VW Says ID.3 Cheaper Than ICE, What Does That Mean For ID.4?

With the launch of the new ID.3 compact electric hatch, Volkswagen is now saying that it’s “just as inexpensive as a car with an internal combustion engine.” And that is a big deal not just for that car, but for the upcoming ID.4 that we expect to see in America soon.

The automaker says that the basic version, which we’re guessing to mean the shortest range model, to “be less expensive in Germany in terms of acquisition and operation than comparable internal combustion models.” VW says that in terms of operating expenses alone, the ID.3 will save “about €840 per year.” That’s about $930 in greenbacks.

An ID.3 with a 200-mile range costs €23,430 in Germany, including about €6,000 in incentives. For comparison, a base Golf starts from €26,680.00 with both figures including the 19 percent sales tax in that country. Buyers there also benefit from no road vehicle tax and a lower insurance grouping, on top of not needing fuel.

What does that mean for American buyers? It could mean big things for the ID.4 when it arrives here. Removing the incentives, an ID.3 is about €3,000 more than a Golf. Apply that same math to the ID.4 and you could get an EV that’s nearly the same price as a similarly-sized Tiguan. An all-electric compact crossover like that which starts for around $30,000 (the Tiguan starts at around $25,000) could end up costing buyers closer to $25,000 after federal and local incentives are applied, and that’s again before fuel savings.

With all due apologies to the Tesla Model Y (MSRP $48,690), that could make the ID.4 the first affordable electric crossover by a large margin. That, of course, is assuming that prices carry over linearly like that. Still, our estimates could be off by nearly $10,000 and the end result of it being the first affordable crossover would stand.

As for when the ID.4 will arrive, we’re still not exactly sure. But Volkswagen has said that the ID.3 is on track to hit the market this summer.