$1000 a month on ANY lease is insane. Rolling into another lease for $1000 a month, plus a large lump-sum of cash down, plus resetting the clock on how many months you will need to pay $1000, plus registration, plus insurance on a vehicle you’re essentially renting is a quick route to offsetting any upside you might get from having the vehicle featured on a TH-cam channel…
If you make $30,000 a month it isn't insane at all what is insane is purchasing or driving a car that depreciates 40% in a year and you don't like it almost immediately lol.
@@Nullscr1pt there are many people. My point is that $1,000 a month is not some objective number that is too high, there are literally tens of thousands of families and people who make enough money where $1,000 vs $600 a month makes no difference at all to their lifestyle. If you make $4,000 a month then yes it's a lot to spend $1,000 a month. The original comment is silly because it devolves into an argument as to why even have expensive cars at all? They all do the same thing pretty much...
@@midgetworld228Regardless it’s stupid financial decision. Making thousands a month does not exclude someone burning money away, but hey, I’ll live through someone that can. Then watch them complain. 😢
For clarity, I was simply seeing how hard it would be to move from an R1T to an R1S in a lease and clearly it makes no sense for me. I love my R1T and it has been a fun vehicle to own so I will just go through the end of the lease no problem. I am also generating revenue from making Rivian videos so my situation is different than a normal person not making car videos for a living. Hope that helps!
I have an R1T lease and love it so far. Would like to know what your interested in with the R1S. I have 3 kids and we fit comfortably in the R1T but have never sat in an R1S.
Crazy how upside down you could have gotten jumping leases. If it wasnt for the tax right off, i'd say its basically a scam. Thanks for doing the research. Learned something new today
Good video! I think it’s great for you to show others how hard it is to exit a lease. Leasing isn’t for everyone but when it works out for those people that need to lease, it’s really a huge advantage. It provides you with a nice car at a lower monthly payment with the ability to get another new one when that lease runs out.
I’m not understanding this whole video. You entered a contract. Why are you complaining that it’s not easy or advantageous to exit it outside the terms of the contract? Rivian and Chase didn’t do anything wrong. You just regret that the market moved.
It's just super unfortunate timing that the prices dropped significantly soon after he got into the lease. I remember buying a Chevy SS in September 2017 and two months later they had a 20% off deal on the same vehicle. It sucks, but there's nothing to be done.
I'm sure there is a world where leasing a vehicle makes sense, but I can honestly say I've never lived in it. This video kind of proved that to me again
Time to get back to hookin'!! OK, I did some back of napkin stuff that you may or may not have missed: Using your screen shot, but putting it in different order/terms: Cost: 91,050 Down Payment - 13,500 Lease Payment Calculation Amount - 77,550 Depreciation Over 2 Years- 14,725 Residual Value After 2 Years - 62,824 Finance Charge (2 Years) - 7445 Sales Tax - (Tax Rate X ((Depreciation + Finance Change)) - 1796 Monthly (24) Payment Amount (Depreciation 14725 + Interest Charge 7445 + Sales Tax 1796) = 1000/month over 24 months. So, after 11 months, you paid 13,500 down + 11,000 in monthly payments + 12,600 in negative equity on trade-in = $37,100 total cash out of pocket/11 months = $3375/month of ownership. EDIT: If you go full term, it will be: 13,500 + 24,000 = 37,500/24 months = $1565/month.
@@Gjeebs Very true. In my case, I was 6 months into a 3-year Miata lease when I found out my wife was pregnant and I would need a 4-door. I had to get a loan from a bank to buy out the car, and then I ended up trading it into a dealership for a WRX. From then on, I tried to buy cars that didn't lose their value (WRX, Civic Type R, Civic Si, GR Corolla). Funny thing is I'm now looking at model 3 performance which I will *totally* lose my ass on.
@@AhBeeDoiWhy not? Drive a POS for as long as it takes to save enough money to buy a decent vehicle cash. Then bank what you would have been paying in payments for your next vehicle purchase. You can buy a lot nicer car if you don’t have to pay interest anymore! It’s not that people can’t afford to do it, it’s that they aren’t disciplined enough to get to the point they can do it and maintain that discipline!
Dude, I feel for this. I’ve just always steered clear of leasing, the math is too thick (always gamed to the House). But love all your vids. Good luck!
It’s not too late. Get the Model X. I just took delivery. Flawless. Everything just works. 80k. Tax credit -7500. Buy with FSD 8000. Choose any free upgrade. We chose the 6 seater configuration. Amazing family vehicle.
In essence you can either make the $1,000 payment for 12 months ($12,000), use the truck during that time and then walk away; or you can pay them $12,000 now and not have use of the truck for the next 12 months. hmmm what to do?
Leasing is frequently a black hole of quicksand for most people. Almost like being trapped in the timeshare from hell. I'm right in the middle of purchasing, no way leasing, a R1T Tri. Can't wait to see it in my driveway next month.
