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

[t1000mb]

Hi

Long time reader, first time poster

I've been digging into a lease for an R1T the last few days and thought I would share some details, which appear to still be pretty opaque to everyone. Punchline is - the process is completely unconventional and not very transparent. That said, the Guides and everyone else I have reached out to have been as helpful as they possibly can be.

For context, I'm looking to lease a ready-to-go R1T in my area that I could take delivery of in a few days if I choose

1. Before you get a value for your trade-in and the fine print of lease with important details like residual and money factor, you have to put down a NON-REFUNDABLE $1,000 deposit. I will add that when this happens, it looks like you click to the next page to confirm but really you are confirming right then and there. There's a right arrow on the confirm button that made me think it takes me to the next page where I would see everything on a page and then confirm. Kind of like shopping for a shirt online.

2. Now we are in the account portal and the welcome emails come flying in

3. The next steps, in order, are: title and registration, trade-in, financing, insurance, upload docs, sign contracts, payment, schedule pickup

4. Trade-in: enter in your vehicle details and it gives you a number, which is non-negotiable. At this time you either have to accept the offer, decline the offer, or add a different vehicle to trade-in. If you select decline, you cannot come back to accept the offer.

5. If you have equity in your trade-in and that amount is greater than the upfront payment you are making (cap cost reduction, fees, 1st month payment), Rivian will not give you a check for the difference. In other words, the entire amount of equity you have in the vehicle goes towards upfront cap cost reduction.

For example, if you have $15,000 in equity but you have a $5,000 cap cost reduction (minimum required), 1st month payment, and then fees/taxes, you will actually be putting the full $15,000 down even if your minimum number came out to be $7,000.

6. Apparently you can select to not accept the trade-in offer and then later work with a Rivian Guide to change it but at least on the website it doesn't allow you to do this

7. The trade-in offer they gave me was ~$1,000 below Carvana and my current car's dealership but it was $4,000 above CarMax

8. The Guides cannot tell you what the money factor or residual will be. That apparently happens at the end after you have applied for financing and selected your trade-in option

Right now I'm stuck with what to do because for any transaction I evaluate the parts individually and as a whole and as it sits I'm missing key pieces of information, even if I can do the math to ballpark them (money factor and residual).

Rivian is a great company with amazing vehicles, I hope they can make this process more conventional and transparent upfront.

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[sierraskier]

So they seriously want you to sign binding contracts without knowing the residual value or the money factor. Sounds super shady....

 

[DuoRivians]

Hmm… seems like they should make the $1000 refundable, and non-binding. Everything else would then seem reasonable.

 

[COdogman]

There were some speed bumps in the beginning of the purchase process as well. Hopefully they can get it worked out quickly.

 

[shrink]

4. Trade-in: enter in your vehicle details and it gives you a number, which is non-negotiable. At this time you either have to accept the offer, decline the offer, or add a different vehicle to trade-in. If you select decline, you cannot come back to accept the offer.

Your Guide can open that step back up. It’s definitely possible. However, they’re clearly still working out the kinks in this process. Hang in there.

I do remember purchasing my R1S was easier than my initial R1T purchase, but I’m not recalling specifics at the moment. It was likely a combination of experience the first time around combined with Rivian improving the 8 steps.

 

[t1000mb]

Your Guide can open that step back up. It’s definitely possible. However, they’re clearly still working out the kinks in this process. Hang in there.

I do remember purchasing my R1S was easier than my initial R1T purchase, but I’m not recalling specifics at the moment. It was likely a combination of experience the first time around combined with Rivian improving the 8 steps.

The Guide told me they can do this manually but when you're going through online w/o that information, it's frustrating and confusing.

I think they will make this more transparent and logical but for now it is what it is. Just FYI

 

[Golfer04]

The Guide told me they can do this manually but when you're going through online w/o that information, it's frustrating and confusing.

I think they will make this more transparent and logical but for now it is what it is. Just FYI

The non-refundable $1,000 to find out your trade value stunt isn't just on a lease. They do that crap on a regular trade in with or without financing.

 

[texasbryan]

The Guide told me they can do this manually but when you're going through online w/o that information, it's frustrating and confusing.

I think they will make this more transparent and logical but for now it is what it is. Just FYI

Do you have any idea whether or not you can purchase/payoff the lease in the middle of the lease rather than at the end? I've done this with other leased vehicles that I ended up trading in for something else. Tesla will not let you do this but many other manufacturers will.

 

[t1000mb]

Do you have any idea whether or not you can purchase/payoff the lease in the middle of the lease rather than at the end? I've done this with other leased vehicles that I ended up trading in for something else. Tesla will not let you do this but many other manufacturers will.

