What about Leasing??

[Lil'O Annie]

Ran a search of this forum and didn't find a discussion about a possible leasing option offered by Rivian. Has anyone heard about that possibility?

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[Hmp10]

Even if Rivian doesn't offer leasing, there are banks and other financial institutions that will purchase and then lease cars to you. The issue is going to be residual value. When a vehicle as novel as the Rivian hits the market it can take several years for trade-in values to be established, especially with a new manufacturer. In the meantime, lease rates are usually exorbitantly high, as the lessor has to hedge against the possibility that resale values will be low. Initial lease rates on Teslas were through the roof and only began to move into more normal ranges when the resale market for used Teslas turned out to be rather strong.

 

[Alan Burns]

I asked at Seattle and was told Cox would handle leasing, financing, trade ins and registration at purchase.

Alan

 

[azjohnny]

IMO leasing is the way to go with high end priced vehicles

 

[EyeOnRivian]

IMO leasing is the way to go with high end priced vehicles

That was my thinking as well. However, since vehicle reliability, servicing and maintenance are unknowns along with probably high insurance premiums, I'm very curious on how Rivian (Cox Automotive) will structure their subscription model(s).

 

[electruck]

FYI, last night I was re-reading an article from back in April 2019. Here is what RJ had to say about leasing at the time:

We are planning a direct retail model, with our own dealers. At launch you will own your car outright, but relatively quickly we will launch subscription models, fractional ownership, leasing and new ways to consume your Rivian. We recognise that there's a shift in buyer behaviour.

 

[ajdelange]

IMO leasing is the way to go with high end priced vehicles

It can be if your financial status makes it so. When you lease you are paying someone else for the use of his money. It's worth it if you can write off the fee as a business expense and/or you have an investment opportunity that, when all the smoke clears at the end of the lease, leaves you with more money in your pocket than if you bought the vehicle.

 

[Mjhirsch78]

Yeah, leasing makes no sense for our situation. We drive our cars into the ground. 170k on the ‘09 Odyssey and 115k on the ‘12 Impreza. Both will probably end up in the scrapyard in 4 or 5 years. Leasing would have cost us a LOT more money heh.

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