LUCID Gravity Lease vs Finance

[HC_79]

As I've never actually negotiated a vehicle lease before, I don't know how it works, but I assume that at least the residual value has to be disclosed as part of the lease contract, allowing one to back into the finance rate?

You won't be negotiating anything with Lucid while the car has demand. You'll certainly see the figures at the time of finalizing everything including the residual but the only power you will have is putting more money down to reduce the cost or decrease the mileage etc.

Lucid certainly has the upper hand right now and I agree with you, it does seem they're taking the $7,500 for themselves and offering no incentives at all to order holders. That on top of insurance rates appearing to be almost double that of the Air (at least in CA) it's going to be a VERY costly new owner experience. If the leasing costs don't turn people away I bet the insurance costs are going to make people second guess.

Personally, the Dream edition is becoming really questionable with a $2000 a month lease deal.

 

[Blue Lectroid]

I was VERY excited about Gravity until the lease calculator came along. The Gravity seems to be a truly great vehicle, but I just don’t feel like a $1500-$2000 payment is where I want to play. I have a Lunar Ti on order and perhaps with its “late availability” things will settle in and we’ll start to see at least some deals (e.g. having the $7500 EV credit accrue to the buyer!).

I always assumed that Gravity would be more expensive than an AGT, just not well over 50% more (on a monthly payment basis)! The combined effects of no incentives, the way Lucid seems to be handling the EV Credit and a MUCH, MUCH higher cost interest rate means that even with similar MSRP’s, the cost of ownership over a 36 month term lease may well be DOUBLE that of Air. That’s a real bummer and will likely push off my taking the plunge (and I imagine that I will not be alone)….

 

[PetevB]

I was VERY excited about Gravity until the lease calculator came along. The Gravity seems to be a truly great vehicle, but I just don’t feel like a $1500-$2000 payment is where I want to play. I have a Lunar Ti on order and perhaps with its “late availability” things will settle in and we’ll start to see at least some deals (e.g. having the $7500 EV credit accrue to the buyer!).

I always assumed that Gravity would be more expensive than an AGT, just not well over 50% more (on a monthly payment basis)! The combined effects of no incentives, the way Lucid seems to be handling the EV Credit and a MUCH, MUCH higher cost interest rate means that even with similar MSRP’s, the cost of ownership over a 36 month term lease may well be DOUBLE that of Air. That’s a real bummer and will likely push off my taking the plunge (and I imagine that I will not be alone)….

To be blunt I suspect the only way these lease numbers hold up for long is if Lucid ramps production very slowly and remains supply constrained. Because as good as the Gravity might be it’s just not a financially rational option at this level. For example:

I note Car and Driver has now ranked the Gravity second in its segment (an interesting discussion in itself which I’ll set aside for the moment):

The car they rank it behind is currently available in my area, with tax, for less than half what the Gravity lease would be. Meaning anyone leasing, something I’d recommend to anyone looking at EVs currently, is paying double for the Gravity vs alternatives. Some will be able to justify that, but how many? I’m betting not all that many, meaning if and when production ramps up lease deals will need to improve. Personally I’m on the sidelines as well until such a time- I like the car but I’m not financially insensitive.

 

[TahoeMichael]

You won't be negotiating anything with Lucid while the car has demand. You'll certainly see the figures at the time of finalizing everything including the residual but the only power you will have is putting more money down to reduce the cost or decrease the mileage etc.

Lucid certainly has the upper hand right now and I agree with you, it does seem they're taking the $7,500 for themselves and offering no incentives at all to order holders. That on top of insurance rates appearing to be almost double that of the Air (at least in CA) it's going to be a VERY costly new owner experience. If the leasing costs don't turn people away I bet the insurance costs are going to make people second guess.

Personally, the Dream edition is becoming really questionable with a $2000 a month lease deal.

That's okay, I'm not really expecting to finance the purchase anyway. To me, it doesn't make sense to borrow money to purchase a rapidly depreciating asset. The Gravity is a luxury car, and I'm assuming I'll pay cash for it. I'd be happy to get the $7500 EV incentive, but considering my income level, I can't really argue that the government should be helping me buy the vehicle. Anyone who's concerned about whether a Lucid makes "financial sense" probably needs to wait for their mid-market vehicles to launch, because $100K+ vehicles never really make financial sense.

 

[JoshG]

I was VERY excited about Gravity until the lease calculator came along. The Gravity seems to be a truly great vehicle, but I just don’t feel like a $1500-$2000 payment is where I want to play. I have a Lunar Ti on order and perhaps with its “late availability” things will settle in and we’ll start to see at least some deals (e.g. having the $7500 EV credit accrue to the buyer!).

I always assumed that Gravity would be more expensive than an AGT, just not well over 50% more (on a monthly payment basis)! The combined effects of no incentives, the way Lucid seems to be handling the EV Credit and a MUCH, MUCH higher cost interest rate means that even with similar MSRP’s, the cost of ownership over a 36 month term lease may well be DOUBLE that of Air. That’s a real bummer and will likely push off my taking the plunge (and I imagine that I will not be alone)….

