Price Increase for Preorder Holders?

[emoore]

It's just a deposit. No contractual agreed upon price was ever made. They will cost what they cost at time of delivery. No obligation to finalize the purchase when your actual vehicle is available for delivery. next!

Thanks for the upbeat attitude Ronald McDowner.

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[RideAlong]

Thanks for the upbeat attitude Ronald McDowner.

At ease , u can just call me Mayor McRealism ?

 

[Rad]

I think that preorders will not have a price increase (preorders may not include all, but maybe up through a certain date). However, Rivian will make up for the margin hits with the subscription fees.

 

[DuckTruck]

At ease , u can just call me Mayor McRealism ?

Wow! Way to shake it up! I hope this flurry ends before someone fries!

 

[RDB]

I think you meant McFlurry.....

 

[LeoH]

I would have been concerned if RIVIAN did not go public, because they have shareholders they must please and cancelling pre-orders is not something they want to cause right now.

So I am just guessing they will keep current prices until one, or a combination of those conditions are met:

1- They announce a cheaper model (R2) so they increase the R1 price to make it a more defined luxury segment

2- They reach full production cadence and are able to have vehicles in stock for everyone to purchase.

3- They open a second plant and have to go through the growth pains again.

I do not see any of this happening before current backlog is delivered.

 

[cc84]

"It's just a deposit. No contractual agreed upon price was ever made. They will cost what they cost at time of delivery. No obligation to finalize the purchase when your actual vehicle is available for delivery...."

We should already know whether the quoted website price is holding, due to deliveries to non-employees. It's hard to believe not one of them has replied with an answer. Why not? Are there deliveries being made? Pretty easy to do....."Yes, I paid what was quoted on their website."

 

[Taycanfrank]

Yes, the people that have received cars so far have paid what's listed on the configurator or less, at least in terms of listed sale price. Now if any additional fees were tacked on is a different story.

If Rivian was selling cars above configurator price without updating the configurator it'd be a violation of federal law.

While they CAN change the price at any time before a signed purchase agreement, they CANNOT change the price while still listing a lower price. I can't give you an estimate for $100 when I already intend to charge you $110, but I can show up and tell you it'll cost $110.

As car sales go through multiple agencies, there would be no way for Rivian to sneak through an upcharge on MSRP. It'd take a couple of minutes to prove they had actually raised MSRP on sold cars while falsely advertising a lower MSRP. A "delivery fee" though..

 

[DuckTruck]

I think you meant McFlurry.....

I didn't want to be that obvious, but with puns, it is kind of unavoidable. Plus, I don't want any clown attorneys pounding on my door screaming about trademark infringement or libel. If that happened, I'd channel my inner-Ving Rhames and go Mc-ieval on their a$$es.

 

[cc84]

Yes, the people that have received cars so far have paid what's listed on the configurator or less, at least in terms of listed sale price. Now if any additional fees were tacked on is a different story.

Thanks Frank. I hope you're correct. If you're correct, it seems it might be a little more difficult for Rivian to increase the sales price on early preorder holders, since supposedly some have received delivery and paid the current website pricing.

Mainly, I want to know of someone that has purchased a vehicle and will verify they paid website pricing, or less. I don't know of anyone that has come forward to verify, but your first sentence sounds as maybe you know of such a person, or you're assuming it's correct because of the law. How the law is interpreted and what transactions take place can sometimes be in conflict. That's why I would like to have it verified by a current recipient if possible. I don't really need to know what someone paid, it's more out of curiosity as to why no one has come forward to answer this simple question except for yourself and you may very well have the needed first-hand knowledge.

If I understand your reply, once the preorder holder and Rivian reach an agreement to sale/purchase the vehicle, the website stated pricing will take precedence, not allowing any type of negotiations by either side, unless at a lower cost.

Preorder Agreement (below) :

"Each Preorder you submit for a Vehicle acts as a deposit for a future purchase of the Vehicle. You are under no obligation to purchase a Vehicle from us, and we are under no obligation to supply you with a Vehicle.

These Terms do not constitute an agreement for the sale of a Vehicle and do not lock in pricing, a firm production slot, a firm delivery date, or specific Vehicle configuration.".........

 

[dleewla]

im pretty sure they can raise the price any time they want to before you pay. it pretty much says that on the configurator.

