Leasing during bankruptcy

[par11768]

I have a friend who purchased an early Fiskar Karma. The car was a disaster, always in the shop. As the company faltered, the local service operation closed. Once that happened, he went after them to return the car under the Lemon Law and won but the company went bankrupt. In the end the company that bought their assets bought the car from him but he lost over 50K on the deal and was stuck with a car that could not be driven for months while he settled the case. If you have doubts about the car company you are dealing with, I suggest you lease the vehicle and get a lease with a buyout option at the end. if there are issues, you can return the car at the end of the lease. If you like the car, and the company seems in better financial shape, you can purchase the car.

 

[dryheat]

@sactpure great question, that's my concern too. I ended up leasing the 18 month vehicle instead of buying. Worst case scenario, even if the company goes bankrupt in the next year, I have the ability to return the vehicle. If it doesn't then I might get the gravity. My fear came from not getting more than a 10 min test drive. Best case scenario I buy the car. I've only had mine for a few hours, and am blown away by the quality and forethought put into the car. I'm definitely buying into Lucid and under stand what an amazing vehicle it is!

 

[vices]

Valid question, one I thought about in deciding buy vs lease. I do wonder what happens in the upheaval of a bankruptcy:

1. For sure service centers would close. The hope is you won't have issues until the lease is up and you can turn it in to whatever creditor it's assigned to.
2. No more updates ever for the UI
3. I wonder if it's going to be so messy that you their payment portal would shut down and you won't be told who to send payments to. If that's the case, someone might come asking for their due a year or two once they've done the accounting, or you just go scott free.
4. When it's time to turn in the car, would they be able to figure out to whom to turn it to, or as above do you end up with a "free" car in the chaos.

Again, valid question, interested in answers.

As for parts etc, even now parts take a long time, have to come from lucid, and they have to do recalibrarions. Imagine minimum no recalibration, worst case no parts.

 

[Lucken]

I can understand the concerns, but I don’t understand how anyone can expect definitive answers to the questions being raised in this thread. Nobody has the answers. It’s simply conjecture being responded to with more conjecture.

We are not at that point and hopefully never will be.

 

[hmp10]

We are not at that point and hopefully never will be.

While I'm not sure just how long the Saudi PIF would continue to back Lucid, I'm pretty sure they will keep Lucid afloat at least until it becomes clear whether or not the Gravity can invigorate sales. Much of Lucid's long-range planning has been premised on getting an SUV to market after a more niche vehicle (the Air) served as a development platform, and the PIF has maintained its support of Gravity development even as sedan sales have flagged.

So, I'm pretty sure that Lucid will last through the launch of the Gravity. If Lucid's outlook darkens as early Gravity sales numbers come in, I still plan to get one as nothing else coming to market looks as appealing as a replacement for our aging Honda Odyssey. However, I might decide at that point to lease instead of buy in order to hedge against the collapse of resale value should Lucid go under.

Like you, though, I hope it never comes to such a pass. Not since the Tucker 48 has a car come to market that moved the technology and design needle forward on as many automotive fronts simultaneously as the Lucid Air. It would just be a damn, damn shame for Lucid owners . . . and for buyers of other brands under whom Lucid's advances have turned up the heat to advance their own technology.

 

[borski]

While I'm not sure just how long the Saudi PIF would continue to back Lucid, I'm pretty sure they will keep Lucid afloat at least until it becomes clear whether or not the Gravity can invigorate sales. Much of Lucid's long-range planning has been premised on getting an SUV to market after a more niche vehicle (the Air) served as a development platform, and the PIF has maintained its support of Gravity development even as sedan sales have flagged.

It’s worth the reminder that Peter didn’t want to build the sedan as the first car, but the PIF very much wanted him to. He said as such in a recent interview.

 

[xponents]

It’s worth the reminder that Peter didn’t want to build the sedan as the first car, but the PIF very much wanted him to. He said as such in a recent interview.

Wait, what? Which interview?

 

[no gas]

Wait, what? Which interview?

At 38.50

 

[sajidms]

As someone considering this "what if" question right now before finalizing a lease, I'll say this thread has been helpful ... much thanks to OP and to folks who sketched out the various possibilities and incentives involved, even if it's speculative. Known unknowns are still better than unknown unknowns. I feel more confident taking the plunge, given all this.

My only additional question is, do folks think anything has changed wrt this question since January?

 

[stratus]

There was nothing in today’s earnings report that was transformative, in either direction.

If you comfortable with your personal finances in the setting of leasing, don’t hesitate. The car is wonderful and I love it today as much as I did when I first received it.

 

[FA14]

They have enough Cash to survive until June 2025. Gravity launch this year Nov- Dec….hopefully 20-30k orders and by Q1 of 2025 another round of cash raise for the next couple of years until they launch the Model Y/3 like Mid Size car. The Investors in Lucid have a long term hold and growth mindset and not folding or pulling back that early.

 

[FA14]

They have enough Cash to survive until June 2025. Gravity launch this year Nov- Dec….hopefully 20-30k orders and by Q1 of 2025 another round of cash raise for the next couple of years until they launch the Model Y/3 like Mid Size car. The Investors in Lucid have a long term hold and growth mindset and not folding or pulling back that early.

Forgot to add to my post above, the stock price by that timeframe should also be hopefully in the teens $$

 

[marsarbu]

Great question, actually this is why I joined the forum, specifically to ask this. First I was thinking of buying a used Grand Touring, but given the uncertainty both Lucid and Rivian are in, and the spectacular implosion of Fisker, I don't want to risk paying $75k for a car that in July 2025 might be worth nothing. I LOVE the Lucid Air, it's the only car that gets me excited, but I can't stick my head in sand and believe everything is going to be peachy. Based on the speculation here, it seems that leasing is the safest option. As soon as I sell my S560, I'm going to sign-up for a 24 mo lease. Can't wait!