Buying after lease- good or bad idea

[DKM_R1S]

The lease on our 2024 Gen 1 Quad will end in a year. Initially I was convinced we would just turn it in and lease or finance a new R1S. The problem with this approach is that we would need to “downgrade” to a Dual to keep the same monthly payment. So now we are considering buying out the lease when it ends. We would only do this if we could buy an extended warranty that actually covers the types of things that can go wrong with this vehicle. I would be interested is hearing from anyone who bought out your R1S lease - any regrets or lessons learned.

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[ATLRivvy]

The lease on our 2024 Gen 1 Quad will end in a year. Initially I was convinced we would just turn it in and lease or finance a new R1S. The problem with this approach is that we would need to “downgrade” to a Dual to keep the same monthly payment. So now we are considering buying out the lease when it ends. We would only do this if we could buy an extended warranty that actually covers the types of things that can go wrong with this vehicle. I would be interested is hearing from anyone who bought out your R1S lease - any regrets or lessons learned.

I mean.. first question for you to answer is what about your use case makes going from a 1000 horsepower, 2.6s 0-60 suburban SUV to a 533 horsepower, 4.5s 0-60 (or 665 horsepower, 3.4s with performance package) suburban SUV a meaningful downgrade? Personally I've never found my dual to be lacking for power.

In terms of purchase, I cant really imagine a scenario where buying an end-of-life platform at the full residual value (I imagine in the $70K range) plus purchasing an extended warranty makes financial sense so I'd approach as a non-financial decision.

 

[bueller]

For me the value proposition with Gen 2's isn't there, and I like the Meridian sound and the fact service seems to have finally dialed in the half-shafts on my 23' R1T. So I intend to buy out my lease when it's done next fall, er, the following spring after the 6 month lease extension Chase always approves.

Residual vs. market is definitely a factor but for mine it's $50k which is about where the market is for 3 year old R1T's.

 

[DKM_R1S]

For me the value proposition with Gen 2's isn't there, and I like the Meridian sound and the fact service seems to have finally dialed in the half-shafts on my 23' R1T. So I intend to buy out my lease when it's done next fall, er, the following spring after the 6 month lease extension Chase always approves.

Residual vs. market is definitely a factor but for mine it's $50k which is about where the market is for 3 year old R1T's.

Dumb question; I’ve never done this before. When you extend the lease, does Chase also extend the allowed mileage by 6 months?

 

[$2nassau]

If you’re sticking with Rivian and the same year and model, buying out the lease at residual price may make sense if the residual is at or below market and the mileage is at or below allotment at the time of lease end. Also, you intimately know your vehicle which you wouldn’t if purchasing a preowned vehicle, so there’s that x-factor.

 

[DKM_R1S]

I mean.. first question for you to answer is what about your use case makes going from a 1000 horsepower, 2.6s 0-60 suburban SUV to a 533 horsepower, 4.5s 0-60 (or 665 horsepower, 3.4s with performance package) suburban SUV a meaningful downgrade? Personally I've never found my dual to be lacking for power.

In terms of purchase, I cant really imagine a scenario where buying an end-of-life platform at the full residual value (I imagine in the $70K range) plus purchasing an extended warranty makes financial sense so I'd approach as a non-financial decision.

The issue is that there are no longer any of the incentives Rivian was offering in 2024. A Dual - not a max pack, No performance no sound & vision costs $400/$500 more per month to lease/finance than my current cost for the Quad. A Tri is $850 / mo higher. The specs on the current Tri are the most equivalent to my current Quad (850 hp).

 

[R1TandMe]

Dumb question; I’ve never done this before. When you extend the lease, does Chase also extend the allowed mileage by 6 months?

Not a dumb question and yes they extend the miles allowed. Just did mine

 

[ATLRivvy]

The issue is that there are no longer any of the incentives Rivian was offering in 2024. A Dual - not a max pack, No performance no sound & vision costs $400/$500 more per month to lease/finance than my current cost for the Quad. A Tri is $850 / mo higher. The specs on the current Tri are the most equivalent to my current Quad (850 hp).

Yikes. Thought you meant the equivalent Dual was the same payment as your quad. In that case the finances seem terrible either way but if you care about the cost a new lease doesn’t sound great either

 

[McLovin]

er, the following spring after the 6 month lease extension Chase always approves.

Hahahahaha...I'm so banking on this come August, 2027. Hard not to justify extending a $600/mo lease on an $80k vehicle...

 

[DKM_R1S]

Yikes. Thought you meant the equivalent Dual was the same payment as your quad. In that case the finances seem terrible either way but if you care about the cost a new lease doesn’t sound great either

I have about $10K invested in R1S specific accessories (Roof Rack, RTT, Roof Boxes, Kammak Awning, Water tank) plus refrigeration that really won’t fit in another vehicle with all the other gear (besides maybe an F150 Lightining or Cybertruck ).

So I really want to stick with an R1S to get the most use out of all this stuff.

So it’s not just a mall crawler.

 

[bueller]

Hahahahaha...I'm so banking on this come August, 2027. Hard not to justify extending a $600/mo lease on an $80k vehicle...

Yep, no reason to not keep it going given they add in mileage and drop your residual accordingly.

Those lease deals from 2024 were amazing especially when stacked on the F&F discount, then I got another 5k back from Colorado taxes. Missing out on pre-2022 hike pricing stung but that lease deal made up for it.

 

[ndmiller]

The best part about buying out the lease is you're the last owner, so you know the history of the vehicle. As others have indicated, financially it may or may not make sense based on residual compared to market value.

I have the Y $299 lease from the the last months of the $7500 free gov EV money, so facing this myself in 18 months. I think a Honda Civic and Toyota Corolla were $499+ for a lease.

 

[sfvR1S]

I've leased several cars in my life and most of the time the residual price (for EV's) is set artificially high to lower the monthly payments. If the purchase price exceeds the market value of the vehicle, which I'm assuming is true in this case, might be better off buying a used vehicle along with extended warranty.

The only time I purchased a lease was for a 2016 TRD Pro 4R. I always planned to purchase at lease end, but it kept its value so well that the lease end buy price was way below market value. In fact, when I sold it to carmax in 2023 to purchase the R1S, the amount I got for it exceeded the residual value in 2019.

 

[Eric9610]

I was considering buying mine out at end of lease but it’s a terrible financial proposition. Residual on my 23 R1T quad is $55k. Current value $42k. They are immediately upside down.

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