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LUCID Gravity Lease vs Finance

cb23 said:
I'm planning on paying cash for a GT, but I looked at the DE lease as a way to get an earlier delivery, get the $7.5k credit, and have the option of walking away from the car at the end of the lease (if I don't want to buy the car, for cash, at the end of the term). I've never leased, this site was very helpful: https://www.leaseguide.com/lease08/ (along with some posts on this forum). As they explain it, there are two components to the payment: a depreciation fee, which reimburses the leasing company for the depreciation, and the finance fee, which is the interest they earn. The depreciation fee is basically the price of the car at the start of the lease, minus the price at the end, paid monthly. There's no explicit markup here, ie no "profit" built in for them. Then the finance fee is effectively charged on the average cost of the car over the term, which is dropping due to depreciation. So interestingly, if you're going to buy the car at the end, you hope they set a lower residual; the cost of the car is the same in the end, paid more in the monthly depreciation payments and less at the end when you buy the car; but you pay less in interest because it's calculated on a lower car value towards the end of the term.

The DE lease calculator doesn't provide info on residual value and money factor, but I took a guess at effectively a 6.75% interest rate (the same as their loan) and a typical depreciation of 20% the first year, 15% in following years, and tried to match the payments the calculator shows for different lease terms. I had to make big changes to the depreciation to come close to their payments (more in the first year, less in subsequent years), so I don't have high confidence in these numbers, but I found if I did the 18 month lease to get the lowest financing cost, I'd pay ~$10k in interest. So not worth it to get the $7.5k. This was with the default down payment. There is a discussion somewhere else on the forum about a higher down payment - there was a comment made that paying a higher down payment was not a good idea. I can't recall/reconstruct the reasoning, I think it had to do with the insurance payout if the car was totaled. I'd appreciate if if someone can comment.

The lease calculator will only let me go up to about $41k for the down payment.

My SA couldn't give me the residual value and money factor, though they obviously have it to use in the calculator. I asked him to call me if he gets those numbers, and the DE order book is still open. I’ll redo the calculation with the real residual and money factor when I can, but looking at https://lexus-financial-services.pissedconsumer.com/review.html, I don’t expect the result to be much different.

It got easier for me to get a handle on all this when I started to think of leasing as: the leasing company buys the car, you pay them for its use during the term, and then they sell it. Then there are details (fees) on either end of the lease term. This helps make sense of other comments people in the forum have made, such as not being allowed to get custom licence plates.
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Since the lease costs are higher than financing due to both MSRP and MF/APR, financing the LUCID Gravity is likely the better option unless you specifically prefer leasing for shorter-term use or flexibility.
 
Just a note on the $7500 credit when leasing if car was reserved before Oct 1, 2025.
Lucid is NOT absorbing the $7500 charge. The US government is giving them the $7500 credit per their rules, and Lucid is simply passing it on, as are many other companies selling/leasing EVs:


According to the IRS, if a buyer orders a new or used vehicle and puts money down on it before Sept. 30 but takes delivery after that date, they can still claim the tax credit at that later date.
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  • The leasing company, which is the buyer of the vehicle, gets the credit and then could pass the value of the credit to you in the form of a lower lease payment.
  • There are no limits on income, price, where the vehicle is built or where the battery comes from.
leased EVs qualify for a separate EV credit program that provides a $7,500 “commercial credit” for light-duty vehicles acquired by businesses — including leasing companies. The leasing company, which is the buyer of the vehicle, gets the credit and then could pass the value of the credit to you in the form of a lower lease payment. That’s not required and you have to make sure you get it, but many automakers are promoting this.

The major advantage of the commercial credit — called the “leasing loophole” by critics — is that it has far fewer rules: Unlike the purchase credit, there are no limits on the lease customer’s income or on the vehicle’s price. The lease customer can also pick from a wider selection of EVs since the commercial credit does not have the complex battery rules or requirement that the vehicle be built in North America.
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micaeljames said:
Since the lease costs are higher than financing due to both MSRP and MF/APR, financing the LUCID Gravity is likely the better option unless you specifically prefer leasing for shorter-term use or flexibility.
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One other factor in my consideration is whether the Gravity itself or the technology is much better at 3 years, and I don't know the answers.
Likely, the 2028 Gravity will be more stable, but I would expect updates to improve the current Gravity, too, with perhaps the exception of the HUD.
History would suggest that Lucid is probably locked into the current fobs for the Gravity, as it is for the Air fobs and BoA.
This being the case, the HUD may be the same vendor in 2028, too.
 
