They Were Right...Getting Out of my Rivian R1T Lease

[@Gjeebs]

UPDATE: I took it to Carmax kzbin.info/www/bejne/hoGofYeKgZuqndk

[@cerev1]

This video should be required viewing for all teenagers as the "how to stay broke" portion of their personal finance education.

[@Notfiveo0]

My lease payment is $339 a month on a $34,000 vehicle. 💪

[@johnnykwo11]

$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 KZbin channel…

[@midgetworld228]

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]

@@midgetworld228 who's making 30k a month?

[@midgetworld228]

@@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...

[@Mill72]

@@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. 😢

[@caydenthompson126]

​@@midgetworld228many people😂💀

[@ericshane8222]

I cannot believe that someone would be that stupid to even think about renting a car for 1000 bucks a month. No wonder these car companies are happy.

[@stockey]

There goes your gas saving lol.

[@danchen6783]

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.

[@Gjeebs]

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.

[@carlosbernard5145]

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.

[@johnfbm]

@@Gjeebs Answer - damn near impossible unless you have deep pockets.

[@DirkDiggler-p5q]

Rivian sucks ding dong.

[@dimitri709]

@@Gjeebs to get out of the contract is very easy, just the matter how much money you are going to add

[@Gjeebs]

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!

[@some_dude7]

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.

[@kylebondo5928]

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

[@DDGreyduck]

You mention it has been a loss for the channel. Is that just cause the viewer numbers don’t cover the payment?

[@Gjeebs]

It's a loss so far but over the length of the lease it should end up positive. I also make other car videos so this is just one portion of it. I thought it would be interesting to lease and see if I can win in the end. We will see!

[@iati6294]

@@Gjeebsmy friend you need to watch some Dave Ramsey videos.

[@nivenset]

Lmao leasing a car for 1k a month will never be reasonable 😂

[@TieweiCheng]

It is personal calculation rather. It is a consumption, just like someone else like to spend money on other luxury products. If you make a million per year, it is likely you drive a Camry for average Joe

[@adamsilberman9377]

It is renting something better than your ford focus

[@ericgregori]

All you have to do is wait until the lease is over. When you entered the lease, you were happy with the terms.

[@Gjeebs]

Yes I totally agree and that is what I am doing. I love the R1T

[@richardm3023]

$1000 a month is a mortgage payment, not a car payment. Stop living in debt. You should look at buying a decent used car for 15 to 20k and Saving or investing your money.

[@Gjeebs]

I told you what my lease payment is and now you are a financial advisor. You have no clue what my situation is haha

[@richardm3023]

@Gjeebs i meant no offense to you.. I have found that the fun thing about financial situations are that they always change. Often unexpectedly. I do wish you well, and hope you have a happy and successful life and family.

[@MikeytheSnowdog]

@@Gjeebs Hey bud, I am. I've seen this and don't mean to pile on. Clients with money don't do this. This is for show. You probably got into some nice cash flow recently and are flexing. You are leasing because you don't have the money to pay for something like this. You are young and time is on your side. Emergency savings, 401ks, IRAs, RE, not this stuff bro...don't be fooled, I promise your future self will thank you!...Peace

[@stockey]

He probably gets a tax credit for that lease, so your paying for his lease😉

[@MikeytheSnowdog]

@@stockey probably true!

[@daryl9799]

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?

[@steverl22]

It’s mind blowing 🫣

[@brianmills4891]

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

[@SCWgreg]

☝️this!

[@CliffRouse]

Or does it? If he bought this truck he would be way upside down in 2 years. The lease actually pays off here.

[@koreyb99]

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.

[@cblue3581]

He signed a terrible lease deal. My quad R1T was $700/month.

[@huehuehue-x3c]

@@CliffRouse if you buy the truck it is impossible to be "upside down". Do you mean "take out a loan"?

[@wpaoff-road]

You might as well just ride out the original lease since you are halfway through it already.

[@Gjeebs]

Yep that is what I am doing

[@ayushmalpeddi2793]

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

[@Cjdergrosse]

This ^^^ is great advice, back before COVID, I leased BMWs through a dealer sales guy who would give out 1% leases on BMW-mfg incentivized cars. I leased 2 F01/G01 7ers and 1 6er for 1k/mo, 0 down, 12k/year. Those were good times, and never coming back. Bought a Rivian (finance/own), I drive ~22k/year, too much to lease.