Thanks for sharing your experience. Another option is to sell it outright at the buyout price. I believe it was 71k but should continue to go down as you pay your monthly payment. Even if you sell it at 67-68k in the open market, you can still get $7500 tax credit back if you lease again covering some of the short fall. Just an idea but not sure if it still makes sense.
I'm not a CPA, but I act like I know what I'm doing. Always thought a lease was good for a business owner who puts the leased vehicle in the businesses name and uses the business to pay for lease, insurance, expenses, etc. The lease for a non business owner is just a way to get you into a vehicle you really can't afford with minimal down payment. You are literally renting the car with everything going against you and you will probably loose your security deposit b/c the dealership will find something wrong with the vehicle when you bring it in when the lease is over. Just my non CPA thoughts.
If you weren’t committed to another Rivian, I would suggest shopping at other dealers. I’m sure you could find a Kia dealer willing to buy out your lease straight up for an EV9. It will take a ton of work and about 6 dealer visits. But if you pester enough, you can get what you want. Especially if you look at leasing one from a state that extra incentives.
The only few times I've leased was when they were more or less dumping cars. From memory, I got a stripper Prius for $179 a month with no down back in 2011. Relevant to this video, the most recent lease was a 2023 R1T Quad AT that I got just this past May. It certainly has some growing pain problems, but it sounds like even the new ones do. I got the $7500, another $3000 or so off and my net out of pocket with upfront tax, registration, divided over 3 years is about $840/mo (total cost of roughly $30k for a $90,000 truck, with a $56k residual, which I will not buy out.). I get 10k per year miles, but I'm 6 months in and under the 5k, since I swap between cars. I don't plan to take it anywhere beyond "in town" . I'm also sure no one should have one of these outside of a lease period. I see plenty of issues popping up after the warranty. It's a fun truck to drive. Vehicle dynamics are amazing. Infotainment is a disaster still. I don't see that getting better. Hopefully the Scouts improve on this if they have Rivian DNA in them.
Have you compared the EV9 to the R1S? I think that would be a great video and also may give you some options for your personal needs… In my humble opinion I would go with a EV9 over a Rivian based on bang for the buck and more importantly warranty and access to service.
I would never ever roll in any negative equity into a vehicle. I’ve never leased a vehicle but when I got my model Y I considered it. Even then, since I got 0.9% financing, it didn’t make sense. I do understand since you have a business I can write it off. It makes sense. Leasing an EV made sense to me because of the depreciation, but like I said with the interest rates test offered I decided to buy like I always do.
Join the club. I leased a Nissan Ayria for $699 a month, soon after people were getting them for $150 a month. You really can't get out of paying a lease. You already owe them the $1000 a month. you need to let it run its course
@@Boogersncome This didn't look like a balloon loan which is designed for cheap early payments. Did I miss that? They can't transform it into a balloon payment at the end if it wasn't set up that way initially.
Can’t say enough how much I love your content man. Doesn’t hurt we drive almost identical vehicles too. I too was starting to toy with the idea of trying to get out of an R1 lease early. But I want a cyber truck. So would be even worse for me. Will just stick out the 2 year lease and suck it up. Not worth the financial rape.
Paying $1000/mo on a lease is insane. Hell $1000/mo on a loan is insane as well. At least with someone like him he can make content out of it so it makes a little more sense but for the average joe it's crazy
11 months ago on a 24 month lease? Pay $1003 x 13 remaining months, and drop the current Rivian off... You have ended the lease early for $13039. It's cheaper than rolling over the balance, and you will have $750. for a referral bonus, which will partially offset one month's payment. Many people who lease run up the miles, then turn the lease vehicle in early, after all payments are provided, before they have to pay overcharges on mileages, this is an early return for another reason. Check with the financial institution on a refund of unearned interest charges....or applying an interest refund towards a new lease with them. Everything is negotiable.
It’s funny you posted a video about this. I have been talking to Rivian about this for about 2 months now. And went thru the process. Same thing. I actually thought my negative would have been eaten up some, by the 7500 credit, the loyalty credit and my referrals plus I was going to put 3500 down. Then I found that no matter what Rivian was adding about $600 a month no matter what because of the negative equity. So I know I what you mean. Great video as always.
Leasing is not for the fickle! There was an 18 year (6 vehicles @ 3 years) period where I only leased. These were mostly high end vehicles and I ran the numbers very carefully and actually did OK compared to buying outright and always went full term. In your case, keeping the lease full term is (by far) the better way to go. I think when you flashed up the terms, the R1T was going to have a $63K residual at EOL. This sounds like a way inflated value, especially since they only offered you $59K after one year. If you go full term (and, in my opinion, you should), you can walk away from the Rivian leaving them holding the bag on the difference between the residual and actual value. Some car companies will inflate the residuals on purpose in order to get the lease payment down without having to visibly discount the car. When you turn the car back in, they will have a used vehicle to sell, which is a different market and somehow, they will still make money.
The fact you were considering going through all that and buying another Rivian just to watch it tank in price is pure insanity. How more upside down do you wanna be?
