R1T Leasing Process Details - It's Complicated (Currently)

[Eric9610]

I assume the contract correctly states $.30/mi over? The website says ¢.30/mi which is a pretty significant error, probably made by a dev whereas the contracts should have been originally reviewed by financiers and less likely to have such an error.

It shows $0.30 in the contract as it’s a standard lease agreement with the only thing imputed are numbers.

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[Riviot]

It shows $0.30 in the contract as it’s a standard lease agreement with the only thing imputed are numbers.

Buyout fee or rules?

 

[Eric9610]

I saw nothing about early buyout penalties.

 

[Canyon1427]

I saw nothing about early buyout penalties.

Sounds like also no discount or residual reduction to account for the fact the leasing company (Chase) is getting paid back early. Is that right?

I think there are a number of people who would otherwise just buy the truck with cash but are trying to see if it nets out to be cheaper to lease with the intent to buy it out (either early or at the end) because of the tax credit or if the interest/fees associated with the lease end up eating up that $7500 “savings.”

 

[Eric9610]

Ok all here is the fine print:

(a) Early Termination Liability. If you are not in default, you may end this Lease at any time before the end of the Lease Term by returning the Vehicle to a place we specify. We may end this Lease at any time before the end of the Lease Term if you default. If you or we end this Lease before the beginning of the final Monthly Period (defined below) and the Vehicle is (i) not a Total Loss and (ii) is not subject to a Dealer Purchase Program (see below), then we will assess an Early Termination Charge equal to the Adjusted Lease Balance minus the Vehicle's Fair Market Value. For a Monthly Payment Lease, if you have returned the Vehicle as required or we have recovered the Vehicle, then the Early Termination Charge will not exceed the sum of all remaining Monthly Payments that would otherwise have been due from the early termination date to the Maturity Date and any End-of-Term Liability under Section 33. Your total early termination liability will equal this Early Termination Charge plus any other amounts that have become due and are unpaid at termination (including, for a Monthly Payment Lease, any unpaid Monthly Payments due before termination), less any credits to your account. We will credit your account for any remaining Refundable Security Deposit (see Sections 9(d) and 38) and any refunds we may receive from the cancellation of any Optional Insurance or Other Products (see Section 20). For a Single Payment Lease, we will credit your account for any portion of the Single Payment that is not allocated to the rent charge earned or Depreciation when calculating the Adjusted Lease Balance. Additionally, for a Single Payment Lease, your early termination liability under this Section will not exceed the amount of any End-of-Term Liability under Section 33 after applying any credits for any remaining Refundable Security Deposit and any refunds we receive from the cancellation of any Optional Insurance or Other Products. If any of these credits result in a negative early termination liability, then the excess credits will be refunded to you. If the Vehicle is a Total Loss, your early termination liability will be determined under Sections 28 and 31 rather than under this Section. Further, if you are in default and the Vehicle has not been returned as required or recovered by us, then we will use the amount that you would have owed if you had exercised your purchase option under Section 32, including the purchase option fee, as the Adjusted Lease Balance when calculating the Early Termination Charge. If you pay all that you owe, including this amount, then we will sell the Vehicle to you under Section 32.) If you return a Vehicle early to a dealer that we specify, that dealer may choose to purchase the Vehicle from us pursuant to a dealer purchase program between the dealer and us ("Dealer Purchase Program"). If your Vehicle is purchased pursuant to a Dealer Purchase Program, then you will be notified and you will not be assessed an Early Termination Charge. We are not required to sell the Vehicle under a Dealer Purchase Program and the dealer to which you return the Vehicle may choose to purchase the Vehicle from us without a Dealer Purchase Program applying or may choose not to purchase the Vehicle. In such cases, the Early Termination Charge above will apply.

1. PURCHASE OPTION. You may purchase the Vehicle from us if you are not in default, on an AS-IS, WHERE-IS basis, at any time before or at the end of the Lease Te the Vehicle, you must pay the sum of (a) the amount in Section 14 if you purchase the Vehicle at the end of the Lease Term, or the Adjusted Lease Balance plus the purcha Section 14 if you purchase it before the end of the Lease Term, plus (b) any related official fees, such as sales tax, other taxes, title, tags, license and registration we are res plus (c) any past due Monthly Payments and any other amounts you owe under this Lease. If you purchase the Vehicle, you will transfer title, re-register the Vehicle and rer the license plates (if required by law) within 30 days after purchase or any shorter time required by law. You will sign any additional documents necessary to effect the purch our option, apply any credits or security deposit under this Lease towards the purchase price.

