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Dealer Incentives under MSRP for ID.4

6469 Views 17 Replies 9 Participants Last post by  ChristophW
With new ICE cars, VWs have a MSRP price and then typically a set of dealer incentives to buy from one dealer over another.

For the ID.4 am I expected to pay MSRP? In my area there are 4 major dealers. Shouldn't the dealers compete for my business and provide a dealer incentive to buy from them and increase their sales numbers?

Have any of you negotiated between dealers on an ordered ID.4?

Government discounts are between me and the government, what I'm offered and what I quality for... so don't comment on that please.

I was "told" when asked... "VW is selling the electric cars differently and we won't negotiate. It's VW's policy" I don't believe it. The dealer must be making money on the transaction and one dealer would be willing to work on a lower margin over another one in my area. It seems the time to negotiate is before the $400 payment.

Thanks for your insights
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With new ICE cars, VWs have a MSRP price and then typically a set of dealer incentives to buy from one dealer over another.

For the ID.4 am I expected to pay MSRP? In my area there are 4 major dealers. Shouldn't the dealers compete for my business and provide a dealer incentive to buy from them and increase their sales numbers?

Have any of you negotiated between dealers on an ordered ID.4?

Government discounts are between me and the government, what I'm offered and what I quality for... so don't comment on that please.

I was "told" when asked... "VW is selling the electric cars differently and we won't negotiate. It's VW's policy" I don't believe it. The dealer must be making money on the transaction and one dealer would be willing to work on a lower margin over another one in my area. It seems the time to negotiate is before the $400 payment.

Thanks for your insights
I would think the time to negotiate is after it leaves the factory. The $500 is fully refundable and the dealer has a car coming that they need to sell.
A lot of the discounts that are now appearing at dealers are probably cars that the original buyer canceled and the dealer now needs to sell.
Don't forget, the $7500 tax credit can only be used on new cars. As soon as the car is driven off the lot, the resale value is at least $7500 less than the sale price.
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This is probably just a sales tactic, but FWIW, the EV specialist at my dealer told me that selling below MSRP was not an option for them. In fact, he said that VW would cut off their ability to sell ID.4s in the future if they discounted these reserved cars. Maybe VWs way of trying to avoid competition between dealers? The EV specialist also indicated that they would not markup the car either.
Maybe I can get them to throw in snow tires and rims :)
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This is probably just a sales tactic, but FWIW, the EV specialist at my dealer told me that selling below MSRP was not an option for them. In fact, he said that VW would cut off their ability to sell ID.4s in the future if they discounted these reserved cars. Maybe VWs way of trying to avoid competition between dealers? The EV specialist also indicated that they would not markup the car either.
By law, VW cannot dictate the price a dealer charges. They've made it clear to dealers they didn't want any shenanigans with gouging or making reservations in order to flip them.
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Dealers want to sell and get ID4s on the streets for the public to see. Plus what they sell now affects what they can get in the future. High volume dealers have sales quotas also. They also want to compete with other EVs.
The trouble is if you try to walk away they are left with a car they can markup.
Dealers make the most profit in the finance department not the showroom.
Used car prices are up so a trade-in is a way to reduce costs.
EVs are really not in high demand- yet. So their walk-in buyers are going to be fewer. Most people have range anxiety so that helps make a smaller demand.
Most walk-ins don't even know about EVs and since there will be few of them the sales force will try to sell them what they have on their lot.
All this might be mute because of the novelty of the ID4s.
it is moot
How long till we see VW start running advertising only for the ID4? How many adds have you seen strictly on a Mach-e and not a general add for Ford?
How long will NA wait for the AWD? Initially Europe will get most, like they did on the ID4. More demand and higher sales there. Plus they need to get their percentage of EVs up to avoid more fines from EU.
I'm sorry for you guys who ordered AWD. Now 3rd or 4th Qtr☹... sucks.
VW has been extremely clear that the AWD ID4 was not coming to the NA market until Chattanooga was completed (at earliest 2022). That they are moving up deliveries of "pre-ordered" AWD units by shuffling Mosel production to squeeze in an AWD production run in 3/4Q '21 demonstrates that their ramp up of parts supplies are at a point where they are ready & only need the new factory to get completed.

