Leasing/Financing

[TCGT]

Our car is ready for delivery, so I have access to their calculator. I ran a few scenarios for everyone. Note that the $7,500 credit is applied in the total as people have said. I didn’t see an RV and didn’t want to take the next step since we may still finance or pay cash.

I don’t have my current (and first ever) leased car paperwork with me, but I think we did $10,000 down on an $80-90,000 Range Rover 39 months/12,000 miles with about 50% RV. That payment is $1,280/month at three years ago rates. It looks like the RV for Lucid could be in the 50-60% range.

Thank you - very helpful to know the basic parameters. I noticed they have now included Minnesota among the available states you can lease. Not having leased for years, are there any experts here who can offer an opinion on why this wouldn't be a good option? I know a key piece is the residual, but not sure if I'd want to end up buying a 3 year old EV with the current technology improving (and struggling) at the moment.

Any early buyers wish they had been able to do this?

 

[Ksa23]

Our car is ready for delivery, so I have access to their calculator. I ran a few scenarios for everyone. Note that the $7,500 credit is applied in the total as people have said. I didn’t see an RV and didn’t want to take the next step since we may still finance or pay cash.

I don’t have my current (and first ever) leased car paperwork with me, but I think we did $10,000 down on an $80-90,000 Range Rover 39 months/12,000 miles with about 50% RV. That payment is $1,280/month at three years ago rates. It looks like the RV for Lucid could be in the 50-60% range.

Thank you so much for this

 

[joec]

I noticed they have now included Minnesota among the available states you can lease.

Interesting. Looks like they’ve added Colorado now, too. (Neither appeared on the original press release.) So that’s back to being an option. I’ll have to dig into the numbers for my Touring when the time comes. I suspect buying may still be my best bet. But we’ll see.

 

[rbbarry]

Interesting. Looks like they’ve added Colorado now, too. (Neither appeared on the original press release.) So that’s back to being an option. I’ll have to dig into the numbers for my Touring when the time comes. I suspect buying may still be my best bet. But we’ll see.

Seems like you are paying $113k for this four year lease, so for another 30k more or so without any mile limitations etc and you can potentially sell it, if Lucid is still in business and supporting the car in four years.

 

[Steveinarizona]

Our car is ready for delivery, so I have access to their calculator. I ran a few scenarios for everyone. Note that the $7,500 credit is applied in the total as people have said. I didn’t see an RV and didn’t want to take the next step since we may still finance or pay cash.

I don’t have my current (and first ever) leased car paperwork with me, but I think we did $10,000 down on an $80-90,000 Range Rover 39 months/12,000 miles with about 50% RV. That payment is $1,280/month at three years ago rates. It looks like the RV for Lucid could be in the 50-60% range.

Thanks. I have always purchased, and more recently with cash (well...sort of...company had a $4K financing credit so I did finance but paid it off after 4 months). But on a car with new and fast changing technology, and a car from a brand new company, the idea of leasing is more attractive.

It does look like the lease payments would equal about 50% of the cost of the car. Very useful for making that risk calculation.

 

[rbbarry]

Thanks. I have always purchased, and more recently with cash (well...sort of...company had a $4K financing credit so I did finance but paid it off after 4 months). But on a car with new and fast changing technology, and a car from a brand new company, the idea of leasing is more attractive.

It does look like the lease payments would equal about 50% of the cost of the car. Very useful for making that risk calculation.

Yea, if the lease price was like 40% less it would make more sense to lease with these concerns but it seems not worth leasing if you have cash on hand...

 

[HC_79]

but not sure if I'd want to end up buying a 3 year old EV with the current technology improving (and struggling) at the moment.

To counter this, some people don't want to be stuck with a 3 year old EV with how rapidly technology is changing. I was considering buying my e-Tron when it first came out and as soon as the EPA of 204 miles was announced I went straight for a lease because I knew other EV's would be coming in the years that followed and the value of the e-Tron would diminish quickly.

One advantage I see with leasing a Lucid is you're protecting yourself financially if the company goes bankrupt. All of us who have paid cash or taken personal loans will see the value of the car completely wiped out should they go bankrupt and given the price of the car its a risk that needs to be considered. I think it I had the option to lease when I purchased my AGT I would have leased for 3 years to see how things would play out. If Lucid survived then I would probably have purchased the Gravity.

 

[hitmanray]

Thanks for sharing Bauer. Very informative.

I will however say I for one am not a fan of the lack of basic info in the tool. Very much in the Tesla model of "here's the price". I have done a few leases in the past so played with the numbers a little, to try and figure out the construct.

First thing to note is it does say in the bullets of picture 5 that taxes, title and fees are not included, so I assume depending on your state that is either paid at delivery or rolled on top of the lease payment?!

So assuming capitalized cost of $142,995, and using the 36/12 model, if we assume a 49% residual, the residual value would be $70,067.55. That means we are financing $72,927.45. $10k down payment drops this to $62,927.45 to be financed over the 36 months. In my modelling, an interest rate of 12% gives a monthly payment of $2,090, still less than the tool shows.

So either the residual is lower than my assumption (meaning you are financing more of the vehicle in the lease period) or the interest rate is higher (which is already fairly uncompetitive) or I've made a massive screw up in the calculations somewhere.

Perhaps the underlying assumptions will be more aggressive for the lower trim levels (this is quite common in the traditional manufacturers where the "base" models are more attractive to lease than the high trim, high spec models), but based on this info it looks like straight financing is not off the table.