[@SS8styles]

What down payment though

[@dRadddd]

@@SS8stylesnever down payment on a lease. Your gap coverage only covers how much you owe. So if you put 10k down on a 30k lease, drive off the lot and get totaled, you’re only going to be covered for the 20k you have left, the 10k will be lost.

[@weich1q2w]

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

[@markwilliams6378]

Ask Warren Buffett one of the richest person in the world who drives a 10 year old Cadillac. Buffett knows who he is . He has nothing to prove

[@coastalhillbilly3419]

@@markwilliams6378No one gonna car jack Warren

[@markwilliams6378]

@@coastalhillbilly3419 Another plus

[@NeedJordan1s]

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.

[@oscardelta1257]

This is exactly why we lease. We trade in the lease a month or two before the lease is done, and we get onto a new vehicle cheap. I could care less if we own it, we are retired. We don't drive enough to worry about miles. Our last vehicle had just over 7k miles on it after 2yrs and 10 months that we traded in a month ago. We put nothing down and got a lower payment on our current lease.

[@NeedJordan1s]

@ I agree 💯 %. I don’t plan on buying a car ever if I can help it.

[@oscardelta1257]

@@NeedJordan1sWe've leased for the last 10yrs. We get free oil changes and tire rotation. The only expense besides insurance and yearly registration is gasoline. We get a brand new vehicle with a new warranty every 2yrs and 10 months, its been great. As you're aware buying a vehicle is a horrible investment but necessary for some. If we bought we'd have a high payment for a minimum of 6yrs before it was paid off. Trading in before pay off and you get what's leftover added onto the new vehicle and your payment just keeps getting worse as you go deeper into the hole. We did that for many years but realized one vehicle that was paid off was sitting in the driveway rotting away and the other one in the garage wasn't being driven enough. We were paying to insure both vehicles and register them. One day the wife said lets just get rid of these vehicles and lease one vehicle, not only will we have a brand vehicle but we'll only have to insure and register one vehicle. We'd no longer have to worry about repairs either, and our payments will be lower.

[@danlowe8684]

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.

[@gregstowell4732]

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?

[@d1vania]

The payment-plans is the most evil thing 😅

[@jameshuegli3534]

This is why I don’t do leases anymore. They’re a nightmare to get out of. Buying cars with cash FTW.

[@Gjeebs]

Yea I don't think most people try to get out of them

[@jameshuegli3534]

@@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.

[@AhBeeDoi]

Buying with cash is not an option for most people.

[@shaqdeez1]

Did you try other 3rd parties to buy out? (Carmax, Carvana.. Etc)

[@jezza6575]

@@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!

[@SCWgreg]

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!

[@blueradiomedia]

nothing hurts more than a price cut after a car purchase... early adopters beware! same thing happened to me with Tesla.

[@qitstrn]

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.

[@IMOGabe]

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!!

[@JayJay-ym5jx]

Just keep the truck R1t lease and get the r1s lease willl only be couple 100 bucks more to have both?

[@dkras]

$1k is wild lmao. You can lease 3 of my model 3s for that price

[@stevegoodman3692]

I am glad someone else went through all the early adopter pain. These cars are not worth what they are charging, hence the 37% drop.

[@car_connections_392]

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.

[@robbieherrera2520]

“What a nice dog to own. What a nice little thing to bring with you in public…” 🤣🤣🤣 had me wheezing

[@itgoesfast2722]

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.

[@Gjeebs]

Already did that video

[@itgoesfast2722]

@ I must have missed that one!

[@TwoHawksHunting]

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.

[@thegonz7833]

What will be total cost to own the current one for 2 years? 32k?

[@dragodavidCE]

Once lease is over consider buying a used RS1?

[@spankeydingus]

Still cannot believe you are paying that much for a leased R1T, that is INSANE, Rivian making their money big time off you haha

[@1rivian627]

Thanks for walking us through these issues so we can be mindful of them. Subscribed.

[@JaeTheDev]

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.

[@sgkountz3280]

Glad to hear you are not trading. You have a great lease. When that lease is done there be a loyalty offer coming your way. The great thing about the lease is you are only upside down the payment left. Other, EV owners should be leasing because the lease company will stuck with the losses.

[@MJ-fh8fw]

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.

[@dRadddd]

Total lease payments generally equal depreciation for rivians, so rent the truck and only pay tax on the leased amount rather than MSRP.

[@SKYLIMI]

1:35 I do 24,000 miles in 11 months how much would a lease cost me?

[@daviddietzel4170]

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.

