Weird inversion in R1S auction prices vs list prices

[Davidzzz]

I'm seeing something odd in auction prices for R1Ss over the last few months.

The sales price is for a R1S at Cars & Bids or Bring a Trailer is typically about $90-94K. These cars have just a few miles, so presumably they are flips by people who locked in the early pricing. With the price of $90-$94 the seller is making money on the deal, but the interesting thing is that this is below list for a new R1S, which typically lists around $96K.

I'm not an economist, but this seems very odd. Why would someone pay more for a car later, vs less for the same car today? if there was high demand, wouldn't some of the demand flow to the auctions happening now and push the price up...at least to list?

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[Rivdog]

A lot of people don’t want to buy a car online like that and deal with the potential headaches of transport. It’ll probably work out fine, but it’s still around $1500+ minimum for a cross-country transport of a 7000 pound vehicle that many transport drivers probably don’t know how to operate very well.

After the buyers fee on some sites, it’s still more expensive today for a used car, albeit with minimal miles. Plus you have to spend more time getting the title transfer, etc., that Rivian will do for you otherwise. There is indeed a time value of money, along with convenience and less worry.

And there’s something special about getting a brand new car that has never been owned by anyone else too.

 

[possib1edoc]

Also at Cars & Bids: "Winning bidders pay Cars & Bids a 4.5% buyer's fee on top of the winning bid amount(minimum of $225, maximum of $4,500)"

 

[mikehmb]

I would very much prefer to pay a 5% premium for a brand new vehicle straight from the OEM than a used one, even if “used” means they put 20 miles on it before it went up for sale.

 

[Guy]

This is the same situation for the truck last year when they would go above pre March 2022 MSRP but a little below new MSRP. As others have said not a surprise given the auction fee and potentially shipping.

 

[Southern R1S]

I would very much prefer to pay a 5% premium for a brand new vehicle straight from the OEM than a used one, even if “used” means they put 20 miles on it before it went up for sale.

Especially since all of those 20 miles could theoretically be from (50+) launches!

As stated above, serious factors include used vehicles automatically depreciate vs. new, inability to resell as a "one-owner" vehicle in the future, inability to physically inspect the $100k truck before you buy it, buyers fees, shipping fees, inspection fees, hassles with dealing with lien release if original owner financed, higher financing (and, in some cases, insurance) costs for used vs. new vehicles, hassles of transferring the Rivian account to the new owner (though that's honestly pretty simple), loss of the 7 day / 1,000 mile return period that Rivian gives on new purchases, etc.

 

[TXR1S]

Auctions are also not eligible for any tax credit. Huge advantage to new.

 

[junkanoo]

Auctions are also not eligible for any tax credit. Huge advantage to new.

A factor for sure. But, the rebate has been halved to $3,750 for new purchases, so less of a factor than it once was.

The O.P. is correct though ... Rivian R1S that a few months ago were at six figures are now around 90K. The market has spoken.

 

[GooniesNeverSayDie]

A factor for sure. But, the rebate has been halved to $3,750 for new purchases, so less of a factor than it once was.

The O.P. is correct though ... Rivian R1S that a few months ago were at six figures are now around 90K. The market has spoken.

A new truck wouldn’t qualify anyway since they are over 80K

 

[R1Tom]

Market price. Is what it is. Depreciation is real.

 

[240vPlug]

I picked up an R1T for just under 85 with 200 miles on it. MSRP for the truck new $88,500. So there was a slight discount but I had to fly from MD to FL to get it.

R1S are coming closer to MSRP but are still slightly above. These trucks are $100,000 trucks all day long IMO. Once the supply catches up a little more prices will stabilize. I expect Rivian to increase prices again once their service gets better as well.

Biggest problem with Rivian is getting the vehicle serviced once you have it. My alignment is slightly off and first available service appt for alignment is in July. Or I could have it towed to a non customer facing site.

Cars and bids charges that 4.5% fee so that 90k truck will have a $4,000 plus buyers fee tacked on to the winning bid.

 

[tylerdurden03]

Some people dont want to deal with used cars/trucks. It would be common for cars to depreciate the moment they are driven off the lot. Its weird that used cars would be more than new…thats only been a reality since COVID

 

[Revvian]

A factor for sure. But, the rebate has been halved to $3,750 for new purchases, so less of a factor than it once was.

The O.P. is correct though ... Rivian R1S that a few months ago were at six figures are now around 90K. The market has spoken.

Another LE R1S sold for 6 figures (103k) just this week on cars and bids!

 

[Krusty]

A new truck wouldn’t qualify anyway since they are over 80K

It would qualify if they were putting it in a company and there are also state incentives for new EVs to factor in as well.

 

[emceter]

Few misconceptions I'm seeing here that I think need clarifying.
1. A price on a bidding site at 90k or 94k means the out the door price is 94.5k-98.5k because of the buyers fee of 4.5% (or site max), roughly on par with base price (not considering taxes) on a vehicle. So they are still selling at new MSRP values
2. Factoring in that interest rate on private party sales (such as these) is higher in general, that cost is even higher over the long term for the buyer
3. The vehicles are not eligible for the EV tax credit when purchased through bidding sites. This is especially important if you are one of the grandfathered in people with 7,500 credit.

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