Who's holding out for Standard AWD R2?

[WoodChips]

Agree with @forestwalker -- I just don't see how $1000-$2000 on a $51,000 car is the tipping point. This isn't a Corolla. The difference from Standard RWD, or even Long Range--I get it.

That's how people start looking at vehicles at an affordable price range for themselves and end up over their heads in debt.

How many trim options does Ford have? Seven or eight? I don't recall but it's a lot. The basic bronco is in the 30k range then you add an option or two and the next level up looks like a better deal. The top bronco is twice as much as the entry level an extra 1 or 2k can add up.

Many people buy a few level higher than they need and two more than they can really afford. Some of my coworkers are in this category. They kept adding feature and buying the next trim then found themselves financing trucks for seven years to get the payments down where they "could afford it." Too bad they have no real retirement, live in a small rental and struggling month to month. I wonder what their interest alone comes out to.

The first new vehicle I bought I was limited by my finances and ended up with less features than I wanted. I drove that truck for ~20 years before it was in an accident.

Are Rivian buyers in a different category? Maybe for the R1 but the R2 is more inline with the average vehicle and buyer.

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[UnsungZero_OldTimeAdMan]

Agree with @forestwalker -- I just don't see how $1000-$2000 on a $51,000 car is the tipping point. This isn't a Corolla. The difference from Standard RWD, or even Long Range--I get it.

And you don’t have to “get it”. You clearly don’t have the problem of clearing additional $2k. It’s not a problem you need to solve.

What if they are already at their spending limit without the $2k? What if they’re retired and on fixed income and are being extra conservative with their budget?

Again, you are not “everyone” else. What’s the point here? Trying to justify your decision? Get what you want and enjoy it. Let others get what they want and let them enjoy theirs.

 

[Millbarge]

And you don’t have to “get it”. You clearly don’t have the problem of clearing additional $2k. It’s not a problem you need to solve.

What if they are already at their spending limit without the $2k? What if they’re retired and on fixed income and are being extra conservative with their budget?

Again, you are not “everyone” else. What’s the point here? Trying to justify your decision? Get what you want and enjoy it. Let others get what they want and let them enjoy theirs.

because if you are retired and on a fixed income and you are maxxing out what you can afford for a vehicle and a 4% increase of your budget is impossible, you really shouldn't be getting that vehicle at all.

I'm not justifying anything. I just don't think Rivian's pricing for the Standard AWD is going to result in many sales of that specific model.

 

[UnsungZero_OldTimeAdMan]

because if you are retired and on a fixed income and you are maxxing out what you can afford for a vehicle and a 4% increase of your budget is impossible, you really shouldn't be getting that vehicle at all.

I'm not justifying anything. I just don't think Rivian's pricing for the Standard AWD is going to result in many sales of that specific model.

And that’s their problem. Right?

It’s not at all uncommon for automakers to make the highest trim most compelling. Higher trim, higher profit margins. Any other brand… they all advertise heavily on starting prices, while showing images of highest trim, and produce very few examples at advertised starting price. “Best foot forward”. I’ve worked on a handful of brands.

 

[Parallax]

I considered waiting for the Premium but for me the Performance makes more sense. I really dislike the standard wheels that come with Premium so upgrading the wheels and getting the tow package removes the value from going with the Premium. That's not even considering the Autonomy value and the actual Performance model upgrades. So Performance with LE for me. But this is all a personal decisions that will be different for everyone. Just like color. There is no right answer for everyone.

 

[SANZC02]

because if you are retired and on a fixed income and you are maxxing out what you can afford for a vehicle and a 4% increase of your budget is impossible, you really shouldn't be getting that vehicle at all.

I'm not justifying anything. I just don't think Rivian's pricing for the Standard AWD is going to result in many sales of that specific model.

They don’t need to sell it just have it available. There are magic numbers that trigger people. If the first number in the basic trim is above 5, there are a lot of people that will not even look at the vehicle. If it is a 4 more people will at least look at it, they then might decide they want it, at that point they start thinking about trim levels.

Most people on this forum are very familiar with the brand, what they will do with a model in the forty’s is open the pool of shoppers willing to take a look.

 

[Millbarge]

They don’t need to sell it just have it available. There are magic numbers that trigger people. If the first number in the basic trim is above 5, there are a lot of people that will not even look at the vehicle. If it is a 4 more people will at least look at it, they then might decide they want it, at that point they start thinking about trim levels.

Most people on this forum are very familiar with the brand, what they will do with a model in the forty’s is open the pool of shoppers willing to take a look.

Having an additional model increases production costs. The Standard AWD price starts with a 5, so I'm not sure what you are saying here. I fully understand the Standard RWD and the Standard RWD Long Range.

 

[SANZC02]

Having an additional model increases production costs. The Standard AWD price starts with a 5, so I'm not sure what you are saying here. I fully understand the Standard RWD and the Standard RWD Long Range.

Not sure there is additional cost, they need the standard configuration to get into the forties. Essentially they are just putting the premium drive train in the standard model. Will they make that model, probably not but having it in the configuration has people looking at AWD and may push them to look at the next trim level.

Even if they do build it without the drop glass and the basic interior margins are probably similar to the entry level premium.

My take, having it in the configurator is the right move even if it is never ordered/built.

Edit: One thing they could have considered is use the standard battery to have the standard AWD under 50k like 49,990.

 

[UnsungZero_OldTimeAdMan]

Having an additional model increases production costs. The Standard AWD price starts with a 5, so I'm not sure what you are saying here. I fully understand the Standard RWD and the Standard RWD Long Range.

False assumption. They (OEMs) plan, calculate their margins to maximize profits—what will sell the most. Then pare back to create lower priced trims. Profitability is baked in, from highest to lowest trim. The rest of the optimization is how many of each trim to produce, how much trim-specific supplies to procure and not end up with any surplus inventory.

They do not start planning with base trim, add features, then hope the high trim will sell and be profitable. Product planning is done through backcasting, from highest trim.

 

[Millbarge]

Edit: One thing they could have considered is use the standard battery to have the standard AWD under 50k like 49,990.

Yeah I would understand this version being offered

 

[Zathras]

drop glass; matrix headlights; upgraded interior; heated/vented seats all make it a no-brainer to me.

Suspension is enough for me to decide to go Performance anyway.

 

[Zathras]

Yeah I would understand this version being offered

$3,500 is more than worth if for the extra motor up front.

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