End of Lease Experience

[borski]

@borski whatsup , I believe I read that you have a dream edition lucid, if so, do u know if they were doing leases for them? I really want a gold dream edition and was wondering if current owners were able to lease them and possibly I’m thinking that some are coming back to lease return

Nope. Financing or cash only.

 

[PureAir]

Will they allow extension of 18 month lease to say 24 or 36 months if someone wants to extend their lease?

 

[joec]

Will they allow extension of 18 month lease to say 24 or 36 months if someone wants to extend their lease?

No one knows at this point. I imagine sometime this summer we'll be seeing the first GT leases expire. Or perhaps some of the earliest 18-month leases will come first?

We may get more answers then.

 

[marsarbu]

It would be interesting to see if they are considering a used lease option. I might lease mine again at the end of the 18 months, if I have that option. I saw a couple manufacturers starting doing this, giving how crazy expensive new cars are for most people.

 

[joec]

It would be interesting to see if they are considering a used lease option. I might lease mine again at the end of the 18 months, if I have that option. I saw a couple manufacturers starting doing this, giving how crazy expensive new cars are for most people.

If there's a benefit to Lucid to doing this, I imagine they would. I'm not an expert at crunching such numbers. But Lucid is about to have a much larger market of "preowned" Airs out there regardless in a matter of months. I can't imagine they aren't planning to do something lucrative with that.

 

[coma24]

It will likely come down to a numbers game. Yes, they (the note holder) gets less $/car by selling them at auction, but the time spent selling each vehicle and number of interactions with the buyer is also much less, presumably. Whoever the note holder is would need to spin up a retail sales capability, or have Lucid sell it on their behalf (in much the same way as they currently sell the demo models). Unless there's significantly more $ to be made, per vehicle (all things considered), I suspect they'll just get rid of them at auction instead.

 

[kort6776]

It will likely come down to a numbers game. Yes, they (the note holder) gets less $/car by selling them at auction, but the time spent selling each vehicle and number of interactions with the buyer is also much less, presumably. Whoever the note holder is would need to spin up a retail sales capability, or have Lucid sell it on their behalf (in much the same way as they currently sell the demo models). Unless there's significantly more $ to be made, per vehicle (all things considered), I suspect they'll just get rid of them at auction instead.

FWIW: the "noteholder" of lucid leases is Bank of America, not Lucid.

 

[Daniel2022AT]

With traditional vehicle brands that operate through a dealer retail channel there is some flexibility engineered in regarding the wholesale price for a dealer to purchase a vehicle off lease to remarket it and the market clearing retail price. Captive finance companies can also offer incentives if there is a mismatch of valuations and the brand wants to manage and smooth market pricing. Lucid does not have either of those or any historical experience so any incentives will be trial and error. There is it appears a huge mismatch between residuals and market pricing so it will be a mess.

 

[coma24]

FWIW: the "noteholder" of lucid leases is Bank of America, not Lucid.

Yes, that's why I said 'noteholder' rather than "Lucid", and also why I said, "...have Lucid sell it on their behalf..."

 

[Daniel2022AT]

Yes. Agreed.