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Rivian's Going to Give Pre-Order Holders the Buyer's Agreement, They'll Get the $7,500

Rivian pre-order holders can rejoice. The EV maker has confirmed it will give those interested a buyer’s agreement. This means customers who qualify for the $7,500 tax credit will become eligible before the new law comes into effect. However, it’s a race against time. Here’s why and what you need to know.
Rivian R1S and the Company's Response to Pre-order Holders 7 photos
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The EV tax credit rules are changing. The Inflation Reduction Act is going to make it harder (or impossible) for all-electric cars to remain eligible for the $7,500 tax credit. After it gets Joe Biden’s approval, the new law will favor hybrids and the credit transforms into a discount. It will be given by the dealerships only to individuals that make $150,000 a year or to joint filers that earn a maximum of $300,000 in 12 months.

The battery composition, the final price of the vehicle, and final assembly rules are just three of the novelties that scare those who wished they’d get their hands on an EV and still qualify for the $7,500 tax credit. Moreover, as soon as the President signs the bill into law, the $7,500 will not be a tax credit any longer – it will be applied by authorized sellers at the point of sale.

Rivian pre-order holders want that competitive advantage since companies like Tesla, Toyota, or GM can’t give them anymore because they reached the 200,000 units cap. Fisker, for example, immediately let their pre-order holders know they can get into a buyer’s agreement as soon as possible by turning their fully refundable deposits into non-refundable first payments.

In a response sent out to those that bombarded Rivian CEO RJ Scaringe and the company’s customer support with letters asking them to start the buying process as soon as possible, the automaker says it’s “working to help interested preorder holders and customers obtain a written, binding contract to purchase and secure EV tax credit eligibility before new restrictions take effect.” Now, even if deliveries are done next year, those customers that sign a binding contract will be eligible to make use of the $7,500 tax credit next year. That’s what customers wanted and that’s what they’ll get.

However, all this must happen before the House of Representatives votes and before Joe Biden gets to sign the Inflation Reduction Act into law. If you didn’t receive such an email from Rivian yet, you should contact customer support as soon as possible and let them know you want a buyer’s agreement.

Lastly, remember that for the EV tax credit there’s no transition period – the changes will apply as soon as the bill gets executive approval.

 
 
 
 
 

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