The Volkswagen ID.4 was once one of the few small electric SUVs on the market that could compete with the Tesla Model Y internationally. Today, the ID.4 isn't as popular with car buyers and it's set to be replaced by the upcoming ID. Tiguan EV, says Car And Driver.
But that change means drivers can benefit from major savings on the ID.4 before it's replaced.
Here's what car buyers need to know about huge discounts on the German automaker's compact electric SUV model.
Volkswagen is slashing ID.4 electric vehicle prices
Volkswagen is giving drivers a customer bonus of $12,500 toward the lease or purchase of a 2025 Volkswagen ID.4, according to EV news site Electrek. The $12,500 customer bonus is limited to 2025 model year ID.4 EVs at participating dealerships, which can be challenging to find.
The
offer is available from September 1 to November 2, 2026.
The customer bonus exceeds the $7,500 federal electric vehicle tax incentive eliminated by the Trump administration in September. Volkswagen is also offering a separate $6,000 customer bonus for drivers leasing or purchasing the 2026 VW ID.4 electric SUV.
Volkswagen is offering such steep discounts on remaining ID.4 models following the end of its production in Chattanooga, Tennessee, to clear inventory and make way for the vehicle's replacement. Since EV demand has slowed in 2026, Volkswagen must offer aggressive pricing cuts to make the ID.4 an appealing option compared to popular segment rivals like the Tesla Model Y, Hyundai Ioniq 5, and Kia EV6.
You can take advantage of this deal by searching regional dealership inventories and the official Volkswagen offers page.
Is the Volkswagen ID.4 a good deal?
The most affordable Volkswagen ID.4 model in my region is the 2026 Volkswagen ID.4 Pro which is listed for $47,477 before taxes and additional fees. Even after the 2026 model year customer bonus of $6,000, the ID.4 costs more than $40K, which isn't great for its segment.
Hyundai's 2027 Ioniq 5 small electric SUV starts at just $35,250 for the SE Standard Range trim. It has 245 miles of range, which will suffice for drivers with home charging systems. The SE upper trim starts at $37,750 and has up to 318 miles of driving range.
Hyundai's compact electric SUV is a better deal for many budget-focused drivers.
What's the best small electric SUV for 2026?
In terms of performance and value for the money, the Tesla Model Y remains one of the most popular electric SUV options for 2026 and is the best option for many drivers. It starts at $39,990 for the Rear-Wheel Drive trim. The electric SUV can travel for about 321 miles on a full battery.
It goes from 0 to 60 mph in 6.8 seconds. The Model Y can charge from 10% to 80% in around 30 minutes. Tesla's electric SUV is popular because of its practicality, refined cabin, engaging performance specs, futuristic software, and superior charging experience.
Charles Singh is an Autos Connect Reporter for The Tennessean, part of the USA TODAY Network. Contact him at CSingh@Gannett.com.
This article originally appeared on USA TODAY: Looking for an affordable EV? Volkswagen is cutting prices by $12,500.
