- Volkswagen dealers are marking up the ID Buzz as high as $20,000 over sticker price
- The brand's former Americas CEO previously stressed that dealers "cannot have markups"
- This isn't a great look for VW's most important halo product in decades
I'm shocked. Shocked, I tell you. Shocked to learn that dealers are ignoring Volkswagen's now-former CEO's strongly-worded caution for dealerships not to add additional dealer markup the already expensive ID Buzz.
Okay, well, maybe not that shocked. But it's happening—dealerships are doubling down on Volkswagen's egregiously-priced electric people hauler by adding markups as high as $15,000, effectively locking out consumers who were already stretched thin on their budget following the German automaker's surprisingly high price announcement earlier this year.
Recent news popped up when a Redditor reached out to Herman Cook Volkswagen in Encinitas, California. The salesperson reportedly told the potential customer to expect a markup of between $10,000 and $20,000 on the ID Buzz—when the individual iterated VW corporate's instructions not to markup the Buzz, the salesperson thanked the would-be customer for their time and ended the conversation. InsideEVs reached out to the dealership and was told that the dealer had not yet decided on a markup but it would likely be between $10,000 and $15,000.
As it turns out, that seems to be the norm.
Another Redditor posted a screenshot of an email reportedly with Castle Volkswagen of Downers Grove, Illinois. The salesperson said that "due to demand," the dealership would be asking "around $10k over MSRP." The dealership confirmed to InsideEVs that it would "follow the market" and seek between $5,000 and $10,000 over sticker.
"Price [gouging] at its best," wrote the Redditor. "This dealership shouldn’t be allowed to operate."
Another two posters cited additional dealership experiences in the $10,000 ADM range. And another in Oakland, California citing a $15,000 markup just to have the opportunity "to be one of the first people with a Buzz." Another with an additional $8,000 on top—which put the vehicle within just $3,000 of a Porsche Macan. Of course, some were more reasonable, with a markup of just around $4,000, but that's still a far cry from the markup-free experience that the public assumed it would have with the launch of the Buzz.
A Swing (And Miss) At Nostalgia
The ID Buzz looked to be one of the most exciting Volkswagens in years. A halo product meant to invoke BMW levels of emotion in owners—a feel-good family mobile with a nod to the 70s that tugged on the heartstrings of just about anybody who ever fantasized about owning a modern VW bus. I mean, folks were actually excited about owning one of these things which speaks volumes for vee-dub in modern times.
Then came the official debut with full specs and a price tag. Let's just say that reception was less-than-stellar. In fact, it might not be far off as to say that Volkswagen shot itself in the foot with the launch, because the internet was straight-up pissed.
First was the price. Would-be buyers expected the Buzz to be priced somewhere around other minivans—you know, in the $40,000-ish range. But, of course, this is a BEV we're talking about, so price parity isn't going to happen. But look at the Kia EV9—Kia managed to throw enough incentives at the family SUV to get it into the mid-$40,000s, so surely VW would do something similar?
Nope. The lowest-trimmed single motor Buzz starts at $59,995 before the $1,550 destination fees, all the way up to $69,995 for its Buzz Pro S with dual motors, an iconic dual-tone paint job, and a myriad of tech-first features. That pricing put the ID Buzz out of reach of many would-be buyers, and its abysmal 231 miles of range was enough to shock many others.
A Problem Volkswagen Can't Afford
Here's the problem: these aren't just grumpy customers taking out inflation-induced infuriation on VW—this is a headache that Volkswagen can't afford right now.
VW is hurting big time. Its CFO articulated that the brand has "maybe two" years to get it together or else succumb to the mounting pressure that is global EV brands who can do things cheaper and more focused. Its ID family of vehicles has been underperforming expectations and feeling the squeeze from Tesla, Ford, Hyundai, and others. The ID Buzz was supposed to inject some new life into VW's lineup and excite buyers. Maybe even give them a reason to try out other ID cars.
Before it even announced the price, Volkswagen knew it couldn't afford markups on the Buzz. That alone should have been a key indicator that the automaker expected a high price on the model.
“We cannot make a mistake [with the ID Buzz]. With respect to the customer, let’s discuss it. We have a good relationship with the [dealer] network,” said former CEO of VW North America, Pablo Di Si, who was recently ousted from his position after just two years. “We cannot have markups.”
So here we are, in EV purgatory with the ID Buzz. It is too expensive for what it offers, too beloved to be ignored, and increasingly vulnerable to dealer markups. If Volkswagen does nothing, it can kiss new sales of its flagship product goodbye. And if it tries to punish dealers, then it needs to use its teeth instead of just empty words.
