Lease guidance

[Burley]

Looking for some help comparing leases, as I'll make a decision probably tomorrow. I am fairly confident I'll want to purchase the car at lease end. Two lease options, for 18 and 36 months. Due at signing is roughly $1200 regardless, plus deposit. Vehicle price is $73650, net cap cost is $62895.

Option 1 -- 18 months, $667 monthly payment. MF .0002, residual value is 69% or about $52k
Option 2 -- 36 months, $710 monthly payment. MF .00018, residual value 52% or about $39k

To my thinking, go for the 36 month as I'm basically paying less than $500 in "interest" by continuing for an additional 18 months, the rest is depreciation. Also keeps me from having to finance $52k or so at whatever auto loan rates may be in 18 months. On the other hand, if I absolutely detest the car, which I highly doubt, I can get out in 18 months with Option 1. I've already owned EVs so converting from ICE to EV won't be a factor in my Lucid satisfaction.

Just want to make sure I'm thinking about this correctly, and not missing anything.

Thanks in advance, this forum has been incredibly helpful in my search and understanding.

 

[Adnillien]

Looking for some help comparing leases, as I'll make a decision probably tomorrow. I am fairly confident I'll want to purchase the car at lease end. Two lease options, for 18 and 36 months. Due at signing is roughly $1200 regardless, plus deposit. Vehicle price is $73650, net cap cost is $62895.

Option 1 -- 18 months, $667 monthly payment. MF .0002, residual value is 69% or about $52k
Option 2 -- 36 months, $710 monthly payment. MF .00018, residual value 52% or about $39k

To my thinking, go for the 36 month as I'm basically paying less than $500 in "interest" by continuing for an additional 18 months, the rest is depreciation. Also keeps me from having to finance $52k or so at whatever auto loan rates may be in 18 months. On the other hand, if I absolutely detest the car, which I highly doubt, I can get out in 18 months with Option 1. I've already owned EVs so converting from ICE to EV won't be a factor in my Lucid satisfaction.

Just want to make sure I'm thinking about this correctly, and not missing anything.

Thanks in advance, this forum has been incredibly helpful in my search and understanding.

if you are planning to buy the car after the lease, I would do option 2 like you are planning.

 

[translux]

Looking for some help comparing leases, as I'll make a decision probably tomorrow. I am fairly confident I'll want to purchase the car at lease end. Two lease options, for 18 and 36 months. Due at signing is roughly $1200 regardless, plus deposit. Vehicle price is $73650, net cap cost is $62895.

Option 1 -- 18 months, $667 monthly payment. MF .0002, residual value is 69% or about $52k
Option 2 -- 36 months, $710 monthly payment. MF .00018, residual value 52% or about $39k

To my thinking, go for the 36 month as I'm basically paying less than $500 in "interest" by continuing for an additional 18 months, the rest is depreciation. Also keeps me from having to finance $52k or so at whatever auto loan rates may be in 18 months. On the other hand, if I absolutely detest the car, which I highly doubt, I can get out in 18 months with Option 1. I've already owned EVs so converting from ICE to EV won't be a factor in my Lucid satisfaction.

Just want to make sure I'm thinking about this correctly, and not missing anything.

Thanks in advance, this forum has been incredibly helpful in my search and understanding.

Please take all this with a grain of salt. How and why people spend their hard earned money is none of my business. If anyone knew what I’ve spent on just one of my many hobbies like wine for instance they’d easily conclude that I’m certifiably.
That being said looking at things from a purely objective financial perspective I have the following advice.
Given the current market environment purchasing a new EV is not practical due to depreciation and aggressive lease options.
Looking at the offerings from Lucid the shortest term and lowest miles lease is the best deal.
I’ve never seen a lease that makes sense to purchase the car at the end.
Given the volatility of the EV market I think we’re at the beginning of a sell off.
A car with that sticker price that qualifies for all the incentives you should be able to do much better. 18 months with 5000 miles should be around $550.
Oh and never put $ down on a lease.

 

[hydbob]

Looking for some help comparing leases, as I'll make a decision probably tomorrow. I am fairly confident I'll want to purchase the car at lease end. Two lease options, for 18 and 36 months. Due at signing is roughly $1200 regardless, plus deposit. Vehicle price is $73650, net cap cost is $62895.

Option 1 -- 18 months, $667 monthly payment. MF .0002, residual value is 69% or about $52k
Option 2 -- 36 months, $710 monthly payment. MF .00018, residual value 52% or about $39k

To my thinking, go for the 36 month as I'm basically paying less than $500 in "interest" by continuing for an additional 18 months, the rest is depreciation. Also keeps me from having to finance $52k or so at whatever auto loan rates may be in 18 months. On the other hand, if I absolutely detest the car, which I highly doubt, I can get out in 18 months with Option 1. I've already owned EVs so converting from ICE to EV won't be a factor in my Lucid satisfaction.

Just want to make sure I'm thinking about this correctly, and not missing anything.

Thanks in advance, this forum has been incredibly helpful in my search and understanding.

If you are planning on purchasing after the lease, why not just buy a used one where the depreciation has already been paid by the original owner?

 

[blueice89]

Just curious how does the Fed tax credit compute into your calculations?

 

[blueice89]

If you are planning on purchasing after the lease, why not just buy a used one where the depreciation has already been paid by the original owner?

