Residual value is too high but want to buy

[R1TandMe]

Love my Gen 2 RIT. It has been problem free and has everything I want. So here is my dilemma.
I want to buy the vehicle after the lease is up, but the residual is higher than what I think it is worth. When I turn the car in how will Chase go about selling it? Has anyone figured out how to buy the same vehicle they are turning in for less then residual listed in the leasing documents?

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[VandalSibs]

Why do you think the vehicle is worth less than the residual, and thus want to pay less than the amount you agreed upon when signing the lease? Last I have heard in these forums, Chase does not negotiate on the buyout amount when the lease is up - at least with Rivian leases.

I haven't heard what Chase does with the vehicle after it is returned, but the likely options are that they are sent back to Rivian for pre-owned sales, sold at auction (like trade-ins of other vehicles to Rivian are handled), or maybe Chase unloads them on dealers that want to sell them used.

 

[JM.]

Why do you think the vehicle is worth less than the residual

Same reason people think they can buy a best-selling, short-supply Toyota for 10% off. "Because I think so."

I read on this forum, long ago, a claim that Chase and Rivian have a deal for the lease returns to go to Rivian for resale.

 

[Timbuk2000]

Price is only one factor. The second factor is condition. If I am the sole owner it is better than another used car that I didn’t maintain. To me the most important factor is obsolescence. The product cycle is so short for EVs, Think R1 Gen 1 vs Gen 2. My current 2026 R1S is my first leased vehicle. I traded a 2023 R1S. My primary incentive for leasing was the 7500 Credit I received by leasing before 9/30/25. Leasing gives me the option to turn in the vehicle for a Gen 3 or keep mine. I like having the option.

 

[ukyank]

Why do you think the vehicle is worth less than the residual, and thus want to pay less than the amount you agreed upon when signing the lease?

because used vehicle sales data exists

 

[VandalSibs]

because used vehicle sales data exists

That's great for financed loans or outright purchases, but OP is in a lease. The buyout amount is part of the legally-binding agreement.

 

[TTedP]

You plan on trying to keep track of the one you give back and later purchase it somewhere else?

Not sure how you would accomplish it other than paying for a Carfax subscription to follow the VIN and hope your timing is right.

 

[lefkonj]

Chase may have been giving the Leased Rivian's back to Rivan directly but that might not be the case anymore. There are many outlets to sell vehicles to get top dollar, they may just be doing that. Rivian may also take it as a service loaner since they already got great value out of it.

I have never been able to get the financing company on a lease to take less than the contracted amount but you never know.

 

[VSG]

So here is my dilemma.
I want to buy the vehicle after the lease is up, but the residual is higher than what I think it is worth

I don't see the problem. If it's not worth it TO YOU, with what you know about the vehicle, then don't buy out the lease.

All leases involve a tradeoff.
If the residual is higher than you think it should be, that means you benefited from lower monthly payments on the lease. If the residual had been set lower, you would have paid a lot more over the past three(?) years.

So if you subtract the money you saved with the lower monthly payments from the residual, is it worth it now?

 

[ndmiller]

In my experience Chase and others have fully written off the value of the asset and just send it to auction. From their standpoint contract is done, they made their scratch and they are done.

Generally they also don't negotiate on contracts years after execution. Some lessors also restrict third parties from getting involved, I know the Japanese makers started that years ago to secure their used car inflow from being poached.

 

[dleepnw]

Didn't the higher residual value end up letting your monthly payments be lower? So you got the benefit up front but you can't have it both ways and wish for a lower residual later, no? Sorry I'm not a lease expert but that's how I thought it worked?

Can you share the actual numbers? What your lease terms are/were, how much you put down, the residual value?

 

[Time2Roll]

Last I read Chase will not negotiate. Either buy it or drop it.
Good luck finding it after the fact at a discount.

 

[captainjp]

Jeez, dude was just asking a question…

 

[VandalSibs]

Yeah, but it's a question that is best answered by reaching out directly to Chase themselves. We have no answer for him that would officially hold water because we aren't party to the actual agreement signed with Chase. We can, at best make educated guesses based on what others have told about their agreements.

I was a bit harsh in my initial response, but this is one of those posts where the person's best move for accurate info isn't asking on a third-party forum, but by going to the source.

 

[Golfer04]

I have provided POS financing for retailers (vehicles, equipment, etc) before. Rivian will be providing a guarantee on the residual value; Chase isn't taking that risk beyond some nominal percent, or it could be a "pool" concept where Chase absorbs the first "X" in residual value losses and Rivian covers everything above that number. The disposition of the vehicles will be outlined in the contract. If one of the options is to offer the vehicle back to the driver it would be a first for me, and stupid.

The high residual leases Rivian has been offering is one reason I would be cautious on their financials. Because they have not leased many vehicles yet the residual exposure is inconsequential, but it will be interesting to watch going forward. In reality it is the same with all EVs, but because of ongoing losses Rivian is more vulnerable.

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