RJ suggests Rivian leasing coming soon, unlocking $7,500 EV tax credit

[MaskedRacerX]

https://electrek.co/2023/09/14/rivian-ceo-hints-leasing-coming-unlocking-7500-tax-credit/

Rivian’s CEO, RJ Scaringe, spoke about leasing and how it could unlock more price incentives for customers at Morgan Stanley’s 11th annual Laguna Conference.​

​

Rivian has intentionally held off on leasing because of its confidence in its vehicle’s residual values, according to Scaringe.​

​

Scaringe explained how the company finds the used marketplace as a “healthy check” of pricing. As he added, if vehicles are selling for more than our MSRP, that means there could be some pricing room. It could also mean demand is higher than supply.​

​

Although it’s “frustrating,” some people are buying Rivian’s and selling them the next day to make a profit.​

​

However, prices after six months or 12 months of being sold are useful metrics to gauge the “sustained robustness of demand.” It’s also “very valuable for us to unlock leasing,” which Rivian does not offer yet.​

​

Scaringe says Rivian’s market-leading residual values will lead to “exceptionally strong leasing packages.”​

​

When asked about the Inflation Reduction Act’s (IRA) application, Rivian’s leader explained, “It works great for leasing.” He added, “$7,500 does work.”​

​

Scaringe says this will create some interesting ways to access more price incentives for customers.​

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[RivianNowPlz]

Super dumb to flease to begin with. Zero use case. Zero rationale. Just for poor people to keep them poor which is sad. The fact congress couldn’t make this work in at a minimum a financing scenario for people and are going to put people in fleasing and debt situations and likely with no option to buy or at ridiculous options is counterintuitive to what this was supposed to be. Super frustrating.

 

[mkg3]

Actually, leasing EVs are a very good idea.

Given the state of battery technology and the nature of EVs (rolling laptops), as well as product improvements overall in a new EV companies, two to three year lease shields from owning an outdated or older generation vehicle.

It is not about lowering monthly payment. It is about now being stuck with outdated equipment within a relatively short period.

In terms of finance, there are many instances where leasing makes much more sense than buying and owning it. To say that only poor people lease because they cannot afford the payment is ridiculous.

Glad Rivian is considering leasing option.

I did not finance my R1S. It's fully paid using idle cash earning money market interest, which is less than loan rate these days. So I just bought it outright. I would have leased the vehicle if that was an option at the time.

 

[Donald Stanfield]

Super dumb to flease to begin with. Zero use case. Zero rationale. Just for poor people to keep them poor which is sad. The fact congress couldn’t make this work in at a minimum a financing scenario for people and are going to put people in fleasing and debt situations and likely with no option to buy or at ridiculous options is counterintuitive to what this was supposed to be. Super frustrating.

I happen to agree, but it's not up to you or I to make that determination and people who take these sorts of deals are going to do stuff like this anyways with different vehicles. There's no reason for Rivian to not offer it, and if someone who can't otherwise afford one buys one because of it they didn't buy that BMW or Mercedes instead that the would have bought. You're not saving anyone by not offering a lease.

 

[jjwolf120]

Actually, leasing EVs are a very good idea.

Leasing depends on your situation and the deal you get on the lease. Many people who use the vehicle for work, can write off part of the lease on their taxes.

 

[Redline]

Super dumb to flease to begin with. Zero use case. Zero rationale. Just for poor people to keep them poor which is sad. The fact congress couldn’t make this work in at a minimum a financing scenario for people and are going to put people in fleasing and debt situations and likely with no option to buy or at ridiculous options is counterintuitive to what this was supposed to be. Super frustrating.

This is entirely false.

 

[SANZC02]

Actually, leasing EVs are a very good idea.

Given the state of battery technology and the nature of EVs (rolling laptops), as well as product improvements overall in a new EV companies, two to three year lease shields from owning an outdated or older generation vehicle.

It is not about lowering monthly payment. It is about now being stuck with outdated equipment within a relatively short period.

In terms of finance, there are many instances where leasing makes much more sense than buying and owning it. To say that only poor people lease because they cannot afford the payment is ridiculous.

Glad Rivian is considering leasing option.

I did not finance my R1S. It's fully paid using idle cash earning money market interest, which is less than loan rate these days. So I just bought it outright. I would have leased the vehicle if that was an option at the time.

I always understood leasing from a business perspective but never from a personal perspective.

I was turned off from leasing a long time ago when everytime I went into a dealer to buy a vehicle they would try to get me to do a lease instead. In my experience if people are trying to sell you on something different than you want it is usually not because it is best for you.

