Photo: Rivian
In September, Rivian CEO RJ Scaringe hinted at launching leasing offers, allowing customers to access the full $7,500 tax credit. On Tuesday, Rivian confirmed that it would launch leasing in December, although not for everybody and not for all its models.
Rivian impressed everyone with its delivery numbers and financial results in the third quarter. Not only that, but the company's CEO, RJ Scaringe, raised the 2023 delivery guidance from 52,000 units to 54,000 units. It is not by much, but it's enough to project confidence in the company's trajectory. The EV startup is trying hard to ramp up production, accelerate deliveries, and develop new products all at once. Scaringe bet that making its products more accessible to more customers is the key to success.
In September, he announced leasing would offer customers a more convenient way to drive a Rivian without spending that much upfront. Leasing also allows access to the full $7,500 tax credit, as leased vehicles are unaffected by the rules of origin. Passing this credit to the lessees makes driving a Rivian more affordable, helping the EV startup to move more metal. No details were offered at the time, but Scaringe said Rivian would offer "exceptionally strong leasing packages."
Rivian has officially announced its leasing offer will come soon, heating up the market in the last month of the year. Details are still scarce, but Rivian's message indicates that the R1T pickup truck is the sole model offered through this type of financing. Not only that, but leasing will only be available in select states, which makes sense considering that Rivian prioritizes customers who live near a service center.
Rivian's selective leasing offer might indicate that the EV startup is having difficulties finding customers for the R1T pickup. The fact that you cannot lease a new configuration or an R1S shows that Rivian uses leasing as a tool to move more R1Ts from inventory. This comes a week after Rivian announced a free Rivian Wall Charger and up to $2,000 in installation credits from Qmerit with every R1T purchased from inventory.
Although the R1T is the primary beneficiary of these marketing efforts, it's unclear why Rivian would limit the scope of its leasing offer. After all, leasing is a more affordable means to acquire a vehicle, considering that you only pay for the use of the vehicle, not its residual value. The EV maker could benefit just as much from leasing the R1S.
So far, it's unclear whether lessees will be able to keep the truck at the end of the lease period. Rivian might want to keep these vehicles and sell them on the used market. This is what Tesla does, the EV market leader maintaining a tight grip on the used cars wearing its badge. Controlling the used sales can help keep the residual values elevated, making new vehicles more attractive.
In September, he announced leasing would offer customers a more convenient way to drive a Rivian without spending that much upfront. Leasing also allows access to the full $7,500 tax credit, as leased vehicles are unaffected by the rules of origin. Passing this credit to the lessees makes driving a Rivian more affordable, helping the EV startup to move more metal. No details were offered at the time, but Scaringe said Rivian would offer "exceptionally strong leasing packages."
Rivian has officially announced its leasing offer will come soon, heating up the market in the last month of the year. Details are still scarce, but Rivian's message indicates that the R1T pickup truck is the sole model offered through this type of financing. Not only that, but leasing will only be available in select states, which makes sense considering that Rivian prioritizes customers who live near a service center.
Rivian's selective leasing offer might indicate that the EV startup is having difficulties finding customers for the R1T pickup. The fact that you cannot lease a new configuration or an R1S shows that Rivian uses leasing as a tool to move more R1Ts from inventory. This comes a week after Rivian announced a free Rivian Wall Charger and up to $2,000 in installation credits from Qmerit with every R1T purchased from inventory.
Although the R1T is the primary beneficiary of these marketing efforts, it's unclear why Rivian would limit the scope of its leasing offer. After all, leasing is a more affordable means to acquire a vehicle, considering that you only pay for the use of the vehicle, not its residual value. The EV maker could benefit just as much from leasing the R1S.
So far, it's unclear whether lessees will be able to keep the truck at the end of the lease period. Rivian might want to keep these vehicles and sell them on the used market. This is what Tesla does, the EV market leader maintaining a tight grip on the used cars wearing its badge. Controlling the used sales can help keep the residual values elevated, making new vehicles more attractive.
Leasing is coming next week for available R1T configurations in select states. Get all the adventure of owning a Rivian with the flexibility of leasing.
— Rivian (@Rivian) November 21, 2023
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