parts are planned & then order executed at least 3 quarters ahead of time.
Where did you ever hear that information from?
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VW has been extremely clear that the AWD ID4 was not coming to the NA market until Chattanooga was completed (at earliest 2022). That they are moving up deliveries of "pre-ordered" AWD units by shuffling Mosel production to squeeze in an AWD production run in 3/4Q '21 demonstrates that their ramp up of parts supplies are at a point where they are ready & only need the new factory to get completed.

parts are planned & then order executed at least 3 quarters ahead of time.
Where did you ever hear that information from?
VW has been extremely clear that the AWD ID4 was not coming to the NA market until Chattanooga was completed (at earliest 2022).
They were clear when I placed my order for AWD last Dec. when they said expected delivery was Q2 2021, which I think meant July-Aug. 2021. Then it quickly slipped to Q3, and now Q4 (but thats not been updated on their website when I check my order.)

The main thing I read about 2022/2023 whenever TN factory opens is the price may be lowered due to less import duty.
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VW has been extremely clear that the AWD ID4 was not coming to the NA market until Chattanooga was completed (at earliest 2022). That they are moving up deliveries of "pre-ordered" AWD units by shuffling Mosel production to squeeze in an AWD production run in 3/4Q '21 demonstrates that their ramp up of parts supplies are at a point where they are ready & only need the new factory to get completed.

parts are planned & then order executed at least 3 quarters ahead of time.
New to me. Never heard or saw that the AWD would be produced in the US.
My impression was that a less expensive model with a smaller battery was going to be produced in Tennessee. Certainly should have a lower shipping cost.
Most production lines don't stock parts but have suppliers deliver them JIT (just in time) for whatever the the assembly line needs.
I am honestly excited about getting my ID.4 when it comes, but I don't think VW has been extremely clear about anything really. I love vwidtalk, but I shouldn't have to follow an online forum to learn most things about a car that people are putting money down to reserve. It's been my biggest complaint throughout the process.
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From back on Sep. 23 2020 Consumer reports review
For now, the ID.4 will be built at Volkswagen’s factory in Zwickau, Germany, but in 2022 all ID.4s for the U.S. market will be produced at the carmaker’s assembly plant in Chattanooga, Tenn. At that point, Volkswagen says, it plans to offer a version of the ID.4 that will cost “around $35,000,” owing to the lack of import duties and transatlantic shipping costs, plus a smaller battery, according to Mark Gillies, Volkswagen of America’s product and technology manager.

I hope that in 2022/3 the US models with the smaller 62kwh battery they still keep the current 82kwh battery as an option.
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If you want to understand what is going on with a German automaker, learn German. If not, you will need to watch the forums of vwidtalk or until some other EV publication translates the news for you in an article.

Having toured Wolfsburg factory; reading about production stoppages & why in German newspapers for 15 years & owning an e-Golf (after researching it for a year) & then seeing the timeline on parts changes over the last year model offering of the MKVII. Yeah... Do a lil more digging & not expect the news to be dished to you with a silver platter.
If you want to understand what is going on with a German automaker, learn German. If not, you will need to watch the forums of vwidtalk or until some other EV publication translates the news for you in an article.

Having toured Wolfsburg factory; reading about production stoppages & why in German newspapers for 15 years & owning an e-Golf (after researching it for a year) & then seeing the timeline on parts changes over the last year model offering of the MKVII. Yeah... Do a lil more digging & not expect the news to be dished to you with a silver platter.
Well thanks for that information👍. IMO, VW hasn't been as transparent as most would like.
I suppose that they don't tell customers much so their competitors won't know either.
If you want to understand what is going on with a German automaker, learn German. If not, you will need to watch the forums of vwidtalk or until some other EV publication translates the news for you in an article.

Having toured Wolfsburg factory; reading about production stoppages & why in German newspapers for 15 years & owning an e-Golf (after researching it for a year) & then seeing the timeline on parts changes over the last year model offering of the MKVII. Yeah... Do a lil more digging & not expect the news to be dished to you with a silver platter.
By the same logic, Volkswagen of America has at least this level of access to what is going on, and easily would be in a postion to be more transparent and forthcoming. This isn't Tesla after all, where there is no PR department and everyone needs to breathlessly follow Twitter.
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