[Aero247]

I initially had a reservation for an ID.4 Pro RWD since the day it was available and even gave the extra $400 to lock in the reservation. Since that time, I've gone ahead and canceled it as it didn't make sense for me to purchase the car. However, my WANT of this car has gotten the best of me and now I'm looking at the leasing options. I'm based in Central California and am trying to understand how it would work with all of the incentives that are available here. Would love feedback on the below if I'm right or if I'm really missing the mark here.

The lease terms say "Monthly lease payment based on MSRP of $39,995 and destination charges less a $7,500 Lease Incentive and suggested dealer contribution resulting in a capitalized cost of $31,182.80. Excludes tax, title, license, options, and dealer fees. Amount due at signing includes first month’s payment, customer down payment of $2,501, and acquisition fee of $699. Monthly payments total $13,644."

Since I'm based in California, would I also be able to receive the below rebates/incentives that I could apply to the cost of lease:

• $1,500 point of sale rebate in California
• $2,000 for Clean Vehicle Rebate Project in California
• $5,000 for Clean Vehicle Assistance Program (still waiting on approval letter)
  • If I don't qualify for that, I would qualify for $3,000 from San Joaquin Air Board Rebate

So doing the math here on everything with best case that I get approved for the $5,000. The monthly payments would total $13,644 - $1,500 - $5,000 (since these two are deducted at point of sale) really bringing the monthly total down to $7,144. Then I would get the $2,000 from the Clean Vehicle Rebate Project, which I could apply to the cost of the lease, which would really bring the monthly cost down to $5,144. I would also look at trading in a car that's valued at about $4,000 so bringing the total down to $1,444. Then if you add on $2,501 and $699 for the fees and downpayment (excluding tax, title, etc.) it brings the total for a three year lease to $4,344 or $120 a month.

Am I missing anything here? Seems like a better idea for me to lease the ID4 than actually buy it.

 

[TimD]

• $5,000 for Clean Vehicle Assistance Program (still waiting on approval letter)

Am I missing anything here? Seems like a better idea for me to lease the ID4 than actually buy it.

I’m sorry I don‘t have an answer. Actually, I‘m wondering the same thing about leasing. The real reason I’m responding is that I’d like to hear your experience with the California Clean Vehicle Assistance Program, which I’m considering, like you. Please let us know how it works out.

 

[FredT]

Am I missing anything here? Seems like a better idea for me to lease the ID4 than actually buy it.

Looks like you have it pretty well figured out! However, whether to lease or buy still comes down to a) how long you want to keep the car, and b) which is overall less expensive. All of the Federal and California rebates and credits apply equally to buying for cash or financing. For me, I am sure that I will not keep the car for more than three years and don't want the hassle of selling, so I will lease. In figuring your costs, don't forget California sales tax, which is a big extra cost. It is applied for the total sales price for cash purchase or finance, but only on lease payments when leasing.

 

[Aero247]

I’m sorry I don‘t have an answer. Actually, I‘m wondering the same thing about leasing. The real reason I’m responding is that I’d like to hear your experience with the California Clean Vehicle Assistance Program, which I’m considering, like you. Please let us know how it works out.

I applied for it in late-November and am still waiting to hear back on if I'm approved. If you're thinking about it, I would say apply for it now.

 

[Aero247]

Looks like you have it pretty well figured out! However, whether to lease or buy still comes down to a) how long you want to keep the car, and b) which is overall less expensive. All of the Federal and California rebates and credits apply equally to buying for cash or financing. For me, I am sure that I will not keep the car for more than three years and don't want the hassle of selling, so I will lease. In figuring your costs, don't forget California sales tax, which is a big extra cost. It is applied for the total sales price for cash purchase or finance, but only on lease payments when leasing.

Well that's comforting! I've owned my current car since 2011 as I've been brought up to pretty much just drive a car until it dies. We did a lease for my wife's car last year as the plan was for us to lease her car for 3 years then to buy an EV since we figured battery tech would be really great in 2023 and we'd have more options. There's just something about the ID4 that I really like but it seems like so much new tech is coming in the next few years that it makes better sense for me to just lease it. Especially when it's only like $120 a month.

 

[TimD]

I applied for it in late-November and am still waiting to hear back on if I'm approved. If you're thinking about it, I would say apply for it now.

Thanks for the tip. My 2020 income may qualify but not 2019, so I inquired into which tax year the Program will use when judging eligibility, and they said they’ll use 2020 if that’s what’s available to them. So I need to hurry up and submit my taxes. I noticed the grant expires 35 days after approval with what seems to be a 90-day extension during the pandemic, so looks like a bit of a juggling act getting the timing right.

 

[Aero247]

Thanks for the tip. My 2020 income may qualify but not 2019, so I inquired into which tax year the Program will use when judging eligibility, and they said they’ll use 2020 if that’s what’s available to them. So I need to hurry up and submit my taxes. I noticed the grant expires 35 days after approval with what seems to be a 90-day extension during the pandemic, so looks like a bit of a juggling act getting the timing right.

It's a 90 day extension so you really have 125 days to redeem it.

I think you'll be fine if you just submit a copy of your W2 since they aren't verifying income with the IRS right now.

 

[TimD]

It's a 90 day extension so you really have 125 days to redeem it.

I think you'll be fine if you just submit a copy of your W2 since they aren't verifying income with the IRS right now.

I’m retired, so no W-2. I wonder how they handle that. Here's what they told me: "At this time if you have or are filing for 2020 taxes we will request those however If you are not planning on doing your 2020 taxes soon we will require your 2019 tax return."