[@tommyd3257]

If he’d bought the car instead, the value of his car would be $59K, or he’d lost $35k in less than a year. His lease cost is $24K for two years. Tell me again how a lease is a black hole 😂😂

[@mightypile]

A lease is almost exactly the opposite of a timeshare. The problem with a timeshare is that you "own" the timeshare and have to sell something nobody wants to get out of the obligation to pay annual maintenance fees forever. A lease has a fixed end date, getting you out of it exactly when you expected. Either way, I hope you really enjoy your new R1T. Rivians are amazing and a blast to drive however you pay for them.

[@hvgotcodes]

I know nothing about leasing; what is a residual value if it doesn't match the trade in value you are getting?

[@wyaldkingdom]

Residual value is the estimated value of the vehicle at the end of the lease. The bank has different depreciation rates they apply to each type of vehicle and lease term. Trade in value is what any dealer might offer to pay you for the vehicle at the time you bring it to them to inspect. These values can vary from dealer to dealer so it may help to shop it around. You might get offered $500 or a $1,000 more at another dealer.

[@hvgotcodes]

@@wyaldkingdom so what happens if you go through the term of the lease, and used comparable vehicles are 10k less than your residual value? How could it be so far off in GJeebs's case? He was less than one year in and got a lower trade in value than the residual value for a two year lease?

[@mattys8525]

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.

[@Dickman-s6d]

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

[@Gjeebs]

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.

[@Travel_Photography_Dude]

I’m Glad you decided not to role in negative equity into a lease on another EV that’s going to have huge depreciation also

[@leok7193]

To anyone confused, don't worry about it. He's taking that lease and deducts it from his taxes as a business expense for making videos like this. Not only does it cost him nothing to lease this, but he's making money off you watching it. 🤦‍♂🤦‍♂

[@Uhmier2]

Deducting from taxes saves you taxes on that amount, not the entire amount, so maybe 30-50% depending on income. It still costs him to lease it, the tax deduction just softens the blow

[@leok7193]

@@Uhmier2 nope. you just set up a business for your channel, lease the car to the business and make it a business expense. the only way it doesn't pay for itself is if your business makes less money than your lease (not the case) or if you take trips for purposes other than your business (just bring a gopro on every trip and do a small vlog or take pictures at the destination, then say they didn't make the cut for the video or post on a secondary channel). it's almost like you don't know what you're talking about

[@Uhmier2]

@@leok7193 let's work it out. 10k lease expense, 10k income, you get to write off the 10k income from the lease expense. You have now saved yourself 10k *40% taxes 4k. But you spent 10k on the car. If you didn't buy the car you would have 6k. Because you bought the 10k car you have 0. The car isn't "free" it still costs you an effective 6k instead of 10k.

[@leok7193]

@@Uhmier2 gibberish. you run your balance to 0 net income and you pay 0 in taxes. there's no additional math in there. pay yourself a salary, buy video equipment, editing software, new computer, pay your wife a cut for the videos she appears in, pay for the car as a business asset, pay for all upgrades you review from the business account, rent a competitor vehicle to do a side-by-side comparison. hire a video editor, search engine optimizer, marketer, etc. by the time you add up all these expenses, your net profit for the business should be 0, unless you're terrible at math. if your business is not making enough to cover above expenses, just do less of above. so the car is already paid for and you already took a salary which is taxable, but the business owes nothing. not sure what part of 0 income = 0 taxes seems complicated to you

[@Uhmier2]

@@leok7193 0 taxes doesn't mean the car was at no cost? Can you not agree on that. Buying the car still has a cost, the cost is just lessened by the tax savings

[@bernieman4]

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

[@AK-oz4ew]

"I didn't want to spend more money on it so I've decided to proceed with roll option, so I sent them a screenshot". I guess it was expected to erase $12K negative balance right there

[@balthezor]

Why do you need 3 rows?

[@1in7.8b]

The chase joke killed me

[@brandonb3311]

hahah same here!!!

[@nosoupforyou425]

Does it self drive like a tesla ?

[@Gjeebs]

It has driver + assistant but it's nowhere near as advanced as Tesla's system

[@nosoupforyou425]

@Gjeebs appreciate that. I like the rivaian R1S. But...... self drive would be very hard to give up. I drive about 24k miles a year in an X for work and family, and Elon does about 90% of it. I had in my mind that rivian did have self driving, maybe was a future thing

[@Bonjurro]

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.

[@Gjeebs]

Yea they have that here as well

[@caramelspartan5451]

Isn't this how it is with any lease or finance? With finance most cars have insane negative equity.

