Trade in owned to lease; won't pay back difference

[majorfriend]

Rivian leases through Chase, and Chase has an approximate 40% cap cost reduction limit for leases. If your positive equity in the trade in is higher than that, and/or you're also adding additional cap cost redux, you are probably over that limit and they won't be able to do the lease with the trade in.

Definitely sucks but it's a limit on Chase's end as Rivian won't simply just buy the car from you separately, as I understand it.

Ok, but they should still send OP a check for the difference
66k trade in value
~35k towards the lease
~31k check to OP

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[CarGuyCarl]

It seems easy enough, but I don't think they can/will do that. OP will have to sell separately or figure something else out.

Not sure about WA, but in IL you do not get any tax savings if you trade in on a lease, therefore, while it may be more work, it's usually better to sell elsewhere for a higher amount at least in our state.

 

[alaker42]

I had the same experience as OP. I received a nice trade in value from Rivian for my BMW but they said it could not be used on a lease since the amount was above the cap cost reduction limit.

I ended up doing a bunch of instant offers online with all the big name companies, which unfortunately all came in a few thousand under the Rivian offer.

I had accepted my fate and was going to wait a couple weeks to sell to a dealer locally but out of the blue Autonation sent me an updated offer $4500 above their initial offer (and $1K above Rivian's offer) which was only good for a couple days. Had to drive 75 miles and fully expected a bait and switch but they honored the quote with no haggling. Still surprised how that worked out....

Hope you find something similar OP.

 

[DrBad]

I had a similar thing when trading in my Gladiator for Gen 2 R1T lease. They said the trade-in value was more than the allowed lease downpayment. So, it's a lease vs a purchase issue. Sold the Jeep on Carvana for about the same price, so lost the tax benefit.

 

[RivAW]

They paid me more for my Taycan than the entire cost of my R1S. Sent me a check for the $6,800. Took about 8 weeks to get the check. I paid $0 at purchase.

This was late August of this year. Gen2 R1S.

If they're being weird about the leasing, I guess, but it really shouldn't be relevant to trade in. I guess if it's because it's a Rivian? Funny they'd make it harder to trade in their own brand.

It’s “relevant” because leasing is all made-up numbers that fluctuate and their may be some legal hold-up as a direct to consumer program (hence why they only even offer leasing is some states)…

 

[computertom]

Question out of ignorance - why would you want to trade in against a lease (or do a large cap cost reduction)? Isn’t there a risk of a total loss on the vehicle and then you losing all you paid ahead?

 

[alaker42]

Question out of ignorance - why would you want to trade in against a lease (or do a large cap cost reduction)? Isn’t there a risk of a total loss on the vehicle and then you losing all you paid ahead?

For me, I'd never had a lease before and didn't realize all the cons with putting a large amount down upfront on a lease until after Rivian said they wouldn't take my trade for the lease. So it was a blessing in disguise they wouldn't take it. Now I'm edumacated after reading all the good info in this forum.

The money from selling my car is now instead sitting in a high yield savings earning interest to help offset the high lease MF.

 

[Electrified Outdoors]

Would a one pay lease make more sense? If you have 66k in cash you might be able to do a one pay if the cost of the lease is 66k over the term. If it’s an option with chase.

in some states you benefit by doing the trade-in because in those states you get a credit on the unused sales tax when both vehicles are part of the same transaction.

 

[RIV206]

Would a one pay lease make more sense? If you have 66k in cash you might be able to do a one pay if the cost of the lease is 66k over the term. If it’s an option with chase.

in some states you benefit by doing the trade-in because in those states you get a credit on the unused sales tax when both vehicles are part of the same transaction.

The total lease was still lower than my trade, plus I didn't want to put too much down as others mentioned if something ever happened to the truck during the lease, I'm out that big upfront deposit.
I surprisingly got a decent offer from Carmax last night so deciding if Im going that route. Funny enough, carmax wanted pictures of my "engine" which was fun sending them pics of the dark front trunk.

 

[Electrified Outdoors]

The total lease was still lower than my trade, plus I didn't want to put too much down as others mentioned if something ever happened to the truck during the lease, I'm out that big upfront deposit.
I surprisingly got a decent offer from Carmax last night so deciding if Im going that route. Funny enough, carmax wanted pictures of my "engine" which was fun sending them pics of the dark front trunk.

Makes sense to me. That's great to hear that Carmax is giving decent offers. I think they have a deal with Rivian now to sell their used vehicles.

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