LUCID Gravity Lease vs Finance

I found out that Residual is 56% and money factor is 8+% for Gravity DE
They’re charging that money factor and wanting 800+ credit for the best deal….. insane! That money factor belongs to someone with a credit score of 600
 
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)….
Totally agree with you. If the lease prices don’t change, then will be canceling my day 1 order and just wait to see if they get better. Then will see if any changes happen with the Air this year too as I do prefer sedans, but wanted the newer tech in the Gravity and NACS. I would not want to buy an EV anymore, as the resale value just plunges too much and I just don’t keep cars long enough to take accept that steep depreciation.
 
I found out that Residual is 56% and money factor is 8+% for Gravity DE
8+% is absurdly high. Lucid clearly has “excess demand” at the moment and is understandably trying to monetize that. There will be many that just gotta have one out of the gate no matter the cost. I am simply not that guy. I’m no cheapo, but the initial financing options offered by Lucid, lack of any incentives and no apparent EV credit in the leasing calcs has me on the sidelines until demand softens. As much as I do NOT like our Ioniq 5, we own it outright and will happily drive it another year or two rather than throwing away $10,000-$15,000+…

I apologize in advance for the following “armchair CEO moment,” but were I launching Gravity, I would set the interest rate on leases such that the Company and the customer effectively “split” the value of the EV Credit AND I’d offer a $6,000 “Existing Air Owner” credit for original Air owners with MY 2022 and 2023 cars, $4,000 for original 2024 and 2025 Air owners and a $3,000 “Become a Member of the Lucid Family” credit for those coming from other brands.

Yes, that would be leaving some profit on the table, BUT, it shows good will AND I think would go a long way towards capturing a LOT more orders. Make the deposits on orders with those credits $2500 and non-refundable too…

Anyway, stepping down off the soapbox now…
 
My working assumption is that the leasing costs are going to completely eat up the $7500 savings. I agree that one can counter-balance that somewhat by calculating the investment return on the money you saved by not paying cash up-front. I'd like to have Lucid clearly disclose the financing rate and depreciation they're assuming for the different lease terms and mileage allowances, so someone could build a spreadsheet that really compares the options. 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?
Yeah im that geek, and did build a tool to weigh the costs of cash versus lease and buyout. I’m saving $6000. And thats if i dont buy out early and go the full 36 months. What i like most is that i know myself and i will likely want something else in 3 years so i have the option to not buy. Then my total cost to drive the car for 36 months/45100 miles is $32228. If i paid cash today and sold the car in 36 months/45100 miles there is no way my total out of pocket would be that low. This is another reason i may not buy the residual. Lease deals change every month, and i know mine ended on 3/31. There are different ones now, so they would all need to be recalculated to determine if they are a good fit. But the one i got, i wont be hurt by the depreciation.
 
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.
I had the BMW IX for about a year and just sold it because the Gravity is coming and I still have my Air. In my opinion the BMW was very nice but It didn’t handle all that well to what I hear from the early reviews. It doesn’t have a frunk and technology not as well laid out from what I have seen from UX 3 so far.

The great thing about car shopping that there are different vehicles at different price points for what matters most to drivers.

To me luxury, range, charging, and handling are very important in that order. Comparing the leasing cost on a vehicle with huge incentives versus a brand new Gravity isn’t really fair. My fully loaded BMW was $1200 a month and to me spending $500 more a month is worth it.
 
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.

You forgot to mention the hideous front end of the BMW.
 
Comparing the leasing cost on a vehicle with huge incentives versus a brand new Gravity isn’t really fair. My fully loaded BMW was $1200 a month and to me spending $500 more a month is worth it.
It’s not “fair”, but it is reality. These are the choices informed consumers now have. If the Gravity is worth $500 more a month today that’s an $1150 lease payment, not $1700, so the real question is if it’s worth $1100 a month more.

There will always be those willing to pay to be first for the latest and greatest. Dealers routinely ask and get tens of thousands over for the newly released X (Corvette, BMW M car, etc). A year later those same cars are sitting on lots with deep discounts. Supply and demand. I don’t begrudge Lucid trying to make a buck and I don’t fault those with bucks using them to get what they want. I do expect Lucid to let reservation holders who want to let this blow over delay rather than cancel. Returning deposits and giving up customers would feel even more painful about six months from now.
 
