Lease Deals are INSANELY GREAT

[Blue Lectroid]

Morning. Just a quick note to anyone “on the fence” about jumping into an Air right now…the Lease Deals are insane.

I usually purchase my cars outright and keep them for 6-9 years. However, between the $7500 EV Credit only available on leases, the Lucid Air Credits in place right now ($5k, $7.5k and $10k IIRC, depending on model) AND the very low Money Factor being used in leases, it makes no sense to do anything other than lease — even if you want to buy the car.

The total lease related fees that I am paying on a fully loaded Air GT for the optionality of handing the car back in 36 months (i.e., the costs above a cash deal) are:

$995 Acquisition Fee
$225 Processing Fee
$450 Lease Return OR Purchase Fee
$245.61 Rent Charge

Total is $1,915.61 more than a cash deal, BUT, the $7500 EV Credit completely wipes this out and leaves you significantly better off (in my case almost $5600 better off) than buying in cash!

 

[Buffalo Bob]

Morning. Just a quick note to anyone “on the fence” about jumping into an Air right now…the Lease Deals are insane.

I usually purchase my cars outright and keep them for 6-9 years. However, between the $7500 EV Credit only available on leases, the Lucid Air Credits in place right now ($5k, $7.5k and $10k IIRC, depending on model) AND the very low Money Factor being used in leases, it makes no sense to do anything other than lease — even if you want to buy the car.

The total lease related fees that I am paying on a fully loaded Air GT for the optionality of handing the car back in 36 months (i.e., the costs above a cash deal) are:

$995 Acquisition Fee
$225 Processing Fee
$450 Lease Return OR Purchase Fee
$245.61 Rent Charge

Total is $1,915.61 more than a cash deal, BUT, the $7500 EV Credit completely wipes this out and leaves you significantly better off (in my case almost $5600 better off) than buying in cash!

Interesting. Would you please complete the picture with the original purchase price, application of credits, monthly payment and residual? Not sure if I am missing anything, as I have never leased before. BTW, is the $7,500 just another credit, or do you go to the government for that? Thanks!

 

[DBV]

Morning. Just a quick note to anyone “on the fence” about jumping into an Air right now…the Lease Deals are insane.

I usually purchase my cars outright and keep them for 6-9 years. However, between the $7500 EV Credit only available on leases, the Lucid Air Credits in place right now ($5k, $7.5k and $10k IIRC, depending on model) AND the very low Money Factor being used in leases, it makes no sense to do anything other than lease — even if you want to buy the car.

The total lease related fees that I am paying on a fully loaded Air GT for the optionality of handing the car back in 36 months (i.e., the costs above a cash deal) are:

$995 Acquisition Fee
$225 Processing Fee
$450 Lease Return OR Purchase Fee
$245.61 Rent Charge

Total is $1,915.61 more than a cash deal, BUT, the $7500 EV Credit completely wipes this out and leaves you significantly better off (in my case almost $5600 better off) than buying in cash!

On a 36 or 18 mos lease? In the past the 18 mos lease was the most aggressive, but in what you showed above, you did not include car type, total purchase price, etc, so hard to tell just buy what you posted. The most insane lease deals were earlier this year in early April. Those were crazy. Thanks for posting.

 

[Wolfman]

Not sure what to make of the mentioned numbers. The biggest impact on any lease is the residual, followed by the MF. Those are typically the numbers I look for first. Then I go for zero down as that money is lost when a car is totaled. Since he residual changes by miles per year driven, I often found that the higher residual with lower miles is the better deal even if there is overage to be paid at lease end.
Then comes the purchase price where all those credits/discounts.

Love to see any 18 months numbers on a Pure/Touring/GT

 

[Ktw13]

Man, I am so envious it is so cheap in the US.

My GT is $144k

 

[tonybot]

I think the best way is to use Lucid online calculator. If you are getting onsite discount and referral, put that as a down payment for calculation purposes to get accurate number. I think you will see amazing numbers.

 

[Blue Lectroid]

On a 36 or 18 mos lease? In the past the 18 mos lease was the most aggressive, but in what you showed above, you did not include car type, total purchase price, etc, so hard to tell just buy what you posted. The most insane lease deals were earlier this year in early April. Those were crazy. Thanks for posting.

I said “a fully loaded Air GT”. The only option my car does not have is the glass roof (I prefer the metal roof). Later in my OP I said I had the option to hand the car back in 36 months…

 

[dingo]

I loved the deal I got on my 23 pure lease sept of 2023… same car now (albeit 2wd now not AWD) is 200 less per month now it seems.

