February Lease Deals - Air and Pro credit removed, Money Factor and Residual Changed?

[swansPD]

My wife and I are moving back stateside soon after a two-year expat assignment in Italy and I've been cross-shopping a number of EVs including Lucid, Mercedes EQS, BMW iX and a few others (non-luxury). I just checked the updated Lucid lease calculator and it looks like they've removed the Pro, and Air credits from the calculations, but the final numbers are still similar (pictured below). Does this confirm they're back to the November deal structure with near 0% money factors and higher residuals?

One thing Lucid hasn't done with the lease numbers that MB, BMW and others do is "lease support" to help drive down the net capital cost (they did this with the Air and Pro credits, but that created taxable incentives). It'd be great if they were able to keep the favorable residual and money factors that they have for February with some additional lease support. For example, I'm cross shopping an EQS 580 (SUV) and I'm seeing some offers of 15% off MSRP before incentives, with the $7500 EV credit stackable with $10k-$12k in dealer cash.

Obviously the economics and reality of the situation for Lucid are different as they don't have a dealer network and don't own a financial services organization (aka a bank), but here's to wishful thinking...I really love what Lucid is doing, but it is going to be tough to pass up some of the 24-month 12/15k mile offers I'm getting from Benz dealers.

 

[momo3605]

My wife and I are moving back stateside soon after a two-year expat assignment in Italy and I've been cross-shopping a number of EVs including Lucid, Mercedes EQS, BMW iX and a few others (non-luxury). I just checked the updated Lucid lease calculator and it looks like they've removed the Pro, and Air credits from the calculations, but the final numbers are still similar (pictured below). Does this confirm they're back to the November deal structure with near 0% money factors and higher residuals?

View attachment 18174

One thing Lucid hasn't done with the lease numbers that MB, BMW and others do is "lease support" to help drive down the net capital cost (they did this with the Air and Pro credits, but that created taxable incentives). It'd be great if they were able to keep the favorable residual and money factors that they have for February with some additional lease support. For example, I'm cross shopping an EQS 580 (SUV) and I'm seeing some offers of 15% off MSRP before incentives, with the $7500 EV credit stackable with $10k-$12k in dealer cash.

Obviously the economics and reality of the situation for Lucid are different as they don't have a dealer network and don't own a financial services organization (aka a bank), but here's to wishful thinking...I really love what Lucid is doing, but it is going to be tough to pass up some of the 24-month 12/15k mile offers I'm getting from Benz dealers.

With Mercedes and legacy automakers, there is an MSRP and an invoice, and dealers can essentially discount cars on their own to move inventory. Lucid has no dealer network, so they can't exactly reduce the selling price without an incentive.

BUT, Tesla has skirted around this recently by doing inventory discounts, reducing the sales price by thousands without resorting to taxable incentives. Lucid has to get creative here, but I think they are trying to not go too aggressive. With these high residual 0% MF leases, they are going to get burned big time come lease return.

Like you've posted, it does look like they've gone back to the November deal structure (that's when I got my car). I'm not sure why they keep flipping back and forth. But i think the taxable incentives must have been hurting the lease prospects.

 

[LucidPez]

With Mercedes and legacy automakers, there is an MSRP and an invoice, and dealers can essentially discount cars on their own to move inventory. Lucid has no dealer network, so they can't exactly reduce the selling price without an incentive.

BUT, Tesla has skirted around this recently by doing inventory discounts, reducing the sales price by thousands without resorting to taxable incentives. Lucid has to get creative here, but I think they are trying to not go too aggressive. With these high residual 0% MF leases, they are going to get burned big time come lease return.

Like you've posted, it does look like they've gone back to the November deal structure (that's when I got my car). I'm not sure why they keep flipping back and forth. But i think the taxable incentives must have been hurting the lease prospects.

Tesla only reduces the demo vehicle inventory and you cant lease those...

My wife and I are moving back stateside soon after a two-year expat assignment in Italy and I've been cross-shopping a number of EVs including Lucid, Mercedes EQS, BMW iX and a few others (non-luxury). I just checked the updated Lucid lease calculator and it looks like they've removed the Pro, and Air credits from the calculations, but the final numbers are still similar (pictured below). Does this confirm they're back to the November deal structure with near 0% money factors and higher residuals?

View attachment 18174

One thing Lucid hasn't done with the lease numbers that MB, BMW and others do is "lease support" to help drive down the net capital cost (they did this with the Air and Pro credits, but that created taxable incentives). It'd be great if they were able to keep the favorable residual and money factors that they have for February with some additional lease support. For example, I'm cross shopping an EQS 580 (SUV) and I'm seeing some offers of 15% off MSRP before incentives, with the $7500 EV credit stackable with $10k-$12k in dealer cash.

Obviously the economics and reality of the situation for Lucid are different as they don't have a dealer network and don't own a financial services organization (aka a bank), but here's to wishful thinking...I really love what Lucid is doing, but it is going to be tough to pass up some of the 24-month 12/15k mile offers I'm getting from Benz dealers.

I'm actually waiting for an Air GT to arrive on an 18 month lease at $0 down. This is way more than what I was paying for sure. I think mine was like $1400 after tax with 19" wheels. Big bummer they removed the discounts.

 

[momo3605]

Tesla only reduces the demo vehicle inventory and you cant lease those...