I have not gotten that far in the process yet due to the other gating items so far (trade-in, etc)

 

[Golfer04]

Do you have any idea whether or not you can purchase/payoff the lease in the middle of the lease rather than at the end? I've done this with other leased vehicles that I ended up trading in for something else. Tesla will not let you do this but many other manufacturers will.

This answer will be interesting because of the tax credit. A conditional sales contract won't qualify for the $7500. Most leases you can prepay, but it is the sum of the lease payments. I doubt Rivian will risk recapture of the $7500/truck by letting people sign a document with "lease" at the top and then pay it off the next day.

 

[texasbryan]

This answer will be interesting because of the tax credit. A conditional sales contract won't qualify for the $7500. Most leases you can prepay, but it is the sum of the lease payments. I doubt Rivian will risk recapture of the $7500/truck by letting people sign a document with "lease" at the top and then pay it off the next day.

That's a good point. However, they do allow you to purchase it at the end of the lease. Either way, it seems like Rivian is getting the credit from the government.

 

[ndmiller]

I started the buying process on my R1T a month ago and it's a circular reference of gobbledygook, BUT going to take delivery next Friday. How does one insure a vehicle without a VIN? You don't get a VIN until you sign the sale paperwork, but can't do that without financing or deposit being worked out. Can't get financing without a VIN? Just needs some work, but they are probably at the whim of every different state law governing the purchase of a vehicle and that patchwork of laws is a mess to say the least.

Test drove a T today on my way to work and very excited to make the plunge, but first had to get insurance for next week and upload the insurance card, even though I have 3 other insured vehicles with USAA. Ce La Vie and good luck with the Leasing, a mess but to get the $7500 is probably worth it.

 

[VSG]

I started the buying process on my R1T a month ago and it's a circular reference of gobbledygook, BUT going to take delivery next Friday. How does one insure a vehicle without a VIN? You don't get a VIN until you sign the sale paperwork, but can't do that without financing or deposit being worked out. Can't get financing without a VIN? Just needs some work, but they are probably at the whim of every different state law governing the purchase of a vehicle and that patchwork of laws is a mess to say the least.

I don't understand this. When your 8-step process opens up you are assigned a VIN right away. Check your account - it's right there. Maybe they didn't email it to you explicitly, but you ARE assigned a VIN. So of course you can do financing and get insurance etc.

As for insurance, you do have a VIN, so just call USAA and get a quote - you can do that online too BTW - then tell them to add the vehicle to your policy but tell them you don't want the coverage to start for like another 6 weeks. That gets you an insurance card which you can then upload for Rivian. When you actually receive your Rivian, you can call USAA and change the start date - it takes like 5 minutes over the phone. This is what I did with USAA and it's quick and easy.

If your beef about financing is that you need a VIN, well you do have a VIN. If you're complaining about something else with the financing, it's not clear what.

So the whole "circular reference of gobbledygook" comment seems to be predicated on the fact that you don't think you have a VIN number. But you do, and if you can't find it on the website under your account then your guide can tell you what it is. Assigning the VIN is literally the first step taken by Rivian to initiate the purchase process.

 

[VSG]

I doubt Rivian will risk recapture of the $7500/truck by letting people sign a document with "lease" at the top and then pay it off the next day.

Actually this is *exactly* what most EV manufacturers do - this is why the $7500 tax credit for commercial EV buyers (i.e. the lease company) is considered a loophole and a way to get around the income, vehicle price, and battery sourcing/assembly requirements that constrain the current consumer EV tax credit.

In practice, you do have to pay that first month of the lease and you do have to pay the lease fees etc., so you end up not getting the full $7,500 - you loose $1000 or more to fees and first month interest. But you can do this in many cases and save money.

However you really have to read the lease agreement and figure out the payoff value and crunch all the numbers, because some EV manufacturers will try to screw you and it will cost you thousands of dollars more by doing it this way, even with the $7,500 "credit".

 

[texasbryan]

Actually this is *exactly* what most EV manufacturers do - this is why the $7500 tax credit for commercial EV buyers (i.e. the lease company) is considered a loophole and a way to get around the income, vehicle price, and battery sourcing/assembly requirements that constrain the current consumer EV tax credit.

In practice, you do have to pay that first month of the lease and you do have to pay the lease fees etc., so you end up not getting the full $7,500 - you loose $1000 or more to fees and first month interest. But you can do this in many cases and save money.

However you really have to read the lease agreement and figure out the payoff value and crunch all the numbers, because some EV manufacturers will try to screw you and it will cost you thousands of dollars more by doing it this way, even with the $7,500 "credit".

Agreed. And this is why I would love to see the verbiage of the lease contract.

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