Gen 1 is a great (lease) deal!

[nb84]

I've been digging around to gather what people are ending up with for their residual factor and it looks to be between 58% - 63%. Have any of you guys tried negotiating with this or is Rivian set in stone with this on their first offer?



What was the residual factor that they quoted you out of curiosity?



Looking to pick up maybe the new Dual Max and weighing options as we're in a similar boat with having crazy state incentives soon. Our state incentive will be 5k for buying and 9k for a 3 year lease. With that said, I'm thinking the leasing option is coming out to be the better option, depending on the residual factor that we can get.

Waiting on my lease for the 24 Performance Large right now. I'll update once I have that in hand as far as residuals.

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[Electron]

Waiting on my lease for the 24 Performance Large right now. I'll update once I have that in hand as far as residuals.

That'd be awesome, thanks!

 

[Electron]

The inflated residual (along with money factor) gets you to the lower monthly payment, so if you prefer a lower residual then you'll likely pay more during your lease. Run the numbers and pick your poison...

To add, in this case the inflated residual value would be ideal for those who are for sure turning in the keys at the end of the term, whereas if planning to buy out the lease at the end you'd want the lowest residual factor as possible so that your buy out price is the lowest.

 

[narmstrong79]

Waiting on my lease for the 24 Performance Large right now. I'll update once I have that in hand as far as residuals.

With all the Gen 2 Dual Max being on the Shop, why don't they give the upsell option at checkout to add the performance pack? Aren't they potentially leaving $5K on the table for what essentially a software flash, that could probably be done at service center pickup?

 

[Electron]

With all the Gen 2 Dual Max being on the Shop, why don't they give the upsell option at checkout to add the performance pack? Aren't they potentially leaving $5K on the table for what essentially a software flash, that could probably be done at service center pickup?

Excellent point. This could and would be a great boost in some pocket cash that Rivian desperately needs right now, despite them still having some cash, which at the current rate will run out inevitably.

Reminds me of the Acceleration boost in the Model Y Long Range scenario. Imagine all those $2K x ______'s worth of sw upgrades. TE$LA$$$$ just swimming in dough.

 

[HIRivian]

I've been digging around to gather what people are ending up with for their residual factor and it looks to be between 58% - 63%. Have any of you guys tried negotiating with this or is Rivian set in stone with this on their first offer?



What was the residual factor that they quoted you out of curiosity?



Looking to pick up maybe the new Dual Max and weighing options as we're in a similar boat with having crazy state incentives soon. Our state incentive will be 5k for buying and 9k for a 3 year lease. With that said, I'm thinking the leasing option is coming out to be the better option, depending on the residual factor that we can get.

I just pulled the trigger on a lease. My Rivian representative paired me with a vehicle. I tried asking him about residuals and he said all of that will be revealed once I complete the lease application. I'm doing that now but it's asking me to show proof of insurance. I don't know why since the car could take up to 6 weeks to get to me. Are they expecting me to bind the insurance even though I don't have the car.

 

[nb84]

That'd be awesome, thanks!

Just got my lease terms.

Config is 2024 R1T, Performance Dual Motor, Large, LA Silver, Black + Dark Ash interior, 21"wheels.

• Subtotal: $80,500
• Down payment: $1500 + $500 deposit
  • I know. I know. "Don't put a down payment on a lease", but I have the cash now and wanted the lower payments
• Capitalized Cost: $66,800
• Residual value: $49,380
• Residual ratio: 64.7%
• Lease Term: 36 months
• Money Factor: 0.001276 (3.0624% APR)
• Monthly Payment: $608.61

Best of all, the delivery time was only 4 days from the time I put my deposit down. Picking it up tomorrow! I took the day off from to celebrate and go enjoy my new R1T. The residual value seems a bit high, but since I'm not 100% sure I will keep the truck at the end of the lease, I'm happy that it's high, for now.

 

[Electron]

Just got my lease terms.

Config is 2024 R1T, Performance Dual Motor, Large, LA Silver, Black + Dark Ash interior, 21"wheels.

• Subtotal: $80,500
• Down payment: $1500 + $500 deposit
  • I know. I know. "Don't put a down payment on a lease", but I have the cash now and wanted the lower payments
• Capitalized Cost: $66,800
• Residual value: $49,380
• Residual ratio: 64.7%
• Lease Term: 36 months
• Money Factor: 0.001276 (3.0624% APR)
• Monthly Payment: $608.61

Best of all, the delivery time was only 4 days from the time I put my deposit down. Picking it up tomorrow! I took the day off from to celebrate and go enjoy my new R1T. The residual value seems a bit high, but since I'm not 100% sure I will keep the truck at the end of the lease, I'm happy that it's high, for now.

Great stuff and thanks for sharing! Too bad you weren't closer, could have rounded up some of the troops and go on a celebratory joy ride.

The residual value can be two fold. On one end, the higher benefits those not planning on keeping the car at the end, while the lower benefits those who plan to buy it out at the end.

In your case it's a win. You're safe from being liable when these R1x's tank in 3 years. ie. You can also celebrate now at the same time knowing that you won't be a bag holder lol.

Enjoy and have a great time!

 

[narmstrong79]

Just got my lease terms.

Config is 2024 R1T, Performance Dual Motor, Large, LA Silver, Black + Dark Ash interior, 21"wheels.