Nope…you can lease discounted inventory vehicles. As long as it has 0 miles and isn’t a demo. Here’s an example

https://www.tesla.com/my/order/7SAY224_a8d70d0591f1de4591eb8cde574758dd?postal=95111&range=200&coord=37.2821,-121.831&region=CA&titleStatus=new&redirect=no#overview

I'm actually waiting for an Air GT to arrive on an 18 month lease at $0 down. This is way more than what I was paying for sure. I think mine was like $1400 after tax with 19" wheels. Big bummer they removed the discounts.

Can’t you use Jan or Feb terms? Whichever one you like better? If you live in a low tax state, probably better to go with January terms for the low residual.

 

[LucidPez]

Oh nice. I guess I wasnt looking at Y's when i was checking before. I kept seeing demo vehicles for other models only. But arent they doing this because the $7500 is offered at sale for 2024 models so they kinda have to?

 

[momo3605]

Oh nice. I guess I wasnt looking at Y's when i was checking before. I kept seeing demo vehicles for other models only. But arent they doing this because the $7500 is offered at sale for 2024 models so they kinda have to?

They were doing it December as well! The real sweet spot were the inventory 2023 model 3 performance that were $5k off. The leases were actually pretty decent haha.

 

[LucidPez]

Nope…you can lease discounted inventory vehicles. As long as it has 0 miles and isn’t a demo. Here’s an example

https://www.tesla.com/my/order/7SAY224_a8d70d0591f1de4591eb8cde574758dd?postal=95111&range=200&coord=37.2821,-121.831&region=CA&titleStatus=new&redirect=no#overview

Can’t you use Jan or Feb terms? Whichever one you like better? If you live in a low tax state, probably better to go with January terms for the low residual.

Jan I'm fairly sure has higher residual but has DDP/SSP credits thus being free. Feb has lower residual most likely and has no DDP/SSP discounts

 

[momo3605]

Jan I'm fairly sure has higher residual but has DDP/SSP credits thus being free. Feb has lower residual most likely and has no DDP/SSP discounts

Jan would be low residual + credits and Feb would be high residual no credits.

Think about it this way. When the payments are roughly the same, the only way it works is if the depreciation during lease term is the same. I.e $110k and $60k residual (with credits) vs $130k and $80k residual (no credits)

My November deal is high residual no credits (works better in California because of all the taxes on the credits)

 

[LucidPez]

Jan would be low residual + credits and Feb would be high residual no credits.

Think about it this way. When the payments are roughly the same, the only way it works is if the depreciation during lease term is the same. I.e $110k and $60k residual (with credits) vs $130k and $80k residual (no credits)

My November deal is high residual no credits (works better in California because of all the taxable credits)

Derp. You are correct! Long workday.

Yeah will need Bank of America to crunch the numbers for me when the car gets in.

 

[LucidPez]

Had Lucid crunch the numbers.

Apparently January is cheaper by $400 even with the taxes then the February offer over 18 months at $0 down 10kmiles.

This is in California.

 

[LucidPez]

My wife and I are moving back stateside soon after a two-year expat assignment in Italy and I've been cross-shopping a number of EVs including Lucid, Mercedes EQS, BMW iX and a few others (non-luxury). I just checked the updated Lucid lease calculator and it looks like they've removed the Pro, and Air credits from the calculations, but the final numbers are still similar (pictured below). Does this confirm they're back to the November deal structure with near 0% money factors and higher residuals?

View attachment 18174

One thing Lucid hasn't done with the lease numbers that MB, BMW and others do is "lease support" to help drive down the net capital cost (they did this with the Air and Pro credits, but that created taxable incentives). It'd be great if they were able to keep the favorable residual and money factors that they have for February with some additional lease support. For example, I'm cross shopping an EQS 580 (SUV) and I'm seeing some offers of 15% off MSRP before incentives, with the $7500 EV credit stackable with $10k-$12k in dealer cash.

Obviously the economics and reality of the situation for Lucid are different as they don't have a dealer network and don't own a financial services organization (aka a bank), but here's to wishful thinking...I really love what Lucid is doing, but it is going to be tough to pass up some of the 24-month 12/15k mile offers I'm getting from Benz dealers.

Winning Luxury

Now through February 29, 2024, Lucid is providing the electrifying power of choice. Choose between a very well-equipped available 2023 Model or advance order a 2024 Model.¹

lucidmotors.com

Apparently they are still offering the offers -- The calculator is just busted. I would call or talk to Lucid for a quote.

 

[ceemore80]

The 2023 Lucid Air offer in February remains the same as in January.

Navigate to Shop -> Available Vehicles -> Model Year (2023) -> Select your vehicle thru filtering options -> Proceed to Order

 

[LucidPez]

I think the calculator was just busted the other day.

 

[swansPD]

The 2023 Lucid Air offer in February remains the same as in January.

Navigate to Shop -> Available Vehicles -> Model Year (2023) -> Select your vehicle thru filtering options -> Proceed to Order

View attachment 18226

You're correct, but need to continue to the order confirmation page. For Cash, and Loan the credits show up, and for the lease that are not present. See image below.

And even if you pop up the payment calculator it's the same.

I have a meeting set up to chat with Lucid tomorrow and will update with any information I get. It could be simply the calculator isn't working, or they have changed the lease terms back to the November numbers.

 

[ceemore80]

I have a meeting set up to chat with Lucid tomorrow and will update with any information I get. It could be simply the calculator isn't working, or they have changed the lease terms back to the November numbers.

Hmm.. I see. I think your delivery advisor can help resolve the issue. Good luck!