 

[Linewalker]

Hi, I have reserved for the Pro and try to figure out how we can get the California Clean Fuel Reward for the instant discount of $1,500 off the lease capitalized cost? ID4 is currently not on the eligible vehicle list of the State's $2,000 incentive as well. Also, does anyone know what is the residual value of ID4?

 

[Aero247]

Hi, I have reserved for the Pro and try to figure out how we can get the California Clean Fuel Reward for the instant discount of $1,500 off the lease capitalized cost? ID4 is currently not on the eligible vehicle list of the State's $2,000 incentive as well. Also, does anyone know what is the residual value of ID4?

I wouldn't worry too much about it not being on the list as it's not available in the US yet. I'm sure VW will make sure they are on the list.

 

[TT97]

Also, does anyone know what is the residual value of ID4?

The residual value depends on the interest rate (money factor). They have not advertised the rate or RV. Base on some trail and error, best guess is that RV will be around 39-41% of MSRP or 48-51% of MSRP net of the Federal Credit. On the RWD Pro, the residual value will be approx. $15½-17k.

 

[Linewalker]

Thanks for your input, TT97. Does that mean the car does not worth that much after 3 years, and if I lease it, I will have to pay for a chuck of the depreciation on the car? I think the RV should be in the range of 57% for a typical new car after 3 years.

 

[TT97]

Thanks for your input, TT97. Does that mean the car does not worth that much after 3 years, and if I lease it, I will have to pay for a chuck of the depreciation on the car? I think the RV should be in the range of 57% for a typical new car after 3 years.

Technically, yes. You are paying for the depreciation, however, it is part of the $379 payment (you are not paying extra for it). Also, the $7,500 federal credit is making up a large portion of the depreciation. On the flip side, if you want to buy at the end of the lease, it's a much smaller purchase price than a typical lease end buyout.

As far as usual RVs, it ranges considerably by car (and even by regions and options). The Tiguan (which can be argued as the ICE ID.4 counterpart) is about 57% RV on a 36/10 lease. The ID.4 is lower due to the federal credit that suppresses used car values as well as the ID.4 being a new entry so there is no history on used car value.

 

[Linewalker]

Hopefully they can take the $1,500 off as well when the car is ready for us to pick up. Does anyone know if the Pro has the rear liftgate which there is a button to press on the lid for closing the liftgate by itself instead of manually by hand? The only difference that the Pro S has is you can open and close the rear liftgate by using your legs near the sensor?

 

[RocketVol]

Hopefully they can take the $1,500 off as well when the car is ready for us to pick up. Does anyone know if the Pro has the rear liftgate which there is a button to press on the lid for closing the liftgate by itself instead of manually by hand? The only difference that the Pro S has is you can open and close the rear liftgate by using your legs near the sensor?

The Pro has a manual lift gate only no power, Pro S has the power lift gate with both the button and the foot sensor

 

[TimD]

The Pro has a manual lift gate only no power, Pro S has the power lift gate with both the button and the foot sensor

If the Pro S is like the European 1st Max, the rear life gate work like this:

 

[Linewalker]

I looked at the owner manual for UK, and it had shown all those ways of opening the rear liftgate but it did not specify which model has which feature. So it was a little confusing.

 

[Aero247]

Hopefully they can take the $1,500 off as well when the car is ready for us to pick up. Does anyone know if the Pro has the rear liftgate which there is a button to press on the lid for closing the liftgate by itself instead of manually by hand? The only difference that the Pro S has is you can open and close the rear liftgate by using your legs near the sensor?

VW will likely move heaven and earth to make sure customers get the $1,500 at POS and the additional $2,000 from the state. It'll likely start to get listed right before the car is available.

 

[Aero247]

I’m retired, so no W-2. I wonder how they handle that. Here's what they told me: "At this time if you have or are filing for 2020 taxes we will request those however If you are not planning on doing your 2020 taxes soon we will require your 2019 tax return."

I just received my approval. I originally applied for it in November so it takes a good 3 months to get it. I would also suggest checking to see if your dealer is on their approved list and if not, ask them to either get on it or change your reservation. I'm in the Central Valley (Clovis) and only one 1 dealership in Clovis was participating in the program but multiple dealers in Fresno were. Thankfully, the Fresno VW dealer is the only one doing ID4s.

 

[TimD]

I just received my approval. I originally applied for it in November so it takes a good 3 months to get it. I would also suggest checking to see if your dealer is on their approved list and if not, ask them to either get on it or change your reservation. I'm in the Central Valley (Clovis) and only one 1 dealership in Clovis was participating in the program but multiple dealers in Fresno were. Thankfully, the Fresno VW dealer is the only one doing ID4s.

Thanks for the update. Great news that you got your approval! I actually canceled my Pro S reservation in January because I didn't want to take delivery too soon, and I'm now thinking of placing a new order in a few weeks, hoping for delivery in Q2, and I would apply for the grant at the same time. Only one VW dealer in San Diego county, Herman Cook VW in Encinitas, is listed on the Clean Vehicle Assistance Program website, but when I asked on two occasions whether they participate in the Clean Fuel Reward Program, I got no response. And another VW dealer I like said they'll be in the Clean Fuel Reward Program, but they haven't responded to my inquiries about the Assistance program. Frustrating! I'm guessing that many more VW dealers will join the Clean Fuel Reward Program than will join the Assistance program.