Sad, but I think I’m out

[tgrick]

What concerns me is R2 Gen 2 with Lidar. Let me explain. It's my understanding that Lidar is very data intense. So much so that Tesla does not want it and I think BYD made a comment that cars do not need Lidar? Once we have Lidar will it slow down the new system and new processors? So my concern is what we don't know about the impact Lidar will have expect we all think it will be better. Everything looks good a paper but are we going to have issues created by this new sensor in the real world? I guess they can always turn it off or be selective about it's use, but that my 'concern.'

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[Zathras]

Looking at the lease rates and using Travis’s calculator, these numbers are not adding up.
list reasons why you might cancel.

4.69 at the credit union, plus a $10,000 tax credit for the next two years on American made vehicles (standardized deductions allowed) for people who make $100,000 or less, that's going to significantly drop the price. (None for leases.)

 

[Jeremy3292]

4.69 at the credit union, plus a $10,000 tax credit for the next two years on American made vehicles (standardized deductions allowed) for people who make $100,000 or less, that's going to significantly drop the price. (None for leases.)

$10,000 tax credit where? For who?

 

[R1TCA]

$10,000 tax credit where? For who?

https://admin-waysandmeans.house.go...-auto-loan-interest-for-made-in-america-cars/

 

[Jeremy3292]

https://admin-waysandmeans.house.go...-auto-loan-interest-for-made-in-america-cars/

That’s not a tax credit, it’s an interest deduction like they have for home mortgage interest. VERY different.

 

[sparked]

That’s not a tax credit, it’s an interest deduction like they have for home mortgage interest. VERY different.

Was about to say the same. Since it's a deduction, you save a portion of that interest so maybe $1k total in savings after 2 years. It's worth declaring on your taxes, but it's nothing like the $7500 EV tax credit last year.

 

[Zathras]

That’s not a tax credit, it’s an interest deduction like they have for home mortgage interest. VERY different.

You're right. But it applies to all loans on Rivians being American vehicles. So I take the deduction on top of my over-65 deduction of $6,000 for the next two years, plus this tax credit, I'm going to be doing pretty good.

 

[Jeremy3292]

Was about to say the same. Since it's a deduction, you save a portion of that interest so maybe $1k total in savings after 2 years. It's worth declaring on your taxes, but it's nothing like the $7500 EV tax credit last year.

You're right. But it applies to all loans on Rivians being American vehicles. So I take the deduction on top of my over-65 deduction of $6,000 for the next two years, plus this tax credit, I'm going to be doing pretty good.

Yeah it’s only like a few hundred dollars. If you financed the entire R2 for $60k at 5% interest you pay $3,000 a year in interest.

$3,000 x 22% tax bracket = $660 savings on your taxes

And again that’s if you financed the ENTIRE $60,000 purchase price. Won’t be anywhere near that most likely. A few hundred dollars at most.

 

[Zathras]

Yeah it’s only like a few hundred dollars. If you financed the entire R2 for $60k at 5% interest you pay $3,000 a year in interest.

$3,000 x 22% tax bracket = $660 savings on your taxes

And again that’s if you financed the ENTIRE $60,000 purchase price. Won’t be anywhere near that most likely. A few hundred dollars at most.

And, that's why I use TurboTax.

 

[Jeremy3292]

And, that's why I use TurboTax.

Yeah in general deductions don’t amount to much, but tax credits are real dollars.

 

[Donald Stanfield]

Buy it with cash then you can sell it whenever you want. That way you are not paying interest to anyone (admittedly you forgo interest, less tax, on $60k) and you have the car you want.

I know someone will say ..."yes but you take all the depreciation hit" ... you don't really, that's kind of what the interest cost is and remember you'll have some equity when it comes to sell.

Before you buy a car cash, you have to consider your opportunity costs. If you have 60K lying around, hopefully you're earning more than 6% on it in an investment account.

 

[lefkonj]

If I needed a new vehicle I would jump right in, love my R1. But with the current interest rates and the fact I don't need a new vehicle I may cancel my pre-order.

 

[narmstrong79]

Looking at the lease rates and using Travis’s calculator, these numbers are not adding up.
list reasons why you might cancel.

Leasing is renting your lifestyle, turning my driveway into an expensive subscription service makes zero sense.

Now on the buying side, I can't justify giving up my Gen 1 2024 R1S for an R2.

 

[Zathras]

Leasing is renting your lifestyle, turning my driveway into an expensive subscription service makes zero sense.

Now on the buying side, I can't justify giving up my Gen 1 2024 R1S for an R2.

There will be subsuquent generations of the R1, R3, R4, R5. No need to jump back into paying so soon is my motto.

 

[ndmiller]

Leasing is renting your lifestyle, turning my driveway into an expensive subscription service makes zero sense.

Unless the lease is heavily subsidized and/or has manufacturer inflated residuals. The $7500 tax credit days along with residuals and everyone hates Elon made our Tesla lease a no brainer.

In our case ~$11K for three years with a $50K vehicle that's essentially worthless ~$22K residual yet almost new with 36K miles and HW4. The cash price was a hair over $52K. Deal made zero sense for Telsa, but it was a different time with free government money.

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