Planning to lease R2. Assuming 65k out the door price, what will a lease look like?

[mkg3]

Thanks for rerunning it but your original assumptions are closer to being reality isn't it?

The only way anyone gets less than 6% lease rate (whatever the equivalent money factor is), is if it's sponsored by the mfg. I highly doubt that Rivian needs to do that initially. Perhaps next year but not at the launch.

Also, if other EVs are any indication of depreciation, since that's what is being financed, it's fair to assume 45~55% depreciation after 3 yrs.

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[MidnightRivian]

Here is an example of a Mustang Mach E Rally with very close pricing to R2 launch edition.

 

[MidnightRivian]

Thanks for rerunning it but your original assumptions are closer to being reality isn't it?

The only way anyone gets less than 6% lease rate (whatever the equivalent money factor is), is if it's sponsored by the mfg. I highly doubt that Rivian needs to do that initially. Perhaps next year but not at the launch.

Also, if other EVs are any indication of depreciation, since that's what is being financed, it's fair to assume 45~55% depreciation after 3 yrs.

Yup. I went with conservative numbers since they probably want to steer customers towards purchasing. Right now folks are mentioning buying has better incentives on the R1. So it make sense they would follow a similar strategy with R2 and push for purchasing. Which means lower residuals and higher APR.

Down the road when they get more capacity they can use their pricing levers with Chase and subsidize the lease a little.

The loss of tax credit really hurts the lease proposition.

 

[Gen(R3)Xer]

Is this what leases costs?

I've never leased a vehicle so I don't know if it's a good or bad. The monthly payment of $1k/mo seems very high for $60K vehicle ($58K+$1.5K destination fee).

Since most people acquire vehicles based on monthly payment more than the window price, especially around this price points, this looks like a heavy commitment.

I looked at Travis Ketchum’s website for leasing Rivian’s. He doesn’t have the R2 on there yet. Probably because we won’t know the residual value for a while.

Anyway, I looked at the depreciation of an R1S and it was about 36%. I took that percentage and applied it to the R2 Performance and subtracted it from the price to get the residual value ($57,990 x 0.36 = $20,876.40. $57,990 - $20,876.40 = $37,113.60). This is just a guess of course. My math could be off.

Then I took those numbers and plugged them into a lease calculator. It said $671.80 a month (see below). I’m not sure how accurate that is, but it sounds more realistic than $1,000+ a month, especially when you can lease an R1S or R1T, which costs $15K+ more, for about the same price or less with incentives (You can lease a $72,990 R1S or R1T Dual Standard for as low as $749/mo for 36 months with approval.)

I personally think they’ll try to lease the R2 Performance for somewhere between $600 to $650 a month. The cheaper trims will be less, of course. We need to get that tax credit back. Then it would be even cheaper.

 

[Hodog16]

The R1S standard leases at $749 when you put $3500 down along with fees etc due at signing. This doesn’t include taxes so it’s a little misleading.

If I include taxes and change down payment to zero that same lease goes up by like $150 a month.

I don’t expect a great residual or money factor but this car needs to lease a few hundred under the cheapest R1S.

 

[Eric9610]

The R2 Top spec needs to lease for no more than $850 a month and the $55k version needs to be no more than $759 all in with only drive offs due.

 

[JungGravy]

I want to lease, either Launch or Premium. But I don't want to give
money to reduce the monthly. And seriously doubt they will set residual over 75%. So before tax leases will likely be $800+

BTW, I feel like the big 3/12 launch announcement was lacking, since: lease pricing isn't included, the configurator isn't ready, and although Rivian states deliveries will begin later ths spring, my reservation email says they'll let me know in June when I can order. I reserved 2 yrs ago.

 

[AlphaSnowbordergirl]

BTW, I feel like the big 3/12 launch announcement was lacking, since: lease pricing isn't included, the configurator isn't ready, and although Rivian states deliveries will begin later ths spring, my reservation email says they'll let me know in June when I can order. I reserved 2 yrs ago.

As people said, June is still spring for most of the month.

 

[MrHockey17]

Is this what leases costs?

I've never leased a vehicle so I don't know if it's a good or bad. The monthly payment of $1k/mo seems very high for $60K vehicle ($58K+$1.5K destination fee).

Since most people acquire vehicles based on monthly payment more than the window price, especially around this price points, this looks like a heavy commitment.

The lease on our 2024 Ioniq 5 is $657 per month.

 

[Hodog16]

The way I look at a lease is will it be cheaper to lease or finance for say 2-3 years to determine if it’s good or not, assuming you have a single vehicle in mind.

Many vehicles lease better than others. Traditionally a BMW will lease better than say a Porsche with the same MSRP.

Say you have a generic vehicle that cost $60k. If it leases for $500 a month, over 36 months that will cost you $18,000 plus some fees (acquisition fee, rental fee, disposition etc) to drive it for 3 years. If you bought it for $60k and the trade in value in 3 years is above $42,000 then it’s a bad lease to me, although you can recoup some money by selling it instead of grounding it. If it’s like $35,000 then it’s a good lease because you paid less depreciation than the car had.

I like leasing EVs to protect against depreciation and also it used to be the way to go with $7500 off. Other benefits of leasing is not caring about the Carfax should it get into an accident since you don’t own it and not needing to tie up a lot of money in equity.

Downsides are always carrying a monthly payment and mileage restrictions.

Leasing is confusing at first but once you realize there’s only a few levers to pull it’s quite simple.

My guess is for the residual, it will probably be realistic (55-60?), but the money factor will be jacked up at least initially.

 

[JungGravy]

As people said, June is still spring for most of the month.

June to order.

 

[racekarl]

As people said, June is still spring for most of the month.

Only if you subscribe to the baloney astronomical seasons. According to the superior meteorological seasons spring is March, April and May. June 1 is the first day of summer.

 

[RivAW]

No way to know until the number nerds guesstimate what the depreciation will look like to come up with a residual value. Your lease is purchase price minus residual, divided by the number of mos....then multiplied by the going APR which is subject to manipulation through internal dealings between Rivian and Chase

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