R2 Delivery Problems

[WoodChips]

I haven't shopped around for rates, I'm not due to order until dec-feb, I have time.

I have excellent credit but if the rates are above 5% I'll probably pay cash.

Is it better to invest yeah, probably. But the same can be said for my house. Most say it's better to not to pay off you our mortgage but I paid mine off years ago and I have no regrets.

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[Blitzjb]

I haven't shopped around for rates, I'm not due to order until dec-feb, I have time.

I have excellent credit but if the rates are above 5% I'll probably pay cash.

Is it better to invest yeah, probably. But the same can be said for my house. Most say it's better to not to pay off you our mortgage but I paid mine off years ago and I have no regrets.

I agree 100% - it is refreshing not to have mortgage or car payments......Debt free always feels great.

 

[Hereforthesnacks]

I have excellent credit but if the rates are above 5% I'll probably pay cash

the way to go. But if you have good credit the rate will be in the 4s for finance. I have been offered low 3s via my credit union.

Best financial advice I ever received: do what gives you more $$ in the end, not what makes you feel good. . You can run the numbers on any bank software or model.

 

[WoodChips]

Best financial advice I ever received: do what gives you more $$ in the end, not what makes you feel good. .

My childhood was hard. When I was in elementary school we were homeless for a while and my mother and step father always lived month to month at best.

I started working young and paid rent through highschool. At 18 I was making more money than they were.

Having a house fully paid off is a piece of mind I'm willing to have even if the smart thing to do would have been to invest the extra money.

Of course growing up without money I've become a natural saver but had no real investment knowledge. That's something I've been spending a lot of time rectifying lately.

 

[Dennisis]

Best financial advice I ever received: do what gives you more $$ in the end, not what makes you feel good.

I’m always amazed that people are so free with financial advice because whatever they did worked for them, all without knowing all the specifics of another’s situation. There are too many variables to list and yet some preach one size fits all advice. What if you already have significant resources and just dont want debt, isn’t that possible? What if you’re well off and just want to spend some cash? Not everyone is focused on dying with the most money - no awards for that. Consider you have no idea who you’re talking to here, because you don’t. No offense intended, just stating facts.

 

[virgnia_rivian]

We took delivery of our R2 Sept 2, Gaithersburg, MD SC. Delivery was flawless and we were in/out in 30 minutes.

We traded in our 2022 Gen1 LE R1T. As much as it pained us, we were a bit concerned as it approached the end of its warranty. We'll likely be back for another R1T in a year or so.

Gaithersburg is packed with R1's and R2's right now. They told us they're delivery 6-7 R2's per day and have 75 more on the way for Sept deliveries. There are so many vehicles at the service center, they've taken over the neighboring parking lot. This is the only delivery center for the DC metro right now. Sterling SC can't do deliveries right now.

 

[TechDad]

We took delivery of our R2 Sept 2, Gaithersburg, MD SC. Delivery was flawless and we were in/out in 30 minutes.

We traded in our 2022 Gen1 LE R1T. As much as it pained us, we were a bit concerned as it approached the end of its warranty. We'll likely be back for another R1T in a year or so.

Gaithersburg is packed with R1's and R2's right now. They told us they're delivery 6-7 R2's per day and have 75 more on the way for Sept deliveries. There are so many vehicles at the service center, they've taken over the neighboring parking lot. This is the only delivery center for the DC metro right now. Sterling SC can't do deliveries right now.

As a NoVA resident waiting on an order invite, this posting made me feel so good! Gives me some hope that I might get that magic email soon...

Really happy to see that the DMV is getting some R2 love! Haven't yet seen a R2 in the wild yet, but so many R1's!

Oh, and congrats on your new R2!

 

[Mathme]

Rivian sets the least residual rates on the leases it writes and right now, the money factor (interest) is really high with no subsidies offered. Maybe in a few years when the excitement of the R2 dies down, Rivian may offer a better least rate, but until then they have no incentive to. Why would they when they can make more money off of each transaction?

 

[macb00kemdanno]

I just got quoted a 4.35% through my alumni network here on the peninsula.. I might not be able to pass that up on some portion after purchase.

