End of Lease

[Schroederhc]

Thirty-six months, 12000 miles, $640 monthly, $45000 residual. I've had the 23 R1T for three months, and I really like it. I'll most likely want to buy it at the end. What makes a favorable deal at the end?

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[Sparty]

Thirty-six months, 12000 miles, $640 monthly, $45000 residual. I've had the 23 R1T for three months, and I really like it. I'll most likely want to buy it at the end. What makes a favorable deal at the end?

The lease rates are so low because they kept the residual high. So your best bet is to lease another Rivian. Most likely the residual will be far more than the car's value. The deal is the deal and they can't change the payoff at lease end. So wait 33 months and decide then.

 

[Jeep Addict]

I am a leasing fan. I quit buying vehicles in the early 2000's after I realized I never kept them longer than 3 or 4 years and I always had a monthly payment.

Since that realization I have actively worked to find the best lease deals available when my lease was coming to an end. I have bought out leases a few times, not to keep it, but because the residual was much lower than the market value.

In those cases I'd buy and sell in a period of a few days or even the same day, selling to the dealer I initiated a new lease with.

Only time will tell which end of the residual you'll be, favorable or not. The benefit of leasing is that there's really only upside benefit. You already know the cash flows and the value at lease end, if the residual is higher than market, lease something new, with all of the attendant benefits of new tech, reliability etc.. If the market value is higher, buy it at a "bargain" and feel good about keeping your familiar ride at a good price.

 

[Schroederhc]

So, market value at the end of the lease is $40 they have no room to deal. If its $50 I buy it for $45.

 

[gregeast]

They pretty clearly set the residual high to make the payments more attractive.

The part I'm not clear on is if the market says it's worth $40k and the residual is $50k, is Rivian going to make me an offer to buy at something lower than the residual?

 

[Dark-Fx]

They pretty clearly set the residual high to make the payments more attractive.

The part I'm not clear on is if the market says it's worth $40k and the residual is $50k, is Rivian going to make me an offer to buy at something lower than the residual?

Chase is the owner of the vehicle, not Rivian. You either pay the residual or they send it to auction.

 

[Schroederhc]

d

Chase is the owner of the vehicle, not Rivian. You either pay the residual or they send it to auction.

Thanks

 

[RivAW]

Thirty-six months, 12000 miles, $640 monthly, $45000 residual. I've had the 23 R1T for three months, and I really like it. I'll most likely want to buy it at the end. What makes a favorable deal at the end?

The lease contract spells out the deal. You don’t have the option to alter it. Your options are to end the lease by returning the truck per the agreement, or buy it out per the agreement . If $45k is the residual, then at the end of the lease, your option is to pay $45k, plus any fees disclosed and taxes….

 

[the.phd]

Chase is the owner of the vehicle, not Rivian. You either pay the residual or they send it to auction.

I'm honestly hoping this works in our favor. I'm planning buy it out since my R1T buyout will still be cheaper and better than the R2 I'd be buying for $20k more. Would love if they work something at the end, but I'm highly doubtful.

 

[Dark-Fx]

I'm honestly hoping this works in our favor. I'm planning buy it out since my R1T buyout will still be cheaper and better than the R2 I'd be buying for $20k more. Would love if they work something at the end, but I'm highly doubtful.

It would be cool if Rivian had some kind of lease loyalty program. I don't see that happening unless demand is way lower than they need it to be to turn a profit.

 

[the.phd]

It would be cool if Rivian had some kind of lease loyalty program. I don't see that happening unless demand is way lower than they need it to be to turn a profit.

I'm more hoping Chase sees what these go for at auction and offers us a deal on buyout that's below residual but above auction, or even at auction price, just to avoid the logistics. Long shot, but I can hope.

 

[LL75]

If you are self employed, lease is the way to go.

 

[dg770]

Thirty-six months, 12000 miles, $640 monthly, $45000 residual. I've had the 23 R1T for three months, and I really like it. I'll most likely want to buy it at the end. What makes a favorable deal at the end?

How much did you put down, if anything? would you factor in how much you already paid into the car (down payment + monyhly payments) and add that to the residual to see whether leasing was overall worth it? Or with this equation will it always be more expensive overall to lease?

 

[ndmiller]

It would be cool if Rivian had some kind of lease loyalty program. I don't see that happening unless demand is way lower than they need it to be to turn a profit.

They will have one by the time your lease is up, it a sure bet. For Rivian leasing just started so no-one to grant loyalty benefits to for a couple years at least, so they have plenty of time to noodle on this in time for R2 & R3X to come out.

 

[7FCvin]

I'm more hoping Chase sees what these go for at auction and offers us a deal on buyout that's below residual but above auction, or even at auction price, just to avoid the logistics. Long shot, but I can hope.

For those with experience leasing in the past (I'm new to this), how often does the bank negotiate on residual at end of lease? I can see how gen 1 R1 vehicles may depreciate more than anticipated with leases that were drawn up before the release of Gen 2, and would love an opportunity to buy out at a lower price.

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