Lease/buy before the production stop?

[Billyt1963]

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!

I have finally decided. I drove a R1S today and after I got home I got my "slot".

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[Billyt1963]

Just wanted to close the loop and thank everyone for their input. I went for a demo today. The demo R1T was not available, but we drove a quad R1S. When we got home (about 1.5 hour drive) I got my slot for an R1T. It mentioned 4 months until delivery, so my worry about the production freeze didn’t make any difference. They have a configuration that is close, maybe I will get the option for that.

 

[Sparky_Z]

Just wanted to close the loop and thank everyone for their input. I went for a demo today. The demo R1T was not available, but we drove a quad R1S. When we got home (about 1.5 hour drive) I got my slot for an R1T. It mentioned 4 months until delivery, so my worry about the production freeze didn’t make any difference. They have a configuration that is close, maybe I will get the option for that.

Congrats, you’re going to love it

 

[sambo]

Don't lease unless your 100% sure your gonna turn it in at the end. Better to buy if you plan to keep it.

For a 72mo finance at 6% with zero down you would only owe about 52% after three years. Unless of course you think it's going to lose more than 48% value in 3y 45k mi.

Not a financial expert of course.

How does the $7500 figure into the equation, also if interest rate will be lower in 3 years?

 

[Billyt1963]

Lease isn’t really an option in TN, I was just hoping it might be before I wanted to get the vehicle. Turns out I couldn’t wait, I am in the buying process now. I should get one that is already built, so that takes out the after pause concern.

 

[Electrified Outdoors]

How does the $7500 figure into the equation, also if interest rate will be lower in 3 years?

Good question. There are a lot of ifs. I look at it as paying money in and equity. Everyone's situation will be different.

For example, you do get the $7,500 cap cost reduction and a lower payment. I would encourage anyone considering leasing to use the auto loan calculator and the lease calculator that I posted.

If you plan to keep the car, your in a better position after three years at a bit higher payment. If rates go down in the next year you can refinance but the lease terms cannot be modified except maybe to extend it by a few months.

My big hangup with the Rivian lease is you can't transfer it if your situation changes and it makes no sense to keep it after the term with such a high residual.

If your a business owner you may get tax benefits. Too many variables to say 100% and one can never predict what the market will look like at the end of the term.

If your not sure talk to your accountant to get the best advice given your situation.

 

[niknokseyer]

Good question. There are a lot of ifs. I look at it as paying money in and equity. Everyone's situation will be different.

For example, you do get the $7,500 cap cost reduction and a lower payment. I would encourage anyone considering leasing to use the auto loan calculator and the lease calculator that I posted.

If you plan to keep the car, your in a better position after three years at a bit higher payment. If rates go down in the next year you can refinance but the lease terms cannot be modified except maybe to extend it by a few months.

My big hangup with the Rivian lease is you can't transfer it if your situation changes and it makes no sense to keep it after the term with such a high residual.

If your a business owner you may get tax benefits. Too many variables to say 100% and one can never predict what the market will look like at the end of the term.

If your not sure talk to your accountant to get the best advice given your situation.

Running the numbers, lease looks like a really good option. Probably because of the 7500 credit. But probably I'm calculating it wrong.

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