Getting ready to drive a Gen 2 Tri - Lease to drive, Lease to buy out, or Buy out right?

[windblowlc]

For people who have traded in their G1 Rivian for a G2, what route did you take? I have never leased a vehicle before.

1. Lease to drive for 36 months and hedge depreciation - Lease money factor isn't great, but can take advantage of the $7.5K tax credit + $3.5K loyalty credit. What do you do with your trade in assuming you have a clear title? Ask Rivian to write a check for the trade in amount?

2. Lease to buy out asap - I can take advantage of the $7.5K tax credit + $3.5K loyalty credit but don't pay interest. Same question on trade in - would Rivian write you a check for the trade in amount?

3. Buy with cash - I get the $3.5K loyalty credit + $3K state sales tax credit on trade in, and pay no interest. Simple ACH transaction and done.

Thanks for the insight!

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[R1TandMe]

1. I don’t think Rivian will write a check for your trade i?
2. Have seen others lease and buy out.
3. Your call.

I leased and put too much down. Depreciation is a huge hit the first couple years. Plus the battery
technology is changing so fast. Just my 2cents

 

[windblowlc]

1. I don’t think Rivian will write a check for your trade i?
2. Have seen others lease and buy out.
3. Your call.

I leased and put too much down. Depreciation is a huge hit the first couple years. Plus the battery
technology is changing so fast. Just my 2cents

Thanks for your input. Regarding #1, I've read conflicting reports... some people have gotten checks from Rivian for their trade in, not the whole amount since there's a limit to how much you can put down on a lease. In my case, my trade in is worth ~ $57K and the limit on the down payment is closer to ~ $27K (I don't even want to put this much down anyway) so in any case Rivian will have to write a check for the remaining amount.

 

[Golfer04]

At least in Illinois, Rivian will not write a check for your trade in. My trade (couple of weeks ago) on my Tri was $57,000 also. Would have to sell it myself. I just bought outright and saved sales tax $$. Be sure you understand your state's sales tax rules before you lease & buyout.

 

[windblowlc]

At least in Illinois, Rivian will not write a check for your trade in. My trade (couple of weeks ago) on my Tri was $57,000 also. Would have to sell it myself. I just bought outright and saved sales tax $$. Be sure you understand your state's sales tax rules before you lease & buyout.

It makes no sense for me to sell the truck myself. If I can't do a trade in with a lease and buyout, I would also buy the Tri outright.

 

[Electrified Outdoors]

For people who have traded in their G1 Rivian for a G2, what route did you take? I have never leased a vehicle before.

I have not traded but I would lease. Talk to your CPA before making a decision though because everyone will have a different situation.

1. Lease to drive for 36 months and hedge depreciation - Lease money factor isn't great, but can take advantage of the $7.5K tax credit + $3.5K loyalty credit. What do you do with your trade in assuming you have a clear title? Ask Rivian to write a check for the trade in amount?

Depending on the situation sell it to a 3rd party. I have read several reports that Rivian will not write you a check for an excess amounts. Also, its probably not the best idea to prepay the lease.

2. Lease to buy out asap - I can take advantage of the $7.5K tax credit + $3.5K loyalty credit but don't pay interest. Same question on trade in - would Rivian write you a check for the trade in amount?

This one I am not sure about. Since your buying out immediately you may not have an excess funds issue with your trade. I would do the math though and figure out how much your coming out ahead. The math I did on the two deals I looked at showed only a very small benefit but it will again depend on your state of residence and how they tax leases etc.

3. Buy with cash - I get the $3.5K loyalty credit + $3K state sales tax credit on trade in, and pay no interest. Simple ACH transaction and done.

If you ask me this is the best way if you plan to keep the vehicle for a while. You aren't protected against depreciation but depreciation is really only an issue when you go to sell. If your going to keep it for 5+ years its really only an issue in the event of a total loss.

Leasing is not the most financially beneficial way ...unless you regularly swap cars every 2-3 years. In that case, leasing might be best because your costs are set (unless you damage it or go over mileage) and when you reach maturity you turn it in and get into something else. If you regularly swap cars like that leasing is the best way to do it and you will not have to worry about taking a loss when your ready to move to the next one.

Thanks for the insight!

Responses in bold above. My opinions here....definitely check/verify with your accountant first.

 

[windblowlc]

Responses in bold above. My opinions here....definitely check/verify with your accountant first.

Thank you! If Rivian will not write a check, I will most likely buy like I always do.

 

[windblowlc]

At least in Illinois, Rivian will not write a check for your trade in. My trade (couple of weeks ago) on my Tri was $57,000 also. Would have to sell it myself. I just bought outright and saved sales tax $$. Be sure you understand your state's sales tax rules before you lease & buyout.

I'm going to buy like I have always done. Thank you!

 

[Gee Bee]

If you don’t have a business to deduct either, the best way is to home equity loan 7/12 yrs and deduct 100.%of the loan.

I use equity in property to do the same.

next year we’re going back to 100% deduction on aircraft.

 

[Woo]

Thank you! If Rivian will not write a check, I will most likely buy like I always do.

I leased because I feel we're right on the edge of battery development and models in 2027 may have enough range/performance that I may want to switch.

There was also an unknown factor of how would I like the truck; just in general. So I took the money, put it into a 5%+ savings account which reduced my overall lease "penalty" enough that I am willing to pay for the convenience of being able to delay my decision.

I may buy it out at the end but I will probably just buy a new one. I say "probably" because I have never loved a vehicle as much as I love this thing. Good grief. It's so good that as an audiophile, I'm willing to put up with the sound system. If I had purchased this, I would be definitely making some mods to speakers and enclosures and such. If you don't care about audio, this thing is practically perfect. Panels were perfect, glass was perfect, performance is fantastic.

I'll probably find something to be irritated by eventually, but we picked it up on the 16th and it's been a really satisfying experience.

 

[neodescis]

If you don’t have a business to deduct either, the best way is to home equity loan 7/12 yrs and deduct 100.%of the loan.

I use equity in property to do the same.

next year we’re going back to 100% deduction on aircraft.

Per the IRS, interest on home equity loans is not (currently) deductible unless used for that residence:

https://www.irs.gov/faqs/itemized-d...age-interest-points-other-property-expenses-2

 

[Gee Bee]

Next year all auto loans are deductible and credit card interest.

 

[Donald Stanfield]

To echo a few others here Rivian WILL NOT give a check for equity on a lease. I tried to do that with the Tri I picked up yesterday.

 

[neodescis]

Next year all auto loans are deductible and credit card interest.

You are assuming the Tax Cuts and Jobs Act will not be extended, which I would not call a safe assumption at this point.

 

[Hereforthesnacks]

Next year all auto loans are deductible and credit card interest.

No. That’s starts in 2026 for personal expenses. The tax act is effective 2018-2025 inclusive. So you cannot deduct that in 2025.

Plus, with the new administration, who put in place the 2018-2025 law, you have a decent risk that the interest deduction restrictions stay in place way past 2026.

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