I had the BMW IX for about a year and just sold it because the Gravity is coming and I still have my Air. In my opinion the BMW was very nice but It didn’t handle all that well to what I hear from the early reviews. It doesn’t have a frunk and technology not as well laid out from what I have seen from UX 3 so far.

The great thing about car shopping that there are different vehicles at different price points for what matters most to drivers.

To me luxury, range, charging, and handling are very important in that order. Comparing the leasing cost on a vehicle with huge incentives versus a brand new Gravity isn’t really fair. My fully loaded BMW was $1200 a month and to me spending $500 more a month is worth it.
I agree. But keep in mind that my last fully loaded 7 series bmw was $1,200 a month to lease. But if you try to get one now, it will also be $1,700+ a month. All car prices and interest rates increased last 3 to 4 years.
 
I agree. But keep in mind that my last fully loaded 7 series bmw was $1,200 a month to lease. But if you try to get one now, it will also be $1,700+ a month. All car prices and interest rates increased last 3 to 4 years.
Just looked at lease calculator with $40,000 down payment and the difference in payment from zero down is $1235 per month. Plugging that into calculator shows over 3 years it comes to about 7.5% interest. I know this isn’t exact but it is at least a baseline
 
Just looked at lease calculator with $40,000 down payment and the difference in payment from zero down is $1235 per month. Plugging that into calculator shows over 3 years it comes to about 7.5% interest. I know this isn’t exact but it is at least a baseline
You can’t guess that way. With a 60% residual, the APR is about 6%.

That’s why it matters where @dhruv got their information.
 
I agree….Purely looking at down payment difference…not for the whole lease calculation
 
@dhruv drops rates and residual without giving a term nor where these figures came from. Without Lucid giving those figures everything is an estimate. I have enter several different estimates into their calculator. The best I can come up with is a money factor of between 5.75 and 6 and a residual of between 51 and 53. Both calculated on 36 month leases.

Leasing information is kept dark so that comparisons to loans are not straight forward.
 
They’re charging that money factor and wanting 800+ credit for the best deal….. insane! That money factor belongs to someone with a credit score of 600
The majority of banks are sitting on underwater loans of depreciated cars from overpricing in 2022, so none of them are feeling at all friendly with loaning/leasing at this time....
 
The majority of banks are sitting on underwater loans of depreciated cars from overpricing in 2022, so none of them are feeling at all friendly with loaning/leasing at this time....
True, potential owners don’t care about that though. They’ll see a $700 lease on a BMW and a $1900 lease on a Gravity and no matter how much better the specs are it will steer people away. BMW is offering 3.99% financing also while Lucid is at 6%. Lucid can have the best car on the market but they still need to be somewhat competitive in financing and leasing. I’m by no means saying like for like but when you’re coming in near double, people will walk.

It’s not just the leasing though, looks like I’m going to see a $1400 increase on my insurance compared to my Air GT so if I do still proceed, it’s a double whammy.
 
By the looks of it, a lot of us will walk. I have half a mind to email my SA and just say the lease numbers look terrible and I don't plan on going through with it. Just so they can echo it up the totem pole.
 
By the looks of it, a lot of us will walk. I have half a mind to email my SA and just say the lease numbers look terrible and I don't plan on going through with it. Just so they can echo it up the totem pole.

I am in the same boat too. Probably will end up keeping the current SUV until there are better deals. Still want a Gravity but can’t justify shelling out $2000 for the privilege of being early.
 
By the looks of it, a lot of us will walk. I have half a mind to email my SA and just say the lease numbers look terrible and I don't plan on going through with it. Just so they can echo it up the totem pole.
Don’t think they’d really care tbh.
 
By the looks of it, a lot of us will walk. I have half a mind to email my SA and just say the lease numbers look terrible and I don't plan on going through with it. Just so they can echo it up the totem pole.
I did that today!! I essentially said, “if these lease numbers hold I am going to hold off on my order. These numbers are one-sided and while I don’t expect the kinds of incentives you have on Air, I also will not pay MSRP PLUS a high finance rate with zero fees incentives.”
 
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