Lucid Financing Quote Question

[Miami_Lucid_Man]

Just out of curiosity I went to the BMW website and checked what they are charging for a 36 month I4 lease. The I4 M50 was at just over $ 900 a month with a down payment of just over 6K. That is a huge difference.

Now I know that this car is not equivalent to a Lucid (the M50 has the power but not the range; the 40 has better range than the M50 but less than the Lucid and less power) which is why I have a deposit on a Lucid and not a BMW but the pricing differential on leasing is way different than the differential on purchasing.

And i4 edrive 40s are about 900/mo with M package and other options with minimal down for 36 months. As a current M3P lessee, I could deal with losing a bit of the straight line speed for better build quality and handling so it's a serious option for me in light of the insane lease prices being reported above. We'll see...

 

[abbas2099]

Batteries are guaranteed to last at least 8 years (at 70% of original capacity)and will likely last a lot longer. How many 10-15 year old ICE cars are still on the road.

Actually, there are alot of them in my area. Guess, it all depends on where you live/work.

 

[Minnesota Mike]

(c) 2022 by this author. This information cannot be used directly or indirectly by any entity including but not limited to print, digital, video or audio deliveries. I am not a financial expert so use this information at your own risk.
I received my invite to apply for financing, so my GT must be about a month away . I ran a few comparisons with the lease calculator from Lucid Financial (aka Bank of America), the Lucid Payment calculator and the Edmunds Lease Calculator. It looks like the $7500 EV tax credit is a capital cost reduction in the Lucid Financials details, so I used that as part of the Edmunds calculator. Here are a few examples with notes below.

Mileage	Down Payment	Term (Years)	Lucid Financial	Lucid Site	Edmunds	Residual	$ Factor
12K	$0​	2​	$2,950​	$3,254​	$2,949​	58%​	4.39%​
12K	$0​	3​	$2,468​	$2,679​	$2,461​	49%​
12K	$0​	4​	$2,236​	$2,400​	$2,233​	39%​
15K	$0​	2​	$3,002​	$3,312​	$3,009​	57%​
15K	$0​	3​	$2,519​	$2,736​	$2,500​	48%​
15K	$0​	4​	$2,285​	$2,456​	$2,291​	37%​

Lucid Financial - Site provided to you as your car approaches delivery
Lucid Site - The publicly available cost estimator
Edmunds - The estimated monthly closest to the Lucid Financial number by iterating on the Residual, keeping the Money Factor constant
Residual - The remaining value of the car at the end of the Term as a percentage of the original cost. The default from Edmunds was 62%
$ Factor - The cost of money from the perspective of the bank that factors into the financing of the car. This value was not changed from the Edmunds default even though the rate for a loan my differ across the terms

Notes

• The highest credit rating was assumed (> 800)
• The Lucid Site is consistently higher than the Lucid Financial site
• The Lucid Financial details do not include a residual value
• The Lucid Financial site does the calculations 'in the browser'. It looks like it's a JavaScript app shared with Porsche leases (based on the name)!
• If this is a valid method of comparison, it would appear that the residual value is far lower than others in the same market. For example the Tesla Model S has a 4 year residual value of about 70% based on this site.

 

[Steveinarizona]

(c) 2022 by this author. This information cannot be used directly or indirectly by any entity including but not limited to print, digital, video or audio deliveries. I am not a financial expert so use this information at your own risk.
I received my invite to apply for financing, so my GT must be about a month away . I ran a few comparisons with the lease calculator from Lucid Financial (aka Bank of America), the Lucid Payment calculator and the Edmunds Lease Calculator. It looks like the $7500 EV tax credit is a capital cost reduction in the Lucid Financials details, so I used that as part of the Edmunds calculator. Here are a few examples with notes below.

Mileage	Down Payment	Term (Years)	Lucid Financial	Lucid Site	Edmunds	Residual	$ Factor
12K	$0​	2​	$2,950​	$3,254​	$2,949​	58%​	4.39%​
12K	$0​	3​	$2,468​	$2,679​	$2,461​	49%​
12K	$0​	4​	$2,236​	$2,400​	$2,233​	39%​
15K	$0​	2​	$3,002​	$3,312​	$3,009​	57%​
15K	$0​	3​	$2,519​	$2,736​	$2,500​	48%​
15K	$0​	4​	$2,285​	$2,456​	$2,291​	37%​

Lucid Financial - Site provided to you as your car approaches delivery
Lucid Site - The publicly available cost estimator
Edmunds - The estimated monthly closest to the Lucid Financial number by iterating on the Residual, keeping the Money Factor constant
Residual - The remaining value of the car at the end of the Term as a percentage of the original cost. The default from Edmunds was 62%
$ Factor - The cost of money from the perspective of the bank that factors into the financing of the car. This value was not changed from the Edmunds default even though the rate for a loan my differ across the terms

Notes

• The highest credit rating was assumed (> 800)
• The Lucid Site is consistently higher than the Lucid Financial site
• The Lucid Financial details do not include a residual value
• The Lucid Financial site does the calculations 'in the browser'. It looks like it's a JavaScript app shared with Porsche leases (based on the name)!
• If this is a valid method of comparison, it would appear that the residual value is far lower than others in the same market. For example the Tesla Model S has a 4 year residual value of about 70% based on this site.