EVCar said:
One other factor in my consideration is whether the Gravity itself or the technology is much better at 3 years, and I don't know the answers.
Likely, the 2028 Gravity will be more stable, but I would expect updates to improve the current Gravity, too, with perhaps the exception of the HUD.
History would suggest that Lucid is probably locked into the current fobs for the Gravity, as it is for the Air fobs and BoA.
This being the case, the HUD may be the same vendor in 2028, too.
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Either it will have newer tech in 2028 that differentiates it meaningfully from today’s Gravity (something I highly doubt) OR, it won’t and the depreciation will still be extreme and one can likely buy a 2026 Gravity in 2028 for less than the lease residual.

If you’re holding the car for say, 6+ years and you know it, I think buying/financing is an obvious financial decision.

I don’t keep cars that long. Regardless, it’s really a personal decision as there are so many factors that play into it. You simply can’t have a side by side that definitively shows it’s “better” to lease or buy. You can quantify numbers, but even then, lots of variables depending on your situation. “Better” is a relative term.

Bottom line - if you can, get a Gravity. Period. Amazing car whether it’s leased or bought.
 
I believe lease rates may be coming down. I am told by my SA that the money factor is now .002 = 4.8%. That's obviously not amazing, but it is a lower rate than the last numbers I've heard for a loan.
 
WeighingGravity said:
I believe lease rates may be coming down. I am told by my SA that the money factor is now .002 = 4.8%. That's obviously not amazing, but it is a lower rate than the last numbers I've heard for a loan.
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Interesting. I asked my SA about this today and was told the latest money factor is 0.00227 = 5.45% for the Gravity, which is still lower than it was last month.
 
I think you are right. My SA must have left off the last .00027, which adds up. I ran the numbers he gave me with my actual vehicle price, residual, down payment, and local taxes, and your MF, and I am coming within a few dollars of my actual quoted monthly payment. And I think my residuals, which were quoted over the phone, were probably just round-ish numbers and explain the small discrepancy.

It's annoying that all this is so voodoo-ey. But I'm willing to pay for the ripcord option in the lease, and have the $7,500 credit pay for part of that.
 
WeighingGravity said:
I think you are right. My SA must have left off the last .00027, which adds up. I ran the numbers he gave me with my actual vehicle price, residual, down payment, and local taxes, and your MF, and I am coming within a few dollars of my actual quoted monthly payment. And I think my residuals, which were quoted over the phone, were probably just round-ish numbers and explain the small discrepancy.

It's annoying that all this is so voodoo-ey. But I'm willing to pay for the ripcord option in the lease, and have the $7,500 credit pay for part of that.
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Yeah, I agree the optionality + $7,500 credit + opportunity cost of paying cash is worth the cost of leasing. Too bad we couldn’t wait until the end of the month when there’s likely to be another Fed rate cut.
 
Smorgasbord said:
Why not just go for a shorter lease (they do as short as 18 months), and then extend if you like/want?
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The lease payments are significantly higher on an 18 month lease because the depreciation curve is steepest in the first year and a half.
 
After reviewing the lease documents about a dozen times I can confirm what was previously reported and add a few other pieces of knowledge:
- In addition to the documentation fee of $75 included on our order agreement, there is a lease acquisition fee of $995 AND a processing fee of $195. The later two you would not pay if purchasing with cash or traditional financing (although a traditional loan might have other fees).
- There is language in the agreement called a “Recapture Amount” which claws back the EV credit if you terminate the lease or buyout the lease in the first 18 months. So, if you want to execute the purchase option in the 19 month or beyond you would not have to return the EV credit.
- If you want to buy the vehicle (purchase option, not termination option) prior to lease end you can do so and not have to include remaining future interest payments in the adjusted lease balance.
- Whether you return or purchase the vehicle there is a $450 turn-in fee/purchase option fee. So, by leasing you’re paying additional fees of $450 + $995 + $195 = $1,445. So, figure on netting those fees from the $7,500 EV credit.
 
Shenlon said:
That was one of the things I pushed back on, they didnt budge (on that or the referal credit). The lease price is what got to me ultimately to abandon the car. When trying to leverage the $7500 credit...the price was crazy ($142K). This is a quick a dirty spreadsheet I didn't get a chance to update with better descriptions, but I wanted to make sure I got something out here since people asked and I didnt want to leave people hanging or thinking Inwas just being a troll. I can always update it if its confusing or if im dumb and missed something!

