Lease Buyout Process?

[EVsinROC]

Has anyone w/pre-price hike voucher chosen to lease? Curious to see what buyout amount is. Since I assume residual would ~$65-67K on $100K MSRP and Pre-Price ~$80K, total depreciation only $13-15K. Need to run #'s, but thinking pre-price MSRP w/$7,500 credit could be way to go and buyout early? Thoughts?

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[Glstr]

Has anyone w/pre-price hike voucher chosen to lease? Curious to see what buyout amount is. Since I assume residual would ~$65-67K on $100K MSRP and Pre-Price ~$80K, total depreciation only $13-15K. Need to run #'s, but thinking pre-price MSRP w/$7,500 credit could be way to go and buyout early? Thoughts?

From what I’ve read, if you have the pre-price hike voucher, leasing and then buying is not a good value. You only get the 20% off the depreciation and not the total cost of the vehicle. Not worth it.

 

[Glstr]

Hi @fdon1 , any updates on the buy out price? Don't really want to spend more than 70ish on my new car so this lease credit + early buyout is the make it or break it for me. Your response will help me make a decision

Do you have the pre price hike voucher? If so, lease then buyout isn’t a good deal.

 

[voxel]

@buffaloNYR1T you're saying you'll see your Rivian lease account alongside your other Chase accounts (credit cards, checking accounts, etc)? That's good to know.

@Eric9610 from my lease contract, section 32: "To purchase the Vehicle, you must pay the sum of (a) … the Adjusted Lease Balance plus the purchase option fee, plus (b) [fees & taxes], plus (c) [past-due payments]". Adjusted Lease Balance "equals the Adjusted Capitalized Cost minus the sum of all accrued monthly Depreciation", but it doesn't mention rent charge, so I'm taking that to mean that the buyout amount would be the Adjusted Capitalized Cost (11c) minus the Depreciation I've already paid for, i.e. I wouldn't also have to pay the entire remaining Rent Charge.

If I do have to pay off the entire Rent Charge with an early buyout, then yeah it wouldn't be worth it.

This language looks pretty normal. The buyout price is basically "MSRP minus $7500 plus lease signing fees and taxes on rebates/etc" (aka Adjusted Cap Cost). The monthly depreciation and rent charges for an early buyout are very small. Nobody pays unearned rent charges on lease buyouts either.

 

[robertrivian]

From what I saw on my lease in state of GA - the sales tax charged is prorata based on the depreciated amount over the lease term. It is not the full amount based on the net sales price of the vehicle. So does not appear that you pay sales tax twice - at least in terms of the full amount twice - yes you will pay sales tax on the residual value of the vehicle - just as if you bought a vehicle for that price. That is of course specific to GA - your state certainly may vary.

Have you bought your R1 outright yet? I too live in GA and want to see if leasing and then buying out might be my best option now that I lost out on MSRP under $80K with the 20% "Coupon" for pre rate hike buyers. I am waying my option of amending the 2022 tax return for a purchase vs lease with the $7500 taken at lease purchase.

Any thoughts are appreciated.

 

[srjinatl]

Have you bought your R1 outright yet? I too live in GA and want to see if leasing and then buying out might be my best option now that I lost out on MSRP under $80K with the 20% "Coupon" for pre rate hike buyers. I am waying my option of amending the 2022 tax return for a purchase vs lease with the $7500 taken at lease purchase.

Any thoughts are appreciated.

I have not yet - I have socked the money away to do so - but earning enough interest at present that I am going to potentially continue with the lease and at the end of 2 years see where the market is with residual, etc. The nice thing is with the Chase/Rivian site you can go in at any time and request a purchase buyout quote so you can keep tabs on where you are at in terms of the cost to go that route.

 

[robertrivian]

I have not yet - I have socked the money away to do so - but earning enough interest at present that I am going to potentially continue with the lease and at the end of 2 years see where the market is with residual, etc. The nice thing is with the Chase/Rivian site you can go in at any time and request a purchase buyout quote so you can keep tabs on where you are at in terms of the cost to go that route.

Are you a pre hike buyer and if so how do they handle the residual since current MSRP is higher before the 20% pre hike discount.?

 

[srjinatl]

No - I am not - different situation that yours from what you said. I had not put in order at inception and thus before the hikes - mine was a recent order from inventory.

 

[robertrivian]

No - I am not - different situation that yours from what you said. I had not put in order at inception and thus before the hikes - mine was a recent order from inventory.

Can anyone who was a pre hike buyer who used the lease program comment on their residual value as it could be a deal breaker for using leasing as an option even with the $7500 IRS rebate.

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