You've summed up my feelings exactly. Love my Air Touring, my "bridge" lease is up, and have become super excited by the gravity having watched every minute of every video, read every word, and spent way too much time on forums like this.

While I don't really have a need for an SUV, I liked everything about the Gravity. Was considering upgrading to Dream Edition too. But now that the lease calculator is out, it's settling in how much I'd really be paying just to have the cool car first. I'm OK with that sometimes but I am seriously questioning what I'll do now with this crazy low residual value they must be using or a crazy high money factor or both.

Buying it outright is an option, but I suspect the depreciation on these first year's production will be super high... so not sure it will work out better financially. Lucid clearly doesn't believe they'll be very worth much in 2 years or the residual value would be higher.

 

[Blue Lectroid]

That's okay, I'm not really expecting to finance the purchase anyway. To me, it doesn't make sense to borrow money to purchase a rapidly depreciating asset. The Gravity is a luxury car, and I'm assuming I'll pay cash for it. I'd be happy to get the $7500 EV incentive, but considering my income level, I can't really argue that the government should be helping me buy the vehicle. Anyone who's concerned about whether a Lucid makes "financial sense" probably needs to wait for their mid-market vehicles to launch, because $100K+ vehicles never really make financial sense.

As the post before yours points out, it’s that the current Leasing structure Lucid is offering is simply not competitive given other vehicles in its class and will have to be in the intermediate term to remain competitive. One look at the Air Lease Deals and it’s safe to assume waiting a bit will yield far better terms.

Could I buy the Gravity in cash now? Yes. I would not have looked at it seriously if I could not. Will I buy it on release, at MSRP when I am certain that I will save MANY thousands of dollars by waiting six months to a year? Probs not. I’m just not that in need of having the newest, latest, greatest…I’d rather love the car AND the deal.

And I am betting a fair number of us who love Lucid, love the Gravity AND want one will still show the necessary restraint to get better deals…we shall see!!

 

[JoshG]

I'd be happy to get the $7500 EV incentive, but considering my income level, I can't really argue that the government should be helping me buy the vehicle.

Gravity doesn't qualify for any federal EV tax credit at all due to the price.

 

[HC_79]

I was VERY excited about Gravity until the lease calculator came along. The Gravity seems to be a truly great vehicle, but I just don’t feel like a $1500-$2000 payment is where I want to play. I have a Lunar Ti on order and perhaps with its “late availability” things will settle in and we’ll start to see at least some deals (e.g. having the $7500 EV credit accrue to the buyer!).

I always assumed that Gravity would be more expensive than an AGT, just not well over 50% more (on a monthly payment basis)! The combined effects of no incentives, the way Lucid seems to be handling the EV Credit and a MUCH, MUCH higher cost interest rate means that even with similar MSRP’s, the cost of ownership over a 36 month term lease may well be DOUBLE that of Air. That’s a real bummer and will likely push off my taking the plunge (and I imagine that I will not be alone)….

I agree, I think it’s $500 a month too high on both the Dream and Grand Touring. It’s seems way out of line with the competition also.

 

[HC_79]

Gravity doesn't qualify for any federal EV tax credit at all due to the price.

It does on a lease due to a loophole.

 

[JoshG]

It does on a lease due to a loophole.

Yes, you are correct. But the person quoted was discussing this in a "buy it outright for cash" scenario, so the tax credit wouldn't apply.

 

[HC_79]

Buying it outright is an option, but I suspect the depreciation on these first year's production will be super high... so not sure it will work out better financially. Lucid clearly doesn't believe they'll be very worth much in 2 years or the residual value would be higher.

Just look at the depreciation on the Air or any EV for that matter to know buying outright isn’t smart either.

Just because you’ve got the cash to buy one doesn’t mean you should just throw it away because with EV’s that’s what’s happening at the moment.

 

[HC_79]

I was VERY excited about Gravity until the lease calculator came along. The Gravity seems to be a truly great vehicle, but I just don’t feel like a $1500-$2000 payment is where I want to play. I have a Lunar Ti on order and perhaps with its “late availability” things will settle in and we’ll start to see at least some deals (e.g. having the $7500 EV credit accrue to the buyer!).

I always assumed that Gravity would be more expensive than an AGT, just not well over 50% more (on a monthly payment basis)! The combined effects of no incentives, the way Lucid seems to be handling the EV Credit and a MUCH, MUCH higher cost interest rate means that even with similar MSRP’s, the cost of ownership over a 36 month term lease may well be DOUBLE that of Air. That’s a real bummer and will likely push off my taking the plunge (and I imagine that I will not be alone)….

It’s not just the high lease cost either but when I checked insurance my policy was going to go from $1300 to $2700 for 6 months.

I really like the car but like you, just because I’ve got the means to afford one doesn’t mean I just want to throw money hand over fist at it. Seeing how aggressive Lucid got with the Air it could be worth riding it out.

 

[Pragmatic]

What type of deals were on Airs in the first year or two? Prices (or sales) will adjust to the market.
Yes the BMW IX is ranked second but is it really a true competitor? No frunk, 36 cubic feet cargo compared to 48 (plus another 8 in the frunk). The one used in the example lease takes 4 seconds to reach 60. No third row seat.