I will continue to subscribe to and watch all of your videos as long as you own this truck. Extremely Helpful as I navigate the idea of buying one. It’s a big leap. At least I’ll be educated before pulling the trigger. Really enjoyed the cross country R1T video btw.
The look of horror when you realize getting out of a lease puts you in a much cheaper vehicle but paying 50% more per month, plus sales taxes all over again. Yikes.
I just leased an R1S like the one you optioned - standard pack, 20" wheels, optioned blue color. The payment estimator is way off. It had it at about $699. Interesting that you said it was more to do a 24 month lease -- it was actually cheaper to do 24 months for me. In any event, despite the $7,500 down plus the $7,500 tax credit, I'm still playing close to $800/month.
My 2024 Cyber truck keeps droping as well. My 2023 Ram GT was 77K and I can only get 45k at this point with only 9000 miles. So no matter what it either being an ice or ev vehicle i think its just better to buy used.
The system has always been stacked in favor of house(bank, dealer, manufacturer). In the over 40 years of buying vehicles the only time I came up roses was during the post COVID used car shortage extravaganza. I literally made over 7K selling my 6 month old Ionic 5, bought another EV and of course that is now worth 25K less in 2 years but I have saved nearly 15K in fuel in last few years so kinda close to break even. Whatever, buying/leasing new vehicles has never been a winning proposition in growing your savings, lol.
Pretty much in the same situation with a 24 Jeep wrangler fully loaded. Did the math and it really wasn’t worth it. So I will have to ride it out and move a little more strategically next time. It’s only money right 😅
In your situation just wait it out if you don't want to spend anymore money then you already are. The fact that they said the vechicle was only going to lose close to $15K over 2 years is a joke! Run out your lease and have Rivian deal with the additional lose in value instead of you. In another year you will have a better overall car so patience is needed at this point. You run a YT business tho so at the end it's really up to you but it won't be a smart move to get the R1S rn imo.
Even with cars that hold their value above the norm, it is extremely wasteful to exit a lease before full term. Always upside down, and rolling into a new lease just compounds the problem. Since you need to flip cars frequently as a content creator, you're better off purchasing the cars outright, and re-selling them a few months later with low mileage. Good luck, enjoy your videos.
I still don't think the Residual values are ever correct they are guessing and it shows - hence why leasing an EV is a mistake (IMHO)! Love your videos and thanks for sharing and still have a smile when you mention your crazy negative equity. Ideally you should try to sell the truck see what the KBB value is - remember Rivian is buying your truck at a WHOLESALE so they can resell it. Your R1T is worth more then what they are giving - had the same problem when I was trying to trade in a Mazda CX5 on a MYLR - I just decided to sell it to Carmax and got like $4k more then what Telsa wanted to give cause again Tesla will just wholesale your car they won't even try to sell it!
Don't get me wrong but when you leased your Rivian btc price was 50k now it's 90k. Things change, belive the best deal is to finance a pre owned evs. At the end you own the car and have 0 payments. The only reason I bought / financed my r1t was at that time car prices were insane and paying 74k for the R1t seemed like a deal. Pre order pricing. Now you can land R1t quad for 52-55k. 😁
12k negative equity is literally what you’ll be paying in monthly payments for the remainder of the lease. Definitely doesn’t make sense to move forward with the trade in. Might as well just finish it off
"Current Gen 1 (model year 2022-2024) Rivian owners and lessees in the United States can get $3,500 off the purchase or lease of a new 2025 R1 Dual Large, Dual Max or Tri Max."
You were already $3 000 on the positive side with your calculated lease price. The car price has already deprecated more than what they calculated. You do not have to buy it out. But in the end total sum you pay is the figure that matters.
Paid off 100k in debt, immediately lets go get in to more debt on a new car, change our minds within a year and get another new debt with negative equity attached to it. Paying your taxes will always be cheaper than this.
Some of us buy EV's to help our environment improve. Unfortunately buying EV's do not help your wallet improve. I don't know of any brand of USA EV that has not gone down in value and I am talking way down like 50%. I purchased my Y in 2021 for $52,790 and this was all wheel drive. Tesla offered me a Trade in value of $27,800 and that was in August, 2024. I only have 28K miles and this week I put a set of all new tires. So far I have lost $24,990 in three years. Or $8000 per year. If the Y was bidirectional like the CT and I could back up my house, that would help me feel better and give my Y another purpose.
@@deanprater12 That’s an answer I would hear from someone justifying. When you actually do research and not soley listen to like minded outlets saying we need to drive EV’s or else. EV’s are moving the Carbon footprint from the tailpipe to manufacturing and energy to make them possible.
@@Mill72I could tag you in things but fortunately you are allowed to have your own opinion. Regardless if you’re wrong or not. Teslas were proven in 2012 to be 4 times cleaner for the environment. As well as the “safest” sedan massed produced in human history. These are not opinions. These are facts. Dig deeper kid. With a unbiased opinion.
