Rivian's pricing problem... how do they solve it?

[iansriv]

The value of my R1S (not delivered yet) is subjective. I'm hoping to like the car a lot based on what most have posted/discussed here. I could give a flip about flippin flippers. Mostly because I've lost a "few" Rivians worth on my initial investment in the stock.

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[SANZC02]

The value of my R1S (not delivered yet) is subjective. I'm hoping to like the car a lot based on what most have posted/discussed here. I could give a flip about flippin flippers. Mostly because I've lost a "few" Rivians worth on my initial investment in the stock.

You only lost it if you sold, until then it is just a negative position.

 

[Goose]

I am not a fan either but blame goes to both sides here. If there was no market there would be no flippers.

Really not much different than the crazy ADMs the dealers do on certain models, if people would not pay it the dealers would not do it.

I boil it all down to greed. If people weren’t so money hungry we wouldn’t have this kind of resellers market.

I flat refuse to pay an ADM. I had a reservation for a Ranger Raptor, I cancelled it on Friday when the dealer contacted me and said there would be a $5K ADM.

 

[s4wrxttcs]

Exactly right...Person A either never wanted the car and was always going to flip, or changed their mind at some point in the process and decided to purchase it to flip. Either way, that vehicle was only going to be sold by Rivian once...either to Person A who flips it to Person B, or to Person B after Person A canceled their reservation.

Now are there some people who purchased it, drove it for a bit and then decided they didnt like it/couldnt afford the payment/was worth it more for them to sell and get something else? Sure...but you are talking about (A) a very small amount of vehicles (prob in the 100's) and (B) just the way the resale market works for any car (and there are far more people who would prefer a vehicle straight from the manufacturer knowing it was "new" and the warranty was fully valid.

My theory is expensive vehicles lose their value quickly because a significant percentage of the buyers have no issues burning money on vehicles.

They'll buy a vehicle and then sell it within 6-12 months because it's not the shiny thing anymore. They're not flipping for money, but flipping out of boredom or simply because they can. Maybe there wasn't enough cupholders or something silly like that.

EV's don't seem to suffer this as badly because enough buyers are value driven that it offsets the people burning money. EV owners tend to come from a more diverse vehicle collection than Audi/BMW/etc. owners.

Given this I expect the used R1T price to stabilize now that most of the flippers, and "I've had it for 6 months and now I'm bored" folks are gone.

 

[iansriv]

You only lost it if you sold, until then it is just a negative position.

All my years at Shearson Lehman and I still can't explain that one to the wife. Thanks for the moral support though. Cheers!

 

[Guy]

The value of my R1S (not delivered yet) is subjective. I'm hoping to like the car a lot based on what most have posted/discussed here. I could give a flip about flippin flippers. Mostly because I've lost a "few" Rivians worth on my initial investment in the stock.

You have lost >$100k?

 

[iansriv]

You have lost >$100k?

It's rather embarrassing. At least until the stock gets above $160. If that happens-I will be considered absolutely brilliant! I'm sure there are many that have lost far more than me.

 

[iansriv]

Well, according to Sanzco2; I haven't lost anything. It's rather embarrassing at the moment. At least until the stock gets above $160. If that happens-I will be considered absolutely brilliant! I'm sure there are many that have lost far more than me.

 

[mini2nut]

I follow every R1T auction on Cars & Bids and BAT. Resale values are definitely trending down. R1T’s are currently selling in the mid $70’s.

Out of curiously I took my December delivered 2022 R1T for an appraisal from CarMax in January this year. The only option on my truck are the 20” AT wheels ($1800).

CarMax made me a $82k wholesale offer. I seriously considered it so I went back 8-days later. I was one day past the 7-day offer window. The new offer was $77k. The offer dropped $5k in just over a week so I passed.

Its amazing to see what has happened to R1T resale values in the last 6-months. It’s no longer a hard to get vehicle with limited production.

 

[junkanoo]

I follow every R1T auction on Cars & Bids and BAT. Resale values are definitely trending down. R1T’s are currently selling in the mid $70’s.

Out of curiously I took my December delivered 2022 R1T for an appraisal from CarMax in January this year. The only option on my truck are the 20” AT wheels ($1800).

CarMax made me a $82k wholesale offer. I seriously considered it so I went back 8-days later. I was one day past the 7-day offer window. The new offer was $77k. The offer dropped $5k in just over a week so I passed.

Its amazing to see what has happened to R1T resale values in the last 6-months. It’s no longer a hard to get vehicle with limited production.

Well ... if you are going to introduce facts ... ;-)

It's interesting to me that the people in my neck of the woods know more about Rivian's stock situation than they do the vehicles themselves. However, that will change once they actually get to experience the vehicles and hear testimonies from owners.

On that note, when I went to Brooklyn to pick up my vehicle there were five owners sitting in the waiting room cooling their jets while their vehicles were being worked on. Since that was the case, I guessed that they might be less than delighted with their purchases ... quite the opposite. Everyone was a happy camper.

So, great owner feedback (if that continues) plus a stabilization in Rivian's business fortunes could lead to a second wave of ownership, now that they know the water's fine. YMMV.

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