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Trade in owned to lease; won't pay back difference

RIV206

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Was considering trading my 23 launch edition in for a leased Gen2. Got a decent trade in offer from Rivian and called to verify that they would simply write me a check for the difference after my down payment ( the downpayment is obviously less than my trade offer). They said that Rivian will not cut me a check for the difference.. What??? I've never heard of that. He said it possibly has to do with their direct sale to consumer model. He suggested I sell it myself elsewhere and come back to lease something. The whole reason I even considered it was of their decent trade offer. Has anyone else heard of that?
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MATTELSEWHERE

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Weird. Try Carvana, Sonic, and/or CarMax. (Probably in that order)
 
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RIV206

RIV206

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I'll try some others but Carvana was about 6k less than Rivian's :rolleyes:
 

mikehmb

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My name is Mike, and I have a (car) problem
kbb.com instant cash offers - you may get an interesting hit. Have done it twice, worked out great.

Carvana was great for getting rid of the eGolf, though. Prices may change day to day, so worth checking a couple of times (though may be fruitless).
 

Gratedwasabi

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Sorry, I don't quite follow. You're saying they offered you a trade in value but won't actually pay you?
 

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RIV206

RIV206

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Sorry, I don't quite follow. You're saying they offered you a trade in value but won't actually pay you?
Basically. They would just keep the difference instead of paying it back to me.
 

Gratedwasabi

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Basically. They would just keep the difference instead of paying it back to me.
They sent me a check for the difference (it does take 8 weeks though.) It wasn't going to a lease but that should be irrelevant.

Did you only talk to one person? That doesn't make any sense, very odd.
 
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RIV206

RIV206

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They sent me a check for the difference (it does take 8 weeks though.) It wasn't going to a lease but that should be irrelevant.

Did you only talk to one person? That doesn't make any sense, very odd.
Wow. That makes sense. I need to call and get someone else then. He even verified and emailed me back this:

"Thank you for following up! I double-checked how trading in your vehicle would affect a lease. If you were to trade in your vehicle, only about $20,000 of the trade-in value could be applied, with the remaining value not utilized. This limitation arises because Rivian operates as a direct-to-consumer company.

If leasing is your preferred route, I recommend considering selling your vehicle to a third party. "
 

Thedude

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Basically. They would just keep the difference instead of paying it back to me.
So they are applying the full equity of the trade against the new leased vehicle?

Made up numbers - you owe $50k, trade value was $60k and you want the $10k in cash rather than as a down payment on the new lease?
 
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RIV206

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So they are applying the full equity of the trade against the new leased vehicle?

Made up numbers - you owe $50k, trade value was $60k and you want the $10k in cash rather than as a down payment on the new lease?
I don't owe anything on my R1S. They are offering me 66k for it. If I put 20k down on a lease, he said Rivian won't write me a check for the 46k difference. Makes zero sense, but as someone else commented he might be very misinformed :confused:
 

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Dark-Fx

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Have heard they won't take trade-ins if your equity exceeds the cost of the replacement.
 

Gratedwasabi

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Have heard they won't take trade-ins if your equity exceeds the cost of the replacement.
They paid me more for my Taycan than the entire cost of my R1S. Sent me a check for the $6,800. Took about 8 weeks to get the check. I paid $0 at purchase.

This was late August of this year. Gen2 R1S.

If they're being weird about the leasing, I guess, but it really shouldn't be relevant to trade in. I guess if it's because it's a Rivian? Funny they'd make it harder to trade in their own brand.
 
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Dark-Fx

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They paid me more for my Taycan than the entire cost of my R1S. Sent me a check for the $6,800. Took about 8 weeks to get the check. I paid $0 at purchase.

This was late August of this year. Gen2 R1S.

If they're being weird about the leasing, I guess, but it really shouldn't be relevant to trade in. I guess if it's because it's a Rivian? Funny they'd make it harder to trade in their own brand.
I think it's because the OP is talking about applying it to a lease, not an outright purchase.
 

CarGuyCarl

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Rivian leases through Chase, and Chase has an approximate 40% cap cost reduction limit for leases. If your positive equity in the trade in is higher than that, and/or you're also adding additional cap cost redux, you are probably over that limit and they won't be able to do the lease with the trade in.

Definitely sucks but it's a limit on Chase's end as Rivian won't simply just buy the car from you separately, as I understand it.
 
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RIV206

RIV206

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Rivian leases through Chase, and Chase has an approximate 40% cap cost reduction limit for leases. If your positive equity in the trade in is higher than that, and/or you're also adding additional cap cost redux, you are probably over that limit and they won't be able to do the lease with the trade in.

Definitely sucks but it's a limit on Chase's end as Rivian won't simply just buy the car from you separately, as I understand it.
That echos the email I just got from them.
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