How do you calculate MF/interest rate

[jvitangcol]

This is for R1S, not sure why they labeled the FnF under a R1T

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[hobbyjogger71]

Wow, you snuck one through. Did you order a T and have them switch to an S?

As for MF, you're still missing one variable here, the residual, which would help you use a calculator and back into an estimate for the MF.

 

[jvitangcol]

Wow, you snuck one through. Did you order a T and have them switch to an S?

As for MF, you're still missing one variable here, the residual, which would help you use a calculator and back into an estimate for the MF.

Yea I think I got lucky, it’s was one of the last 23 models with a quad with the black AT, I was unaware that the FnF was only for the R1T, but the sales person gave it to me.

 

[hobbyjogger71]

If it is a 23, it most likely has the same subsidized MF that the Ts had, which is closer to 0 than the 24s.

 

[DD4ST]

Yes, you need the residual. Before I leased my R1T last month I put together a spreadsheet to calculate all the details. If I get a chance, I will clean it up for general consumption and post it. But I’ll try to give a gist here. Caveat is I am not a professional, just a geeky engineer. But basically the difference between the residual and the price of the car is the depreciation that lease payments cover. However, Rivian does add the $1800 delivery fee into the lease price. So for the example, the amount “leased” is $87500 + $1800 = $89300. Your lease payment will consist of one month depreciation (straight lined over 36 months) + sales tax (may be state dependent) + lease fee. The lease fee is equivalent to an interest charge for a loan. First you need to adjust for sales tax. If I recall what is taxed, it is the $7500 + $1000, which would put you at 8.6%. Your payment is $699.84. The buy down on the lease is $699.84/1.086 = $644.42. Multiply this by 36 to get the total of payments = $23199. Remember this is depreciation + lease fee. If the lease fee is $0 (i.e., 0%) then the residual is $89300 - $23199 = $66101. It can’t be lower than this. This is what you would have to pay (+ sales tax) if you bought it after the lease. As you go up in RV you start paying higher lease fees (and equivalent interest). That is where the MF comes in. But I am guessing you got a good deal as that is already a pretty high “lowest” RV IMO. It is about 75% after 3 years. You can look on here at RVs people are getting and they are usually more like 60%. The downside is the cost to buy out is higher, and may be higher than its value after 3 years. In my own case I snagged a 23 R1T. I got a $6200 price break (didn’t call it FnF though), $10K price cut on max pack, free tonneau, and a lease fee of only $42 total over 36 months. But my RV was about 56% and my payment $812. I did not confirm all this until the final paperwork but my spreadsheet calculated it almost to the penny with just the price, payment and RV.

 

[jvitangcol]

Yes, you need the residual. Before I leased my R1T last month I put together a spreadsheet to calculate all the details. If I get a chance, I will clean it up for general consumption and post it. But I’ll try to give a gist here. Caveat is I am not a professional, just a geeky engineer. But basically the difference between the residual and the price of the car is the depreciation that lease payments cover. However, Rivian does add the $1800 delivery fee into the lease price. So for the example, the amount “leased” is $87500 + $1800 = $89300. Your lease payment will consist of one month depreciation (straight lined over 36 months) + sales tax (may be state dependent) + lease fee. The lease fee is equivalent to an interest charge for a loan. First you need to adjust for sales tax. If I recall what is taxed, it is the $7500 + $1000, which would put you at 8.6%. Your payment is $699.84. The buy down on the lease is $699.84/1.086 = $644.42. Multiply this by 36 to get the total of payments = $23199. Remember this is depreciation + lease fee. If the lease fee is $0 (i.e., 0%) then the residual is $89300 - $23199 = $66101. It can’t be lower than this. This is what you would have to pay (+ sales tax) if you bought it after the lease. As you go up in RV you start paying higher lease fees (and equivalent interest). That is where the MF comes in. But I am guessing you got a good deal as that is already a pretty high “lowest” RV IMO. It is about 75% after 3 years. You can look on here at RVs people are getting and they are usually more like 60%. The downside is the cost to buy out is higher, and may be higher than its value after 3 years. In my own case I snagged a 23 R1T. I got a $6200 price break (didn’t call it FnF though), $10K price cut on max pack, free tonneau, and a lease fee of only $42 total over 36 months. But my RV was about 56% and my payment $812. I did not confirm all this until the final paperwork but my spreadsheet calculated it almost to the penny with just the price, payment and RV.

