Sad, but I think I’m out

[Blitzjb]

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.)

People that make less than 100k should not be buying a 60k car.

Sponsored

 

[sparked]

People that make less than 100k should not be buying a 60k car.

Doesn't really matter in this case as the interest deduction is not a tax credit anyways so the savings are very minimal.

Strangely, this is the third time in the last 24 hours where I've seen people post wrong information about this interest deduction on social media for R2 purchases. People are going to get a reality check at tax time that this is only a very small benefit.

 

[ForestGreen]

Just doing some math maths, someone making $100k, $5k down and 5% apr at 60 months, it would be a savings of around $400 in the first year only. The next couple years it will be lower as interest to principal ratio goes down. I would say about $900 total for the three years left

 

[Jeremy3292]

Just doing some math maths, someone making $100k, $5k down and 5% apr at 60 months, it would be a savings of around $400 in the first year only. The next couple years it will be lower as interest to principal ratio goes down. I would say about $900 total for the three years left

If you finance $55,000 of a $60,000 car...basically financial suicide.

 

[ForestGreen]

If you finance $55,000 of a $60,000 car...basically financial suicide.

As is buying a $60k car on $100k income as a normal person.

 

[Hereforthesnacks]

Personally, I always pay cash for my cars, whether new or used, so I buy only what I can afford..

If interest rates are low, buying with cash is actually a money loser, right? If you can get a 0-2% loan and pocket the $100k and put it in the market for 6 years, you are way better off than paying cash.

Just saying that there are many reasons people get car loans.

For leasing, most people I know do it because they want a new car every 3 years. Paying more that is worth it to them. If you are looking at pure finances, totally agree leasing will rarely win out for a personal purchase.

 

[Thebandit]

If interest rates are low, buying with cash is actually a money loser, right? If you can get a 0-2% loan and pocket the $100k and put it in the market for 6 years, you are way better off than paying cash.

Just saying that there are many reasons people get car loans.

For leasing, most people I know do it because they want a new car every 3 years. Paying more that is worth it to them. If you are looking at pure finances, totally agree leasing will rarely win out for a personal purchase.

The interest rates from my local credit union are about the same as my HYSA rates so it's kind of a wash for me.

 

[ENVErider]

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

The R2 is easily the most anticipated EV release of 2026, and it's unreasonable to expect Rivian to offer best-in-class financing deals. If finances are driving your decision, why would you lease anything? If your main goal is to save money, purchase a lightly used Tesla; there are lots of deep deals on 2yo Teslas with most of their warranty left.

My point of view is that Rivian isn't forcing me or anyone else to finance through them. I can just use my credit union if I want to or if I feel Rivian's rates are unfairly high.

 

[Jeremy3292]

I will likely put $40kish down on the R2 LE even though I have the cash to just pay for it outright. Interest gains (HYSA or in the market) vs. interest paid on something like a $20k loan is immaterial to me. You can't guarantee market returns especially when we are at an all time high currently - only HYSA or money markets are guaranteed. People overrate the "interest spread game" these days. Wait until the market goes down, it's definitely a "fun game" then. /s

People also totally underrate having cash in the bank these days. Warren Buffet said something along the lines of "no one wants cash until the market tanks and they all need it, then they coming running to me for it." Bad things happen in life - you get laid off, the stock market goes down, the economy tanks, something really bad happens to your house, etc. "Cash is king" is still my motto. When times get tough or the market is in trouble I'll happily pay my small monthly payment to the bank and keep that extra $20k in the bank account.

Now please don't take this as investing advice and hoarding of cash. You should max out your 401k, invest, etc. blah blah blah. I'm simply saying there is a happy medium between dropping a $60k check and financing $55k on a $60k car. Sometimes security is better than "check out my investment balance bros" I see a lot of these days. Hint: it's all unrealized gains and means nothing, same as unrealized losses do.

 

[ATLRivvy]

I fail to see the logic behind leasing a car, unless you run a business and can claim the vehicle costs as a tax deduction.

For an individual, leasing means paying fees for three years and then returning a car that is practically new, with only 30,000 miles or less. Including extra fees for tiny scratches, required GAP insurance...

Then, you sign a second lease, pay fees for another three years, and return the car with another 30,000 miles on it.