• Subtotal: $80,500
• Down payment: $1500 + $500 deposit
  • I know. I know. "Don't put a down payment on a lease", but I have the cash now and wanted the lower payments
• Capitalized Cost: $66,800
• Residual value: $49,380
• Residual ratio: 64.7%
• Lease Term: 36 months
• Money Factor: 0.001276 (3.0624% APR)
• Monthly Payment: $608.61

Best of all, the delivery time was only 4 days from the time I put my deposit down. Picking it up tomorrow! I took the day off from to celebrate and go enjoy my new R1T. The residual value seems a bit high, but since I'm not 100% sure I will keep the truck at the end of the lease, I'm happy that it's high, for now.

Is the $7500 tax credit, lease loop hole, factored into this at all?

So Payments at the end of the term is $22k and if you buy it out your at ~$71K (22k+49K)? I've never leased so just curious if i'm looking at that correct, if so that's awesome.

 

[Electron]

Is the $7500 tax credit, lease loop hole, factored into this at all?

So Payments at the end of the term is $22k and if you buy it out your at ~$71K (22k+49K)? I've never leased so just curious if i'm looking at that correct, if so that's awesome.

His money factor is really good and is considered and great lease deal. The 7500 is definitely factored in reflected by his monthly payment. Without the 7500 the monthly would have been $1000+ according to my calculator.

 

[narmstrong79]

His money factor is really good and is considered and great lease deal. The 7500 is definitely factored in reflected by his monthly payment. Without the 7500 the monthly would have been $1000+ according to my calculator.

That's my assumption as well, just curious. That total payment is close to what I paid to buy my Gen 1

 

[sevengroove]

The residual value can be two fold. On one end, the higher benefits those not planning on keeping the car at the end, while the lower benefits those who plan to buy it out at the end.

Wouldn't a higher residual value always be more beneficial, even for those who plan to buy out at the end? You get to keep more money in your bank account for the duration of the lease, meaning you also aren't paying added money factor on that incremental amount. Come lease end, hypothetically if you've been putting the difference away (between a low vs. high residual lease payment), you still get to buy out the car at roughly the same price, give or take interest you've earned and whatever interest rates are at the time.

To simplify things, if something costs $1000 and you have to choose between:
- paying $200 to rent it over 3 years and then deciding whether you want to buy it outright for $800, or
- paying $400 to rent it over 3 years and then deciding whether you want to buy it outright for $600,

wouldn't you always pick the 1st option? Curious if others see it the same way.

 

[rvnappolis]

Wouldn't a higher residual value always be more beneficial, even for those who plan to buy out at the end? You get to keep more money in your bank account for the duration of the lease, meaning you also aren't paying added money factor on that incremental amount. Come lease end, hypothetically if you've been putting the difference away (between a low vs. high residual lease payment), you still get to buy out the car at roughly the same price, give or take interest you've earned and whatever interest rates are at the time.

To simplify things, if something costs $1000 and you have to choose between:
- paying $200 to rent it over 3 years and then deciding whether you want to buy it outright for $800, or
- paying $400 to rent it over 3 years and then deciding whether you want to buy it outright for $600,

wouldn't you always pick the 1st option? Curious if others see it the same way.

100 % correct

Keep your money in your own pocket as long as possible. And at the end of the lease, you can decide if buying the car at that point is the best option vs picking up a used one.

But have to keep in mind at that point sales taxes, and did the previous owner treat their vehicle / battery as well as you did yours.

 

[Electron]

Wouldn't a higher residual value always be more beneficial, even for those who plan to buy out at the end? You get to keep more money in your bank account for the duration of the lease, meaning you also aren't paying added money factor on that incremental amount. Come lease end, hypothetically if you've been putting the difference away (between a low vs. high residual lease payment), you still get to buy out the car at roughly the same price, give or take interest you've earned and whatever interest rates are at the time.

To simplify things, if something costs $1000 and you have to choose between:
- paying $200 to rent it over 3 years and then deciding whether you want to buy it outright for $800, or
- paying $400 to rent it over 3 years and then deciding whether you want to buy it outright for $600,

wouldn't you always pick the 1st option? Curious if others see it the same way.

In this case with Rivian's great lease deals, yes it does work out for the monthly payments being lower due to the capitalized cost being closer to the vehicle price.

Since you're paying on the depreciation portion on a lease, this is works out in favor during the 3 year term. (Lower monthly, more money in your pocket. Win win.)

His capitalized cost is $66,800, which is high (close to the vehicle cost) and in return allowing his monthly payments to be low. While the capitalized cost being higher works in his favor, the other factor to look at is the Residual Value which is $49,380.

The question is, will this $80,500 EV be worth $49,380 at the end of 3 years in this market and with the fast moving tech? Maybe. In my opinion it'll be lower.

IF, the R1T is less than $49,380 and tanks in value in 3 years (which is a long time in the EV space), he won't be left with the responsibility of holding the upside down bag since it's a lease. Risk free.

IF, the R1T is above the $49,380 Residual Value, then he's in a positive equity position, but with any EVs today this is highly unlikely.

I'm all for always keeping more money in your pocket to invest elsewhere than dumping it into a highly depreciating asset.

 

[Electron]

100 % correct

Keep your money in your own pocket as long as possible. And at the end of the lease, you can decide if buying the car at that point is the best option vs picking up a used one.

But have to keep in mind at that point sales taxes, and did the previous owner treat their vehicle / battery as well as you did yours.

Agree. On a lease you're only paying taxes on the depreciation amount that one is paying towards in that 36 months. When buying out the lease, you're taxed on the remaining amount. (residual value)

However, leases suck for those in Texas, Georgia, Illinois and Ohio as they tax the FULL amount of the vehicle on leases. Ouch.

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