Right now, Rivian also has a $3500 loyalty program, and seeing you have an R1T, you qualify. They also have a $3000 ICE incentive program. All you have to do is send in your ICE reg, and thats it. You can only use one, but its something! Question for those who lease or understand them. I am looking to trade in my 22 Quad R1T for a 25 Dual Performance R1T. My trade in nets me $1,400 and paying off my current loan. $7500 + $3500 loyalty is another $11,000 off. To the question. Can I take the lease, and then buyout in a few months, without penalty (as Chase stated there isnt) and still recoup some of the $7500 lease credit, or would just taking the $3500 and finance be a better way to do it? I also plan on putting down about 10k no matter the case.
Is there something similar to leasebusters in the states where you can have someone take over your lease? You may have to provide an incentive but it could still be less painful.
I'm assuming from a tax perspective the entire cost of the lease is a business tax deduction and hence leasing vs buying is simpler vs writing off as a purchase and a deprecating asset, especially if he ended up selling it later if he financed etc.
I would lease an electric truck till the end of lease then finance it. I want to go into a car I can use for the next decade. I will see if it’s a Rivian
The lease isn't a headache and I really love my R1T. I think the R1S is the way to go unless you need the truck bed. I don't even like trucks but I am really enjoying it.
Use code GJEEBS55off to get 55% off your first month at Drift.co drft.info/3C1I9o9
$1000 a month on ANY lease is insane. Rolling into another lease for $1000 a month, plus a large lump-sum of cash down, plus resetting the clock on how many months you will need to pay $1000, plus registration, plus insurance on a vehicle you’re essentially renting is a quick route to offsetting any upside you might get from having the vehicle featured on a TH-cam channel…
If you make $30,000 a month it isn't insane at all what is insane is purchasing or driving a car that depreciates 40% in a year and you don't like it almost immediately lol.
@@midgetworld228 who's making 30k a month?
@@Nullscr1pt there are many people. My point is that $1,000 a month is not some objective number that is too high, there are literally tens of thousands of families and people who make enough money where $1,000 vs $600 a month makes no difference at all to their lifestyle. If you make $4,000 a month then yes it's a lot to spend $1,000 a month. The original comment is silly because it devolves into an argument as to why even have expensive cars at all? They all do the same thing pretty much...
@@midgetworld228Regardless it’s stupid financial decision. Making thousands a month does not exclude someone burning money away, but hey, I’ll live through someone that can. Then watch them complain. 😢
@@midgetworld228many people😂💀
For clarity, I was simply seeing how hard it would be to move from an R1T to an R1S in a lease and clearly it makes no sense for me. I love my R1T and it has been a fun vehicle to own so I will just go through the end of the lease no problem. I am also generating revenue from making Rivian videos so my situation is different than a normal person not making car videos for a living. Hope that helps!
I have an R1T lease and love it so far. Would like to know what your interested in with the R1S. I have 3 kids and we fit comfortably in the R1T but have never sat in an R1S.
Crazy how upside down you could have gotten jumping leases. If it wasnt for the tax right off, i'd say its basically a scam. Thanks for doing the research. Learned something new today
You might as well just ride out the original lease since you are halfway through it already.
Yep that is what I am doing
Good video! I think it’s great for you to show others how hard it is to exit a lease. Leasing isn’t for everyone but when it works out for those people that need to lease, it’s really a huge advantage. It provides you with a nice car at a lower monthly payment with the ability to get another new one when that lease runs out.
I’m not understanding this whole video. You entered a contract. Why are you complaining that it’s not easy or advantageous to exit it outside the terms of the contract? Rivian and Chase didn’t do anything wrong. You just regret that the market moved.
I'm not complaining at all. I was just curious to see how hard it would be to get out and into a new car.
It's just super unfortunate timing that the prices dropped significantly soon after he got into the lease. I remember buying a Chevy SS in September 2017 and two months later they had a 20% off deal on the same vehicle. It sucks, but there's nothing to be done.
I'm sure there is a world where leasing a vehicle makes sense, but I can honestly say I've never lived in it. This video kind of proved that to me again
☝️this!
Or does it? If he bought this truck he would be way upside down in 2 years. The lease actually pays off here.
Buying a new vehicle never makes sense. But if you use it mostly for business you can reduce your taxes a bit to offset some of the cost.
He signed a terrible lease deal. My quad R1T was $700/month.
@@CliffRouse if you buy the truck it is impossible to be "upside down". Do you mean "take out a loan"?
Time to get back to hookin'!! OK, I did some back of napkin stuff that you may or may not have missed:
Using your screen shot, but putting it in different order/terms:
Cost: 91,050
Down Payment - 13,500
Lease Payment Calculation Amount - 77,550
Depreciation Over 2 Years- 14,725
Residual Value After 2 Years - 62,824
Finance Charge (2 Years) - 7445
Sales Tax - (Tax Rate X ((Depreciation + Finance Change)) - 1796
Monthly (24) Payment Amount (Depreciation 14725 + Interest Charge 7445 + Sales Tax 1796) = 1000/month over 24 months.
