My guess is lucid is hedging on survival for 18 months. If the gravity turns them around, they are good, otherwise they’ll just write off the returns.They will end up with a pile of 18-month used Lucids that lessors can't afford to purchase at the end of the contract and will rival the cost of a two-year new vehicle. It makes for a great lease price!
or sell off the cars at fire sale pricesMy guess is lucid is hedging on survival for 18 months. If the gravity turns them around, they are good, otherwise they’ll just write off the returns.
Pull a Fisker? Lol yea that’s likely too.or sell off the cars at fire sale prices
I am relying on basic economics.Pull a Fisker? Lol yea that’s likely too.
This is the best explanation of this I've seen. Thanks.If you are Lucid, think of this way:
Lucid is getting paid $10k to rent out a new air to you for 18 months, then selling them direct or wholesale at market rates (which will make it more accessible to a buyer with a 45-50k budget instead of a 75k budget when the lease is turned in. (You cover the interest during this time essentially)
At 45-50k, they are able to "compete" with model 3 / y new buyers. If you were a model 3 / y buyer would you cross shop a 18 month old air with warranty? I'd think so.
If they didn't move the car, they are floating the capital costs and the storage costs.
So this is a way of getting the inventory they have paid for over 2 buyers instead of 1 without undercutting their total purchase price. Basically the US government is paying for it with the $7500 credit for the lease
I second this, thank you!This is the best explanation of this I've seen. Thanks.
I guess my economics degree was good for something lol...This is the best explanation of this I've seen. Thanks.
This is a great explanation. So taking a 18 months lease would be the safest option even though the monthly payment is higher than 36 months lease ?This is the best explanation of this I've seen. Thanks.
the msrp for a BASE car is 70. That means they have to be able to sell it for 60-62.5k after 18 month to break even. That’s definitely not happening. They will lose another 12k-15k as these will be going for below 50k.If you are Lucid, think of this way:
Lucid is getting paid $10k to rent out a new air to you for 18 months, then selling them direct or wholesale at market rates (which will make it more accessible to a buyer with a 45-50k budget instead of a 75k budget when the lease is turned in. (You cover the interest during this time essentially)
At 45-50k, they are able to "compete" with model 3 / y new buyers. If you were a model 3 / y buyer would you cross shop a 18 month old air with warranty? I'd think so.
If they didn't move the car, they are floating the capital costs and the storage costs.
So this is a way of getting the inventory they have paid for over 2 buyers instead of 1 without undercutting their total purchase price. Basically the US government is paying for it with the $7500 credit for the lease
This is the more realistic explanation. The lease deals and economics appear to be geared toward moving volume now, create buzz, show the market they are not a tiny volume manufacturer and survive until Gravity.the msrp for a BASE car is 70. That means they have to be able to sell it for 60-62.5k after 18 month to break even. That’s definitely not happening. They will lose another 12k-15k as these will be going for below 50k.
Not to mention we know most of the cars people are leasing are not base, some are 2023 GTs that have $1xxk msrp for the same small lease payments. Most are probably in the 80-90k msrp range. Having to fire sale them used for 45-50k is going to lose them a lot of money, especially when the cost to build is like 3x the msrp.
The only way this works out is if the Gravity is a hit and they can become cash positive. It’s going to be tough. The rivian R1T/R1S are best selling 7 seater EV and they are still running very negative.
Normal, no. Definitely winning: took delivery of my Pure AWD in Jan for considerably more upfront and monthly. What state is this deal?Signed an 18month lease, and the residual value is insane at 86%. Is that normal?