 

[BrentInCO]

Ok all here is the fine print:

(a) Early Termination Liability. If you are not in default, you may end this Lease at any time before the end of the Lease Term by returning the Vehicle to a place we specify. We may end this Lease at any time before the end of the Lease Term if you default. If you or we end this Lease before the beginning of the final Monthly Period (defined below) and the Vehicle is (i) not a Total Loss and (ii) is not subject to a Dealer Purchase Program (see below), then we will assess an Early Termination Charge equal to the Adjusted Lease Balance minus the Vehicle's Fair Market Value. For a Monthly Payment Lease, if you have returned the Vehicle as required or we have recovered the Vehicle, then the Early Termination Charge will not exceed the sum of all remaining Monthly Payments that would otherwise have been due from the early termination date to the Maturity Date and any End-of-Term Liability under Section 33. Your total early termination liability will equal this Early Termination Charge plus any other amounts that have become due and are unpaid at termination (including, for a Monthly Payment Lease, any unpaid Monthly Payments due before termination), less any credits to your account. We will credit your account for any remaining Refundable Security Deposit (see Sections 9(d) and 38) and any refunds we may receive from the cancellation of any Optional Insurance or Other Products (see Section 20). For a Single Payment Lease, we will credit your account for any portion of the Single Payment that is not allocated to the rent charge earned or Depreciation when calculating the Adjusted Lease Balance. Additionally, for a Single Payment Lease, your early termination liability under this Section will not exceed the amount of any End-of-Term Liability under Section 33 after applying any credits for any remaining Refundable Security Deposit and any refunds we receive from the cancellation of any Optional Insurance or Other Products. If any of these credits result in a negative early termination liability, then the excess credits will be refunded to you. If the Vehicle is a Total Loss, your early termination liability will be determined under Sections 28 and 31 rather than under this Section. Further, if you are in default and the Vehicle has not been returned as required or recovered by us, then we will use the amount that you would have owed if you had exercised your purchase option under Section 32, including the purchase option fee, as the Adjusted Lease Balance when calculating the Early Termination Charge. If you pay all that you owe, including this amount, then we will sell the Vehicle to you under Section 32.) If you return a Vehicle early to a dealer that we specify, that dealer may choose to purchase the Vehicle from us pursuant to a dealer purchase program between the dealer and us ("Dealer Purchase Program"). If your Vehicle is purchased pursuant to a Dealer Purchase Program, then you will be notified and you will not be assessed an Early Termination Charge. We are not required to sell the Vehicle under a Dealer Purchase Program and the dealer to which you return the Vehicle may choose to purchase the Vehicle from us without a Dealer Purchase Program applying or may choose not to purchase the Vehicle. In such cases, the Early Termination Charge above will apply.

1. PURCHASE OPTION. You may purchase the Vehicle from us if you are not in default, on an AS-IS, WHERE-IS basis, at any time before or at the end of the Lease Te the Vehicle, you must pay the sum of (a) the amount in Section 14 if you purchase the Vehicle at the end of the Lease Term, or the Adjusted Lease Balance plus the purcha Section 14 if you purchase it before the end of the Lease Term, plus (b) any related official fees, such as sales tax, other taxes, title, tags, license and registration we are res plus (c) any past due Monthly Payments and any other amounts you owe under this Lease. If you purchase the Vehicle, you will transfer title, re-register the Vehicle and rer the license plates (if required by law) within 30 days after purchase or any shorter time required by law. You will sign any additional documents necessary to effect the purch our option, apply any credits or security deposit under this Lease towards the purchase price.

Thanks for pasting this … but looks like some missing / cutoff information or typos in the Purchase Option section (yes, I read every word of legalese)

 

[Eric9610]

Thanks for pasting this … but looks like some missing / cutoff information or typos in the Purchase Option section (yes, I read every word of legalese)

It was hard to capture, the document won't let you copy the text, I had to save as screen shot then use iphone select text in photo.

