Why are the VW ID.x range so cheap?

[paralla]

kambites said:

stickleback123 said:

Bit of a segway, but do you actually only do 5000 miles a year? I always see these lease deals that look like amazing value but they're always for tiny mileages.

5k miles a year isn't that far below average; even pre-covid average.

I just handed a Golf R estate back to the lease company after four years with 18000 miles on it, so 4500 miles a year. The Tiguan is a replacement for the Golf. We live in central London, it's not used for commuting to work and it's not our only car.

[anonymous-user]

abzmike said:

AER said:

I find that quite hard to believe for two reasons. Firstly, the equivalent EV weighs a large fraction more than an ICE and, secondly, the battery, which is a substantial proportion of the BOM cost, has never been manufactured at the rate necessary to have BEVs falling off the end of the production line at the same pace as ICEs. Someone is doing some serious extrapolation somewhere.

Since when were cars priced by the pound?

The whole Land Rover range must be!

[kambites]

stickleback123 said:

I've just googled it and get figures between 7k and 9k a year - I'd really not realised it was that low.

It's been falling for years. Just before covid knocked everyone's mileages down, the average UK mileage for both drivers and registered cars (there's about the same number of each) dipped below 7k miles.

So yeah there's a good reason these lease companies offer deals for 5k, 7k, etc. miles per year - it's a very popular use-case.

Edited by kambites on Tuesday 6th July 14:47

[Dave Hedgehog]

Flooble said:

I see they have rejigged the prices again and they are only just above 30k now. VW always used to price a notch above the competition, e.g. a Polo was priced closer to an Astra than a Corsa. But with the ID range they seem to be undercutting even Hyundai and Kia.

Any idea what is going on?

two things, they are making more than they can sell (in the first sales qtr for the ID3 they gave everymember of staff they could one and got every dealer to reg as many demo's as they can)

they are reliant on selling a lot of them to keep the fleet CO2 avg down to avoid any EU fines.

personally i think they have played too safe and made the car even more boring to look at than the golf

cheapest one i have seen was 25k, will be interest to see if they get any cheaper

[kambites]

Dave Hedgehog said:

cheapest one i have seen was 25k, will be interest to see if they get any cheaper

Where did you see a £25k ID3? That really is remarkable value.

ETA: OK there's one for not much more than that on Autotrader.

[wisbech]

Also - a major change in technology like this is a chance for new brands/ manufacturers to muscle in (cf Tesla, and the Google & Uber programmes aimed at autonomous cars that could pivot to EV) So looks like VW are trying to head competition off at the pass, by trying to get to scale fast in EV.

[V-spec]

Dave Hedgehog said:

they are reliant on selling a lot of them to keep the fleet CO2 avg down to avoid any EU fines.

This

In January 21 VW announced that it missed the 2020 CAFE target by 0.5g CO2 and had to pay a fine of “more than 100m euros”

I guess they have calculated how many of the ID range they can sell at a loss vs the potential fine for 2021 (targets get lower every year)

[annodomini2]

kambites said:

Dave Hedgehog said:

cheapest one i have seen was 25k, will be interest to see if they get any cheaper

Where did you see a £25k ID3? That really is remarkable value.

ETA: OK there's one for not much more than that on Autotrader.

It was on DriveTheDeal last week.

That was brand new, not 2nd hand.