 

[jered]

The car they rank it behind is currently available in my area, with tax, for less than half what the Gravity lease would be. Meaning anyone leasing, something I’d recommend to anyone looking at EVs currently, is paying double for the Gravity vs alternatives. Some will be able to justify that, but how many? I’m betting not all that many, meaning if and when production ramps up lease deals will need to improve. Personally I’m on the sidelines as well until such a time- I like the car but I’m not financially insensitive.

How is that the same class? The iX doesn't have a 3rd row option. That's a killer lease deal, though, and a great vehicle. Pity it looks like it got punched in the nose.

 

[PetevB]

How is that the same class? The iX doesn't have a 3rd row option. That's a killer lease deal, though, and a great vehicle. Pity it looks like it got punched in the nose.

If it will be cross shopped or not depends on the individual- plenty here are not taking the 3rd row option, for example, so this will be viable for some, others will look at an EV9 or EX90, etc. Now I happen to believe the Gravity should be better than any of those for my use cases, the question being if it’s enough better to justify the cost. The bigger the cost difference the harder that becomes, so I’m personally looking at other options and timing carefully. I expected early lease deals to be poor, but I also expected production to ramp faster than it has.

For perspective I recently returned an $115k Audi E-tron GT one year lease. I could have that plus an EV9 Wind AWD for what they’re asking for the Gravity GT (not loaded) and still have money left over. So yea…

 

[jered]

If it will be cross shopped or not depends on the individual- plenty here are not taking the 3rd row option, for example, so this will be viable for some, others will look at an EV9 or EX90, etc. Now I happen to believe the Gravity should be better than any of those for my use cases, the question being if it’s enough better to justify the cost. The bigger the cost difference the harder that becomes, so I’m personally looking at other options and timing carefully. I expected early lease deals to be poor, but I also expected production to ramp faster than it has.

For perspective I recently returned an $115k Audi E-tron GT one year lease. I could have that plus an EV9 Wind AWD for what they’re asking for the Gravity GT (not loaded) and still have money left over. So yea…

Fair. I'm half tempted to wait for the GV90 but I know I won't like the UX.

What did you think of the e-tron? Now you've got me thinking about an RS lease whenever we decide to sell the Challenger. (Only car we've ever bought that has gone up in value.)

 

[PetevB]

What did you think of the e-tron? Now you've got me thinking about an RS lease whenever we decide to sell the Challenger. (Only car we've ever bought that has gone up in value.)

A great GT car from a driver’s perspective- planted, comfortable, quite, balanced, very easy to speed in unintentionally. Very nice interior if a little over-styled. Miles better driver’s car than my previous Tesla, but not a car that you’ll want to get up early to go for a drive in (GT rather than sports car). Terrible packaging- big on the outside, barely room for car seats and groceries of the inside. Poor efficiency and short range (improved for 2025), pretty clearly a first gen tech effort. It saw the shop twice in a year, more than it should have. Overall if you can get a deal it’s great to try, but I wouldn’t call it a keeper. But it’d do 100 mph in the rain about as well as well as anything there is I suspect, and it always put a smile on my face to drive.

My “went up in value” car is a manual GT3 Touring, just for reference when I say “not a sports car, won’t get me up in the morning to go drive”.

 

[TahoeMichael]

As the post before yours points out, it’s that the current Leasing structure Lucid is offering is simply not competitive given other vehicles in its class and will have to be in the intermediate term to remain competitive. One look at the Air Lease Deals and it’s safe to assume waiting a bit will yield far better terms.

Could I buy the Gravity in cash now? Yes. I would not have looked at it seriously if I could not. Will I buy it on release, at MSRP when I am certain that I will save MANY thousands of dollars by waiting six months to a year? Probs not. I’m just not that in need of having the newest, latest, greatest…I’d rather love the car AND the deal.

And I am betting a fair number of us who love Lucid, love the Gravity AND want one will still show the necessary restraint to get better deals…we shall see!!

My opinion is that the Gravity will depreciate rapidly, but I don't expect substantial price cuts over the next year for a new Gravity. If you look at what the Air GT is being offered at, it's inline with the Gravity launch pricing. But if you mean that Lucid will be offering attractive lease deals in a year, I think that could definitely be a possibility.

 

[TahoeMichael]

What type of deals were on Airs in the first year or two? Prices (or sales) will adjust to the market.
Yes the BMW IX is ranked second but is it really a true competitor? No frunk, 36 cubic feet cargo compared to 48 (plus another 8 in the frunk). The one used in the example lease takes 4 seconds to reach 60. No third row seat.

Neither range nor charging speed competes well either.

I generally respect C&D's opinions about cars. But I note that them ranking the Gravity behind the iX is from before they had a chance to actually test the vehicle. So I don't necessarily expect their ranking to change, but I'll be curious to see what they think once they've actually had a chance to test it.

 

[dhruv]

I found out that Residual is 56% and money factor is 8+% for Gravity DE