"Options, specs and pricing may change as we approach production. We’ll contact you to review any updates to your preferred configuration. Pricing displayed in the configurator does not include potential savings from federal and local incentives you may be eligible for."

im leaning towards them increasing prices as opposed to keeping put in 2022. not to increase their margins but rather to slow down demand. it might actually help them with regards to meeting production demands if some folks drop their orders due to higher pricing. at the numbers they are selling the R1T/S, its not really these vehicles that are going to keep the company afloat anyhow so losing some orders may not be a bad thing. its the EDV, FleetOS, add-ons like membership and most likely lower price point vehicles like the rumored R2 (at scale) that will make the company profitable, not the R1.

now who they raise those prices for im not sure. maybe preorders before a certain date get the current price. they'd lost a lot of goodwill if they raised prices for preorder holders who have been waiting 2-3 years.

and similar deal happened with Tesla with Model S/X and it wasn't until Model 3 (at scale) they became profitable. and they have been raising prices to quell the overwhelming demand for Model 3/Y recently. similarly to be able to meet production goals and not keep falling behind because for stocks/investors its really more important that the company keeps growing and meeting production goals as opposed to being wildly profitable on niche/expensive products.

 

[ads75]

I can't imagine the outrage customers would feel if they advertised these prices for this long, started deliveries to mainly employees, and then raised prices shortly after delivering to "real" customers. I can see them raising prices at some point, but maybe that's 2023, or maybe locked in somewhat for when someone preordered.

 

[Attesan997]

I can't imagine the outrage customers would feel if they advertised these prices for this long, started deliveries to mainly employees, and then raised prices shortly after delivering to "real" customers. I can see them raising prices at some point, but maybe that's 2023, or maybe locked in somewhat for when someone preordered.

I'd be surprised if they nuked what's left of their good will before delivering any signifigant amount of vehciles. Tesla can tweak pricing to optimize margins as much as they want, that's what a decade head start without competition gets you. I don't beleive pricing will stay the same forever however. GM is going to start churning out their Hummer at $100K a pop and that's before dealer markups. Hopefully its on new orders placed in late 2022 or 2023

 

[Monkey]

We'll see if they follow Tesla's path. They seem to force order holders to pay whatever price is advertised at time of purchase, not at time deposit is made. I hope they don't. But as long as it's less than a few thousand more, I'll probably still pony up the dough in 2023.

Tesla has never done that. You always pay the price quoted at the time you make your reservation. Regardless of whether pricing goes up or down while you wait. Which is awesome because when we reserved our Model Y we configured it with the 20" sport wheels for +$500 and FSD for $3000. When the car went to production, the 20" sport wheels were no longer a thing, they became the 20" Induction wheels for an additional $2K that we did not have to pay and we were locked into the $3K FSD price even though they had since raised it to $6K and raised it again to $10K right around the time we took delivery, I think just after. Assuming the FSD price was $6K at the time we took delivery, we paid $4500 less for our car than the current price. And $8500 less than what people were paying shortly after when FSD went to $10K. ...I personally would not pay for FSD at this point, especially not at $10K, until it's 100% working. But I'm glad the car has it and we got it "cheap".

Once the car is queued for production and assigned a VIN, you're completely locked in. If you want to change anything, there's a fee to change configuration and the pricing is updated to whatever the current price is, even if you just change the paint color or wheels.

 

[doozenberg]

Well, it finally happened. They raised their prices across the board. Even a downgraded "dual motor" variant is at least $8000 more than previously advertised quad-motor. Way to hold $1000s for four years and not even credit the interest from 2018 dollars to today. This isn't the right way to do it...

As our production continues to ramp up, we want to share new information that affects your Rivian preorder.  Vehicle base pricing and the cost of certain options, upgrades and accessories have increased. All packages of the R1S will now only be offered in a 7-seat configuration. We’re in the process of updating your Rivian Account page to reflect these adjustments and we will send you an email notification when the update is complete. Until then, all product and pricing updates can be viewed in our configurator. These price increases — the result of inflationary pressure on the cost of supplier components and raw materials across the world — will allow us to maintain product excellence as we continue investing in electrification for our shared future. We remain committed to offering compelling products and helping drive competition, inspiring as many drivers as possible to switch to electric vehicles. To that end, today we’re also announcing the introduction of Rivian Dual-Motor AWD for both R1T and R1S. Dual-Motor AWD features one motor for each axle for exceptional power and control. The system is designed to excel both off-road and on-road, going from 0-60 mph in as few as 4.0 seconds while still delivering all-wheel traction. Deliveries are planned to begin in 2024. We are also introducing our 260+ mile range Standard battery pack, with deliveries planned to begin in 2024.* Dual-Motor AWD and Standard battery pack are available now in our configurator, where you can find more information on each. We’re grateful to you for being an early supporter of Rivian and helping drive the EV movement towards an enduring and livable world. If you have any questions about your preorder, we’re here to answer them.   Thank you again for being on this journey with us. — Team Rivian *Please note that changes to any existing preorder may affect your vehicle’s delivery window.

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