Let Us Sign Buyers Agreements: A Letter to RJ

[RoadRunner]

Um... Buyer's agreements won't help you. You have to place the vehicle into service.

The way the legislation is currently written, this is incorrect. If you have a buyer's agreement in place in 2022 and before the bill is signed into law, and you take delivery lace the vehicle in service in 2023, the old rules apply and you get to take the $7500 tax credit.

This may change before it passes but currently that's what it says, hence this thread and why Fisker has said they will do buyer's agreements for those who have preorders.

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[Donald Stanfield]

If you need the $7,500 tax rebate to buy the Rivian, you can't afford it. Sorry, but it's just a fact.

Look at something that's more in your price range vs relying on something that has nothing to do with Rivian.

I'm buying mine in cash, I STILL want the rebate. I would STILL sign the agreement if my truck wasn't already in the pipeline to get the truck this year. If you're going to buy the truck anyways, you'd be insane to forgo that amount of money for no reason. Why are there so many people on here telling others what they can and cannot afford?

 

[Monkey]

See the transition rule. It would absolutely apply / help in rivians case. Does not help Tesla as they have already used up 200,000 credits.

Ah, I was not aware of the transition rule in the new bill. ....So then maybe there's hope still for the incentive with my max pack.

 

[Davethadog]

Per my CPA, you’ve got to take delivery of it in the same year for it to count. Maybe it’s different for individuals filing than it is for a business but I’m not sure your idea would fly legally.

 

[Rivian_Hugh_III]

If the $7500 tax credit is valuable to you, please let Rivian know. It will not be available very soon unless you have a written, binding agreement.

[email protected]

[email protected]


RJ,

Unfortunately, congress has pulled out the rug on the commitment they made to start-up EV manufacturers to foster an EV market. I feel really bad that this is happening to Rivian.

As I’m sure you are aware, the “Transition Rule” in the passed legislation allows for anyone with a “written binding agreement” in place before the President signs the bill to have the option to utilize the existing credit.

Your preorder holders have (mostly) patiently borne the delays that are inherent with a start up car manufacturer. But these delays are now putting us in a position where many of us may not be able to go through with our purchases in absence of the $7,500 tax credit.

Allowing us to sign Preliminary Buyers Agreements (PBA) to allow us to utilize the Transition Rule would go a very long way toward rebuilding the trust described in your March 3rd letter.
This would also be beneficial for Rivian because it would mitigate the unknown amount of order cancellations that will occur if the tax credit is removed. It would secure and lock in your order book for the next 16 months.

I know demand is outstripping supply, but your preorder holders have been your biggest supports for literally years. Please support us now and let us sign Buyers Agreements.

Sent!

 

[Zoidz]

If you need the $7,500 tax rebate to buy the Rivian, you can't afford it. Sorry, but it's just a fact.

Look at something that's more in your price range vs relying on something that has nothing to do with Rivian.

You don’t understand the difference between affordability and valuation and how people make decisions based on that.

I can afford a Rivian with or without the tax credit.

Without the tax credit, I think a little harder about the VALUE of the Rivian pre price increase.

With the post March price increase, I would think even harder about the VALUE.

The tax credit might influence my, or someone elses’s purchase decision because without the tax credit I/they don’t see the VALUE, regardless of affordability.

Consumer Economics 101.

 

[pc500]

If the $7500 tax credit is valuable to you, please let Rivian know. It will not be available very soon unless you have a written, binding agreement.

[email protected]

[email protected]


RJ,

Unfortunately, congress has pulled out the rug on the commitment they made to start-up EV manufacturers to foster an EV market. I feel really bad that this is happening to Rivian.

As I’m sure you are aware, the “Transition Rule” in the passed legislation allows for anyone with a “written binding agreement” in place before the President signs the bill to have the option to utilize the existing credit.

Your preorder holders have (mostly) patiently borne the delays that are inherent with a start up car manufacturer. But these delays are now putting us in a position where many of us may not be able to go through with our purchases in absence of the $7,500 tax credit.

Allowing us to sign Preliminary Buyers Agreements (PBA) to allow us to utilize the Transition Rule would go a very long way toward rebuilding the trust described in your March 3rd letter.
This would also be beneficial for Rivian because it would mitigate the unknown amount of order cancellations that will occur if the tax credit is removed. It would secure and lock in your order book for the next 16 months.

I know demand is outstripping supply, but your preorder holders have been your biggest supports for literally years. Please support us now and let us sign Buyers Agreements.

Wait until you figure out if this thing is even passing as is.

 

[RoadRunner]

Per my CPA, you’ve got to take delivery of it in the same year for it to count. Maybe it’s different for individuals filing than it is for a business but I’m not sure your idea would fly legally.

