During the rush to get binding agreements for EVs, the GM of a large VW dealership stated that they would have full inventory of ID4s available by January, all trims and colors, due to the Nashville plant production.
I think I read a similar comment on ID4 availability on LH (but I can’t find the original thread).
Does anyone have more details on upcoming availability? I have 2 incoming orders and originally planned to keep one for my teenage and drive the 2nd one for a few months until an ordered BMW arrives. I’m having sending thoughts on the 2nd one if ID4 availability is really going to increase that quickly. I was assuming that I could sell the 2nd one for at least MSRP less $7500 (I have a binding agreement) in 3-6 months but now I’m not so sure. In addition to available inventory, many people will be eligible for the tax credit on ID4s and that could further impact the resale value.
Thus far, the only thing known about the tax credit for the 2023 ID4 is that it isn’t ineligible. It is not yet known if it will get $0, $3750, or the full $7500. There will be very, very few vehicles, if any, that actually get the full $7500 starting Jan 1.
I personally believe VW will figure out how to meet eligibility requirements. They’re assembling in the US. They have lobbyists working on the battery materials requirements and the release date of those requirements. And they recently signed a deal with a Canadian company for battery sourcing.
I don’t think many will figure it out by Jan 1 of 23. Even if they have a solution in place, it takes time. They need to have it figured out and implemented NOW to make a difference come Jan 1.
There’s a reason the allocated funding for EV tax credits is so low for 2023.
I thought they only had to figure it out by Jan 1 IF the govt releases battery guidelines by Jan 1. If they don’t release battery guidelines, then only US production and income limits apply on Jan 1. Is that not correct?
battery guidelines must be released by no later than Dec 31, 2022 per the IRA. They could be released sooner, and per the IRA, the requirements go into effect immediately after they’re released, but the IRS has basically said that everything kicks in Jan 1.
Now, could they release super broad guidelines or some sort of waiver? Sure. But I haven’t seen anything indicating that’s the plan and the allocation of funding for the EV tax credit for 2023 certainly is inline with them expecting the guidelines to be published and virtually impossible to meet.
I don’t know that you really can look at this as regardless to the tax credit. Inventory levels will probably vary a lot depending on tax credit availability.
Once US built 2023s start hitting the lot, dealers may have to start discounting all the cancelled but delivered 2022 orders made in Germany between now and December 31st. 2022s have lower MSRPs too so few grand off MSRP could make up for the lost tax credit.
Looking at what is happening to Tesla, resale values for EV are definitely impacted by gas prices AND availability. The highest resale for Teslas was in Summer with $5 gas and car shortage. Today with $3.59 gas and more cars in inventory, resale MMR prices on 2022 Model 3 are down around 5k on a 60k msrp.
There are 2023 VINs now showing as US manufactured in NHTSA VIN Lookup. But I do not yet see the vehicle listed as being eligible for $7500 fed ev tax credit under current law (before battery component and income requirements kick in on 1/1/2023). Is there a reason its not eligible or is it the EPA site is not updated yet?
Not only were we waiting on guidance, I wonder if they’ll create a new or separate form to be included with 1040, like they have for solar rebates (5695).
According to the ID4 forums, VW stopped taking orders for the ID4. In some areas, all orders are suspended. In other areas, only orders for the Standard (RWD) and Pro S RWD models are suspended.
“Get in the front row of the ID.4
Thanks for all of the love - the Volkswagen ID.4 SUV is a hit! With the enthusiasm for the Model Year 2023 at a high, we can’t take anymore reservations.
Sign up to follow the ID.4 and be one of the first to know when the vehicle hits the market.”
“Due to high demand and our current production capacity, we are no longer taking reservations for the ID.4 Standard RWD or the ID.4 Pro S RWD. We recommend placing a reservation for another ID.4 trim package. The ID.4 Standard RWD or the ID.4 Pro S RWD may be available in a very limited capacity at a dealership in the future.”
Maybe there be another year of high resale values after all.
Just got the email to lock my TN built standard range ID4. ETA is unfortunately Q1 of 2023 so in my case it will not be tax credit eligible due to the income cap. Still locked the order in, just in case it gets delivered before 12/31; otherwise I will cancel it since without the tax credit it will probably be not flippable…
Standard Range is unlikely. I think the TN plant is cranking out AWD Pro S (non Plus) for sure.
I had a 2021 ID.4… it was… okay. I don’t think they are great EVs for long-term resale as they are pretty budgety compared to the competitors. Back when the ID.4 was released you only had Tesla and the Mach-E as direct competitors but in 2023… you have a large slate of competitors. The only thing it has going for it is the tax credit but if GM can produce Blazers + Equinoxes in volume… there might not be a reason to buy an ID.4
I may buy my 2023 ID.4 order ($38K) since they at least got rid of the cloth seats in the base trim and replaced it with leatherette. The base trim in 2021 was no better than a $27K gas RAV4… probably worse.
While resale is lower for Teslas… they are not for Mach-Es. I just traded in my Mach-E GT Performance for $2K over MSRP (this is before the tax credit) whereas there is no way I’d get even close to MSRP for a Model Y - probably $5K under MSRP in a trade.
The Ford dealer sold the GTPE less than 3-4 days later for $5K over MSRP. This was just this past week and not two months ago.
So I would not say all EVs are devaluing due to gas prices being low. They are quite low in Florida and yet EV sales are strong for non-Teslas.
The problem with Tesla values is that the Austin and Fremont factories are CRANKING out cars. Like 5K Model Ys a week I think. Kia and Hyundai can barely ship and sell 1.5K Ioniq 5s and Ev6s in the US. Ford barely pumps out 5K cars from Mexico a month. Tesla has flooded the market with 3s and Ys.