So, after 11 months, you paid 13,500 down + 11,000 in monthly payments + 12,600 in negative equity on trade-in = $37,100 total cash out of pocket/11 months = $3375/month of ownership.
EDIT: If you go full term, it will be: 13,500 + 24,000 = 37,500/24 months = $1565/month.
All you have to do is wait until the lease is over. When you entered the lease, you were happy with the terms.
Yes I totally agree and that is what I am doing. I love the R1T
General rule of thumb, a good/great lease deal is 1% of the cars MSRP. Closer you get to that number usually better the deal
This is why I don’t do leases anymore. They’re a nightmare to get out of. Buying cars with cash FTW.
Yea I don't think most people try to get out of them
@@Gjeebs Very true. In my case, I was 6 months into a 3-year Miata lease when I found out my wife was pregnant and I would need a 4-door. I had to get a loan from a bank to buy out the car, and then I ended up trading it into a dealership for a WRX. From then on, I tried to buy cars that didn't lose their value (WRX, Civic Type R, Civic Si, GR Corolla). Funny thing is I'm now looking at model 3 performance which I will *totally* lose my ass on.
Buying with cash is not an option for most people.
Did you try other 3rd parties to buy out? (Carmax, Carvana.. Etc)
@@AhBeeDoiWhy not? Drive a POS for as long as it takes to save enough money to buy a decent vehicle cash. Then bank what you would have been paying in payments for your next vehicle purchase. You can buy a lot nicer car if you don’t have to pay interest anymore! It’s not that people can’t afford to do it, it’s that they aren’t disciplined enough to get to the point they can do it and maintain that discipline!
Dude, I feel for this. I’ve just always steered clear of leasing, the math is too thick (always gamed to the House). But love all your vids. Good luck!
It’s not too late. Get the Model X. I just took delivery. Flawless. Everything just works.
80k. Tax credit -7500. Buy with FSD 8000. Choose any free upgrade. We chose the 6 seater configuration. Amazing family vehicle.
In essence you can either make the $1,000 payment for 12 months ($12,000), use the truck during that time and then walk away; or you can pay them $12,000 now and not have use of the truck for the next 12 months. hmmm what to do?
Leasing is frequently a black hole of quicksand for most people. Almost like being trapped in the timeshare from hell. I'm right in the middle of purchasing, no way leasing, a R1T Tri. Can't wait to see it in my driveway next month.
It sounds like the Rivian will be a great vehicle to purchase in one to two years. I hope they are still around by then.
Thanks for sharing your experience. Another option is to sell it outright at the buyout price. I believe it was 71k but should continue to go down as you pay your monthly payment. Even if you sell it at 67-68k in the open market, you can still get $7500 tax credit back if you lease again covering some of the short fall. Just an idea but not sure if it still makes sense.
Isn't this how it is with any lease or finance? With finance most cars have insane negative equity.
I've never had negative equity on a vehicle and I don't view the Rivian that way because I don't own it. I am essentially renting it
@@Gjeebs You have negative equity on any new vehicle the minute you drive it off the lot, purchase or lease.
I'm not a CPA, but I act like I know what I'm doing. Always thought a lease was good for a business owner who puts the leased vehicle in the businesses name and uses the business to pay for lease, insurance, expenses, etc. The lease for a non business owner is just a way to get you into a vehicle you really can't afford with minimal down payment. You are literally renting the car with everything going against you and you will probably loose your security deposit b/c the dealership will find something wrong with the vehicle when you bring it in when the lease is over. Just my non CPA thoughts.
Woah! thats absurd, i would keep the R1T instead. I just traded my 2023 R1S launch with 6k miles for 65k, the depreciation is real!!
If you weren’t committed to another Rivian, I would suggest shopping at other dealers. I’m sure you could find a Kia dealer willing to buy out your lease straight up for an EV9. It will take a ton of work and about 6 dealer visits. But if you pester enough, you can get what you want. Especially if you look at leasing one from a state that extra incentives.
The only few times I've leased was when they were more or less dumping cars. From memory, I got a stripper Prius for $179 a month with no down back in 2011. Relevant to this video, the most recent lease was a 2023 R1T Quad AT that I got just this past May. It certainly has some growing pain problems, but it sounds like even the new ones do. I got the $7500, another $3000 or so off and my net out of pocket with upfront tax, registration, divided over 3 years is about $840/mo (total cost of roughly $30k for a $90,000 truck, with a $56k residual, which I will not buy out.). I get 10k per year miles, but I'm 6 months in and under the 5k, since I swap between cars. I don't plan to take it anywhere beyond "in town" . I'm also sure no one should have one of these outside of a lease period. I see plenty of issues popping up after the warranty. It's a fun truck to drive. Vehicle dynamics are amazing. Infotainment is a disaster still. I don't see that getting better. Hopefully the Scouts improve on this if they have Rivian DNA in them.
Have you compared the EV9 to the R1S? I think that would be a great video and also may give you some options for your personal needs… In my humble opinion I would go with a EV9 over a Rivian based on bang for the buck and more importantly warranty and access to service.
