LUCID Gravity Lease vs Finance

[BobFM]

In addition to just the monthly payment/initial cash outlay, you also have to consider are if you don't drive that much (i.e. no commute), wherein you won't use the miles in a lease, or conversely, you drive a ton. Then a lease will not likely make sense. Also, if you are able to write off part of the lease thru a business deduction, they can be highly beneficial. So many factors, which is why no one situation is the same.

 

[illopp00]

Yes but the tax deduction comes off the top of your income taxes before the other deductions that might get itemized or standard deduction. I think it won't impact the situation as much as the govt thinks for incentivizing buy American. I am hoping upcoming 0.5% rate cutes help with financing, or partial financing. Leasing does give you more optionality at the end of the lease period.

 

[bicycleguy]

Why is Lucid only willing to give up $7500 if you lease? Are they in some kind of cahoots with B of A?

 

[iorchii]

Thanks for confirmation. Based on the numbers you provided (and assuming I didn't make a mistake in my calculations) I got this.

If you're not planning to invest the best option is of course buying with cash (assuming that you need to pay back EV tax credit for early lease buyouts).
If you still prefer to finance and not invest then leasing is the best. $7.5k even with pretty bad money factor gets you far.
If you're investing then after 72 months your 5.25%-5.5% loans are the best options. Monthly payments are only $154.66 - $169.85 higher than lease payments, but you keep more money over 72 months period to grow in your investments.

Buying outright
~$131,109.38

Lease $0 down / 36 months / 10k miles / 0.00299 MF / $70,671 residual + buyout at the end [monthly payment around $1,955.86]
Not investing total cost: $145,498.03
With investing (10% annually) after 36 months (total cost - investment gains): $113,308.2
With investing (10% annually) after 72 months (total cost - investment gains): $107,110.16

Loan $1k down (deposit) / 72 months at 5.25% [monthly payment around $2,110.52]
Not investing total cost: $151,957.75
With investing (10% annually) after 72 months (total cost - investment gains): $101,689.62

Loan $1k down (deposit) / 72 months at 5.5% [monthly payment around $2,125.71]
Not investing total cost: $153,051.29
With investing (10% annually) after 72 months (total cost - investment gains): $103,179.75

Can you provide calculation for Loan $1k down (deposit) / 36 months at 4.69%? Thanks.

 

[iorchii]

i didn’t think there’s a cap for the price of the vehicle so the GGT would qualify.

Although IMO, someone making below the MAGI limit shouldn’t be buying a six figure car. But, who am I to judge lol. People can do whatever they want with their money.

Although not noted on the IRS.gov website per https://www.foxrothschild.com/publi...n-tax-deduction-in-the-one-big-beautiful-bill the cap is $80k. We will not know until IRS update the publications from all the BBB changes.

 

[iorchii]

In addition to just the monthly payment/initial cash outlay, you also have to consider are if you don't drive that much (i.e. no commute), wherein you won't use the miles in a lease, or conversely, you drive a ton. Then a lease will not likely make sense. Also, if you are able to write off part of the lease thru a business deduction, they can be highly beneficial. So many factors, which is why no one situation is the same.

Correct & with the 100% bonus depreciation in place - financially it makes sense to buy/finance rather than lease

 

[dbsb3233]

Why is Lucid only willing to give up $7500 if you lease? Are they in some kind of cahoots with B of A?

I assume it's just to hang onto buyers that ordered when the $7500 tax credit loophole for leasing still existed.

It already went away 2 years ago for buying EVs over $80k, so no one ordering did so under the assumption they'd get the $7500 for buying. But some did for leasing.

 

[Elfin]

Why is Lucid only willing to give up $7500 if you lease? Are they in some kind of cahoots with B of A?

Yes, by charging absurd interest rates on leases they easily cover the $7500.
Gravity lease money factor is approximately double the Air.

 

[HC_79]

Gravity lease money factor is approximately double the Air.

Because it’s a brand new model and has demand vs Air being lit for years. It’s not uncommon to pay premium leasing rates for 6 to 12 months of a new model launch, depending how popular the model is. Why give it away if people are signing up……