Lease with immediate buyout?

[LR4toR1S]

You should be able to buy it out after the first month. Just wait for the lease to settle.

Also needs to make sure they didn't get a problematic auto. I certainly did. My plan was to buy after 30 days. But RIVIAN had it for 30 days after it broke otw home from delivery. Its been a long list of repairs non-stop. We are reconsidering our plan of a buyout.

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[RivAW]

Your plan can't really pencil out in a positive financial way compared to just paying the lease and buying out at the end.

You loose a lot in potential interest on the cash outlay gained during 36 months at these high interest rates....enough to easily offset the 7500 lease incentive.

You'd have to pay

• all remaining payments including taxes
• the residual value of the vehicle
• any early termination or other fee's
• The original deal down payment

Just thinking about

• taxes on 36 payments of 700-800 that's another $1500-$2000
• the money factor on the payments
• the cash outlay ~$80K-$100K that could earn 5% annually as a lost income (at least 6K lost)

BUT, if it makes you feel good, have a it, it's your money.

Correct. It works out to about the same the way you put it (buy out lease approximately immediately or let the lease play out and buy at the end). The difference, as you also said is whether OP would be better off using the cash to invest or do something else for now and then decide in 36 most if the buyout is still wanted versus upgrading to a new or different vehicle....

 

[waitingonanr1s]

Also needs to make sure they didn't get a problematic auto. I certainly did. My plan was to buy after 30 days. But RIVIAN had it for 30 days after it broke otw home from delivery. Its been a long list of repairs non-stop. We are reconsidering our plan of a buyout.

30+ days in the shop during year 1 is lemon law territory in some states.

 

[CyberDuck]

Complete nonsense you are describing a ballon payment loan buyout. OP DO NOT BELIEVE THIS.

No bank is going to lease you a vehicle (they purchase) and have you buy it from them for their costs. That's not how banks make money on leases. Either you give them the lease terms money over time or all at once. The amount of money owed doesn't change with the exception of any fees incured for your choice.

This may be the most idiotic yet confident statement I've ever seen.

To be utterly and completely clueless and wrong yet so confident is another level of stupidity and ignorance rarely witnessed.

 

[Rade]

This may be the most idiotic yet confident statement I've ever seen.

To be utterly and completely clueless and wrong yet so confident is another level of stupidity and ignorance rarely witnessed.

The term you are looking for is "Dunning Kruger Effect".

 

[BanditTA]

I've been debating going with a purchase of a new R1T Dual Large Performance vs the R1T Dual Max Performance, which currently has a lease discount of $3000. Do you guys recommend leasing the dual max, putting $0 down and just buying it out right after too?

Not sure if this is as compelling with the $7500 credit not available. Alternatively I could just buy any of the DLPs, DMPs or a Tri for the 1.99% financing rate.

 

[Rade]

When I bought my R1T in October of 2024, I did a lease and banked the buyout portion into my investment savings. I did not quite have enough to buy the truck outright at time of purchase, and the lease put me into a monthly payment that was well within my budget. When the new administration came into office and began slamming tariffs on everything and the markets took a major hit, rather than look at my savings go down with it, I cashed out the savings and bought out my lease. I bought out my lease after 5 months. I am glad for the effort; I slept well after that. Did not lose any money, as a matter of fact, the lease buyout was less than the stated price in the leasing agreement.

The only place I got hit hard on was on the RI State sales tax at time of registration and title transfer, but I had that money set aside.

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