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

[kuau]

So I am about ready to accept delivery on my 2023 R1T Adventure and because I am in Utah Rivian does not offer a lease in this state.. UGH
So I got approved for financing through my insurance company USAA at a good rate though what is really scaring me is what will my R1T be worth in 3 years time This is about how long I keep any car for. Though this being an EV I'm just afraid that the value we be half of what I paid for it.
I wonder what Rivian will offer me as a trade in for the new 2026/2027 model assuming Rivian is still in business,

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[COdogman]

Only you would know if it’s a bad idea or not. I sure wouldn’t finance 100% of anything ever.

High priced vehicles are always going to lose value, but if you plan to trade it in on another Rivian I feel like they will offer decent values on that.

 

[1T2022]

I wouldn't do that if I would have to finance it AND you are after March price

 

[Dark-Fx]

YOLO

 

[kuau]

Thanks. Yeah I was going to put down about $10K yet the car R1T is still

YOLO

Agreed I'm hear for a good time not a long time.
I just don't want to be foolish either

 

[1T2022]

If @after March price, I will definitely pick up a model Y, a better value

 

[kuau]

If @after March price, I will definitely pick up a model Y, a better value

So are you basically saying paying $90K for a new 2023 is just stupid

 

[Zeus]

I believe only you can determine if it's what it or not. I also believe only you can accurately access your finances. As you probably already know, a car is a liability, one that you can also enjoy. Life's a risk, you get to determine your tolerance to that risk. Ultimately, determine to enjoy your choice, Whatever that may be.
Also, I think the model Y is a different car altogether compared to a T, unless you do not really need a truck.

 

[Riviot]

Only you would know if it’s a bad idea or not. I sure wouldn’t finance 100% of anything ever.

High priced vehicles are always going to lose value, but if you plan to trade it in on another Rivian I feel like they will offer decent values on that.

It depends, gotta look at deltas. I have USAA loan from March 2022 at 2%, that's pretty dang good. Period. At the very least, the cash I could've paid towards the truck is gaining ~5% in bonds/money market so I'm netting 3%ish.

If OP can get USAA, he might be able to get NFCU at 5%. That's better than USAA right now.

If @after March price, I will definitely pick up a model Y, a better value

 

[kuau]

It depends, gotta look at deltas. I have USAA loan from March 2022 at 2%, that's pretty dang good. Period. At the very least, the cash I could've paid towards the truck is gaining ~5% in bonds/money market so I'm netting 3%ish.

If OP can get USAA, he might be able to get NFCU at 5%. That's better than USAA right now.

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

 

[Riviot]

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

 

[computertom]

There are a million very *mathy* reasons to take loans for this, or spread payments out for that… making a few percent by investing and carrying a note is for me, no comparison to *not owing anybody* and the massive freedom that brings. I love cars, and man, do I buy a lot of them. But man, they just feel better (to me) when I own them outright and don’t pay an arm and a leg to borrow really expensive money and make a bank more profit. R1T’s are amazing, but not as amazing as having no debt.

 

[cjbot3000]

My dude, if you're thinking about a vehicle purchase in terms of investment then ALL vehicles are a fundamentally bad investment.

You're going to have to look at your use case, what you need, and weigh it against what you want vs what you can afford.

In my case, I needed a truck, didn't want full size, wanted electric, loved the R1T, and realized it was nearly the same price as the ICE F150 I spec'd. I needed something to serve my needs as a homeowner as well as an occasional adventurer. 2 kids + dog.

And it was COVID so I was going to have to wait a year no matter the choice.

No vehicle is a sound financial investment. 100% of vehicles (barring classics) will lose money. Period.

But that 2% is nice!

 

[RivRyan]

If I understand your situation, the only potential risk is that you’d need to stick with the vehicle a few years longer. I’d go ahead and buy,

 

[240vPlug]

It depends, gotta look at deltas. I have USAA loan from March 2022 at 2%, that's pretty dang good. Period. At the very least, the cash I could've paid towards the truck is gaining ~5% in bonds/money market so I'm netting 3%ish.

If OP can get USAA, he might be able to get NFCU at 5%. That's better than USAA right now.

This!

100% loans are only a bad idea if you can't outperform the rate in the market and you don't have the funds to cover any potential loss in value.

Some could even argue that a 6% loan could still make sense if you can get a consistent 7-10% return in the market. A 2% loan is a no brainer of course.

It comes down to risk tolerance too. Some folks don't like paying any interest at all and that's fine too.

Bottom line is I don't judge folks one way or another. Life is short... If you get as much enjoyment out of the truck as I do then go for it

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