Volkswagen Unveils Its “Leasing Strategy” For ID Electric Vehicles
Volkswagen recently announced its plan to offer its used ID vehicles for lease to keep the cars’ valuable battery packs in their possession for a more extended period of time. The German automaker intends to implement its leasing strategy in North America as well as Europe. There are several benefits to leasing a new vehicle, such as lower monthly payments, lower repair costs (provided that there is a warranty on the car), and there is no need to worry about reselling it. Best of all, since lease terms are relatively short that range from as low as six months to a couple of years, getting a new car every year is a fascinating idea for consumers that desire the latest vehicles.
Volkswagen’s Re-Leasing Method
CEO of Volkswagen, Herbert Diess, points out that re-leasing its EVs allows the company to put battery packs to new uses for fast chargers and home power options. Volkswagen aims for an ID vehicle to be leased at least three times to keep the car in its possession in the long run. For Volkswagen, an end-of-life lease term for an ID vehicle after three leasing cycles would ideally be 1,000 charging cycles and around 215,000 driven miles (estimated). With this proposition, the battery cells in the car will probably live longer than the car itself. Therefore Volkswagen intends to reuse the batteries for other valuable applications instead of scrapping them altogether.
The Value of EV Battery Packs
It’s considered in the automotive industry that EV batteries last for many years; therefore, the battery packs in older electric vehicles may still be worth something even after the vehicle naturally depreciates. In Volkswagen’s thinking, it believes that an EV battery pack’s value could keep the car’s residual value high enough that “re-leasing” it will be an attractive and affordable option for car shoppers. Even after battery packs have met their end-of-life term, a battery pack can still be reused, repurposed, and recycled.
Increasing the Residual Value of EVs
According to the CEO of Volkswagen Group of America, Scott Keogh, the company is already working to implement its “re-leasing plan.” The residual value of battery packs could potentially keep ID vehicles in owners’ possession for up to eight years. Ultimately, once an EV meets its end-of-life term indefinitely, its batteries will be removed and recycled.
Finance or Lease an ID Vehicle
One of the most popular anticipated vehicles for 2022 is the Volkswagen ID.4 EV Crossover, perfect for family-oriented buyers. There are two trim levels: the ID.Pro, which starts at $39,995 (but as low as $32,495 after federal tax credit), and the ID.4 Pro S with a base price of $44,495 (pricing is subject to change to accommodate destination fees and additional equipment). AWD versions of the ID.4 are available starting October 2021 (for the Pro S trim) and in February 2022 (for the standard Pro trim).
Participate in the electric vehicle movement and reserve your 2021 Volkswagen ID.4 via a $100 reservation deposit! Be sure to select Sunrise Volkswagen of Fort Pierce as your home dealership for delivery before completing the reservation. Do you have any questions about the ordering process? Let us know by giving us a call or by submitting an inquiry online via our contact form. Our professional staff is available to assist you throughout your shopping experience. Contact us today!
Image Source: Volkswagen