View attachment 32931
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Just as a follow up, they still have not refunded my deposit. They never gave me a vin, only what the cost of the car would be after it was built, and I cancelled it after I got those numbers. They told me it was too late to get my deposit back.

I love my Air, but with all the bad press with the lease returns folks are encountering and with them not budging on returning my deposit, it's leaving a bad taste in my mouth with how they do business
 
Shenlon said:
Just as a follow up, they still have not refunded my deposit. They never gave me a vin, only what the cost of the car would be after it was built, and I cancelled it after I got those numbers. They told me it was too late to get my deposit back.

I love my Air, but with all the bad press with the lease returns folks are encountering and with them not budging on returning my deposit, it's leaving a bad taste in my mouth with how they do business
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Did you initiate the cancellation from your Lucid Dashboard, than notify your SA to process the cancellation to get the deposit back?
 
ClearlyLucid said:
After reviewing the lease documents about a dozen times I can confirm what was previously reported and add a few other pieces of knowledge:
- In addition to the documentation fee of $75 included on our order agreement, there is a lease acquisition fee of $995 AND a processing fee of $195. The later two you would not pay if purchasing with cash or traditional financing (although a traditional loan might have other fees).
- There is language in the agreement called a “Recapture Amount” which claws back the EV credit if you terminate the lease or buyout the lease in the first 18 months. So, if you want to execute the purchase option in the 19 month or beyond you would not have to return the EV credit.
- If you want to buy the vehicle (purchase option, not termination option) prior to lease end you can do so and not have to include remaining future interest payments in the adjusted lease balance.
- Whether you return or purchase the vehicle there is a $450 turn-in fee/purchase option fee. So, by leasing you’re paying additional fees of $450 + $995 + $195 = $1,445. So, figure on netting those fees from the $7,500 EV credit.
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I should add - they also upped my "documentation fee" from $75 to $800. Others have mentioned the same. I have asked my SA about it and he said he'd look into it for me, but no updates a week after my last request. (my new one has gone a little cold on me now) I think this is a pretty crappy little fee increase for no reason. I guess I'm happy the MF has gone down, but it's pretty annoying.
 
Ron_Burgundy said:
I expect my $125,000+/- Gravity that I am leasing today to be worth less than the residual of about $68,000 in 33 months.
I also believe I will be able to buy a same spec (or better) Gravity on the open market with 45,000 miles for less than the residual.
If I am wrong, I may buy out my lease. If I am right, I probably will buy a newish Gravity and keep it for a long time.
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I always go with buying a car, you have to deal with the stress of - “ how much will they charge for this, can I tint, should I add ppf, what about that stain, or the small tear on the leather…..”

Saving a few thousand isn’t worth that for me. More stress fee to own my car.

If you change cars every 3 years, leasing is worth it. But you should accept you lose a lot of money going for the latest.
 
Shenlon said:
Just as a follow up, they still have not refunded my deposit. They never gave me a vin, only what the cost of the car would be after it was built, and I cancelled it after I got those numbers. They told me it was too late to get my deposit back.

I love my Air, but with all the bad press with the lease returns folks are encountering and with them not budging on returning my deposit, it's leaving a bad taste in my mouth with how they do business
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My Deposit Contract says:

For Lucid Gravity Grand Touring vehicles, the Order Deposit is fully refundable up until the time the vehicle enters production; Lucid will notify customers via email before their vehicle enters production.
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They don't say how much before entering production the email will come. Did you get such a "entering production" email? If so, how long before it entered production did it come? Note it doesn't say "VIN assigned," that could come after entering production.
 
Smorgasbord said:
My Deposit Contract says:


They don't say how much before entering production the email will come. Did you get such a "entering production" email? If so, how long before it entered production did it come? Note it doesn't say "VIN assigned," that could come after entering production.
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There is no such email. I didn’t even get a call. It’s possible some SAs give a call, but I’m definitely not alone in not getting one. It’s frustrating to say the least. I think they need to do a much better job communicating.
 
gaskiller said:
I always go with buying a car, you have to deal with the stress of - “ how much will they charge for this, can I tint, should I add ppf, what about that stain, or the small tear on the leather…..”

Saving a few thousand isn’t worth that for me. More stress fee to own my car.

If you change cars every 3 years, leasing is worth it. But you should accept you lose a lot of money going for the latest.
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All fair and true. But I can’t imagine the service cost of an out of warranty Lucid vehicle…
 
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