tax credit next year? The way to get a lower payment now is to lease. This goes back to an issue discussed in this forum, leasing vs financing. Does it make sense in the longterm to lease now, if you intend on buying the car at the end of the lease?
 

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Those buying will just have a higher payment, period. Only if they can front the $7500 to recover later would they get a lower payment. If you're recovering/applying that credit later, the best it does for you is help you make some of the higher payments in advance.

That said, you don't have to wait until this time next year to get that money. My plan is to reduce my withholding for the rest of 2021 so that I don't get a large refund next year, and I instead get it incrementally via every paycheck for the rest of the year.
 

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Mythos Black FE- Reservation January 13 (Previously Pro S), Jan 13, 9:45 AM PST
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Very interesting. I didn't think about it like that.
 

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VW ID.4 1st (picked up 3/19/21).
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So, those buying will have a higher payment until they receive their tax credit next year? The way to get a lower payment now is to lease. This goes back to an issue discussed in this forum, leasing vs financing. Does it make sense in the longterm to lease now, if you intend on buying the car at the end of the lease?
I don't know - I have never leased, so I am not familiar with the shenanigans that they pull when you lease, so I am less inclined to lease.
 

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Yeah, a point of sale reduction would be easier and less regressive. With how it is now, you either have to be able to put up a lot of cash to account for the credit now, or be financially disciplined enough to a) not blow a $7500 windfall tax refund that you've effectively already spent and b) probably keep track of that windfall over the life of the loan since you'll be paying a monthly bill of such value as though there were no credit for months/years before/after you get the one-time credit.

Edited to add: and that's all assuming you have sufficient tax liability to get the full $7500 back. From a number of standpoints, it might be easier to do a lease even if it isn't as good of an overall financial decision.
 

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Remember, you can't benefit from the federal tax credit of $7500 unless you owe that much in Federal taxes when you file your 2021 tax return next spring. If you don't owe any federal taxes, you get no tax credit. If you owe, for instance, $3500 in federal taxes, you can use $3500 of the credit to offset it. So for us old retired people, or folks who will report a loss in 2021, it may be better to lease, in which case VW will claim the credit, and reduce the price of your car by $7500.
 

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Mythos Black FE- Reservation January 13 (Previously Pro S), Jan 13, 9:45 AM PST
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I don't know - I have never leased, so I am not familiar with the shenanigans that they pull when you lease, so I am less inclined to lease.
I agree. I have never leased a car before. I know I want to keep the car long-term.
 

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I agree. I have never leased a car before. I know I want to keep the car long-term.
Hopefully I (or someone else on here, if I've missed it) gets a chance to do a straight comparison. It ought to be possible with the information we have to attach a dollar value to each option (lease then buy, or finance up front). Of course, a final decision might not come down to just numbers, but it would certainly inform my decision.
 

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Dusk Blue ID.4 FE
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Someone please correct any of my mistakes but this is my back of the napkin:

Loan VW excellent credit rate of 1.85%:
2342 down
748 monthly
26928 after 3 yr
44880 after 5 yr
Total with down 47222
Out of pocket after fed credit 39722

Lease VW excellent credit MF of .00143, 10,000 mi 36 mo residual of 49; federal credit passed on as lease credit:
2342 down
449 monthly
16164 after 3 yr
19600 lease cost (lease + down + acquisition + disposition)
22143 face residual buyout
Out of pocket total 41743 (assuming no financing on residual buyout)

Of course there may be other factors for each case worth considering. For example, PA charges a 6% sales tax on purchase, and an additional 3% usage for leases. So for me I need to consider the additional cost of a 9% tax vs 6% tax.
 

Premium Member
VW ID.4 1st (picked up 3/19/21).
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So for a lease, vw gets the 7500, and effectively rebates it to you?

How about state incentives?
 
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