Is it worth holding on to R1S Reservation? Thinking!

[mogambo1]

I am new bee but after looking at Facebook where I have started to notice that so many folks are just taking the delivery (maybe since they were stuck) and immediately listing them for sale on FB. Some have just less than 100 miles on the vehicle (the distance it took them to drive it back home). Their list price (offer-to-sell) price is $5K-10K lower than an exactly same build I configure on Riviain.com and then on top of that there will be destination charge etc.

These folks may have accepted delivery at the pre-price increase price for the R1S and thus they have a $20K margin on their end and therefore they may be splitting that 20K margin into half with their prospective buyer and still making 5-10K profit on such sale.

Buyer sees that they do not have to wait and are still getting a vehicle at discounted price, win-win for both buyer and seller. Although, one may argue that you may have to wait longer to get exact same configuration that you want to get listed on FB, but then that wait may still be shorter than a longer wait that Rivian is expecting a reservation holder to wait. Also, once Cyber Truck starts deliveries the dynamics may change further since several folks who are interested (or may have booked) in Rivian R1S may also have booking for Cybertruck.

All that makes feel, if my recent R1S reservation is even worth holding when I can get equivalent, but cheaper (almost new) vehicle on resale for less than what Rivian will sell me for after a long long wait.

One can argue that, that wait will give you time to see all kinks ironed out, but who knows.

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[SANZC02]

I am new bee but after looking at Facebook where I have started to notice that so many folks are just taking the delivery (maybe since they were stuck) and immediately listing them for sale on FB. Some have just less than 100 miles on the vehicle (the distance it took them to drive it back home). Their list price (offer-to-sell) price is $5K-10K lower than an exactly same build I configure on Riviain.com and then on top of that there will be destination charge etc.

These folks may have accepted delivery at the pre-price increase price for the R1S and thus they have a $20K margin on their end and therefore they may be splitting that 20K margin into half with their prospective buyer and still making 5-10K profit on such sale.

Buyer sees that they do not have to wait and are still getting a vehicle at discounted price, win-win for both buyer and seller. Although, one may argue that you may have to wait longer to get exact same configuration that you want to get listed on FB, but then that wait may still be shorter than a longer wait that Rivian is expecting a reservation holder to wait. Also, once Cyber Truck starts deliveries the dynamics may change further since several folks who are interested (or may have booked) in Rivian R1S may also have booking for Cybertruck.

All that makes feel, if my recent R1S reservation is even worth holding when I can get equivalent, but cheaper (almost new) vehicle on resale for less than what Rivian will sell me for after a long long wait.

One can argue that, that wait will give you time to see all kinks ironed out, but who knows.

If paying cash probably does not matter but if taking a loan check the rates.

Some lenders will consider that purchase as a new car but many regardless of year and miles will consider it used and only give used car rates.

Additionally if you signed the binding contract with Rivian and plan on getting the tax break, it will not work on a used car purchase.

 

[dleewla]

the ones listing for sale with basically no miles on them are absolutely flippers trying to make a few bucks. seems to be some new investment strategy - get on as many EV waitlists as early as possible and resell while the demand is high and supply is low.

that being said, the R1S resell market ship has mainly sailed, so if you pay more than $85-86k, youre getting fleeced.

i have an R1S reservation, haven't been invited to configure yet. once i do, ill take a look at the "used" market and definitely consider that as an option over a new one as used prices continue to drop. it is likely true though that the later build you buy the better quality it will likely be so thats the main downside.

 

[pc500]

New, you get new, your choice of colors, options, factory support, easy title transfer etc. The flippers aren't really making money anymore so they should have mostly dried up. Sometimes manufacturers support new buyers a little more aggressively in discretionary issues, but otherwise the choice is yours!

A lot of people simply consider someone else having farted in in "used"... don't know why. But, any vehicle you drive off the lot should lose 5-10k

 

[SDdawg1001]

After sales tax, I can't imagine any R1S pre-order flippers are making any money unless they are fraudulently claiming the $7,500 tax credit.

 

[SANZC02]

After sales tax, I can't imagine any R1S pre-order flippers are making any money unless they are fraudulently claiming the $7,500 tax credit.

Have to agree unless in a state with cheap registration and only charge sales tax on the difference between purchase and trade in values.

Registration and taxes for my R1S in CA was almost 8k. The tax credit will not cover what I paid to get it registered.

 

[mogambo1]

Thanks for sharing your numbers.

I am in Maryland.

The state offsets excise up $3000K provided the MSRP for the EV is less than $55K. This does not work on R1S.

Also, only basic R1S model qualifies for Federal EV Rebate.

Since none of that works for me, I had been looking on FB to find the configurations that will cost me (say) $96K on Rivian.com, I found them flipper selling it for $89K on FB (with 300miles or less on odometer).

I will continue looking and will decide what to do with my reservation.

 

[Ivman]

I have a pre -price jump R1S pre-order still I haven't committed to yet (we ended up getting a Mazda CX-90 while we waited). Its in limbo right now till I tell them I want to buy something.

I'm holding onto it in case somehow I want to buy it (unlikely currently). I've asked Rivian if I can give it to my very close friend and they won't transfer pre-orders unless it's immediate relatives.

I'm not looking to flip it and make money, I just want someone to be able to get my pre-price increase pricing and enjoy an awesome vehicle.

 

[Dwight_Schrute]

In the same boat, I'm looking for QUAD motor and found few on FB marketplace. Waiting on pulling the trigger in hopes the price would come down and also a 2024 MY since we're so close to year end.

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