[@Gjeebs]

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

[@zachrenner2794]

@@Gjeebs You have negative equity on any new vehicle the minute you drive it off the lot, purchase or lease.

[@tonyfrese6903]

@@zachrenner2794that’s not true if you put down a significant down payment

[@zkiller195]

​@@zachrenner2794No you don't. If you pay cash or simply pay a down payment or have a trade in that will cover the initial depriciation, you won't have negative equity... Also, I know this is a rare situation, but there are some high end limited run cars that actually appreciate in value. The manufacturers simply don't make enough to cover demand, and you find them on the used market for a higher price than the initial MSRP.

[@boborambow]

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.

[@MikeytheSnowdog]

Oh man, honestly, as a financial advisor for 26 years, this sounds like a big pile of crap. Leasing to keep up with the Joneses on high end cars is burning your money in a giant garbage can. Buy a high end car (if you must, I did) 3-4 years age with cash, maybe with a manufacturers warranty left on it, and drive it into the ground. Gjeebs, something sounds off with this...I see your promotion for Rivian (obviously) but this is financial stupidity IMO. (I like Rivian btw, but your moving from model to model financially makes no sense whatsoever).

[@DP-du1xz]

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.

[@Gjeebs]

Plenty more videos to come!

[@ak2112]

DO NOT BUY

[@DP-du1xz]

@@ak2112 sorry you were in a hurry and couldn’t elaborate…

[@Mistermatt1984]

Did you try CarMax? They could buy it out from Chase and I don't think you need to pay tax.

[@scullen96]

I personally appreciated this video because it prompted me to go add lease payoff coverage to my insurance. 😅

[@stanleyypoon]

This is the reason why America is car poor. I watch way too many personal finance videos to not gag when listening to this insane video.

[@stephan9487]

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.

[@Gjeebs]

haha yea I love my R1T just wanted to see how hard it would be to get into an R1S

[@alancarter4282]

People, remember if it appreciates in value buy it, if depreciates in value lease it. An auto lease simply explained is the depreciation is isolated and paid over time plus a lease fee( like an interest charge) plus sales tax on the payment. Obviously cars with the lowest rate of depreciation ( ie best resale value) have the lowest payment. By their very structure leases are not designed to be paid off early, however the payoff should be no greater than the sum of the outstanding payments plus the residual value. A worthwhile exercise is towards the end of your lease use that formula, if the car is worth more buy it, or if it's worth less let it go full term and give it back. Does that help?

[@wtfserpico]

What car ever appreciates in value?

[@simplyrobert]

Your video is killing me slowly and I am at the 7:53 mark, where is the upside to this nightmare???

[@Gjeebs]

hahaha it's really not that big of a deal I just wanted to see if I could move into an R1S easily and I can but it makes no sense financially

[@markdeadrick3978]

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.

[@CougarSand-t1v]

Dave calls this the stupid tax. We've all paid it from time to time. Seems like you like to keep paying it.

[@TechMule59]

Wow, serious sticker shock. When/how did $1k/mo car payments become 'normal'? This is insane for a depreciating asset.

[@Gjeebs]

It's not normal

[@ChrisParayno]

It's not, but people who lack financial education common sense think it is🤦

[@jakeliujakeliu]

Basically don’t spend $1000 on stupid car, only what you can afford

[@DxMilla]

Thank for teaching me about lease sales tax and buying sales tax blew my mind thank you. 🙏🏼

[@traubgator]

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.

[@Radium3D]

I'm happy with my $37,900.00 December 2023 build Model Y LR AWD blue with white interior owned, not leased. Total with tax, fees $43,813.60 after the $7500 federal credit. EV trucks are just out of my price range right now sadly. I could definitely use one here to build our fence and other projects around the property but the Y is unbeatable for the range on road trips, and it fits over 33 bags of dirt in the back.

[@Gjeebs]

Yea a used Rivian I think it a great option. High 40's and low 50's is a solid deal

[@theDougAngle]

THANK YOU for reminding my why I will never LEASE. That is MY preference and I don't make KZbin videos to justify it. God's Speed Ben.

[@Speedlimitreviews]

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.

[@Gjeebs]

Thank you!

[@iamnid]

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.

[@FrankRodriguez-u3x]

after realizing Chase was a bank and not a person LMAO

[@jonsaircond8520]

Basically depreciation has surpassed the residential on this lease making a switch beyond silly. The bank would sure love it though as they are holding the bag when its up

[@steveb796]

Why would you put a non refundable deposit down without knowing ALL the terms?

