Rivian Lease Deals are extremely favorable right now

[wallysworld23]

The destination fee is already build into the vehicle price. I don't know why people keep calling it out as a separate fee on top of it. Maybe it's different for purchases... but its definitely not tacked on for leases.

The destination fee of $1,800 absolutely is tacked on regardless of purchase/lease...

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[b_ack51]

The destination fee of $1,800 absolutely is tacked on regardless of purchase/lease...

Yep this. It's added in the contract and has to be due to a law.

 

[moeman2323]

The destination fee of $1,800 absolutely is tacked on regardless of purchase/lease...

Yep this. It's added in the contract and has to be due to a law.

Here is an actual lease agreement... can you please show me where the destination fee is tacked on?

 

[b_ack51]

Here is an actual lease agreement... can you please show me where the destination fee is tacked on?

It's in your Gross capitalized cost. Look at your Rivian account and look at transaction summary, it'll show your vehicle price and then a line for $1800 for destination fee. Or look at your order summary sheet.

 

[moeman2323]

It's in your Gross capitalized cost. Look at your Rivian account and look at transaction summary, it'll show your vehicle price and then a line for $1800 for destination fee.

I'd send you a screenshot of mine, but unfortunately Rivian messed up my transaction and I'm waiting on them to fix it.

Yes, like I said. It’s in the cost of the vehicle already (gross capitalized cost as you stated) and calculated into the monthly payment.

My statement was simply stating that it’s not due at signing, not that it’s not added at all.

 

[Syrarch04]

So is the $1,800 included in the price shown on the website, or does it get added to that number for the final gross cost? I’m assuming the latter, but worth clarifying…

 

[moeman2323]

So is the $1,800 included in the price shown on the website, or does it get added to that number for the final gross cost? I’m assuming the latter, but worth clarifying…

It is NOT included on the price shown in the shop on the website, but it is added the capitalized cost of the vehicle in the lease agreement. So it will impact the lease payment, but not your cash due at signing. Most folks have gotten payments at or around the lease calculator estimate though.

 

[b_ack51]

Yes, like I said. It’s in the cost of the vehicle already (gross capitalized cost as you stated) and calculated into the monthly payment.

My statement was simply stating that it’s not due at signing, not that it’s not added at all.

We're at the same point and agreement, your original messaging did not say what your current post says. No one said it's part of the due at signing, everyone said its tacked into the lease (aka the payments).

Either way the destination fee for purchase or lease is added to vehicle price making the vehicle total.

 

[Rivtony]

I just leased a R1S few days ago.
The monthly payment is exactly what the web lease calculator showed. You just need to add the sales tax and the registration/license fees. The web calculator takes already into account the $1800 destination fee.

The quad leasing options are cheaper because the residual value is at 75%

 

[Ktran825]

Does anyone have the phone number to the rivian sales team? I’ve placed a $1000 reservation and want to lease an R1S immediately, but can’t get an actual sales person on the phone and rivian won’t provide a number.

 

[C_Gray24]

I'm new to learning about leasing so l'm hoping someone could shed some light on it for me bc my math seems to lean In favor of leasing.


lets just take a $83,750 R1T. With 0% down on lease and on purchase, the lease would be $940 a month and the Payment on buying would be $1427 @ 7% interest rate (I know these may be little different for everyone but I'm just using these as an example


With the lease after 36 months you have paid a total of $33,840 and in that same time if you would have purchased the truck, you would have paid $51,372. So the lease is $17,532 cheaper than buying over that period of time.


From what l've read, most people are getting a 61% or so residual which would mean the buyout for this particular truck after 36 months would be $51,087 for this example. if you look at an amortization schedule for buying the truck, after 36 months you would owe $45,085.


So you would owe roughly 6k less on the truck after 3 years if you were to buy, but remember back at the beginning of this, you have paid in a total of $17,532 more on the purchased car. So if you were to take that $17,532 difference and put it towards what you owe on the lease buyout, it would bring it down to $33,555 which is about 12k less than buying it.


I could use some help bc I feel like I'm doing something wrong, but l've tried doing the math a few times and I get the same thing. it's seems to be cheaper to lease and then buyout at the end rather than just buying it from the beginning.

 

[RoadRunner]

1. I think you're leaving out the "due at signing" costs on the lease which include:
$895 Acquisition Fee
$1800 Destination Fee
2. On the lease you're only paying interest for 2 or 3 years, and only on the difference between the total cost of the vehicle and the residual value. On the loan you're paying interest for 4-7 years (you didn't specify the loan term) on the total cost of the vehicle. So you're paying more interest on the loan, especially in the first few years.
3. If you financed the buyout at the end of the lease, you'd have to pay interest on that too, although it's possible rates will be lower in 3 years than they are now.
4. They may be giving you a lower effective interest rate on the lease.
5. The $7500 tax credit is applied to the lease as a cap cost reduction, reducing the MSRP by that much. You may or may not get a tax credit when financing and it appears you didn't include that in your calculations.

