Lease/buy before the production stop?

[Billyt1963]

I bought my S used. Took one service ticket to switch ownership to my account.

As it happens so often, the problems are posted, but if there are no problems, folks don’t post about those.

Sponsored

 

[Billyt1963]

Yeah I'm personally looking for an answer on this as well. I've heard in some threads/vids that the production halt may result in potential hardware upgrades in addition to part supply change introduction. In other communications I'm hearing it's exclusively to introduce potentially inferior parts/material to cut costs. So I'm really confused.

I am very Leary of changes to a product. As a wise person once told me a company normally doesn’t change things to benefit the other party.

 

[ndmiller]

Based on what I've read, product changes are to reduce costs based on learnings with actual vehicles in the field and I'm sure automobile production consultants analyzing the process (or new employees in that space).

No one get's it right the first time, I believe Tesla changed production methods to the trunk area of the model S many times to lower costs, parts variability, complexity and install time.

Using the Rivian wiring harness example. If reducing the length of wiring harness saves complexity/cost/weight/install time it's good for both Rivian and the consumer. Assuming the harness still does its job of course.

I am very Leary of changes to a product. As a wise person once told me a company normally doesn’t change things to benefit the other party.

WAY too general to apply to everything. Think about computers, phones (rotary dial to number pad), and a classic in our time the evolution of the Toyota Land Cruiser inception to 2024 version.

 

[seanocono]

Thanks to everyone for their input.

One question I asked, no one really touched on.

Does the pause negatively impact quality of materials and quality of the build of the vehicle?

Billy

Nobody knows for sure right now, but I would wait to see if anything is announced at the R2 premiere this Thursday. Obviously, nothing will be announced regarding quality. However, there may be a new feature announcement that matters to you.

 

[Hillbilly]

I wanted to get the opinion of the collected wisdom here on the subject.

i have a demo scheduled on Tuesday for an R1T. I have been watching them for a while, but several things held me back. I am now pretty serious about getting one, but I am not sure about timing.

My preference is to lease due to the volatility of EV development. I feel like in the next 3 years battery technology is going to take a leap and if purchased now, the value will take a significant hit. That said, I live in TN where leasing is not an option.

i also know they are coming up on a production halt to retool, change some things about the vehicle. I wonder how this will impact quality when they come back having new procedures on building the vehicles.

I feel like if I am going to get a Rivian, I need to purchase before the halt. I don’t want a crazy configuration, Performance DM with Standard + battery, 21 inch tires. Color more than likely just la Silver.

I would like to hear any pluses/minuses I may not be thinking of.

Billy

La silver is stunning in low light/evening. Love it.

 

[Billyt1963]

Based on what I've read, product changes are to reduce costs based on learnings with actual vehicles in the field and I'm sure automobile production consultants analyzing the process (or new employees in that space).

No one get's it right the first time, I believe Tesla changed production methods to the trunk area of the model S many times to lower costs, parts variability, complexity and install time.

Using the Rivian wiring harness example. If reducing the length of wiring harness saves complexity/cost/weight/install time it's good for both Rivian and the consumer. Assuming the harness still does its job of course.



WAY too general to apply to everything. Think about computers, phones (rotary dial to number pad), and a classic in our time the evolution of the Toyota Land Cruiser inception to 2024 version.

This is true. There are many things that are better after multiple versions, but for a company trying to survive it might be applicable.

 

[djsider2]

The monthly are lower true but you have a lot less equity in the vehicle after 3 years. Again, that may not be an issue if you know you're not going to keep it. I'm just reminding everyone to do the math and look at your unique situation. This is one of those topics that there's no right or wrong answer that applies to everyone.

A lot less equity in the vehicle is because you're paying less. That in itself is a fact. The equity that you didn't put into the vehicle is gaining interest in your own bank account (hopefully). Less equity could also be favorable when the car value is less than what you owe, in case of a total loss. That's why people recommend putting 0 down for leases.

However, yes, the decision to buy or lease is different per person. However, it shouldn't be because you have less equity in the vehicle's value after 3 years. It should be based on whether you value the postponed decision to own outright or not, or you want better protection against loss of value, etc, etc.

 

[SkiLizardHead2]

I am very Leary of changes to a product. As a wise person once told me a company normally doesn’t change things to benefit the other party.

Usually the first/second revisions in complex auto products are intended to reduce warranty costs as well - which RIvian needs to do to survive. The vampire drain is excessive and much higher than industry leaders. Rumored to reduce that with the simpler wiring harness and less ECUs. i have been waiting for 2+ years for a QR1S (due to 300mi from SC) and willing to wait another couple of months for refresh in the hopes it is a better vehicle under the hood.

 

[Electrified Outdoors]

A lot less equity in the vehicle is because you're paying less. That in itself is a fact. The equity that you didn't put into the vehicle is gaining interest in your own bank account (hopefully). Less equity could also be favorable when the car value is less than what you owe, in case of a total loss. That's why people recommend putting 0 down for leases.

However, yes, the decision to buy or lease is different per person. However, it shouldn't be because you have less equity in the vehicle's value after 3 years. It should be based on whether you value the postponed decision to own outright or not, or you want better protection against loss of value, etc, etc.

Yes, zero down for sure! Leasing company owns vehicle and any cap cost reduction you put in will be lost if it gets totaled!

 

[Khaos]

Has the production freeze begun? I've seen no change in the cars in the shop in the past few days

 

[Sparky_Z]

Other question: will this be your first EV? I leased my first Tesla because I wasn’t sure I would enjoy having/driving/living with an EV. So unless you’re sold on the ownership experience, a lease may be a lower risk option.

 

[Rividiculous]

Personally, I’m opting to wait as I am wagering the improvements will outweigh any “decontenting” done for cost savings.

I am assuming Rivian has learned a lot and will be able both to improve the vehicle AND reduce cost to build. (The wiring harness change being a big example.) I’m hoping maybe they will reduce vehicle weight or make other tweaks to increase range by 2% or so. Heat pump? Electrochromic roof option? Perhaps wishful thinking.

I am excited for an R1S but I don’t have any practical need to get it immediately. In a different situation, maybe I’d go for it.

Good luck with your decision!

 

[Ilovejunebugs]

I bought my S used. Took one service ticket to switch ownership to my account.

Bought my 22 Launch edition used, took four business days to switch. Rivian's been great to work with and quick to respond to my questions/issues.

 

[Billyt1963]

Has the production freeze begun? I've seen no change in the cars in the shop in the past few days

It looks like the freeze will take place in April.

 

[Billyt1963]

Other question: will this be your first EV? I leased my first Tesla because I wasn’t sure I would enjoy having/driving/living with an EV. So unless you’re sold on the ownership experience, a lease may be a lower risk option.

It is my first all electric, I owned a hybrid 2004-2010. I got to drive a R1S today and I think I can live with an electric. I would rather lease, but since that is not available in TN, I have gotten my "slot".

Sponsored