Rivian R1T Leasing Now Available

[DuoRivians]

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

Based on this vehicle and assuming a 7% interest rate, it comes out to ~65% residual value. Not bad

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[tcole]

They suggest there is an early termination fee on ending a lease early. That kind of thing is the big gotcha on leasing. Long story to explain my experience with my last 2 cars, both leased:

Previously I leased a 2019 Volvo V60 and my 2022 Volvo C40 came just a few months before my V60 lease was up. Because it was early 2022 and used car prices were still crazy the V60 was worth a little more than my lease payoff amount. So the dealer bought on my lease and discounted my V60 purchase by a bit.

But then when my R1T came up, I did not do so well. Volvo Financial didn't allow 3rd party lease buyouts, so Rivian couldn't pay off my lease for me as part of a trade in. Volvo only allows Volvo dealers to do that when you're ending a lease early to get another Volvo.

So I had to pay off my C40 lease in full before I could sell it. Fortunately Volvo didn't have any early lease termination fees. Unfortunately when I looked at KBB values, they looked about even with my lease payoff amount, however, when I went to sell the C40, I found that the actual used market was substantially softer.

Plus, many dealers didn't want to buy it with just a lien release title. They wanted the clear title in my name, which would have meant I have to pay sales tax on the purchase or go through some convoluted process with the DMV AND sell it in 10 days....

I tried advertising as a private party sale, didn't get much interest in my area. Ended up selling it to a Volvo dealer for several thousand less than my lease payoff.


That is a long story to say, if there is any chance you won't keep a car through the entire lease term, don't lease. It can be a real pain to end a lease early.


Also the residuals thing can be interesting. Whoever is underwriting the lease has a financial model that estimates how much the car is going to be worth at the end of the lease. Sometimes they get it wrong in their favor, sometimes in your favor. The pandemic used car market made it often wrong in the consumers favor, which I benefited from on my V60.

 

[DuoRivians]

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​

I think the $5k is part of the $7500. Just that this chunk is taken out right away, and the other $2500 spread over the payments. Otherwise, how would the lessor just give another $5K?

 

[DuoRivians]

Rivian also clarifies with this:

https://rivian.com/support/article/do-i-get-the-federal-ev-lease-credit-when-leasing

 

[Mobius1]

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​

It says the money due at signing includes $5k + first month and acquisition fee. The 7500 is separate from that.

 

[Kuro-Rivian]

I think the $5k is part of the $7500. Just that this chunk is taken out right away, and the other $2500 spread over the payments. Otherwise, how would the lessor just give another $5K?

Lessor can buy down as much as they want. Just show up with check. But it's not smart. Assuming the $5000 is a subset of the $7500. They following also gets you somewhere around $890/month. Money factors can be all over the place but I think it's probably a pretty good guess that Rivian is somewhere around 65-75% residual value assumption for their leases. That the number I'm most cuious about.

I think $75% residual just isn't realistic so it makes me believe $7500 is in addition to the $5000 due out of pocket.

$98,500 Purchase price
-$ 5,000 Cap Cost reduction (out pocket from Lessor)
-$ 7,500 Cap Cost Reduction (aka tax deduction)

$91,000 Capitalized Cost of lease
$71,900 Residual Value (73%)
.0022 Money Factor = 5.3%
36 months
30k miles

 

[DuoRivians]

Lessor can buy down as much as they want. Just show up with check. But it's not smart. Assuming the $5000 is a subset of the $7500. They following also gets you somewhere around $890/month. Money factors can be all over the place but I think it's probably a pretty good guess that Rivian is somewhere around 65-75% residual value assumption for their leases. That the number I'm most cuious about.

$98,500 Purchase price
-$ 5,000 Cap Cost reduction (out pocket from Lessor)
-$ 7,500 Cap Cost Reduction (aka tax deduction)

$91,000 Capitalized Cost of lease
$71,900 Residual Value (73%)
.0022 Money Factor = 5.3%
36 months
30k miles

I assumed a 7% equivalent money factor and got 65% residual. Seems like the residual rate lies between 65-70%

https://www.rivianforums.com/forum/threads/rivian-r1t-leasing-now-available.21592/post-438976

 

[Kuro-Rivian]

I assumed a 7% equivalent money factor and got 65% residual. Seems like the residual rate lies between 65-70%

https://www.rivianforums.com/forum/threads/rivian-r1t-leasing-now-available.21592/post-438976

I agree, it's somewhere in that range.

 

[sfvR1S]

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?

Residual value is calculated/provided upfront. Higher residual = lower payments. I think when I looked at the Polestar 2, their residual was 56%.

 

[Kuro-Rivian]

I assumed a 7% equivalent money factor and got 65% residual. Seems like the residual rate lies between 65-70%

https://www.rivianforums.com/forum/threads/rivian-r1t-leasing-now-available.21592/post-438976

And now the question is whether that reasonable or not. Seems high to me, But it also doesn't surprise me since I think Rivian has an incentive to subsidize the residual to help hold-up used values. And it gets people in trucks. Guess we'll see in 3 years!

 

[NineElectrics]

Reminder: if you put $5K down on a lease and it’s totaled the next day, you don’t get your $5K back. With a loan, there is at least a chance you will get some. So I put the minimum down on leases. Don’t forget gap insurance!

 

[Electrified Outdoors]

The $5000 is due at signing so so cap cost reduction is $12,500 with the $7500 from Rivian. That's how you get to that lease payment.

Looks similar to Tesla lease structure. If the residual is high though it may be a bad deal.

With a high residual (usually the buyout at the end of the term) and a really high excess mileage fee at $0.30 one could be out of pocket either way.

An artificially high residual will make it impractical to buy out at the end of the lease as market value would likely be much less. I'm going to crunch some numbers tonight (I love that ?)

PS A good lease is a lot easier to get out of the a bad lease. Assuming Rivian would allow a lease transfer... Important consideration. Sites like swap a lease are good for getting out of leased and getting into a short term lease .

 

[EVTrukHog]

What type of inspection upon return of the vehicle at end of the lease? I'd suspect that people may be a bit harder on their vehicle (suspension, off-road, loading, etc) if they know they're not keeping it beyond the lease period...

 

[NY_Rob]

Only available in 14 states so far...

 

[SANZC02]

Only available in 14 states so far...

I’m sure they correlate well with their service center locations.

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