Porsche has a long history to judge residuals by. Lucid has no history so any lessors are likely factoring that into the risk equation.

 

[izNos]

(c) 2022 by this author. This information cannot be used directly or indirectly by any entity including but not limited to print, digital, video or audio deliveries. I am not a financial expert so use this information at your own risk.
I received my invite to apply for financing, so my GT must be about a month away . I ran a few comparisons with the lease calculator from Lucid Financial (aka Bank of America), the Lucid Payment calculator and the Edmunds Lease Calculator. It looks like the $7500 EV tax credit is a capital cost reduction in the Lucid Financials details, so I used that as part of the Edmunds calculator. Here are a few examples with notes below.

Mileage	Down Payment	Term (Years)	Lucid Financial	Lucid Site	Edmunds	Residual	$ Factor
12K	$0​	2​	$2,950​	$3,254​	$2,949​	58%​	4.39%​
12K	$0​	3​	$2,468​	$2,679​	$2,461​	49%​
12K	$0​	4​	$2,236​	$2,400​	$2,233​	39%​
15K	$0​	2​	$3,002​	$3,312​	$3,009​	57%​
15K	$0​	3​	$2,519​	$2,736​	$2,500​	48%​
15K	$0​	4​	$2,285​	$2,456​	$2,291​	37%​

Lucid Financial - Site provided to you as your car approaches delivery
Lucid Site - The publicly available cost estimator
Edmunds - The estimated monthly closest to the Lucid Financial number by iterating on the Residual, keeping the Money Factor constant
Residual - The remaining value of the car at the end of the Term as a percentage of the original cost. The default from Edmunds was 62%
$ Factor - The cost of money from the perspective of the bank that factors into the financing of the car. This value was not changed from the Edmunds default even though the rate for a loan my differ across the terms

Notes

• The highest credit rating was assumed (> 800)
• The Lucid Site is consistently higher than the Lucid Financial site
• The Lucid Financial details do not include a residual value
• The Lucid Financial site does the calculations 'in the browser'. It looks like it's a JavaScript app shared with Porsche leases (based on the name)!
• If this is a valid method of comparison, it would appear that the residual value is far lower than others in the same market. For example the Tesla Model S has a 4 year residual value of about 70% based on this site.

Really appreciate you posting this. Got my VIN and reached out to both Lucid Financial as well as the Lucid people directly noting how hard it was to make decisions about lease vs loan without them providing the money factor and residual value to better understand what's going on. Lucid Financial was particularly difficult to deal with and noted that there was no way to escalate the request.

They told me I could apply for both a loan and the lease but that they would be doing two credit checks on me which could ding my credit score. Lucid delivery team was equally unhelpful. They noted that they've heard this complaint from multiple people thus far and are hoping to make the process more transparent.

 

[Ksa23]

Really appreciate you posting this. Got my VIN and reached out to both Lucid Financial as well as the Lucid people directly noting how hard it was to make decisions about lease vs loan without them providing the money factor and residual value to better understand what's going on. Lucid Financial was particularly difficult to deal with and noted that there was no way to escalate the request.

They told me I could apply for both a loan and the lease but that they would be doing two credit checks on me which could ding my credit score. Lucid delivery team was equally unhelpful. They noted that they've heard this complaint from multiple people thus far and are hoping to make the process more transparent.

As far as I know, it is law to disclose the residual value in Washington State, and leasing through Lucid Financial is available in WA. I'm curious how they will respond to me when I request it.

Leasing | Washington State

In This Section Laws Regulating Leasing Payments Lease Advertising Early Termination Costs of Leasing Lease Options Types of Leases Comparing Leases Quick Tips for Leasing As auto prices and financing costs increase, auto leases, rather than purchases, have been more actively advertised and...

www.atg.wa.gov

By law, the residual value, or the method for calculating the amount, must be disclosed before you sign a lease. This residual value for the option to purchase at the end of the lease may be less or more than the total of all the previous lease payments; the residual value may be more or less than the vehicle is worth.

The wording on money factor disclosure seems more of an advisement rather than requirement to disclose. But knowing the residual value allows us to easily calculate the money factor anyway.

You should insist on disclosure in writing of the capitalized cost (value of the vehicle upon which the lease is based) and the lease financing rate (also known as the interest equivalent or money factor) which are used to calculate the lease payment and the total cost of the lease.

