R1S lease payments dropped... after I started my lease

[dbjunction]

This one stings quite a bit...just bought the R1S lease like 3 weeks back and the lease payments have gone down by over $300 per month. I know the answer is likely no but do I have any options?

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[carsly]

Pick up a second one?

I'm sure there are exit provisions in your lease agreement, prepayment and/or exercising a buyout option (if there is one) is perhaps one of them.

But going back to renegotiate? No, that's not a thing. If the price of milk drops 15 cents a gallon can you go back to the store with your lightly used jug of milk and renegotiate?

 

[fbkr]

Wow, that's unlucky.

I wonder what happened in the last few weeks that would cause the payments to drop so much for what I assume is a similar vehicle.

 

[Dark-Fx]

What did you put down on the lease?

 

[dbjunction]

$0

 

[one44]

Looks like R1T payments are also slightly lower (not as much as S). I'm seeing a $762/mo estimate for the standard lease terms for a ~92k Dual motor which is similar to what I took delivery of in December with the start back then being ~$811 I believe. Works out to be about $60 - $100 cheaper.

Perhaps demand has slowed down overall with the older terms, forcing them to be more aggressive on the pricing. Always thought the R1S pricing was weirdly high vs. a similarly priced R1T so having them closer together makes sense. Rough for better terms to be available now though.

 

[dbjunction]

Wow, that's unlucky.

I wonder what happened in the last few weeks that would cause the payments to drop so much for what I assume is a similar vehicle.

Has to be either interest rate decrease or residual increase...price is unchanged.

 

[Whatever_this_is]

I feel like the only demand lever they have left now is MSRP decrease?

 

[lefkonj]

Interest rate changes are out of everyone's control. Sucks but if you waited for the price to stop fluctuating you would wait forever.

 

[TollKeeper]

If you have not taken delivery, refuse it, and see what happens? Just a guess.

 

[djsider2]

R1S leasing rates were extremely high when you compared them with the R1T. They probably didn't get the sales movement they wanted. They essentially just tried to take the full 7500 from the consumer to bundle into the lease payments. There was no reason that R1T and R1S had different rates. Residuals, yes, but rates, no. Rivian/Chase was out looking for prey. Sorry OP

edit: added Chase as a possible culprit

 

[ozziegt]

I've heard the money factor was much higher for R1S compared to R1T, but now it's more in line. It's unfortunate.

edit: @djsider2 beat me to it

 

[fbkr]

I wonder how much influence Rivian has on setting the lease prices.

Most legacy auto companies have captive finance companies in house (e.g. Ford Credit). Since Rivian does not, they partnered with Chase. My understanding is that they sell the vehicles to Chase and then Chase takes it from there.

So is Chase in charge of setting the lease prices since they are ultimately on the hook for handling the payments/taking most or all of the residual risk?

Perhaps Chase saw the imbalanced R1S supply/demand dynamic and saw an opportunity to earn extra profits by pricing the money factors higher, and then lowered them when people didn't bite.

 

[NineElectrics]

Argh, I was bitten by this too. Oh well. It's still better to be taken to the cleaners on the lease than to own the car and take an even greater bath on resale value in three years.

 

[ozziegt]

Argh, I was bitten by this too. Oh well. It's still better to be taken to the cleaners on the lease than to own the car and take an even greater bath on resale value in three years.

Out of curiosity, what is the residual on the lease? I am worried about the resale of my R1S in a few years but I don't know if a lease would be much better, depending on what the residual is.

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