My 2cents on this there a lot of benefits to being first Lucid owner that they don’t tell you upfront

 

[FA14]

Looking for some help comparing leases, as I'll make a decision probably tomorrow. I am fairly confident I'll want to purchase the car at lease end. Two lease options, for 18 and 36 months. Due at signing is roughly $1200 regardless, plus deposit. Vehicle price is $73650, net cap cost is $62895.

Option 1 -- 18 months, $667 monthly payment. MF .0002, residual value is 69% or about $52k
Option 2 -- 36 months, $710 monthly payment. MF .00018, residual value 52% or about $39k

To my thinking, go for the 36 month as I'm basically paying less than $500 in "interest" by continuing for an additional 18 months, the rest is depreciation. Also keeps me from having to finance $52k or so at whatever auto loan rates may be in 18 months. On the other hand, if I absolutely detest the car, which I highly doubt, I can get out in 18 months with Option 1. I've already owned EVs so converting from ICE to EV won't be a factor in my Lucid satisfaction.

Just want to make sure I'm thinking about this correctly, and not missing anything.

Thanks in advance, this forum has been incredibly helpful in my search and understanding.

Option 1 is the way to go here imho.

You're paying $ 43 less on the 18 month term lease per month as compared to 36 months. Less commitment and flexibility.

My SA informed me that the leasing company will give an option to extend lease for additional 6 months at same payment. And you always have the option to buy or return at lease end.

At that time there will be new EV models with better range, tech features etc. and more clarity on the future of Lucid.

There will also be a lot of lease end vehicle returns to Lucid due to the 18 month aggressive ongoing deals since last month…..so I’m pretty sure they will negotiate the purchase price on the residual value to get rid of the vehicles.

 

[Burley]

Thanks all for the advice!

Not going used because I found new with exactly what I want — Pure RWD, fathom blue, stealth, etc. I think I’d search quite a while before I find what I want used.

Calculations include $7500 EV discount, $5000 onsite and $750 referral.

I initially wanted a two year lease, but terms weren’t favorable.

I think I’ll go with 18, then either try to extend or negotiate purchase based on glut of lease returns.

So happy to be joining the Lucid community!

 

[jbed]

Ultimately a personal question, but it’s really a guess on whether you will be able to get an equivalent deal in 18-36 months. Or if you want to flip to something different.

My crystal ball : Given the deals available, I figured it was worth locking in a deal for 36 months as it is a decent probability Lucid will stabilize production vs demand over next 18 months for the Air… likely by focusing production capacity on the Gravity. So the deals may dry up and look more like Tesla leases for the Model S 18 months out. For example ~1200+ a month for a Model S dual motor today.

Now after I bought my ‘23 Pure AWD in March, deals got even better on ‘24 touring and air so who knows what will happen in 18 months.

Enjoy your awesome new car!

 

[Dr Chill]

Look at it this way. The lease payments are very close. When you buy or lease a car, it has more value when new before any depreciation. In the 18 month lease, you are paying $667 per month for a new car. In the 36 month lease, you will be paying $710 for months 19-36 for what is effectively a 1 1/2 yr old car. It is very unusual for short term leases to cost less than a longer term lease. So I'd highly recommend 18 month lease in this case.

 

[borski]

My 2cents on this there a lot of benefits to being first Lucid owner that they don’t tell you upfront

Like?

Seems it’s exclusively the referral benefits, and only for now, as far as I can tell?

 

[translux]

Like?

Seems it’s exclusively the referral benefits, and only for now, as far as I can tell?

$1,000 credit towards the home charger?

 

[blueice89]

Like?

Seems it’s exclusively the referral benefits, and only for now, as far as I can tell?

Random invites to marketing owner events

 

[gmoney]

Looking for some help comparing leases, as I'll make a decision probably tomorrow. I am fairly confident I'll want to purchase the car at lease end. Two lease options, for 18 and 36 months. Due at signing is roughly $1200 regardless, plus deposit. Vehicle price is $73650, net cap cost is $62895.

Option 1 -- 18 months, $667 monthly payment. MF .0002, residual value is 69% or about $52k
Option 2 -- 36 months, $710 monthly payment. MF .00018, residual value 52% or about $39k

To my thinking, go for the 36 month as I'm basically paying less than $500 in "interest" by continuing for an additional 18 months, the rest is depreciation. Also keeps me from having to finance $52k or so at whatever auto loan rates may be in 18 months. On the other hand, if I absolutely detest the car, which I highly doubt, I can get out in 18 months with Option 1. I've already owned EVs so converting from ICE to EV won't be a factor in my Lucid satisfaction.

Just want to make sure I'm thinking about this correctly, and not missing anything.

Thanks in advance, this forum has been incredibly helpful in my search and understanding.

It seems to me that the best option is 18 months because they are improving EV’s pretty quickly and it’s nice to have option to upgrade or even switch to another EV. The only downside, which might happen, deals won’t be as good when it’s time to renew.

 

[borski]

$1,000 credit towards the home charger?

Fair - I was thinking of this as an incentive. But I guess technically you’re right; though I would argue it isn’t really any different from the car just being $1k cheaper.

Random invites to marketing owner events

Plenty of used Lucid owners get invited to “marketing owner events” for whatever that general phrase means.

But, and this is true: when you buy a used car you technically provide Lucid with exactly zero revenue. From that perspective, it makes perfect sense that they’d be marketing their *new* cars to people who buy their cars… new, heh.

When the “benefits” are “random invites to marketing owner events,” I’m not sure that counts as “a lot of benefits to being first owner,” but your priorities may differ from mine.

 

[FA14]

How about Service and Sales Advisor relationship!?