Rivian going out of business? Should I buy or lease? [LOCKED DUE TO POLITICS]

[UnsungZero_OldTimeAdMan]

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[DD4ST]

They will get it sorted, Tesla was delivering vehicles for 4 years when I bought mine and the first 3 years service was still a nightmare. Not so bad now.

It is a tough balance to build out the service in the early days because of the expense with so few cars delivered. Tesla did not get theirs sorted until Model 3s were being delivered.

The difference now is more established automakers are getting into the EV business. I bought an Audi eTron in 2021 and its fit and finish, and its drive/ride quality are impeccable. This comes from years of manufacturing experience. My R1T, on the other hand had to have the rear doors adjusted to fix alignment issues. So the landscape is very different from when Tesla was at this stage in their life. Rivian does not have as much time or lead to fix the issues they do have.

 

[Redline]

Rivian isn't going anywhere.

 

[Riviot]

Rivian needs to fix their service center wait, make parts for repair more quickly available and make the new production models of higher quality and more reliable. The word is getting out on the issues people are having and it will hurt the business. Perception of Rivian could be getting damaged.

We're well beyond damaged...

 

[Hereforthesnacks]

It is the best vehicle I have ever owned across Toyotas, lexuses and fords. The deep depreciation is an artifact of pre-March pricing and Tesla super sales. It is pre-mature to talk about long term viability.

This is the perfect time to talk about viability. Rivian is likely on its last lifeline with VW if they aren’t profitable. They won’t be able to raise much more cash, though a buyout could be possible

Any vehicle manufacturer can go out of business. Buy the R1T if you like it. Rivian isn’t about to fold.

Come on. Toyota isn’t going out of business. Or VW. Or Chevy. Or Ford

Rivian needs to fix their service center wait, make parts for repair more quickly available and make the new production models of higher quality and more reliable. The word is getting out on the issues people are having and it will hurt the business. Perception of Rivian could be getting damaged.

Yes. I know a few folks that have bailed on Rivian recently because of this. Mostly in LA and Bay Area.

Personally, I think you need to be comfortable with a 50/50 chance that they are around in 5 years.

 

[dleepnw]

if youre concerned dont buy or lease.

 

[Scoiatael]

Rivian isn't going out of business anytime soon. But I would still lease. Rivian still has some kinks to work out in their vehicles, and in 2 - 3 years they will have better cars and trucks. I plan on leasing a 2025 R1S and then in 3 years getting an R1T again.

 

[sirna7]

Hi folks,

On my way to pick up a used Rivian this week, on which I am getting a great deal. .I keep hearing concerns about the long term viability of the company. I really like the car.Should this change the decision whether to buy outright vs finance vs leasing a new vehicle?

I heard VW might buy them out in the long term. Thoughts on this? Thanks

Tesla went bankrupt twice brahh

 

[Electrified Outdoors]

Tesla had very different financial times. Very low interest rates and everyone was enjoying nearly free money. Now even Tesla is suffering as people stop buying 70 to 100 K vehicles when it’s 5 or 7%

True, things were different with Tesla. The interest rates are a factor but they aren't as much of a factor, I feel, as the news media makes them out to be. When your buying a house sure its a big deal as that is a very large finance but for cars a couple percent isn't as much a deal breaker but it still hurts. The norm in the mid 90s was 7-10% on auto loans...the difference...cars were cheaper back then. So what we have is interest rates that really aren't all that crazy...what's crazy is the rise in prices in combination with the slightly higher rates.

The big thing that is hurting car sales is inflation. Insurance costs for cars and homes is through the roof. Cost of food and shelter through the roof. That causes a lot of uncertainty and eats up a lot of discretionary income which causes folks to delay purchasing big ticket items. The cost of new vehicles is up in a big way too which has caused the average vehicle age in the US to rise sharply. I believe the average is 12 or 13 years now.

Also, with auto delinquency up you can bet banks are tightening their lending standards. Many folks that purchased in 21 and 22 and paid huge market adjustments are way underwater now too and will likely not be purchasing a new vehicle for a while.

Your overall point is valid as Rivian is in a different market than what Tesla experienced in the late 2010s. Will be interesting to see how this plays out.

 

[Dark-Fx]

We're well beyond damaged...

Appointments are only a week out in my neck of the woods.
--
My advice, if you're the type to make semi-permanent modifications to your vehicles, or drive an exceptionally above average amount of miles, you are better off buying. If not, then lease.

 

[ndmiller]

We're well beyond damaged...

Call them, they'll prioritize bigger issues, have open slots only accessible to CS and they have the mobile schedule they can offer for some items.

 

[White Shadow]

I really want to own and used seems like a good option bc steep depreciation. Getting a 2023 R1T in limestone/ocean coast w quad motor with 3K mileage for 65 K. Fell in love w it. I take it that the reliability is good on these vehicles but hard to find much objective data. And I don’t put much stock in the subpar CR reliability rating. So even though I get a lot of warranty left, the viability of the company gave me some pause.

I always buy and never lease vehicles, but leasing is probably a good strategy for a Rivian, or just about any EV for that matter. Technology will probably advance rapidly with EVs, so leasing gives you a definitive end date without having to worry about selling a vehicle that has potentially lost a lot of value due to the "newer" models being drastically improved.

 

[Riviot]

Call them, they'll prioritize bigger issues, have open slots only accessible to CS and they have the mobile schedule they can offer for some items.

I understand how they prioritize, but when you show no appointments or have people waiting 4+ months for anything, it damages the reputation and makes people less confident in the brand.

 

[DD4ST]

I always buy and never lease vehicles, but leasing is probably a good strategy for a Rivian, or just about any EV for that matter. Technology will probably advance rapidly with EVs, so leasing gives you a definitive end date without having to worry about selling a vehicle that has potentially lost a lot of value due to the "newer" models being drastically improved.

My feelings exactly. My R1T Rivian was my first lease…ever! And I’ve been buying cars for decades. First push was to get the EV credit, but then realized it was insurance for future uncertainty/rapid tech advancement, and a better deal to boot!

 

[White Shadow]

My feelings exactly. My R1T Rivian was my first lease…ever! And I’ve been buying cars for decades. First push was to get the EV credit, but then realized it was insurance for future uncertainty/rapid tech advancement, and a better deal to boot!

If you decide to keep it after the lease ends, are you happy with the buyout price?

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