Gravity has already been in production half a year. lol.
If there are deals this year either Lucid is in big trouble or they somehow ramp to the planned production rate.
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Lucid Gravity Reservation Tracker: Add Your Gravity Reservation
Lease Gravity
- Thread starter RedTanuiki
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If there are deals this year either Lucid is in big trouble or they somehow ramp to the planned production rate.
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As a few of us seem to be on the verge of taking delivery, I wonder if anyone can report the residual in the lease agreement they're about to sign?
I have a 2023 EQS 580 SUV with an MSRP closer to 145k. I did a sign and drive so 35 payments on a 36 month lease 12k / year for $1,142 / month. I leased and registered in NJ before sales tax on EVs.
Just read Lucid's fine print about lease-end options:
"Please note: Purchase option not available in the following states IA, IN, KS, LA, ME, RI."
er, wtf? This is definitely not due to state law in Maine, so must be Lucid's own restriction. Reason?
"Please note: Purchase option not available in the following states IA, IN, KS, LA, ME, RI."
er, wtf? This is definitely not due to state law in Maine, so must be Lucid's own restriction. Reason?
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They may not have a dealer’s license in those states? Not sure.
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There's been a lot of discussion about lease returns for Airs, and how frustrated people are with Bank of America. If BofA (or some other bank now) is the owner of the leased vehicles, perhaps the end-of-lease is more about the Bank's legal status in the state than Lucid's? Just wildly speculating, I know basically nothing about the legal landscape for vehicle leasing.
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I am new to this leasing thing, but doesn't the assumed residual value loom large? Larger than the interest rate over a 3-year term?
It sure seems like electric cars depreciate dramatically, and that goes double for high-priced launch-edition cars. FWIW, my 20-month-old 2023 MSLR has lost over a third of its purchase price, even with only 7,000 miles on the odometer. I reckon my 2023 AT has lost over 50% of its purchase price in 2 years.
So, an assumed 50% residual value for a Dream Edition Gravity after 3 years seems optimistic to me. If the real value is 40%, that makes leasing more attractive, right?
It sure seems like electric cars depreciate dramatically, and that goes double for high-priced launch-edition cars. FWIW, my 20-month-old 2023 MSLR has lost over a third of its purchase price, even with only 7,000 miles on the odometer. I reckon my 2023 AT has lost over 50% of its purchase price in 2 years.
So, an assumed 50% residual value for a Dream Edition Gravity after 3 years seems optimistic to me. If the real value is 40%, that makes leasing more attractive, right?
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I asked my SA about residual value and he doesn’t know it.
Pretty sure it’s something one knows before setting lease price. This isn’t a mystery, it’s math…
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If you have monthly payment quotes for two different down payments you can back out both.
Here are the formulas:
residual = (term*(monthly_payment_a*net_cap_cost_b - monthly_payment_b*net_cap_cost_a))/(2*net_cap_cost_a - 2*net_cap_cost_b - monthly_payment_a*term + monthly_payment_b*term)
money_factor = (net_cap_cost_b - net_cap_cost_a + monthly_payment_a*term - monthly_payment_b*term)/(net_cap_cost_a*term - net_cap_cost_b*term)
apr = money_factor*2400
I calculated 8% APR and 56% residual for the Dream Edition.
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Makes sense.
But are there other combinations of interest rates and residuals that generate the same monthly payment? Off the top of my head, 0% and a (net purchase price-residual value) equal to the sum of the payments?
There are infinite number of combinations of interest rates and residuals that generate the same monthly payment. But if you have two monthly payments and down payment quotes and assume that they both use the same interest rate and residual then there there is only one possible interest rate and residual.
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Got it, thanks!
So if my (opportunity) cost of credit is (say) 4% for 3 years, I can back out an implied residual value from the lease payments. If that residual value is higher than I think it should be (56% seems very high to me), I'd prefer to lease. If it's lower, I'd prefer to purchase.
Easy peasy.
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