Leasing NOT offered at pre price-hike prices for reservation holders

[JustPokingAround]

My guide just confirmed - they even went back internally to make absolutely sure:

"I was able to confirm from our teams that, unfortunately, we do not offer leasing to those with pre-March pricing updates. I apologize for the inconvenience this may cause. "

So fucking stupid and frustrating. It's just math. If they're going to sell to me at e.g. $80k then they should lease to me at $80k. Obviously it would make the payment super low, like $500-600 applying the same $60k-ish residual value. But if they're already 'swallowing' an $80k sale, then an $80k lease is no different.

I hate when companies make arbitrary stupid decisions like this.

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[COdogman]

They didn’t have to even allow us to keep lower pricing (specifically for PURCHASE, btw - leasing didn’t exist then) and now you are pissed they won’t transfer that savings to a completely different type of financial transaction?

 

[JustPokingAround]

a completely different type of financial transaction?

Tell me you know nothing about corporate finance and leasing without telling me you know nothing about corporate finance and leasing.

Hint: there's no difference to the company. They book a sale whether selling directly or leasing.

 

[COdogman]

Tell me you know nothing about corporate finance and leasing without telling me you know nothing about corporate finance and leasing.

Hint: there's no difference to the company. They book a sale whether selling directly or leasing.

Rivian agreed to SELL you a vehicle at a lower price. Not LEASE you one. Tell me you know nothing about purchase agreements without telling me you know nothing about purchase agreements.

Go stand on a street corner and shout at traffic about what an injustice Rivian has committed against you. I bet you will find tons of support

 

[s00n]

There are still pre-March holders out there??

Just make a loan payment instead of a lease payment. Problem solved.

 

[JustPokingAround]

Tell me you know nothing about purchase agreements without telling me you know nothing about purchase agreements.

LOL. Please stay silent as opposed to revealing yourself a fool. I've worked for two decades doing sale leasebacks in all manner of asset classes. I understand deeply what a lease is, how they're accounted for, etc etc etc. For an auto manufacturer, a lease is not different than a sale.

Full stop.

Happy to cede the final word to you as an insistence upon it is a sure sign of a feeble mind and an even more feeble argument.

 

[Dark-Fx]

Well, you aren't the one purchasing the vehicle, so why would they offer a discount to the leasing company? They've never allowed the transfer of the reservation before, why now?

 

[Riviot]

I hate when companies make arbitrary stupid decisions like this.

Tell your guide you'll continue holding your reservation until they change the lease policy. I'm frustrated by the refusal too, it costs us $3750.

With enough people holding reservations for this reason, they'll eventually change their tune.

 

[MountainBikeDude]

Tell me you know nothing about corporate finance and leasing without telling me you know nothing about corporate finance and leasing.

Hint: there's no difference to the company. They book a sale whether selling directly or leasing.

There is a 20% pricing difference. So tell us how there's no difference to the company?

 

[JustPokingAround]

Well, you aren't the one purchasing the vehicle, so why would they offer a discount to the leasing company?

Again, you're missing the point: from Rivian's POV there's no difference. It's a sale at $80k-ish either way. That's it. Literally. No difference to them.

 

[Riviot]

Well, you aren't the one purchasing the vehicle, so why would they offer a discount to the leasing company? They've never allowed the transfer of the reservation before, why now?

?

I never thought about it that way. You're absolutely right.

 

[Dark-Fx]

Again, you're missing the point: from Rivian's POV there's no difference. It's a sale at $80k-ish either way. That's it. Literally. No difference to them.

They've never allowed the transfer of the reservation before. You're asking them to do so.

 

[JustPokingAround]

There is a 20% pricing difference. So tell us how there's no difference to the company?

Because from the auto manufacturer's standpoint a lease is simply a sale at the price negotiated in the lease transaction. There's no difference from a corporate finance or earnings POV between a sale to me directly at $80k and a lease to me with a 'sale' price of $80k.

 

[COdogman]

LOL. Please stay silent as opposed to revealing yourself a fool. I've worked for two decades doing sale leasebacks in all manner of asset classes. I understand deeply what a lease is, how they're accounted for, etc etc etc. For an auto manufacturer, a lease is not different than a sale.

Full stop.

Happy to cede the final word to you as an insistence upon it is a sure sign of a feeble mind and an even more feeble argument.

What does your Rivian purchase agreement say, Mr Finance?

 

[Riviot]

Again, you're missing the point: from Rivian's POV there's no difference. It's a sale at $80k-ish either way. That's it. Literally. No difference to them.

Reservations are non-transferable, so a reservation with pre price hike lock would be transferred to the financial institution who would own it. They've already said they won't transfer reservations, so ...

It sucks, but it makes sense to me now ??‍

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