 

[westofboston]

Here were the details from my lease that I just picked up yesterday in Natick:

Base Pure with Dream Drive Basic. Seems crazy to call it ‘Base’ with how nice it is but I understand that people look for ventilated seats, 360 camera, etc. which it doesn’t have. Note that so far the back up camera and built in sensors have been more than adequate

18 months/18k total miles (12 per year)
Let’s call it acquisition fees to get it out the door and titled and tagged and whatever else goes into that was about $1150 which included the first month lease payment

Moving forward the lease is $544 a month (all in) with that $450 turn-in fee at the end of it

This also includes the 100kw charging at EA during the first year and the 1k charger credit

On site discount, dream drive discount, referral credit and I guess the 7500 Ev credit?! Need to look at the paperwork if I missed anything.

Insurance through Geico for at least the first 6 months (let’s see if they raise it afterwards) was about 650 for myself, spouse and college student that is at school a good distance away and one kid still only on a permit.

Also, will have that first year tax bill from Massachusetts which will of course be high since it is a new vehicle. I think I calculated all in about 78 cents a mile as long as I don’t go over.

 

[DBV]

I said “a fully loaded Air GT”. The only option my car does not have is the glass roof (I prefer the metal roof). Later in my OP I said I had the option to hand the car back in 36 months…

Ok - cool. Just saw the other stuff broken down. .

So, now 36 mos lease is now more aggressive than the 18 mos? The 18 mos lease was always the most aggressive, but maybe it changed this month. Congrats on your car!

 

[Batteryman]

Morning. Just a quick note to anyone “on the fence” about jumping into an Air right now…the Lease Deals are insane.

I usually purchase my cars outright and keep them for 6-9 years. However, between the $7500 EV Credit only available on leases, the Lucid Air Credits in place right now ($5k, $7.5k and $10k IIRC, depending on model) AND the very low Money Factor being used in leases, it makes no sense to do anything other than lease — even if you want to buy the car.

The total lease related fees that I am paying on a fully loaded Air GT for the optionality of handing the car back in 36 months (i.e., the costs above a cash deal) are:

$995 Acquisition Fee
$225 Processing Fee
$450 Lease Return OR Purchase Fee
$245.61 Rent Charge

Total is $1,915.61 more than a cash deal, BUT, the $7500 EV Credit completely wipes this out and leaves you significantly better off (in my case almost $5600 better off) than buying in cash!

Congrats on great deal!

Leasing is good only if you want to change your car every 3 years, get that latest updates. Over the long run- buying is always cheaper if you keep the car >5 years. If you want to buy another Lucid in 3 years, you would be behind, unless they have as good lease deals at the time.

I would have leased, only reason I didn't was I like to tint and clearbra my car, and always a headache with lease returns when their minor damage- curb rash, door dents etc. More at peace owning the car.

 

[jedwin]

Blue Lectroid and West of Boston:

Like others, I'm very keyed into the Residual that you'd pay if you decide to keep it. I expect to keep my Pure more than 3 years, as I don't really expect the next gen batteries to be fully deployed til a bit later; that 2nd car will be my "forever" Lucid (hopefully paid for with gains on low-basis LCID shares!) I'd only be likely to lease if the incentives made it cheaper (or only marginally more) to pay the residual, than buying it outright. BlueLectroid, you implied it was clearly cheaper (with the EV credit), but didn't include that Residual payment for us to see...! (did you figure in that you'd be paying sales tax on the residual balance if you bought it? That may not be enough to tip the scales, but it is a factor, since the full sales tax is included in the cash price calculation)

Especially interested in Residuals on recent leases, since it likely represents what I"ll be presented with in Feb/Mar when my car's ready. (and yes I realize the incentives then may well differ than now)

Not including a Residual is the gaping hole in the online Lease Calculator; apparently that figure isn't shared until you get actual leasing paperwork....which I'll be prepared to turn down in favor of cash purchase.

 

[westofboston]

Blue Lectroid and West of Boston:

Like others, I'm very keyed into the Residual that you'd pay if you decide to keep it. I expect to keep my Pure more than 3 years, as I don't really expect the next gen batteries to be fully deployed til a bit later; that 2nd car will be my "forever" Lucid (hopefully paid for with gains on low-basis LCID shares!) I'd only be likely to lease if the incentives made it cheaper (or only marginally more) to pay the residual, than buying it outright. BlueLectroid, you implied it was clearly cheaper (with the EV credit), but didn't include that Residual payment for us to see...! (did you figure in that you'd be paying sales tax on the residual balance if you bought it? That may not be enough to tip the scales, but it is a factor, since the full sales tax is included in the cash price calculation)

Especially interested in Residuals on recent leases, since it likely represents what I"ll be presented with in Feb/Mar when my car's ready. (and yes I realize the incentives then may well differ than now)

Not including a Residual is the gaping hole in the online Lease Calculator; apparently that figure isn't shared until you get actual leasing paperwork....which I'll be prepared to turn down in favor of cash purchase.

