R2 Lease Available at Launch (Report)

[runwithscissors]

I’m leasing now with an option to do a buyout. I see nothing wrong with it. It’s much cheaper than buying new. Nearly 80% of EVs are leased. Probably due to the expense and rapidly changing technologies.

And insane depreciation...

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[Edwin]

Just spoke to a Rivian Employee at the Grove in LA. The employee said RJ confirmed Leasing availability at Launch at their recent employee event.

The lease option may take me out of the buying loop. I have planned on purchasing for almost 2 years and waiting for a vehicle to purchase while people are leasing would be a non starter. Make leasing an option after buyers have been taken care of.

 

[Ilovejunebugs]

For those of us who live in states where leasing a rivian isn't an option, this doesn't matter. I hope it is an option very soon here in WI.

 

[mkg3]

For many years, leasing didn't make sense to us due to annual milage constraints. We were driving over 25k miles/yr on two of our daily vehicles to work, multiple kids sports practices and tournaments. Now, we're both retired, empty nesters so our mileage is probably 25k miles/year combined in our 4 vehicles.

I believe EVs are the best daily driver vehicles. As such, I've always thought leasing EVs were the best and the smartest thing one can do. The technology and capabilities are changing fast enough so if leased, one can easily walk away into a new.

I know this smacks in the face for those that keep their vehicles for a long time or ones that make modifications. Since we typically keep our vehicles for 5~6 years and/or roughly 80k miles historically, leasing would be a change for us. We always bought our vehicles, including the R1S (lease was not available in mid 2023). We don't like large monthly payments. Just need to think about it like a utility payments, if leasing.

I do believe having the lease program at the start of R2 is very smart for Rivian. They will deliver more vehicle this way.

 

[Volabisi]

Leasing the first one for the wife and after the lease if we love it, then we will trade it back along with my R1T for two lidar equips models.

 

[R2D2TOO]

The lease option may take me out of the buying loop. I have planned on purchasing for almost 2 years and waiting for a vehicle to purchase while people are leasing would be a non starter. Make leasing an option after buyers have been taken care of.

I don't understand this. Why would leasing being available affect your purchase at all? If you have a reservation you are in line to take possession of an R2. I assumed leasing would be available from the start. Am I missing something?

 

[Edwin]

You never assume . Leasing has never been mentioned in regards to the R2 except in the forum. I don’t see how leasing (unless it’s the last option) would help Rivian and the need to generate cash.

 

[R2D2TOO]

You never assume . Leasing has never been mentioned in regards to the R2 except in the forum. I don’t see how leasing (unless it’s the last option) would help Rivian and the need to generate cash.

Some percentage of potential R2 'buyers' would prefer to lease. More R2s on the road. Would that not be good news for Rivian?

 

[DuoRivian]

You never assume . Leasing has never been mentioned in regards to the R2 except in the forum. I don’t see how leasing (unless it’s the last option) would help Rivian and the need to generate cash.

Rivian gets cash from leasing through the finance company.

 

[Riv_Ian]

Buying because I'm going to be making permanent modifications.

Snow plough?

 

[JeepEVer]

I buy fully loaded vehicles, accessorize, and make some minor modifications (suspension upgrades, performance improvements). I also keep these vehicles 15+ years, so buying has always made sense for my use cases.

Leasing an R2 may be an option to consider though. It depends on what features, if any, are lacking in the launch vehicle. And when my reservation number comes up. I would like a Tri-motor and Gen 3 hardware, but they may not be worth the wait, nor that much of an upgrade for real life use. I seldom use Autopilot in my Tesla that I have had for 7 years, especially now that I no longer commute to work. Road trips are the only other high-value use case, but a Rivian Gen 2 can now do those drives.

Leasing allows me to finalize the purchase when the time comes, or return it if I am not satisfied (unlikely based on what we have heard about R2). It provides a more reasonable path to upgrading to a tri-motor, Gen 3 autonomy, and any other improvements. It also de-risks owning a Rivian until the company finances are in better shape, although monetary struggles did not stop me from buying a Jeep in 2010 or a Tesla in 2019!!

 

[skyguyscott]

Leasing may make sense for some who always want a new car, don't drive much or make heavy use of their vehicles.

I have an R1T and I use it like a truck, -- it's a work vehicle, an asset rather than a liability. I have it paid off, and now it's a matter of generating that ROI. I plan to keep it for about 10 years. To me, leasing is like renting, so I'd like to get ahead of the cost curve.

Financially, the best deal is likely still to buy gently, recently used. The most savvy will likely wait a year or two and purchase a used R2.

 

[mkg3]

You never assume . Leasing has never been mentioned in regards to the R2 except in the forum. I don’t see how leasing (unless it’s the last option) would help Rivian and the need to generate cash.

Because lease lowers the monthly payments to the consumers hence, increases the market capture for Rivian. Further, the accounting is such that the sale of the lease vehicles are effectively counted using subscription revenue recognition and provides steady cash flow, albeit it at a lower amounts.

There is no need to mention lease as a separate thing for the R2, since leasing is a standard practice in the auto industry.

Perhaps some people still believe leasing is for those that cannot afford to buy the vehicle and/or that it is a rental. In my particular case, I have fully purchased the last 3 vehicles. Each time, I sold some stocks and paid capital gains for the stocks that I sold and bought the depreciating asset,

If I leased, there is no need to sell stocks to raise the cash, I can easily absorb the monthly payment without any impact and not increase my tax liability. I bought the last 3 vehicles because I didn't want payments and wanted something nice. These 3 purchases made no difference in our financial picture.

 

[3wisemonkeyz]

Not in Minnesota - been waiting for the option on R1 but it hasn’t happened.

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