[@Gjeebs]

the only way you can know all of the terms is by giving them the deposit sadly.

[@nealpatel5556]

Any idea what your next move is?

[@Gjeebs]

Here is what is in my head as options: R1S, BMW X7, BMW X5 Hybrid, Model X, Model S

[@Alejandro-ut4up]

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.

[@dRadddd]

It is now, and was at the beginning, but for about 5 months from November ‘23 and May ‘24, residuals were too high and money factors were too low. Those leases legitimately were good deals (not any more, my same truck is $500 more to lease than I’m paying right now).

[@CharlieMallow]

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

[@Joehatrix]

Hello feller! Reporting to the club 🫡 Here here with my Toyota Bz4X for $720 a month. Halfway through my lease 🥲.

[@ChicagoBob123]

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.

[@andrewcochran4389]

I'm on my second Model X and will own this one until at least 2031. It's my favorite possession in my entire house.

[@Annette_Hons]

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!

[@Gjeebs]

I said in the video I won't be getting out of the lease

[@mohamede.7479]

Correct me if I'm wrong, but their (Chase) leases are kind of predatory given the absurd residual value. I'm going through the paperwork process for an R1S lease for my wife right now and here's the breakdown: Vehicle price: $81,700 Term: 24 months Monthly Payment: $604 Total Monthly Payments: -$14,496 Residual Value: $61, 275 EV Tax credit: -$7500 Deposit credit: -$500 Trade-in Credit: -$9720 So we're paying ($14,496)+($7500)+($500)+($9720)=$32,216 !!! Buying the lease at the end for the ridiculous amount of $61,275 puts the total cost at *roughly* $93,491 for an $81,700 MSRP vehicle. I say roughly because interest is excluded. This can't be normal, can it? We've never leased before but also don't want to buy this outright at the moment.

[@crunkking06]

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 😅

[@demonsaint1296]

Not being ultra cool with “stuff” has really paid off for me when I retire four years ago. Retired at 51 meaning not having to work. Skipped college and didn’t finish high school. Suppose if I had finished high school and college I would have been able to figure out all that financial auto lease stuff. Guess I got lernt early in life.

[@user-id8ng9eq9h]

Subscription air freshener !!! Good luck to Drift, but that doesn’t sound like a very good idea (for the consumer or whoever funded it)… but what do I know 🤷‍♂️

[@civwar64bob77]

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.

[@Boogersncome]

No he would have to buy it at balloon payment price.

[@civwar64bob77]

@@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.

[@ersinc9080]

That's okay. I'll just keep driving my nineteen ninety three dodge dakota. I paid two thousand five hundred dollars for it fifteen years ago. 2 and a 1/2 months of this lease. It's what I have been driving fifteen years on. I will admit that your truck is cooler than mine by a lot.

[@kobebourne]

Can’t you just do a lease transfer to get out of it?

[@Gjeebs]

Yes you could do that too

[@keetonkatt4621]

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.

[@mattys8525]

Oh wow! I wonder what a Cybertruck lease would be with the negative equity. For comparison…

[@milesrago2195]

if the payments are 1000 and your negative equity is 12000 and you have 12 months left why wouldn't you just wait until the lease is over? I don't see the benefit here beyond getting a third row.

[@shantanu1484]

Moral of the story, let's watch and re-watch his Rivian videos y'all. Let's help a brother out.

[@Gjeebs]

hahaha I don't need any help I'll be fine

[@LJ-jq8og]

I own a Model X.... IT IS PERFECT FOR A FAMILY 💪.... DON'T LEASE/BUY THE DAMN RIVIAN FRIEND ❗

[@davidmac27]

Anyone ever tell you that when you squint, you look like you have a Tesla T on your forehead? It’s telling you something! 😂 see 4:02

[@ZeusyZeus]

So you signed a lease and now you’re complaining you can’t get rid of it? What a Karen. Grow a pair and follow through with your commitments.

[@DOUGMAC]

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.

[@brygram]

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.

[@EdvinGusinac]

Your residual didn't change. The extra money is the remaining # of payments added to the residual amount.

[@jeffreyhurst9552]

That’s why some people refer to it as a “fleece”.

[@electrifiedmotors]

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. 😁

[@DennisCW]

Good video!Thank you for the tramspatemcy

[@thegonz7833]

Only way this makes sense to pay 1k a month is if you have a YT channel with 212k subs. Congrats on that.

[@vtxdaryl]

You should have leased a Tesla X, maybe. I love my X but I bought it, I don’t know anything about leasing.