 

[cplewes]

I imagine these numbers can change at any moment under current volatile economic conditions . The interest rate they give you is my major consideration. The residual is less important as long as you can buy out at the end with no penalty.

 

[Steveinarizona]

To counter this, some people don't want to be stuck with a 3 year old EV with how rapidly technology is changing. I was considering buying my e-Tron when it first came out and as soon as the EPA of 204 miles was announced I went straight for a lease because I knew other EV's would be coming in the years that followed and the value of the e-Tron would diminish quickly.

One advantage I see with leasing a Lucid is you're protecting yourself financially if the company goes bankrupt. All of us who have paid cash or taken personal loans will see the value of the car completely wiped out should they go bankrupt and given the price of the car its a risk that needs to be considered. I think it I had the option to lease when I purchased my AGT I would have leased for 3 years to see how things would play out. If Lucid survived then I would probably have purchased the Gravity.

While I would normally purchase, this is my thought as well. But the closer the cost over the term of the lease comes to the cost of the car, the less leasing looks attractive even with the risk. An interesting arithmetic problem (not complex enough to be a math problem).

 

[Impatient7536]

But the closer the cost over the term of the lease comes to the cost of the car, the less leasing looks attractive even with the risk.

can you explain that to me? isn't it the closer the cost over the term of the lease is to the cost of the car, the less the final buy out amount is at the end? thanks

 

[Steveinarizona]

can you explain that to me? isn't it the closer the cost over the term of the lease is to the cost of the car, the less the final buy out amount is at the end? thanks

Assume the car costs $100K and option one for leasing costs $50K for three years; now assume the same car cost but the lease cost for three years equals $80K. In the first instance by leasing I minimized my risk of Lucid failing to $50K; in the second instance my risk of Lucid failing is only $20K (difference from leasing to purchasing) making the risk smaller so the upside of purchasing better.

 

[Impatient7536]

Assume the car costs $100K and option one for leasing costs $50K for three years; now assume the same car cost but the lease cost for three years equals $80K. In the first instance by leasing I minimized my risk of Lucid failing to $50K; in the second instance my risk of Lucid failing is only $20K (difference from leasing to purchasing) making the risk smaller so the upside of purchasing better.

ahh ok got it. thank you

 

[Draco_Malfoy]

Actual weight and GVWR are not the same no?

Definitely not. GVWR is always greater than vehicle weight. GVWR is the sum of vehicle weight plus vehicle capacity.

 

[Maverick]

Assume the car costs $100K and option one for leasing costs $50K for three years; now assume the same car cost but the lease cost for three years equals $80K. In the first instance by leasing I minimized my risk of Lucid failing to $50K; in the second instance my risk of Lucid failing is only $20K (difference from leasing to purchasing) making the risk smaller so the upside of purchasing better.

I'd say that if you're leasing to minimize the risk of Lucid failing, it may not be wise to purchase or lease. If I thought that was a big enough possibility that it factored into my financing, I simply wouldn't get one. I can see leasing because of improved technology or better options from Lucid or others in 3 years. But as a risk hedge against failure just seems like too much concern to get the car at all. My opinion, but I wouldn't waste $50k or $80k if I thought Lucid would fail and fail without some sort of absorption by some other entity.

 

[Steveinarizona]

I'd say that if you're leasing to minimize the risk of Lucid failing, it may not be wise to purchase or lease. If I thought that was a big enough possibility that it factored into my financing, I simply wouldn't get one. I can see leasing because of improved technology or better options from Lucid or others in 3 years. But as a risk hedge against failure just seems like too much concern to get the car at all. My opinion, but I wouldn't waste $50k or $80k if I thought Lucid would fail and fail without some sort of absorption by some other entity.

I don't think it will fail but there is also the risk that technology will move so fast that the car will be completely outdated in three years (4.5 from now as I figure it will take a year and a half for Lucid to get to me). I am still planning on purchasing but that is a legitimate concern. For me, it will either be a cash purchase or a lease.

 

[Shuasha]

I don't think it will fail but there is also the risk that technology will move so fast that the car will be completely outdated in three years (4.5 from now as I figure it will take a year and a half for Lucid to get to me). I am still planning on purchasing but that is a legitimate concern. For me, it will either be a cash purchase or a lease.

If you base it on being outdated, then you'll never buy anything. 3 years from now some other huge technology will be on the horizon that you'll have to 3 more years for. I'm speaking from experience. I didn't like my Model S enough to buy out the lease, and have been waiting for all the "new stuff" to come out for 3 years. There will always be upgrades, just get them when you're ready for the next new car.

 

[Compy]

If you base it on being outdated, then you'll never buy anything. 3 years from now some other huge technology will be on the horizon that you'll have to 3 more years for. I'm speaking from experience. I didn't like my Model S enough to buy out the lease, and have been waiting for all the "new stuff" to come out for 3 years. There will always be upgrades, just get them when you're ready for the next new car.

I agree, and what we also need to consider is the OTA updates, which should keep Lucid's tech current down the road, I think at least 5 years. Now, if they could only deliver on what they said the car could do in the first place. That would be a good start.

 

[rbbarry]

The bigger question is, what costs less when you are ready to get the new upgrade. Selling the car you bought or financed or buying out the lease?

 

[Bobby]

The bigger question is, what costs less when you are ready to get the new upgrade. Selling the car you bought or financed or buying out the lease?

Ah the age old question. My Maserati was great to lease because it depreciated very fast!