Your CPA is talking about the current law. This thread is about a new bill that hasn't passed yet but looks likely to pass right now, and would change the rules dramatically.

 

[Tbrou16]

You don’t understand the difference between affordability and valuation and how people make decisions based on that.

I can afford a Rivian with or without the tax credit.

Without the tax credit, I think a little harder about the VALUE of the Rivian pre price increase.

With the post March price increase, I would think even harder about the VALUE.

The tax credit might influence my, or someone elses’s purchase decision because without the tax credit I/they don’t see the VALUE, regardless of affordability.

Consumer Economics 101.

I agree with this. I believe a Rivian after price increase is absolutely worth $9k more than, say, an F150L Lariat.

I cannot necessarily say that it’s worth $16.5k more than the F150L Lariat, given that the extra money saved is worth exactly the cost of the hardware and installation of V2H equipment and would essentially mean it’s the F150L + free generator is greater value than just the R1T.

 

[SASSquatch]

If you need the $7,500 tax rebate to buy the Rivian, you can't afford it. Sorry, but it's just a fact.

Look at something that's more in your price range vs relying on something that has nothing to do with Rivian.

Your dismissive tone towards those of us who have been steadfast supporters of Rivian while enduring endless delays, pricing and communication calamities, some of us for years, is quite breathtaking.

Every single one of us placed our pre-orders with the full intention of being able to factor in the $7,500 EV credit and Rivian expected that as well. Not extending a transition period to new EV manufacturers pulls the rug out from underneath all of us and has the opposite effect on the intended goal - to accelerate adoption of EVs.

As a new manufacturer grappling with high costs of production ramp, and unprecedented inflation and global supply shortages, the restrictions imposed by this legislation are short cited and, frankly, anti-competitive, as they reward OEMs who already took their 200K in credits, and ramped production overseas to bring down costs.

Reservation holders who have endured for years have every right to be upset. If you don't like it, you can find another thread that is more in range of your world view.

 

[astonius]

Seconding the “value” statements others have made, especially when you consider the psychology. Just like with the March price increase, even if the product is worth the increased cost the value of the credit is already baked into the equation. No matter how wealthy you are an additional $7500 for the same product is a tough pill to swallow.

 

[SNOWinSEA]

Just to be clear...this law goes into effect January 1, 2023 right? If I were to sign my PBA 12/30 and my truck was delivered to me on 12/31 this wouldn't affect me right? Obviously those dates are BS, just want to know how this works

 

[TXR1S]

Just to be clear...this law goes into effect January 1, 2023 right? If I were to sign my PBA 12/30 and my truck was delivered to me on 12/31 this wouldn't affect me right? Obviously those dates are BS, just want to know how this works

Unfortunately no. Different components have different effective dates.

Default date for all provisions (MSRP cap, Income limits): 12/31/22.

Exceptions:

(2): Assembly in USA requirement: applies to old credit upon bill signature (date of enactment).

(3): Battery mineral origins and battery assembly component origin requirements: applies to whatever credit is in place upon guidance being issued by Secretary of Treasury (estimated sometime before end of year but specific date unknown- this is the biggest risk).

(4): credit refundability: applies starting 2024

(5): removal of 200,000 vehicle cap: applies to vehicles in service after 12/31/22 (no affect on Rivian).

so any vehicle in service before end of year qualifies, with the 4 caveats above.

 

[Yellow Buddy]

I agree with this. I believe a Rivian after price increase is absolutely worth $9k more than, say, an F150L Lariat.

I cannot necessarily say that it’s worth $16.5k more than the F150L Lariat, given that the extra money saved is worth exactly the cost of the hardware and installation of V2H equipment and would essentially mean it’s the F150L + free generator is greater value than just the R1T.

Or even worse if value is the primary concern, and off roading is not the primary reason for buying an R1T, how much more would it be worth over a F-150L Pro?

My F-150L PRO is $30,000 OTD after all rebates and credits. My R1T is currently $68,500 OTD after all rebates and credits. That’s already a $38,500 difference for me, and already a hard one to justify. That jumps to a $46,000 difference if my R1T is delayed and no longer becomes eligible.

I would love a R1T. But for $46,000, I can live with 230 miles vs 274 (on 20” AT), spend some of it on aftermarket cooling and leather seats, and a powered tonneu cover.

 

[shumdit]

Has anyone considered that, even though Rivian certainly would prefer to have the law allow them to be included with continuing to have access to the $7500 credit, this may be a bit of a quandary for them? If they do nothing, and as a result a percentage of reservation holders who are locked in at the old price cancel their orders this could benefit them. Then they don’t have the bad press/blame but get a number of those orders that aren’t profitable, or profitable enough) off the books. This is playing devil’s advocate in a way but just a thought.

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