Navy Fed is offering me 4.29% for 48-60 months
My credit union, NC State Employees Credit Union, is offering 4% for 48 months and 4.25% for 60 months

My brother-in-law also just informed me that they offer another 1/4 percent rate drop if you're a qualified state employee (my wife is a teacher, so that would qualify).

 

[LevelHeaded]

in a few years

It won't take that long. No hit on Rivian; even if the R2 is wildly successful it won't take that long.

 

[stevejust]

In fact, buying a house with a mortgage and a good rate and investing the rest of the cash means the house pays for itself over 30 years. Cars can’t quite do that since you are looking at 4-6 year loans.

This is exactly right... the problem with the "make your money work elsewhere" is the time horizon. Maybe @McLovin is too young to remember the early aughts dot com bubble, or the housing bubble bursting, but it's great to say on average you can get "a 15% return" on your money on average when you simply exclude and ignore the years when you... can't.

Every time my wife says we should pay off the mortgage, I have to explain to her why it's better to have that money as a loan than to pay off the mortgage. So some people would look at that and say, "why doesn't the same principle apply to an auto loan?" I think the shortest answer is you're talking about paying interest on an appreciating vs. depreciating asset.

And most people are probably comparing a 15% yearly return with a 4 point whatever percent monthly compounding loan... and that, too, runs into problems especially when you start to factor in taxes and inflation.

The best rate to finance the R2 available to me was 4.14% when I started looking... but now I'm seeing it as low as 3.49%... which is actually pretty tempting. But some of us are dumbass bag holders because they invested in Rivian early on and so can't be trusted with that money anyway.

 

[McLovin]

Maybe @McLovin is too young to remember the early aughts dot com bubble, or the housing bubble bursting, but it's great to say on average you can get "a 15% return" on your money on average when you simply exclude and ignore the years when you... can't.

Sadly, I am not. One sunny day in the summer of 2000, I had $80k in Sun Microsystems. A few weeks later I had ~ $15k.

I avoided the housing bubble as we'd refinanced just before it went belly-up for ~ 4% (down from 6.5%).

But, yes, I do agree that you have to take other things into consideration. We're about to retire, and are building our retirement home on a lake. I've asked my investor if it was best to finance or use the proceeds from the sale of our current house. He said it all depends on the interest rate: Basically, if it's above 6%, pay it off. If under, finance & invest.

 

[JeffnReno]

All this talk about investing, financing, leasing, paying cash, etc., in a thread about dealing with delivery day issues. Good things to consider, but I'm in the "avoid debt" group at my age. I'd rather not leave my spouse or grown children with any debt of mine when I'm gone. As far as investment income, I will sell down some of my holdings over a few years to replace the money I take from an interest-earning account when I pay cash for my R2. We're not wealthy enough to pay someone to manage a trust, so I try to have beneficiaries named on accounts that I want to leave to my family members. By spreading the stock sell-off over a few years, I'll avoid capital gains issues in relation to my other retirement income. My spouse makes more in retirement income than I do, but who really knows which of us will go first or at the same time? When it's time to pay for the R2, I'll do ACH just like I did on our Model Y back in '22 without issue. Don't think I have always had the options I do now late in life. In my younger years, with a wife and 2 young girls to support, there were a lot of struggles, including 2 bankruptcies. I now buy what I want when I want it within my means since life is really that short.

 

[tivoboy]

the way to go. But if you have good credit the rate will be in the 4s for finance. I have been offered low 3s via my credit union.

Best financial advice I ever received: do what gives you more $$ in the end, not what makes you feel good. . You can run the numbers on any bank software or model.

Yeah, I love living debt free, but I earn ~ 4x the 4.2% my credit union is going to charge on the loan value, so that makes good sense for capital use... most ppl don’t have this ability and think about money in “risk free” terms, at that point one isn’t going to earn a lot more > 4.7-5.3% risk free, and even after tax it’s a wash.

 

[virgnia_rivian]

As a NoVA resident waiting on an order invite, this posting made me feel so good! Gives me some hope that I might get that magic email soon...

Really happy to see that the DMV is getting some R2 love! Haven't yet seen a R2 in the wild yet, but so many R1's!

Oh, and congrats on your new R2!

It sounds like they are delivering them as quickly as they can in Gaithersburg. Our VIN is in the 5k range for reference. We've yet to see any R2's on the road other than at our Tyson's demo drive.

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