 

[C_Gray24]

1. I think you're leaving out the "due at signing" costs on the lease which include:
$895 Acquisition Fee
$1800 Destination Fee
2. On the lease you're only paying interest for 2 or 3 years, and only on the difference between the total cost of the vehicle and the residual value. On the loan you're paying interest for 4-7 years (you didn't specify the loan term) on the total cost of the vehicle. So you're paying more interest on the loan, especially in the first few years.
3. If you financed the buyout at the end of the lease, you'd have to pay interest on that too, although it's possible rates will be lower in 3 years than they are now.
4. They may be giving you a lower effective interest rate on the lease.
5. The $7500 tax credit is applied to the lease as a cap cost reduction, reducing the MSRP by that much. You may or may not get a tax credit when financing and it appears you didn't include that in your calculations.

Thanks for the response! I'm going to try and answer some of these to maybe clear some things up. sorry for the confusion on some of these.

1.
I left the Destination Fee off because I figured you would have to pay that on both the leased Vehicle as well as the Purchased one. I did forget about the $895 acquisition Fee though, but that isn't really that much when you're talking about north of 17k difference.

2 & 3.
The loan term that I was getting the amortization schedule from was a 72 month term. so you are correct that I would be paying that interest on the vehicle buyout after. But I also ran numbers for if I took that Lease buyout number and only financed it for 3 years (which is what I would have remaining on the loan if purchased). If I financed the whole residual value of $51,372 the payment on a 3 year term @7% (This interest number is usually lower on a shorter term but I'll use 7% to be fair) the payment is $1,586 compared to the $1,427 that I would be paying if I purchased at the beginning. Different of $159 a month and $5,724 over the last 3 years. subtract that $5,724 from the $17,532 that I saved from the from leasing and it's $11,808 cheaper. Also subtract that acquisition fee that I forgot and it still comes out to right at 11k cheaper.

5.
With the price of the Vehicle being over the 80k threshold for getting the Tax credit, I wouldn't receive any it purchased directly, but would receive the $7500 if leased.

 

[TheWoo]

With the price of the Vehicle being over the 80k threshold for getting the Tax credit, I wouldn't receive any it purchased directly, but would receive the $7500 if leased.

The $7500 is the bulk of the difference - you are getting that with a lease, not with a purchase.

The remaining $3-4k in your scenario can certainly be attributed to financing rates. Perhaps slightly better rates are available for the leasing program right now. You'd really have to dig in to know. This is also based on your 61% residual assumption.

Bottom line, the fact that you get the $7500 credit right now on a lease is a HUGE factor in making leasing a good option for many. It's hard to overcome that difference in pure dollars at the beginning of the deal. In your scenario you're essentially capitalizing 9% less by leasing.

 

[RoadRunner]

The loan term that I was getting the amortization schedule from was a 72 month term. so you are correct that I would be paying that interest on the vehicle buyout after. But I also ran numbers for if I took that Lease buyout number and only financed it for 3 years (which is what I would have remaining on the loan if purchased). If I financed the whole residual value of $51,372 the payment on a 3 year term @7% (This interest number is usually lower on a shorter term but I'll use 7% to be fair) the payment is $1,586 compared to the $1,427 that I would be paying if I purchased at the beginning. Different of $159 a month and $5,724 over the last 3 years. subtract that $5,724 from the $17,532 that I saved from the from leasing and it's $11,808 cheaper. Also subtract that acquisition fee that I forgot and it still comes out to right at 11k cheaper.

As TheWoo noted above, the bulk of the savings is coming from the $7500 tax credit that is applied to the lease as a cap cost reduction, but not applied to the loan.
On top of that, as I understand it, when you lease you are financing a much smaller amount - in your example it would be
$83,750 MSRP
- $7500 Tax credit/cap cost reduction
- $51,372 Residual value
= $24,878 "financed" amount
Your total interest on this amount over 3 years at 7% would be $2,776.
Total interest over 6 years on the full MSRP of $83,750 at 7% would be $19,056 - of which you'd pay around $13,000 in the first 3 years of the loan.

Leasing is absolutely a much better deal in this scenario. But the numbers above don't yield the lease payment of $940 that you referenced, so you'd want to find out the actual details of the lease including the actual residual value they are using and the money factor/effective interest rate.

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