 

[Ngkgb]

Super dumb to flease to begin with. Zero use case. Zero rationale. Just for poor people to keep them poor which is sad. The fact congress couldn’t make this work in at a minimum a financing scenario for people and are going to put people in fleasing and debt situations and likely with no option to buy or at ridiculous options is counterintuitive to what this was supposed to be. Super frustrating.

This statement isn’t based in facts or reality. I leased an 85k Etron for 3k down and 450/month after taxes. I sold it to a dealer for 5k profit before my lease was up, which I put towards my Rivian.

There are multiple cases of people leading different EQS and EQE for dirt cheap.

Leasing isn’t for everyone and you can get hosed if you don’t know what youre doing but you can’t make a blanket statement like that.

 

[DuoRivians]

The more options the better. In this case, the $7500 credit is a great incentive. Blame the govt for creating easy loopholes, not the consumers or companies for taking advantage of them.

 

[ohseedee]

Super dumb to flease to begin with. Zero use case. Zero rationale. Just for poor people to keep them poor which is sad. The fact congress couldn’t make this work in at a minimum a financing scenario for people and are going to put people in fleasing and debt situations and likely with no option to buy or at ridiculous options is counterintuitive to what this was supposed to be. Super frustrating.

This isn't correct. Companies give lease deals all the time and in some cases you can save money by leasing vs buying then selling. And with folks that can‘t get the EV tax credit due to income can get it with a lease. I paid cash for my R1T, but I’d consider a lease if I get an R1S just so I can get the tax credit (Would depend on terms)

This site has some great hacks on how to get certain leases for a lot less than buying https://leasehackr.com/

I’ve only leased once in my life, BMW I3, because I calculated a huge savings over buying at the time.

 

[Dark-Fx]

Super dumb to flease to begin with. Zero use case. Zero rationale. Just for poor people to keep them poor which is sad. The fact congress couldn’t make this work in at a minimum a financing scenario for people and are going to put people in fleasing and debt situations and likely with no option to buy or at ridiculous options is counterintuitive to what this was supposed to be. Super frustrating.

Rivian might allow you to buy out the lease after only a single month. If they pass through the tax credit, it will mean you end up paying less for the vehicle than if you bought it in the first place if it doesn't qualify for the credit.

 

[lefkonj]

Leasing works for a few reasons. First is the initial downpayment is usually less. Second it only locks you in for a 2-4 year period (most people don't do 5 year leases); so for someone who likes to replace their vehicles every few years it is great. Last is the used car market, it can hurt pricing but it keeps a good number of used vehicles in circulation for people to buy up.

I leased for the last 25 years before my R1S and I4-M50, because buying was the only choice. If I could lease either I probably would have.

 

[Redline]

It amazes me the people who just don’t understand how leasing works and think it’s poor people getting a car they can’t afford.

Outside of the business case, many people who “finance” cars, only keep them 3 or 4 years. In that case, leasing is almost always the better way to go. Financing a car only makes sense if you keep it after the loan is over.

 

[CrazyOne]

As long as interest rate on lease is low, and it can be bought at end of lease, it's a good deal.

If car gets in an accident or if it starts spontaneous combusting, I can walk away from the car .

 

[BigE]

https://electrek.co/2023/09/14/rivian-ceo-hints-leasing-coming-unlocking-7500-tax-credit/

Rivian’s CEO, RJ Scaringe, spoke about leasing and how it could unlock more price incentives for customers at Morgan Stanley’s 11th annual Laguna Conference.​

​

Rivian has intentionally held off on leasing because of its confidence in its vehicle’s residual values, according to Scaringe.​

​

Scaringe explained how the company finds the used marketplace as a “healthy check” of pricing. As he added, if vehicles are selling for more than our MSRP, that means there could be some pricing room. It could also mean demand is higher than supply.​

​

Although it’s “frustrating,” some people are buying Rivian’s and selling them the next day to make a profit.​

​

However, prices after six months or 12 months of being sold are useful metrics to gauge the “sustained robustness of demand.” It’s also “very valuable for us to unlock leasing,” which Rivian does not offer yet.​

​

Scaringe says Rivian’s market-leading residual values will lead to “exceptionally strong leasing packages.”​

​

When asked about the Inflation Reduction Act’s (IRA) application, Rivian’s leader explained, “It works great for leasing.” He added, “$7,500 does work.”​

​

Scaringe says this will create some interesting ways to access more price incentives for customers.​

I think RJ is living in the past. No one is flipping Rivian’s or making huge profits now. Not at least on the R1T’s. Maybe the R1S, but overall, used R1T’s have taken a big hit on resale.

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