To me the way it reads is you can purchase at any time as long as you make all lease payments and residual, but I am not an expert.

Here is the key section:

" or the Adjusted Lease Balance plus the purchase Section 14 if you purchase it before the end of the Lease Term, plus (b) any related official fees, such as sales tax, other taxes, title, tags, license "

 

[AZTes2Riv]

It was hard to capture, the document won't let you copy the text, I had to save as screen shot then use iphone select text in photo.

To me the way it reads is you can purchase at any time as long as you make all lease payments and residual, but I am not an expert.

Here is the key section:

" or the Adjusted Lease Balance plus the purchase Section 14 if you purchase it before the end of the Lease Term, plus (b) any related official fees, such as sales tax, other taxes, title, tags, license "

Have you been able to determine if you can put $0 down on a lease (aside from drive off fees, first month, etc.). Any cap cost reduction is a deal breaker for me since it’s lost in a total loss situation. Also, how much did your payment go up from the website estimation? Was it just sales tax and that’s it? What about additional drive off fees aside from acquisition and first month? Thank you for posting your journey! Really helping many of us out ready to pull trigger but needing more details.

 

[Eric9610]

So, the payment was very close without tax, and I put less money down than the $5k. Once you get to the finance step it lets you put whatever number in on the down, I assume you can put 0 down. I put $3k down and my payment was within dollars of the published before tax amount. I will note I do have several accounts with Chase, and I don't know if this impacts any details. Glad I could help.

Also, at pickup today I was the first delivery of a leased car they had and it was so smooth! Big props to the Guide team and the knowledge they have. Had answers for everything on my list! Honestly amazing experience

 

[DuoRivians]

So, the payment was very close without tax, and I put less money down than the $5k. Once you get to the finance step it lets you put whatever number in on the down, I assume you can put 0 down. I put $3k down and my payment was within dollars of the published before tax amount. I will note I do have several accounts with Chase, and I don't know if this impacts any details. Glad I could help.

Also, at pickup today I was the first delivery of a leased car they had and it was so smooth! Big props to the Guide team and the knowledge they have. Had answers for everything on my list! Honestly amazing experience

Congrats! Hope you enjoy the new ride!!

 

[AZTes2Riv]

So, the payment was very close without tax, and I put less money down than the $5k. Once you get to the finance step it lets you put whatever number in on the down, I assume you can put 0 down. I put $3k down and my payment was within dollars of the published before tax amount. I will note I do have several accounts with Chase, and I don't know if this impacts any details. Glad I could help.

Also, at pickup today I was the first delivery of a leased car they had and it was so smooth! Big props to the Guide team and the knowledge they have. Had answers for everything on my list! Honestly amazing experience

Thanks so much! I’m private client with Chase, top tier credit, hoping it’ll help. Did anything actually say Chase throughout the process? Are you making payments to Chase or Rivian Financial? Any drive off fees besides first & acquisition? Congrats on delivery!

 

[Eric9610]

Thanks so much! I’m private client with Chase, top tier credit, hoping it’ll help. Did anything actually say Chase throughout the process? Are you making payments to Chase or Rivian Financial? Any drive off fees besides first & acquisition? Congrats on delivery!

All the financial omens say chase on them. I am actually not sure where payments will go. My guess is chase.

Dues at signing

Down money
Tax
Title registration
First month payment
Admin fee.

 

[MidnightRivian]

So, the payment was very close without tax, and I put less money down than the $5k. Once you get to the finance step it lets you put whatever number in on the down, I assume you can put 0 down. I put $3k down and my payment was within dollars of the published before tax amount. I will note I do have several accounts with Chase, and I don't know if this impacts any details. Glad I could help.

Also, at pickup today I was the first delivery of a leased car they had and it was so smooth! Big props to the Guide team and the knowledge they have. Had answers for everything on my list! Honestly amazing experience

Awesome, congrats but I have to say it.

Pics or it didn’t happen.

Let’s see some eye candy

 

[Eric9610]

I love the way the color changes based on amount of light.

 

[MidnightRivian]

I love the way the color changes based on amount of light.

View attachment 77083

Thanks for sharing. The color is beautiful and truly a chameleon.

Do you plan to remove the aero covers and buy the Rivian center caps?

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