I have to finance an R1T is this a bad idea?? No lease available in Utah

[rohitgarewal]

I currently got approved at USAA for 6% and your right NFCU is at 5% right now
Another thing I am struggling with is do I buy a used 2022 Low mileage for $74K or a new one for $90k and file for the $3750 tax credit

I prefer buying used especially in electric when there are almost no difference between the models. 16k is 16k. In fact, not sure why you want low miles? The more miles the better - there is no wear and tear on engine components - even if there were, most modern ice cars will go 200k miles now without issue. Electric should go double that if taken care of.
Buy the highest mileage, well kept Rivian you can find and enjoy.

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[Riviot]

In fact, not sure why you want low miles?

Battery

 

[Elazor]

In fact, not sure why you want low miles?

warranty is pretty important on these considering how many small issues pop up.

I went used with low mileage, saved me about $10k at the time.

You should have plenty of options and you can probably get the price down a bit from whatever is listed on cars.com.

go 2023 low mileage used if you can find the colors you want.

 

[Jakelake]

USAA financed 55K of my Rivian at 4.2%. I make a monthly payment from an investment account that has earned on average 8.5% every month for the last 4 years. After paying taxes on the withdrawals it ends up being about a wash on the money used to pay for the Rivian. You will certainly lose money once you sell the car, especially if you sell it in 3 years. No vehicle is an investment unless it becomes a collectors item but that usually takes 30 or 40 years and no one knows which models will make the collector model transition. I wish I still had every VW bus I owned as 16 year old kid back in the 70s. I don't think I ever paid more than $500 for any one of them, take a look at what a restored 1965 van costs today. My Rivian was a known "risky" purchase from a new company. It's a new design and I expected problems. But my investments are paying for it with little impact to the principle value in my accounts. My plan is to keep the Rivian at least 5 years until the warranty expires, unless it falls apart before that time. I usually keep cars 10 years if they are reliable. I have been reading this forum for a year now and my conclusion is that many people buy cars with the intent of making a personal statement about the kind of person they are. I consider all cars a consumable to be driven solely for the purpose of getting from point A to point B. If it does that reliably and safely I will keep it regardless of what it looks like. If it's safe and reliable I'm happy. So bottom line is no one can really answer the question of "should I buy a Rivian". There are too many variables in the equation and most of those are unique to each individual.

 

[1T2022]

I am not saying that. I just feel the value at $90k is not that a good deal compared to Tesla Y at $44k. I truly believe that. If you want to take my 7000 mile R1T, you are welcome . I will pocket the money and buy another Y.

 

[Oldsmobile_Mike]

Not really sure what the question is. Plenty of people have stacks of cash on hand to buy a new car outright (probably a disproportionate number of people on this site). But even more do not. A quick google search tells me that 80% of people finance their car purchases. With car ownership getting more expensive than ever, financing seems the most reasonable option for most people (who don't want to be driving around some 20-year-old clunker, anyway).

 

[Jakelake]

My Rivian was pre-price hike so I only paid 74K. I sold my 2001 Chevy 3/4 ton PU for $16K which was double what I paid for it used in 2016. I need a truck and the Rivian fits that need, plus I sold a 10 year old Subaru Outback. The Rivian fills both those needs so I saved insurance money by down sizing from 2 cars to one. Like I said, lots of variables unique to each person. I would not pay 90K for any vehicle so I would probably be driving an old Subaru and old PU if I was considering a Rivian today. Buying used always makes more sense when buying expensive cars.

 

[Riviot]

Plenty of people have stacks of cash on hand to buy a new car outright (probably a disproportionate number of people on this site).

Brown collar here (technically it's blue), ready to accept your investments!

 

[jjswan33]

Taking an 80k loan on a $90k Rivian is a tough pill to swallow at 6%. It's still going to be cool in three years but by then Rivian will likely have an updated version of the R1T so your resale might not be where you'd like.

Personally I would do one of two things.

1. Wait for Rivian to start offering leases in Utah so you can take advantage of the full tax credit against your capitalized cost.
2. Buy a low mileage used model like you suggested. If you are only keeping it 3 years unless you drive as much as I do you probably will sell before the warranty runs out. $10-15k less paid will go a long way.

Also I didn't see it mentioned but at $90k MSRP not sure how you would get a $3750 tax credit.

 

[RivRyan]

I don't really understand the financial situation that would leave you with only $10k to put down, but make it reasonable to pay off the loan payments on an $80k loan at 6%. Do you have an extremely fixed but extremely high income? A really good pension but no savings?

Otherwise, this seems like a really bad idea.

Unless you're paying more than that monthly on your current vehicle (and this is truly a financial train wreck if moving to an $80k loan is a spending cut for someone who only has $10k on hand), then every month you wait should give you more money towards that downpayment.

Buy a Rivian in a year or two. Or if it's a matter of illiquidity, wait till one of your investments matures.

I tend to think the best idea is to look for a cheaper vehicle.

 

[hayduke]

Has anyone heard any news about leases being offered in Utah? My friends want to buy a Rivian but they aren't going to qualify for the $7500 tax credit (which is effectively available through a lease). It makes the Model Y seem that much cheaper just based on the state in which they live.

They have property in states that do lease, and I'd be happy to let them register at my house as well. Not sure if this is just straight up illegal (guessing yes, even if they were to immediately or shortly thereafter re-register in Utah? ), it just seems asinine to be denied access to a lease program (and thus the $7500 off) because of a residency requirement.

 

[runwithscissors]

I'd check the demo R1T units they are selling for sure if I was looking for R1T. I would also lease now vs purchase if I was in the market for the R1S/R1T. 2023/2024 models will not hold their value and are the equivalent to iphone 1, not iphone 14 going to iphone 15. Terrible cameras, subpar audio, slow CCS charging that will be radically different in a few years time. I wish I could go back and just lease it and hand it back to them in 36 months to get a much improved new one.

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