Already did that video
@ I must have missed that one!
Thank for teaching me about lease sales tax and buying sales tax blew my mind thank you. 🙏🏼
“What a nice dog to own. What a nice little thing to bring with you in public…” 🤣🤣🤣 had me wheezing
The chase joke killed me
hahah same here!!!
I personally appreciated this video because it prompted me to go add lease payoff coverage to my insurance. 😅
THANK YOU for reminding my why I will never LEASE. That is MY preference and I don't make TH-cam videos to justify it. God's Speed Ben.
I would never ever roll in any negative equity into a vehicle. I’ve never leased a vehicle but when I got my model Y I considered it. Even then, since I got 0.9% financing, it didn’t make sense. I do understand since you have a business I can write it off. It makes sense. Leasing an EV made sense to me because of the depreciation, but like I said with the interest rates test offered I decided to buy like I always do.
Wow, serious sticker shock. When/how did $1k/mo car payments become 'normal'? This is insane for a depreciating asset.
It's not normal
It's not, but people who lack financial education common sense think it is🤦
since only 24 month lease, just keep the R1T for the second year and you emerge in a lot stronger position...you did the right thing
Join the club. I leased a Nissan Ayria for $699 a month, soon after people were getting them for $150 a month. You really can't get out of paying a lease. You already owe them the $1000 a month. you need to let it run its course
Hello feller! Reporting to the club 🫡 Here here with my Toyota Bz4X for $720 a month. Halfway through my lease 🥲.
Geebs, stay with it. If Rivian keeps losing money and goes belly up, you might be able to get this car real cheap at the end of its lease.
No he would have to buy it at balloon payment price.
@@Boogersncome This didn't look like a balloon loan which is designed for cheap early payments. Did I miss that? They can't transform it into a balloon payment at the end if it wasn't set up that way initially.
Can’t say enough how much I love your content man. Doesn’t hurt we drive almost identical vehicles too.
I too was starting to toy with the idea of trying to get out of an R1 lease early. But I want a cyber truck. So would be even worse for me. Will just stick out the 2 year lease and suck it up. Not worth the financial rape.
haha yea I love my R1T just wanted to see how hard it would be to get into an R1S
Dave calls this the stupid tax. We've all paid it from time to time. Seems like you like to keep paying it.
yes finish the lease and let Rivian take the depreciation hit.👍
Paying $1000/mo on a lease is insane. Hell $1000/mo on a loan is insane as well. At least with someone like him he can make content out of it so it makes a little more sense but for the average joe it's crazy
11 months ago on a 24 month lease? Pay $1003 x 13 remaining months, and drop the current Rivian off... You have ended the lease early for $13039. It's cheaper than rolling over the balance, and you will have $750. for a referral bonus, which will partially offset one month's payment. Many people who lease run up the miles, then turn the lease vehicle in early, after all payments are provided, before they have to pay overcharges on mileages, this is an early return for another reason. Check with the financial institution on a refund of unearned interest charges....or applying an interest refund towards a new lease with them. Everything is negotiable.
Used that discount code to try out the Drift, I’ve been seeing them for years, but for 55% off… why not?! Went from $33 to $16 including shipping!
Nice! I also recommend once you open the package, let the item sit out for a little to air out and for the oil to settle so it doesn't stain anything.
It’s funny you posted a video about this. I have been talking to Rivian about this for about 2 months now. And went thru the process. Same thing. I actually thought my negative would have been eaten up some, by the 7500 credit, the loyalty credit and my referrals plus I was going to put 3500 down. Then I found that no matter what Rivian was adding about $600 a month no matter what because of the negative equity. So I know I what you mean. Great video as always.
Thank you!
I own a Model X.... IT IS PERFECT FOR A FAMILY 💪.... DON'T LEASE/BUY THE DAMN RIVIAN FRIEND ❗
Leasing is not for the fickle! There was an 18 year (6 vehicles @ 3 years) period where I only leased. These were mostly high end vehicles and I ran the numbers very carefully and actually did OK compared to buying outright and always went full term.
In your case, keeping the lease full term is (by far) the better way to go. I think when you flashed up the terms, the R1T was going to have a $63K residual at EOL. This sounds like a way inflated value, especially since they only offered you $59K after one year. If you go full term (and, in my opinion, you should), you can walk away from the Rivian leaving them holding the bag on the difference between the residual and actual value. Some car companies will inflate the residuals on purpose in order to get the lease payment down without having to visibly discount the car. When you turn the car back in, they will have a used vehicle to sell, which is a different market and somehow, they will still make money.
The fact you were considering going through all that and buying another Rivian just to watch it tank in price is pure insanity. How more upside down do you wanna be?
I will continue to subscribe to and watch all of your videos as long as you own this truck. Extremely Helpful as I navigate the idea of buying one. It’s a big leap. At least I’ll be educated before pulling the trigger. Really enjoyed the cross country R1T video btw.
Plenty more videos to come!
