Volkswagen ID.4 Price Increase By $1,500; VW Cites Battery Cost Concerns

The Volkswagen ID.4 just got a price hike for 2023.

Volkswagen made headlines just this year, when it finally got its Chattanooga, Tennessee plant officially producing VW ID.4s. The plant also introduced a lower-priced, smaller battery variant that clocked in under $38,000 USD, including destination charges. Well, that price is no more, Volkswagen announced a $1,500 price increase on all VW ID.4s made after January 4, 2023. Now, the ID.4 will start at $40,290 for the cheapest VW ID.4 Standard.

Unfortunately, this price hike is solely build-date dependent, meaning, if you’ve already reserved and are in waiting for your VW ID.4, your new price could be higher, if you take delivery of an ID.4 made after January 4. According to several sources, Volkswagen won’t update its website with the new prices until January 4, but it did send out emails to reservation holders informing them of the pricing change.

Volkswagen says that rising battery manufacturing costs are the reason for the ID.4’s price hike. The materials and heavy metals needed to make the pack have risen, and thus, the price of the ID.4 had to come up.

It isn’t all bad, though. Because the new ID.4 is now made in the United States, it once again qualifies for an EV tax credit up to $7,500, which could make the ID.4’s price effectively in the mid $30,000 range.

Also, Volkswagen won’t be accepting reservations for the ID.4 after January 4. It says that there soon will be enough inventory on lots to purchase just like any other Volkswagen vehicle.

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