It makes far more sense to take out a six-year loan instead. It costs less than two consecutive three-year leases, and in the end, you actually own the car, meaning you can keep driving it or sell it.

Personally, I always pay cash for my cars, whether new or used, so I buy only what I can afford..

With very few exceptions, please tell me if leasing still make sense for you?

You don’t have to return a car at the end of the lease, you have the option to buy it out at the agreed-upon residual value. Leasing is basically just an informed bet on that residual value at the end of the lease.

For EVs in particular, leasing can make a ton of financial sense because of technological change that results in depreciation cliffs rather than curves. A recent example was the pre-2025 Taycan. The 2025 Taycan was a HUGE technological jump resulted in pre-2025 Taycans being valued far below residual, meaning you could pay 2 years of a lease then go buy the exact same car used for a highly depreciated price after 2025 and come out ahead of initial financing

 

[Jeremy3292]

You don’t have to return a car at the end of the lease, you have the option to buy it out at the agreed-upon residual value. Leasing is basically just an informed bet on that residual value at the end of the lease.

For EVs in particular, leasing can make a ton of financial sense because of technological change that results in depreciation cliffs rather than curves. A recent example was the pre-2025 Taycan. The 2025 Taycan was a HUGE technological jump resulted in pre-2025 Taycans being valued far below residual, meaning you could pay 2 years of a lease then go buy the exact same car used for a highly depreciated price after 2025 and come out ahead of initial financing

Depreciation only matters if you sell the car. If you keep driving it then you have no worries and you own a car, whereas leasing you never own anything. You keep paying that payment every month.

If you want to turn and burn cars every 3 years, then yes leasing can make sense if that is your goal. Leasing never makes strict financial sense.

 

[ATLRivvy]

If you finance $55,000 of a $60,000 car...basically financial suicide.

Depends on the interest rate. I have lots of cash available but if they have a deal with a sub-3% interest you better believe in financing every dollar they will allow.

 

[Jeremy3292]

Depends on the interest rate. I have lots of cash available but if they have a deal with a sub-3% interest you better believe in financing every dollar they will allow.

Better have gap insurance even if that is the case. But yeah if they give you 0% or 0.99% sure. I was thinking the market rates people are getting today for R2.

 

[Rizzian]

On the fence these days myself. I'm spoiled by ridiculously low monthly payments ($368) on my '24 R1S quad, because I had a lot of equity built up in my trade-in (Toyota 4Runner). A Launch edition R2 will likely cost me $500 MORE per month than my R1, even after putting down like $8k at signing. With my oldest going away to a very expensive, top tier, private university around the same time my R1S lease is up this fall, It doesn't make practical sense to start making premium payments for Rivian's "mid level" vehicle. I know I can't go back to gas, but a cheap used model Y or Audi e-tron S Sportback in the 28-38k range is pretty tempting right now to keep costs down. I can't stomach buying a new EV with the depreciation how it is.
I think the real sweet spot for R2 will be in about two years when short leases get turned back in and Launch Editions start becoming available used. If current trends continue, I'd expect low milage, used launch edition (loaded) R2's will be a great deal in 2028 (in the $45-52k range), making them a compelling alternative to a brand new base level R2. Of course there will be more options and alternatives coming to market by then as well like R3, Scout, and the still unannounced Tesla SUV offering. Hmmmm

 

[ATLRivvy]

Depreciation only matters if you sell the car. If you keep driving it then you have no worries and you own a car, whereas leasing you never own anything. You keep paying that payment every month.

If you want to turn and burn cars every 3 years, then yes leasing can make sense if that is your goal. Leasing never makes strict financial sense.

Again - this is not quite right. With Rivians you have the right (but not the obligation) to buy out the lease whenever you want. You can just pay the lease term + residual value. If you want to own it you can and you don’t have to return the car in 3 years.

Leasing is effectively a purchase option (at residual value) contract. Even if you want to keep the car it can make financial sense as a downside protection against technological change or any number of other risks.

Depreciation matters because it’s the measure of downside risk. Again - if depreciation far exceeds the residual value then you can just buy the exact same car on the used market and come out ahead. Using the Taycan example - you could have paid two years of lease for $20K + $10k down ($30k total) and now buy the exact same car used for $50-60K vs financing $100-$110K upfront.

Sponsored