DO NOT BUY
@@ak2112 sorry you were in a hurry and couldn’t elaborate…
$1k is wild lmao. You can lease 3 of my model 3s for that price
The look of horror when you realize getting out of a lease puts you in a much cheaper vehicle but paying 50% more per month, plus sales taxes all over again. Yikes.
So basically leasing is much better now than when you did months ago , ok got it
Correct
I’d say keep the R1T you have till the end of it’s lease then replace it with something that has 3-rows
Moral of the story, let's watch and re-watch his Rivian videos y'all. Let's help a brother out.
hahaha I don't need any help I'll be fine
I just leased an R1S like the one you optioned - standard pack, 20" wheels, optioned blue color. The payment estimator is way off. It had it at about $699. Interesting that you said it was more to do a 24 month lease -- it was actually cheaper to do 24 months for me. In any event, despite the $7,500 down plus the $7,500 tax credit, I'm still playing close to $800/month.
My 2024 Cyber truck keeps droping as well. My 2023 Ram GT was 77K and I can only get 45k at this point with only 9000 miles. So no matter what it either being an ice or ev vehicle i think its just better to buy used.
The system has always been stacked in favor of house(bank, dealer, manufacturer). In the over 40 years of buying vehicles the only time I came up roses was during the post COVID used car shortage extravaganza. I literally made over 7K selling my 6 month old Ionic 5, bought another EV and of course that is now worth 25K less in 2 years but I have saved nearly 15K in fuel in last few years so kinda close to break even. Whatever, buying/leasing new vehicles has never been a winning proposition in growing your savings, lol.
nothing hurts more than a price cut after a car purchase... early adopters beware! same thing happened to me with Tesla.
Option 3, transfer your lease to someone willing to pay $700/800 and "only" lose $2k
Just keep the truck R1t lease and get the r1s lease willl only be couple 100 bucks more to have both?
Huge negative with EV's they are so upside down when it comes to trade-in. They loose way more than when you buy any ICE car.
OK well that left us all hanging..... can't wait to see if you get out of this lease and will you go with the R1S or go back to Tesla for the Model X!
I said in the video I won't be getting out of the lease
Pretty much in the same situation with a 24 Jeep wrangler fully loaded. Did the math and it really wasn’t worth it. So I will have to ride it out and move a little more strategically next time. It’s only money right 😅
Uncle Dave changed my outlook on finances for life 🙂. He would definitely not recommend any of this. Pay the car off and be done with it.
In your situation just wait it out if you don't want to spend anymore money then you already are. The fact that they said the vechicle was only going to lose close to $15K over 2 years is a joke! Run out your lease and have Rivian deal with the additional lose in value instead of you. In another year you will have a better overall car so patience is needed at this point. You run a YT business tho so at the end it's really up to you but it won't be a smart move to get the R1S rn imo.
Even with cars that hold their value above the norm, it is extremely wasteful to exit a lease before full term. Always upside down, and rolling into a new lease just compounds the problem. Since you need to flip cars frequently as a content creator, you're better off purchasing the cars outright, and re-selling them a few months later with low mileage. Good luck, enjoy your videos.
You have to wonder how car companies make money. Either pay cash, or finance it then pay it off ASAP or with the smallest amount of debt possible.
Dynamic Tint hoodie for the WIN!!!!
I still don't think the Residual values are ever correct they are guessing and it shows - hence why leasing an EV is a mistake (IMHO)! Love your videos and thanks for sharing and still have a smile when you mention your crazy negative equity. Ideally you should try to sell the truck see what the KBB value is - remember Rivian is buying your truck at a WHOLESALE so they can resell it. Your R1T is worth more then what they are giving - had the same problem when I was trying to trade in a Mazda CX5 on a MYLR - I just decided to sell it to Carmax and got like $4k more then what Telsa wanted to give cause again Tesla will just wholesale your car they won't even try to sell it!
Don't get me wrong but when you leased your Rivian btc price was 50k now it's 90k. Things change, belive the best deal is to finance a pre owned evs. At the end you own the car and have 0 payments. The only reason I bought / financed my r1t was at that time car prices were insane and paying 74k for the R1t seemed like a deal. Pre order pricing. Now you can land R1t quad for 52-55k. 😁
Good video!Thank you for the tramspatemcy
12k negative equity is literally what you’ll be paying in monthly payments for the remainder of the lease. Definitely doesn’t make sense to move forward with the trade in. Might as well just finish it off
Can you transfer your lease? If someone wanted to take it over. Only about a 1yr commitment at this point.. I did that with one of my Benz’s once.
"Current Gen 1 (model year 2022-2024) Rivian owners and lessees in the United States can get $3,500 off the purchase or lease of a new 2025 R1 Dual Large, Dual Max or Tri Max."
Rivan is a high dollar version of Tesla without the true neat gadgets like FSD, Sentry mode, etc.
“We Just needed it for around town”
Shows build sheet for $78K. Good $$ there to hop down to Starbucks and Costco.
