Rivian Can’t Take your trade-in if they have to give you money back.

[Virgil T2]

Trying to trade in my fully paid off 13 month old gen1 R1S, which Rivian offered me $68,000 for, I wanted to use $32,000 of this to lease a gen2, expecting to get $36,000 back, only to be told Rivian is unable to pay me the difference. They told me I would have to sell it myself, and suggested Carvana, who only offered me $58,000. Quite disappointing.

Sponsored

 

[Ngkgb]

They won’t just give you the 68k cash for it?

 

[Virgil T2]

Nope, they said they’re unable to cut a check for the difference. I assumed it would be two separate transactions, they pay me 68K, and I pay them very large down payment on a new lease, but nope. They can’t do it apparently. What you’re buying has to be more than your trade-in, which obviously does not work unless I purchase the car and not lease it, but that defeats the purpose because then I lose the tax credit.

 

[Thedude]

Can you not use it to make the $68k down payment on the lease, get the tax credit and then buyout the lease?

 

[Virgil T2]

That was my plan, because they would not let me pre-pay the whole 36 month lease. Apparently they have a down payment maximum for leases. But even if I could pre-pay the whole lease out of my trade-in proceeds, they’re still not able to give me the difference back.

 

[Nixapatfan]

This scenario is probably the only time a independent dealership is useful but they'd low ball you on a trade so maybe not. Rivian doesn't really have cash reserves to give back and even if they did it would be too risky to pay up front for a depreciating asset especially when they are offering above market trade in value.

 

[NowOrNever]

I had the same situation with my trade-in. I leased to get the tax credit money. My trade-in was worth more than the maximum capital reduction they allow. I assume it is related to a minimum amount that Chase will accept for financing. Guarantees them a certain profit. I found that CarMax offered the best cash offer and more than Rivian offered.

 

[Virgil T2]

Thanks for the info,Terry. Doesn’t change the fact they are not equipped to take a trade-in if there’s money going back to the customer.

 

[RivAW]

Th

Trying to trade in my fully paid off 13 month old gen1 R1S, which Rivian offered me $68,000 for, I wanted to use $32,000 of this to lease a gen2, expecting to get $36,000 back, only to be told Rivian is unable to pay me the difference. They told me I would have to sell it myself, and suggested Carvana, who only offered me $58,000. Quite disappointing.

This is a “you” problem, not them.
Rivian doesn’t purchase used vehicles (even their own), they just arrange the deal with a third party who typically goes right to auction for “convenience”. This is probably one of the very few negatives about not having a dealer network….
Instead of leasing you could just buy, thereby obtaining the full value of your trade in….you can’t make them do business your way though

 

[NY_Rob]

Seems like sort of an edge case that doesn't come up very often. The vast majority have to pay in addition to what the dealer (or in Rivian's case the manufacturer) gives them on the trade in vehicle.

 

[A RivianLessorLessee]

Trying to trade in my fully paid off 13 month old gen1 R1S, which Rivian offered me $68,000 for, I wanted to use $32,000 of this to lease a gen2, expecting to get $36,000 back, only to be told Rivian is unable to pay me the difference. They told me I would have to sell it myself, and suggested Carvana, who only offered me $58,000. Quite disappointing.

So I had a similar situation. I ended up taking out a loan on my paid off vehicle a week before signing the lease and trading my vehicle. It felt amateurish for Rivian to require this to get the full value but it worked.

 

[Donald Stanfield]

I was in this situation myself. I can confirm this is how it works; Rivian will not cut you a check.

 

[UnsungZero_OldTimeAdMan]

A new for profit business fighting to stay in business to fight another day. The priority is to make money, be profitable, and be financially sustainable. If they have to “pay” you, and everyone else like you, to lease a new car how would they be financially sustainable? How is this a shock? Any other brand’s dealership would have refused. Yes, sell it on your own.

 

[Rividiculous]

So I had a similar situation. I ended up taking out a loan on my paid off vehicle a week before signing the lease and trading my vehicle. It felt amateurish for Rivian to require this to get the full value but it worked.

Clever.

 

[DucRider]

On leases the adjusted cap cost can never be less than the residual value or the monthly depreciation becomes negative and theoretically they would need to cut you a check every month.

Apparently Rivian has not figured out that they can treat a customer trading their paid off vehicle like a lien holder. They surely must be able to take trades with loans attached that they pay off and apply the balance to a lease/finance contract?

Sponsored