Ahh thanks for you for this breakdown

 

[jvitangcol]

Finally got my lease documents.

Confused on the 50 dollar rent charge.

Can anyone help me breakdown the MF

 

[DD4ST]

Think of that as interest on a loan. Everyone is focused on the MF because that is the jargon of leases. That determines the rent charge which is what is paid above depreciation and the $1800 Rivian fee which is amortized. I converted mine to interest because that is what I understand better. $50 over the lease term is close to zero interest.

 

[DucRider]

Finally got my lease documents.

Confused on the 50 dollar rent charge.

Can anyone help me breakdown the MF

Total Rent Charges = MF x (Net Cap Cost + Residual) x Lease Term
$50 = MF x ($81,100 + $57,768) x 36
$50/36 = MF x $138,868
$1.39/$138,868 = .00001
A Money Factor of .00001 is equivalent to an APR of 0.024%

 

[hobbyjogger71]

Man, I forgot that this is the R1S with an FnF applied. Sign the papers and run.

 

[R1Sezejay]

This is for R1S, not sure why they labeled the FnF under a R1T

Wow thats really a good deal! Is this one of the 2023 demo vehicle?

 

[jvitangcol]

Wow thats really a good deal! Is this one of the 2023 demo vehicle?

yes it is

 

[onesoil]

Yes, you need the residual. Before I leased my R1T last month I put together a spreadsheet to calculate all the details. If I get a chance, I will clean it up for general consumption and post it. But I’ll try to give a gist here. Caveat is I am not a professional, just a geeky engineer. But basically the difference between the residual and the price of the car is the depreciation that lease payments cover. However, Rivian does add the $1800 delivery fee into the lease price. So for the example, the amount “leased” is $87500 + $1800 = $89300. Your lease payment will consist of one month depreciation (straight lined over 36 months) + sales tax (may be state dependent) + lease fee. The lease fee is equivalent to an interest charge for a loan. First you need to adjust for sales tax. If I recall what is taxed, it is the $7500 + $1000, which would put you at 8.6%. Your payment is $699.84. The buy down on the lease is $699.84/1.086 = $644.42. Multiply this by 36 to get the total of payments = $23199. Remember this is depreciation + lease fee. If the lease fee is $0 (i.e., 0%) then the residual is $89300 - $23199 = $66101. It can’t be lower than this. This is what you would have to pay (+ sales tax) if you bought it after the lease. As you go up in RV you start paying higher lease fees (and equivalent interest). That is where the MF comes in. But I am guessing you got a good deal as that is already a pretty high “lowest” RV IMO. It is about 75% after 3 years. You can look on here at RVs people are getting and they are usually more like 60%. The downside is the cost to buy out is higher, and may be higher than its value after 3 years. In my own case I snagged a 23 R1T. I got a $6200 price break (didn’t call it FnF though), $10K price cut on max pack, free tonneau, and a lease fee of only $42 total over 36 months. But my RV was about 56% and my payment $812. I did not confirm all this until the final paperwork but my spreadsheet calculated it almost to the penny with just the price, payment and RV.

Any chance you could send me that spreadsheet? I haven't talked to my Sales Guide yet since filling out the app, and would love to have the right questions ready when I do. I got approval for a retroactive Employee discount (when in doubt, ask!). I found it odd that they would discontinue that discount a month before end of quarter with Gen 1 R1Ts still in stock—but I'm happy they were willing to honor the discount past the June 3rd expiration.

Should I be calculating the RV percentage off of the MSRP, or the discounted price? Also, any reason why the "Total Price" ($79,283.75), "Vehicle Subtotal" ($76,750), and "Vehicle Price" (on the lease approval—$78,550) are all different?

I must admit that leases make my head spin a bit— thanks for taking the time to explain leases to us mere mortals!

 

[DD4ST]

I’ll see if I can make it clearer. Right now it would probably confuse you because I built it and added to it on the fly. So I know how to manipulate the numbers but it is not self-evident. As to your prices, I don’t know the source of the total price but I would look at the details of the due at signing. Some of this may be included. As to the difference between the vehicle subtotal and vehicle price that looks to be the $1800 delivery fee Rivian charges added into the lease. That is the one fee they amortize.

 

[Shaqdeez]

This is for R1S, not sure why they labeled the FnF under a R1T

I didn't think the Employee discount applied to the R1S?

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