Your residual didn't change. The extra money is the remaining # of payments added to the residual amount.
Can you just find a Rivian R1S owner who wants to trade for a Rivian R1T? He takes over your lease and you take over his lease.
Seems like a nightmare to make the switch. Best off just sticking thru the existing lease rather than breaking it
34% depreciation after 11 months. Incredible.
If your business can afford to waste $1,500 a month on a Rivian, your taxes aren’t high enough.
Rivian is not Wal-Mart, you can't use an expensive vehicle for a year and take it back because you don't like the terms you agreed to.
I am fine with the terms I was just seeing what hoops I would have to jump through to get into an R1S.
You were already $3 000 on the positive side with your calculated lease price. The car price has already deprecated more than what they calculated. You do not have to buy it out. But in the end total sum you pay is the figure that matters.
I went the Tempe IKEA yesterday and looked out for the Gjeebs but alas… no the Gjeebs was found
Paid off 100k in debt, immediately lets go get in to more debt on a new car, change our minds within a year and get another new debt with negative equity attached to it. Paying your taxes will always be cheaper than this.
Can’t even imagine having a car payment like this. Seems like a good way to stay in poverty.
Still cannot believe you are paying that much for a leased R1T, that is INSANE, Rivian making their money big time off you haha
so the $700 lease became $1200, meaning 500 extra a month for 36 months, which is $18000 extra, that's rough
Some of us buy EV's to help our environment improve. Unfortunately buying EV's do not help your wallet improve. I don't know of any brand of USA EV that has not gone down in value and I am talking way down like 50%. I purchased my Y in 2021 for $52,790 and this was all wheel drive. Tesla offered me a Trade in value of $27,800 and that was in August, 2024. I only have 28K miles and this week I put a set of all new tires. So far I have lost $24,990 in three years. Or $8000 per year. If the Y was bidirectional like the CT and I could back up my house, that would help me feel better and give my Y another purpose.
If you’re buying an EV for the environment. Then you’re fooling yourself.
@@Mill72completely incorrect. Teslas specifically have the lowest carbon footprint of any vehicle on the road. They’re better for the environment.
@@deanprater12 That’s an answer I would hear from someone justifying. When you actually do research and not soley listen to like minded outlets saying we need to drive EV’s or else. EV’s are moving the Carbon footprint from the tailpipe to manufacturing and energy to make them possible.
@@Mill72I could tag you in things but fortunately you are allowed to have your own opinion. Regardless if you’re wrong or not.
Teslas were proven in 2012 to be 4 times cleaner for the environment. As well as the “safest” sedan massed produced in human history. These are not opinions. These are facts. Dig deeper kid. With a unbiased opinion.
@ Agree to disagree “kid”. You never dug beyond the surface for actual facts. Happy travels Gretchen.
Right now, Rivian also has a $3500 loyalty program, and seeing you have an R1T, you qualify. They also have a $3000 ICE incentive program. All you have to do is send in your ICE reg, and thats it. You can only use one, but its something!
Question for those who lease or understand them. I am looking to trade in my 22 Quad R1T for a 25 Dual Performance R1T. My trade in nets me $1,400 and paying off my current loan. $7500 + $3500 loyalty is another $11,000 off. To the question. Can I take the lease, and then buyout in a few months, without penalty (as Chase stated there isnt) and still recoup some of the $7500 lease credit, or would just taking the $3500 and finance be a better way to do it? I also plan on putting down about 10k no matter the case.
Geez! I feel for you dude.
Did you try CarMax? They could buy it out from Chase and I don't think you need to pay tax.
ouch man. hope u recover from yt channel. i gave a like 👍
Liking and commenting to help you with your lease upside down … lol .. informative video
Is there something similar to leasebusters in the states where you can have someone take over your lease? You may have to provide an incentive but it could still be less painful.
Yea they have that here as well
Maybe Chase, the person, will spill some wisdom in the comments about Rivain leases.
Once lease is over consider buying a used RS1?
Oh wow! I wonder what a Cybertruck lease would be with the negative equity. For comparison…
$1000 per month to rent a vehicle is insane.
If I wasn't making car content on TH-cam for a living I would agree.
Free charging for 6 months? You guys always brag about how cheap charging is. Sounds like getting a free t shirt with the purchase of a jet ski
I'm assuming from a tax perspective the entire cost of the lease is a business tax deduction and hence leasing vs buying is simpler vs writing off as a purchase and a deprecating asset, especially if he ended up selling it later if he financed etc.
I would lease an electric truck till the end of lease then finance it. I want to go into a car I can use for the next decade. I will see if it’s a Rivian
Lmao leasing a car for 1k a month will never be reasonable 😂
Paying a grand a month for an automobile and not end up owning it? You're throwing money away.
Other than the headache of the lease.. how is the Rivian R1T. I’m looking at one for our family. I’m torn between R1S and R1T
The lease isn't a headache and I really love my R1T. I think the R1S is the way to go unless you need the truck bed. I don't even like trucks but I am really enjoying it.