 

[SDHacker]

Actually, there are alot of them in my area. Guess, it all depends on where you live/work.

Average age of cars on the road is 13.1 years. Average including trucks drops it to 12.2 years. So highly likely most people are seeing cars in the 10 - 15 years old range. I see a lot of them too - my current car is a 2006.

 

[DBV]

Average age of cars on the road is 13.1 years. Average including trucks drops it to 12.2 years. So highly likely most people are seeing cars in the 10 - 15 years old range. I see a lot of them too - my current car is a 2006.

Agree. I see a lot of older cars too. Cars are made so well anymore, a lot of people just keep, which is really the smart way to do. I just like new cars/tech every three years, but my wife is the opposite.

 

[Steveinarizona]

If one is going to keep a BEV for long periods, the investment in a replacement battery pack is similar to what ICE owners need to do to keep their cars going. It is not a perfect analogy, and flawed reasoning to go from the particular to the general, but anyway...my son has my old 2011 Prius and he intends to keep it for a long time so he just replaced the battery pack. Much smaller pack, of course, but the concept is similar.

 

[Miami_Lucid_Man]

Not looking good for leasing rates so far...

 

[Overcharged]

I received my invitation for financing today.

I was surprised to see this so early in the process.

I don't have a VIN and my DE did not provide a heads up about things getting close.

Like many have said, their interest rate does not look so hot (4.44% for 60m and 4.64% for 72m) so I expect to play my credit union and Chase off each other.

 

[SDHacker]

I received my invitation for financing today.

I was surprised to see this so early in the process.

I don't have a VIN and my DE did not provide a heads up about things getting close.

Like many have said, their interest rate does not look so hot (4.44% for 60m and 4.64% for 72m) so I expect to play my credit union and Chase off each other.

Guessing you got a cancelled order so your DA didn't get the notifications to forward to you since the car wasn't originally assigned to you. According to people that got the financing email, your DA will contact you a day (up to a week) after that email with the VIN.

 

[Overcharged]

My contact at Goose Island didn’t have a concrete reason
His best guess was that they may not have had the parts available to build a particular car that was on the line, but did have the parts to build my GT-P and did so

 

[bobofat]

Lease numbers for this car are not good and a lot of it has to do with the fact that its a new car, new company, and there is no precedence for what it'll be worth in 3-4 years. All those factors make leasing less attractive. The bank (BofA) is playing very conservative with their lease numbers. To me it only makes sense if it helps out for business purposes.

 

[off]

Apologies if this was posted elsewhere, just got this e-mail from Lucid. Still probably going to purchase mine when it finally comes!

 

[joec]

Yeah. Seems like they are basically giving you the equivalent of the old tax credit, even though that’s gone. But given the lease figures they offer, they will still do quite well. So it’s a smart move for them.

You probably are still better off buying.

 

[Lucken]

I just got that too. I agree, it’s a smart move and might appeal to those who will lease, but like off, I’ve been planning to buy.

 

[wux]

Yeah. Seems like they are basically giving you the equivalent of the old tax credit, even though that’s gone. But given the lease figures they offer, they will still do quite well. So it’s a smart move for them.

You probably are still better off buying.

Somehow any leasing EV will qualify for $7500 tax credit as it has purchasing price requirement.

U.S. Treasury says consumer leases can qualify for EV tax credits

The U.S. Treasury Department said on Thursday that electric vehicles leased by consumers can qualify starting Jan. 1 for up to $7,500 in commercial clean vehicle tax credits, a decision that makes those assembled outside North America eligible.

www.reuters.com

 

[wux]

Apologies if this was posted elsewhere, just got this e-mail from Lucid. Still probably going to purchase mine when it finally comes!

View attachment 8910

I got this email as well and maybe many or all of us did. I do not think that means I will get the car soon. There seems to be a rule allowing all EV leasing to qualify for $7500 tax credit for now. Look loke Lucid wants use it to push sales before it changes again.

U.S. Treasury says consumer leases can qualify for EV tax credits

The U.S. Treasury Department said on Thursday that electric vehicles leased by consumers can qualify starting Jan. 1 for up to $7,500 in commercial clean vehicle tax credits, a decision that makes those assembled outside North America eligible.

www.reuters.com

 

[Lucken]

Somehow any leasing EV will qualify for $7500 tax credit as it has purchasing price requirement.

U.S. Treasury says consumer leases can qualify for EV tax credits

The U.S. Treasury Department said on Thursday that electric vehicles leased by consumers can qualify starting Jan. 1 for up to $7,500 in commercial clean vehicle tax credits, a decision that makes those assembled outside North America eligible.

www.reuters.com

Only the wisdom of those in government could rationalize the credit only for leases and not purchases.