Official email from Rivian offering Binding Purchase Agreement

[Tbrou16]

I signed the online agreement and downloaded the PDF after putting in the name/ email.

However the downloaded PDF doesn't have the my name in the "Customer Signature" or "Customer Printed Name".

Is this expected? Do others have their name in the PDF?

I don’t know if someone else answered your question, but the language indicates that your PDF copy is to be printed out and kept with your records in case you are audited. They hold the original digital copy and you are good to file for the tax credit.

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[Tbrou16]

Although the agreement purports to bind you to purchasing the vehicle, as a practical matter Rivian probably can't (or at least is unlikely to) sue you to force you to buy it. "Specific performance" of a contract is generally only available as a remedy for breach of contract when the contract is for sale of real estate or for something unique.

Otherwise, if you refuse to buy, Rivian can theoretically sue you for breach, but it has to prove damages. What would Rivian's damages be - the lost profit from the sale of the truck? Maybe, but Rivian also has to show that it tried to mitigate its damages (i.e., sell the truck to someone else) but was unable to do so. Given the demand for these vehicles, plus the fact that Rivian could charge the increased updated price to a new customer, Rivian would unlikely be able to prove it couldn't sell this truck to someone else for the same amount of profit, or more. Therefore, even beyond the fact that the optics would be bad if Rivian started suing customers, it really doesn't have much of a case. Is it theoretically possible? Sure, but pretty unlikely.

From my perspective, Rivian wants to do everything it can to ensure its customers get the tax credit - Rivian gets $80+k for a vehicle, but its customers are only effectively paying $72.5k for it. It's a win-win.

I also don't agree with the notion that the tax credit is a "long shot." Anyone who received delivery of a Rivian up to now qualifies for the "old" tax credit - so there's no real dispute that the credit applies to Rivian vehicles. The only issue is whether people will qualify for the old credit if they receive delivery after the new Act goes into effect. On that point, the Transitional Rule in the Act states that people will qualify if:

"(1) after December 31, 2021, and before the date of enactment of this Act, purchased, or entered into a written binding contract to purchase, a new qualified plug-in electric drive motor vehicle (as defined in section 30D(d)(1) of the Internal Revenue Code of 1986, as in effect on the day before the date of enactment of this Act), and

(2) placed such vehicle in service on or after the date of enactment of this Act..."

The only real issue is whether the BPA with Rivian constitutes a "written binding contract to purchase" within the meaning of the Act. The Act does not define what constitutes a "written binding contract to purchase" and rules of statutory construction state that undefined terms/phrases will generally be interpreted according to their common, everyday meaning. Under general contract law, a binding contract exists when there's an offer, acceptance, and consideration. Rivian offered to sell me my vehicle, I accepted, and I committed to forfeiting $100 if I don't follow thru. To me, that's a contract.

Sure, the IRS could challenge these agreements, but I don't think they will. It's not like the Senate is against making these tax credits available - quite the opposite. Everyone wanted the tax credits, and it was only Manchin who demanded the limitations in order to secure his necessary vote. Everyone else, including Biden, wanted the credit to be more broadly available. And because the IRS is an administrative agency, I think Biden's policy will trickle down to the IRS when it comes time to how broadly the "written binding agreement to purchase" language will be interpreted.

Even if the IRS tried to challenge these agreements and whether they are "binding," I like my chances.

Just my 2¢...

It’s actually similar to Elon Musk backing out of buying Twitter, but on a massively smaller scale, lol

 

[Barda]

Other than possibly losing $100 if you decide not to buy, there is no downside to signing. If you don’t sign, you may not get the new tax credit if Rivian cannot meet the domestic battery production % requirement.

Ahh fair enough… I didn’t think about the possibility of Rivian not meeting the battery requirement. Thanks for the response… signed and committed. Well, always committed, just signed lol.

 

[Donald Stanfield]

After reading most of this thread the best part has to be that hundreds of people literally begged Rivian to offer this solution, myself included, and now there are people speculating that this is just Rivian's way to screw everyone over because reasons. I get that some people want to be cautious, don't sign it then. The penalty cause of a contract is what you'll lose. Since there is an explicit penalty clause, forfeiture of 100 dollars, it's going to be an uphill battle for Rivian even if they wanted to sue you.

 

[shotime]

I don’t know if someone else answered your question, but the language indicates that your PDF copy is to be printed out and kept with your records in case you are audited. They hold the original digital copy and you are good to file for the tax credit.

Thanks for the response! Others have mentioned the same.

 

[Zoidz]

Odd man out here, but NOT signing (yet). Legally obligating me to purchase a $80k+ (R1S) vehicle that could be years out from delivery, has not been tested extensively out in the wild, and has numerous known issues, is a bad idea. Not a lawyer and would love one to chime in to correct me, but the way I read it is that this goes much further than losing $100. Anyone that says Rivian wouldn't force them to honor the purchase after signing this agreement, or at least forfeit your remaining $900 if you don't, doesn't know how the real world works. What if they change their minds again and jack up the price even slightly? There goes the tax credit, and there goes your $100. Don't be so sure what companies in financial distress may or may not do to survive.

