Rivian R1S Lease Deal - One of the Best Lease Deals of 2024!
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- čas přidán 2. 06. 2024
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Why Leasing a Rivian R1S Makes More Financial Sense Than Buying | The 1.25% Rule Explained
In this video, I'll dive deep into the financial considerations of getting behind the wheel of the highly coveted Rivian R1S. Are you torn between leasing and buying this electric powerhouse? You're not alone. With its premium features and performance, the Rivian R1S is a significant investment. That's why I'm breaking down the numbers to help you make the most informed decision.
In this video, we'll talk about the following:
Lease Numbers Unveiled: I provide the specific lease terms for the Rivian R1S, including the fine print, to see how it stacks up.
The 1.25% Rule of Leasing: A rule of thumb for leasing any vehicle, especially high-value ones like the R1S. I explain why your monthly lease payment, with $0 down, should not exceed 1.25% of the vehicle's MSRP and how this can guide your financial decisions.
Leasing vs. Financing: A head-to-head comparison of monthly payments, including how leasing a Rivian R1S SUV can potentially save you over $600 a month compared to financing.
*This video is not financial advice, it is for educational and entertainment purposes only
Advertiser Disclosure: Some of the card links and other products that appear on this website are from companies which Ravi Wadan will earn an affiliate commission or referral bonus. Ravi Wadan is part of an affiliate sales network and receives compensation for sending traffic to partner sites, such as BankRate.com. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers.
0:00 Introduction
0:57 Lease Numbers
3:03 1.25% Rule
5:21 Lease vs Finance - Zábava
You should explore more about the $7500! federal credit get into calculation of leasing the Rivian.
I talked about it a bit in this video but I can spend more time on it in my next videos. Thanks for the tip!
I follow this on other forums, and I conclude that these leases are OK if you are willing to walk away from the car at lease end. However, these are basically a ploy to collect the tax credit for the company/finance company (Chase). Without buying the car at lease end, IMHO leasing is not a fiscally smart decision, because you are leaving $45,000 (37.5K in lease payments +$7,500 in tax credit) on the table. If you want to buy the car at the lease end, you must know the residual. Rivian will only divulge that after you make a $1000 "nonrefundable downpayment". Then you are roped into configuring your car and at the end, often just before you want to pick it up, they divulge that the residuals are prohibitive (66-75%). So assuming 70%, for your 92K car, for which you already left $45K, after 3 years, you could be asked to pay $65K...
I think the financial education here is to advise people to review leases carefully, in particular, if they are structured using a government incentive to drive the cost down.
I just did the lease and this is very much not true. $1k is required whether you are buying or leasing (similar to Tesla at it's beginning). You're also allowed to buy the car at anytime, so, if you're at the end your first year lease, you can definitely come out ahead since used EVs lose value in the first 12 months quickly.
Also, Chase does not pocket the tax credit, that's not how that works.
@@matthewdartez7263 Do you mind sharing your numbers? I am looking to lease to get the $7,500 tax credit then purchase the car. My question is if lease a car that is $80,000 for 24 months then purchase it outright after that term will I theoretically purchase the car $80,000 - Total lease payments over the past 24 months - $7,500 tax credit? $80,000 (MSPR) - Lease Payment over 24 months (roughly $26,000) - Tax Credit ($7,500) = $46,500 buy out? Does that make sense? Would love some clarity on this. At the end of the day I am looking to purchase the vehicle just wondering if I can maximize the full tax credit lol.
@@brendanmurphy5081you still have "interest" (money factor) over the term of the lease, so it doesn't work out as cookie cutter as your example. Your purchase price would be whatever the residual value it at the time that you would purchase it
Hey friend, I appreciate you showing the savings on leasing over three years. However, you left out the big finale! What is the residual at the end for a buy out option?? I cannot seem to get Rivian (ghosting me) to answer what the $&@(;) residual is at lease end to see if it is actually favorable over purchasing. If I pay your additional $600 per month to purchase and sell after three years, am I recapturing more of my money than I would otherwise by turning it over at lease end? Counter: if I purchase at the never-ever-disclosed-anywhere-on-website residual and keep for 72 months-which way is more cost effective? Gosh man, it is frustrating to only get half the needed analysis.
How much extra do you have to pay when you end the lease early? Is that even a better option lease in the beginning then pay out all the remaining balance?
That instant $7500 tax credit does help quite a bit being included into the lease(:
Leasing a rivian>financing
No doubt about it! The $7500 is huge
I have heard that rivian adds significant taxes & fees into your lease payment. Could u invlide those in your calculation?
So i run a limo service and i want to lease but let's say i go over the "available miles" per yr hours much is costing me then?
I had not considered this aspect of leasing vs purchasing a car. Thank you for this perspective
You wont get the incentive on SUV/Trucks over 80K so this one wouldn't qualify for any of the incentives leasing or financing. The incentive also DOES have a cap on income regardless of leasing or financing, a single person cant make more than 150K to qualify for it.
None of these restrictions that you mentioned apply to leasing
www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after
It’s all there.
80k is the max price for an suv that would qualify and 150k is the income cut off to qualify
Comparing a lease to loan payments without considering depreciation and value of the car when you sell/trade is idiotic; misleading at best, definitely ignorant, and malicious at worst.
Their website is a giant piece of shit and doesn't even tell you the length of a lease or the residual until you pay
This video goes to show that just because someone has the words "Financial Education" in their name, it doesn't mean they know anything about Financial Education. He knows about cars and how to sell you on a lease - that's it. He's not worried about educating you financially.
His last 3 video titles:
1. Lease the Rivian, Do Not Lease the Tesla!
2. The Tesla Model Y is an Amazing SUV to LEASE! (February 2024)
3. Rivian R1S Lease Deal - One of the Best Lease Deals of 2024!
Be careful who you get your information from.