Residual for mine is 41, 992 which seems like base price minus all discounts at time of lease plus my 18 months of lease payments. Haven’t done the full math.

 

[WildRide47]

Morning. Just a quick note to anyone “on the fence” about jumping into an Air right now…the Lease Deals are insane.

I usually purchase my cars outright and keep them for 6-9 years. However, between the $7500 EV Credit only available on leases, the Lucid Air Credits in place right now ($5k, $7.5k and $10k IIRC, depending on model) AND the very low Money Factor being used in leases, it makes no sense to do anything other than lease — even if you want to buy the car.

The total lease related fees that I am paying on a fully loaded Air GT for the optionality of handing the car back in 36 months (i.e., the costs above a cash deal) are:

$995 Acquisition Fee
$225 Processing Fee
$450 Lease Return OR Purchase Fee
$245.61 Rent Charge

Total is $1,915.61 more than a cash deal, BUT, the $7500 EV Credit completely wipes this out and leaves you significantly better off (in my case almost $5600 better off) than buying in cash!

What is the "Rent Charge" ?

 

[rfc805]

What is the "Rent Charge" ?

That is the 'interest' for a lease. Normally this is where they make the money on the fact you're deferring payment. In Lucid's case, it's basically free, which is why the leases are so good.

 

[larrycpa]

Congrats on great deal!

Leasing is good only if you want to change your car every 3 years, get that latest updates. Over the long run- buying is always cheaper if you keep the car >5 years. If you want to buy another Lucid in 3 years, you would be behind, unless they have as good lease deals at the time.

I would have leased, only reason I didn't was I like to tint and clearbra my car, and always a headache with lease returns when their minor damage- curb rash, door dents etc. More at peace owning the car.

I keep cars forever, but ok leased my Pure for the $7500 tax credit. APR was around 2%, so I can bank my residual and make a few bucks. Of course if the 27s are way better, it could switch.

 

[rfc805]

Blue Lectroid and West of Boston:

Like others, I'm very keyed into the Residual that you'd pay if you decide to keep it. I expect to keep my Pure more than 3 years, as I don't really expect the next gen batteries to be fully deployed til a bit later; that 2nd car will be my "forever" Lucid (hopefully paid for with gains on low-basis LCID shares!) I'd only be likely to lease if the incentives made it cheaper (or only marginally more) to pay the residual, than buying it outright. BlueLectroid, you implied it was clearly cheaper (with the EV credit), but didn't include that Residual payment for us to see...! (did you figure in that you'd be paying sales tax on the residual balance if you bought it? That may not be enough to tip the scales, but it is a factor, since the full sales tax is included in the cash price calculation)

Especially interested in Residuals on recent leases, since it likely represents what I"ll be presented with in Feb/Mar when my car's ready. (and yes I realize the incentives then may well differ than now)

Not including a Residual is the gaping hole in the online Lease Calculator; apparently that figure isn't shared until you get actual leasing paperwork....which I'll be prepared to turn down in favor of cash purchase.

This was what also made me skeptical of the lease. Until I got the paperwork and actually did the math. There was nothing in the numbers, it was literally just the sale price less the payment schedule.

It takes a bit to work out the numbers the way they're written out on the docs once you get it,, but there was nothing hidden in mine. The total cost was just the fees that match what was listed above, and then the rent charge - in my case the total rent charge was less than $100.

I have also never leased a car before, but it made no sense to do the Lucid in any other way. It's about a $2000 hedge against depreciation, but with the deferred payments, you can make that up with a savings account of interest over the term of the lease anyhow.

 

[borski]

Leases are so complicated

 

[DeaneG]

Does the residual really have much to do with the cost of buying the car at the end of the lease? I thought the lessor owns the car at the end of the lease, and is free to sell it for whatever market value it actually has.

 

[tonybot]

My thought process is simple. I try to get a good upfront prices for cap cost reduction due to upfront taxes in Texas. After my 3 year lease, I will compare my buyout prices against the market and make a decision if I plan to keep the vehicle or not. My last lease buyout was my Lexus and if I would have turned around and sold it the next day to CarMax, I would have walked away with $6k, so it made sense to just buy it versus returning it. I will do the same with my air after 3 years and make a call.

A lease de-risk my purchase and give me a second shot at buying the car at the lease end based on prevailing market conditions and it had worked out to my advantage in the past.