The other thing is, this will potentially earn Rivian up to a $9,800,000 (98,000 pre-orders) liability draw-down on their balance sheet. I am curious why they didn't make it so you lost a $1.00 of your deposit instead. I don't know...seems like a bit of a cash grab.

I think another issue that should be considered is that even Rivian admits that the tax credit isn't guaranteed. Sure this is a long-shot potential savings of $7,500 which seems a lot, but isn't that much if you are financing the vehicle over the course of many years. Interpret the agreement how you will, but this was intentionally worded so that people rushed to sign it (as evident by the response so far on this board, and those that didn't receive it, frothing at the mouth and staying on hold for hours with customer service.). I strongly advise at least taking a beat so that someone skilled in contracts can advise us how this affects our rights regarding the vehicle purchase.

You're so obsessed with the little "what ifs" that you're missing the big picture. You always have at least one final way to get out of the agreement - take delivery, and exercise the 7 day return policy. Full refund.

 

[astonius]

We really need wiki/FAQ threads. This thread might be the worst I’ve seen on this forum for repeat questions.

 

[Siguy90]

Just got email from Rivian to sign the agreement. It was a little different for me since I cancelled and reinstated in March.

Wording was slightly different but Rivian was thankfully able to send this under the wire. Signed and authorized them to charge the $1000.



How do I agree to the contract?

Our records show that we don't currently have a deposit for your order. To match the experience and deposit requirements for all other Rivian customers pursuing tax credit eligibility, we'll collect the standard $1000 fully refundable vehicle deposit, and then convert $100 of it to be non-refundable when you sign the binding contract.

1. Make sure your payment info is up to date in your account.
Verify Payment Info
2. Click the button below to review the binding contract. If you accept the terms of the agreement, you’ll confirm payment of the deposit at the same time.
Review and Accept

 

[Gsxr150]

Rivian did us a massive favor and came through in a clutch. Anyone talking "cash grab" should take a hike. How disgusting. Really.

 

[Gsxr150]

After reading most of this thread the best part has to be that hundreds of people literally begged Rivian to offer this solution, myself included, and now there are people speculating that this is just Rivian's way to screw everyone over because reasons. I get that some people want to be cautious, don't sign it then. The penalty cause of a contract is what you'll lose. Since there is an explicit penalty clause, forfeiture of 100 dollars, it's going to be an uphill battle for Rivian even if they wanted to sue you.

See my post above.

 

[Madsen203]

The PBA also states Rivian can adjust price (like they tried to do and now currently do for post March 1 orders. Agree the what ifs are dumb. You’re not bound to anything but the possibility of $100.

 

[TexasBob]

Reinstated Reservation Email just showed up. Now done.

 

[R1Sky Business]

That's how I understand this scenario. For those signing the binding agreement today it will still require delivery in 2023 to get the 7500 credit.

Sounds like a plan

 

[kizamybute']

Have always hated the idea of the government giving tax credits for EV's. It simply has incentivized the manufacturers to raise the prices of their vehicles. Many people, even those with plenty of income, don't qualify for the tax credits. The manufacturers demonstrated that once they're gone, they have the room to adjust pricing to keep buyers coming. Today, there's more demand due to shortages. But, in the past. when Tesla's credits went away, their prices dropped notably. GM's prices for EV's dropped notably as well.

I've always felt they should be offered just to the manufacturers to incentivize them to push more sales of EV's, which until recently, most didn't want to do.

It's such a flawed system. Now, offering $4,000 tax credits to those that qualify, for buying a used EV? Really? That's just going to incentive people to "sell" their cars to their friends to save $4,000 in taxes.

Should do away with them and incentivize the manufacturers. Or, remove the limits and simply offer a credit to ALL buyers of EV's so that EVERYONE qualifies equally. If the true intention of it is to incentivize buyers, then it should be offered to ALL buyers.

If you're rich and make $250,000+ and can easily afford an EV, are you more incentivized to buy an EV because of the tax credit than would be a buyer who makes $50,000 and doesn't qualify on income for the refund? It's a backwards, broken system that benefits only a select few, but primarily, the manufacturers. The purpose of it is to get more EV's on the road sooner rather than later. Should matter how much you make. The should be to help convince EVERYONE to choose an EV instead of an ICE. They cost more than their ICE counterparts, costing equally as much more for a buyer who makes $50,000 as a buyer who makes $1,000,000.

 

[Yellow Buddy]

Reinstated Reservation Email just showed up. Now done.

Did they charge you?

I submitted mine but they haven’t processed the deposit and the PDF doesn’t show my signature.

Mine also didn’t come until today so hopefully nothing gets signed into law until Monday..

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