Any ACTUAL loyalty incentives for us Gen1 coming up on end of their Lease?

[boostincincy]

I had a conversation with a Rivian rep six months ago, about how when we’ve leased from either VW or BMW, they’re obviously motivated to keep you in a lease (and apparently a Tesla is wildly aggressive at cutting deals like this too), and that when I build a new R1T apples to apples, without the $7,500 credit built in AND the new features that are now included… my $974/mo lease for the same vehicle is looking like $1,200-$1,300/mo and that’s leaving off that I would desire a MAX Pack this time around.

so the Rivian rep was obviously sympathetic and said ‘we are hearing this a lot and we’re working on it’. And now I’m getting my six months out emails, but no real offers to keep me in a Rivian. And like I said six months ago… I’m not that interested in adding $200-$300/mo on top of the 25% my insurance has gone up since taking delivery January 2024.

So just curious if anyone has had any incentivized offers or if it’s just simply not a Rivian priority.

i love the car and have been a vocal cheerleader to all for the past 2.5 years but economically not going to pay 30% more per month for the same vehicle.

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[DuoRivians]

I’d be surprised if Rivian is willing to lose money on R1 cars right now. Not saying an incentive isn’t possible. But, with interest rates high and prior residuals being too optimistic, I would expect future lease offers to be okay-ish, not amazing.

 

[ribuck97]

Note that I have a sticky that I try to update with the current lease, financing, and random discount offers at the top of this section.

That said, the $7500 wasn’t a true Rivian incentive… it was just a federal incentive passed down which was excellent when leasing a PHEV/EV (if purchasing a consumer may not be eligible so often one just buys out the lease immediately). This stacked with any mfr incentives, dealer discounts, etc. This credit alone is basically $200/mo plus perhaps a $3k incentive is almost another $100.

Lease APR rates for Rivians aren’t very good as well… that coupled with lower residuals increases payments.

Unfortunately for trucks, one doesn’t have very cross shopping options: Cyber, Chevy/GM Silverado/Hummer/Sierra. A $64k Silverado lease advert is still $710/mo

Good luck in the search….

 

[DD4ST]

Since Chase holds the lease, would this be a Rivian or Chase decision? Seems like Rivian has little incentive but Chase may because they have to dispose of the vehicle after lease, and possibly at a loss.

 

[ribuck97]

If “this” refers to both the residual values and the money factor (APR) portions of a lease, yes Chase will provide base values. From Rivian’s perspective, they may influence the APR portion of the lease with Chase By working with them or applying a markup.

In normal mfr/dealer model, the dealer will 100% mark up the APR on a lease to ensure their profit. Since Rivian is direct to consumer type model, I’d bet that Rivian will almost certainly apply their markup to the APR. For R1Ts, the APR ranged from 5.09% to 7.29% this month. One can see how much higher this is than the Chase financing offers.

On a $100k R1, a 2% markup by Rivian to the Chase APR generates roughly $125/mo or $4500 over the life of the 36mo lease..

This Rivian markup (if they do apply one) could be used as pure profit, offset lease incentives, or offset the cost of vehicle packages such as the R1 Forest Edge or R2 Launch Edition.

$0.02

 

[boostincincy]

Thank you for the insight everyone.
I had spoken to another REP yesterday and basically he kindly said “you have time on your side and I bet the best deals will be at the end of the year right before your lease is up. So, sort of a ‘maybe the market will help you out’ but no real offers in terms of incentivizing someone to renew a lease / stay with the brand

 

[ribuck97]

This is correct... normally the best incentives are at the end of the quarter. Best deals I've seen werre the Feb/Mar deals when 0/60, 0.49/72 financing was offered. Lease was ok... but nothing like the inclusion of the $7500.

Note that IF there perhaps is R1 gen3 around the corner, there may be continued "price reduction" vehicles ($1000 to $5000 now).

 

[McLovin]

Thank you for the insight everyone.
I had spoken to another REP yesterday and basically he kindly said “you have time on your side and I bet the best deals will be at the end of the year right before your lease is up. So, sort of a ‘maybe the market will help you out’ but no real offers in terms of incentivizing someone to renew a lease / stay with the brand

I’ve mentioned this before, but it’s also highly likely you can extend your current lease 3-6 months, or even longer. I have done this before with my daughter’s leased vehicles when in college. So if nothing pops by the time your lease is up, just extend for a few months in the hopes something shows up later.

I’m in a similar situation (‘24 T w/ $600 mo lease payment), but have a full year remaining. I’m hoping to extend my lease for as long as they’ll allow…up until the R3X is released.

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