Rivian R1T Leasing Now Available

[jjswan33]

I might legitimately do this. The website is giving me a bunch of errors so hard to glean information. What is the $7,500 lease credit for?

Federal tax credit.

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[DuoRivians]

I might legitimately do this. The website is giving me a bunch of errors so hard to glean information. What is the $7,500 lease credit for?

It’s a loophole in the IRA tax credit. By leasing the vehicle, anyone can get the $7500 effective credit. Ignoring interest rates for a second and assuming you’ll buy the car at the end of lease, it’s equivalent to getting $7500 taken off of msrp.

And it’s not a post-income tax filing credit. You basically get the $7500 credit at lease inception

 

[sfvR1S]

R1S is the first EV I purchased. All previous were leases.

This lease isn't bad, much better than the terms Chevy offered for a Bolt EUV during Covid times (7/22), which included a $2,500 markup. For a vehicle priced about 1/3 of the Rivian, I put down $3,000 and paying around $500/month for 36 months. I think a lot of EV's have pretty attractive leases now.

For context, during 2022, almost every EV had a markup. Even a Kia Niro EV, which had a manufacturer's incentive, was offset by dealer markup. I know they need to make a living, but it was pretty greedy and I hope more manufacturers, if they can, move away from the dealer model.

 

[fbkr]

I'm amazed at how low the lease payments seem to be.

I saw an option to lease a $100k R1T truck for a $1k monthly payment.

If you assume a $10k down payment and $90k borrowed at 6.5%, that's $500 in interest payments per month.

That leaves $500 a month in implied depreciation payments ($6k a year or 6% of MSRP) which seems way too low to me.

On cars and bids, I've seen lightly used R1T trucks sell for 20-25% discounts to MSRP after a year....

What gives?

 

[evhelphub]

Federal tax credit.

It’s a loophole in the IRA tax credit. By leasing the vehicle, anyone can get the $7500 effective credit. Ignoring interest rates for a second and assuming you’ll buy the car at the end of lease, it’s equivalent to getting $7500 taken off of msrp.

And it’s not a post-income tax filing credit. You basically get the $7500 credit at lease inception

Thanks. The federal tax credit situation is such a ridiculous mess.

 

[R1Tom]

I'm amazed at how low the lease payments seem to be.

I saw an option to lease a $100k R1T truck for a $1k monthly payment.

If you assume a $10k down payment and $90k borrowed at 5%, that's $500 in interest payments per month.

That leaves $500 a month in implied depreciation payments ($6k a year or 6% of MSRP) which seems way too low to me.

On cars and bids, I've seen lightly used R1T trucks sell for 20-25% discounts to MSRP after a year....

What gives?

Maybe it's a covert way to basically offer a price reduction to unload some vehicles quick, but not draw attention to fact that in reality it is a temporary price cut...like Tesla does. Just more covert.

 

[Dark-Fx]

If you don't qualify for the $7,500 tax credit, this looks like a pretty solid alternative to buying...

The majority of R1s don't because they are over the $80k threshold. They do qualify under the leasing loophole though.

 

[NineElectrics]

Do they honor preorder pricing?

 

[jambaman84]

I don't know anything about leasing.. but can anyone explain if you want to purchase the car at the end of the lease.. do you purchase it at the purchase price? Or at the going used vehicle price? and subtract whatever you put as a down payment and all your payments in the 3 years of the leasing life?

 

[shrink]

Anyone know what the money factor is on these lease terms?

 

[DuoRivians]

I don't know anything about leasing.. but can anyone explain if you want to purchase the car at the end of the lease.. do you purchase it at the purchase price? Or at the going used vehicle price? and subtract whatever you put as a down payment and all your payments in the 3 years of the leasing life?

You pay a preset price at the end of the lease, known as the residual.

If you end up buying the car, you’ll pay effectively in total: msrp - $7500 + interest rates/fees

 

[Electrified Outdoors]

There are a couple more pieces of information we need in order to determine how good of a deal it is. We need to know the residual as a percentage. We also need to know if Rivian is going to allow buyout at the end of the lease. And we also need to know what the excess mileage fee is. For example, Tesla charges $0.25 per mile for every mile over the allowance. Money factor is also important.

Lastly, when I have leased I don't like to pet anything down because in the event of a total loss, any money that you paid out on the lease are lost. So while it's a little more expensive, it's a little safer to have a slightly higher payment and pay a little bit more interest than it is to put a bunch of money down on the lease.

My two cents anyway.

 

[Dark-Fx]

We also need to know if Rivian is going to allow buyout at the end of the lease. And we also need to know what the excess mileage fee

Their support page says you have the option to buy at the end of the lease. Of course it has to be part of the actual contract and I'm not aware of anyone signing one yet.

Excess mileage fee is stated to be 30 cents per mile.

 

[Aag12]

Between all the monthly payments, tax credits, etc it's 42k on a 90k r1t over 30k miles and 3yrs. Customer pays 35k remaining is a tax credit. Doesn't look like the residuals will be that strong... Maybe 55% of msrp?

Don't forget leasing taxes could add another $100 in monthly payment.

Only way this deal is great is if the money factor is low and residual is high. Chase bank also traditionally charges a purchase fee

We need the details, but doubt this will be good

 

[Kuro-Rivian]

There are a couple more pieces of information we need in order to determine how good of a deal it is. We need to know the residual as a percentage. We also need to know if Rivian is going to allow buyout at the end of the lease. And we also need to know what the excess mileage fee is. For example, Tesla charges $0.25 per mile for every mile over the allowance. Money factor is also important.

Lastly, when I have leased I don't like to pet anything down because in the event of a total loss, any money that you paid out on the lease are lost. So while it's a little more expensive, it's a little safer to have a slightly higher payment and pay a little bit more interest than it is to put a bunch of money down on the lease.

My two cents anyway.

We can take a stab at it since it's just math. All the following gets you $890 ish neighborhood BEFORE taxes & fees. One thing isn't clear to me is if the $5000 cap cost reduction is a subset of the $7500. Pretty sure it's not but it's also not crystal clear.

$98,500 Purchase price​

-$ 5,000 Cap Cost reduction (out pocket from Lessor)​

-$ 7,500 Cap Cost Reduction (aka tax deduction)​

​

$86,000 Capitalized Cost of lease​

$64,186 Residual Value (67%)​

.00245 Money Factor = 5.9%​

36 months​

30k miles​

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