My wife and I need a 3row SUV, we’d like to get one by the end of November this year. I have a deposit on the Rivian R1SUV, however, that keeps getting delayed so we need something to cover us over for 6-12 months until the R1S comes out or we might keep the lease long-enough until there are other 3-row fully electric options.
I thought the best option is to lease a 3-row SUV that I could sell-off 6-12 months later to Carvana, Shift, etc. to minimize the damage in cost over that period.
I thought about buying a used car, but that would mean I would have to pay about 10% of tax on the full amount, and my wife wants something a little nicer and she wants it on the safer/newer side since we will have 2 kiddos and grandpa/grandma riding with us… so it would be expensive and the tax expense would also not be recoverable. This could easily be a $60K car so we are talking about $6K in unrecoverable cost just in tax for a 6-12 month period.
Do you think leasing with the intention of selling it within 6-12 months is a good idea?
The idea that a literal beta product will be a viable option with 2 little children plus grandparents in 6-12 months sounds fanciful.
That’s not to knock Rivian or single them out but building a new car company and new platforms is exceedingly difficult. Building a new EV CUV that can properly seat 7 and get 300+ mile range is so difficult that Tesla, MB, BMW, etc haven’t been able to do it yet.
So it’s one thing to be a first adopter and have a “if I get stuck somewhere that’s the price I’ll pay” mentality. But it’s quite another to do that with 2 kiddos (one will be a newborn)?
So buy something and kiss the sales tax goodbye, that’s part of the price of early adoption on the R1. Or lease something and maybe there will be no exit strategies at all in N months when the R1 is viable. No transfers, no sales to third parties… no exits beyond what’s in the contract, which is the early termination clause.
Not to change the debate to Minivans vs. SUVs, but just as food for thought… have you considered the new Sienna? It’s not your early 2000s Sienna anymore, and I’d think would retain value relatively well for such a flip whilst transporting the crew in relative comfort…
A Sienna hybrid/Pacifica PHEV sounds like the right solution both now and in the future for any setup that involves both young kids and older folks. Much more reasonable solution than a completely brand new fully electric SUV from a brand new company. And yes, likely to hold value pretty well.
I would be down for a Minivan, but my wife doesn’t like them But I like the idea that it is “temporary” and that could work.
A couple years ago I got an e-Golf and since then I have been “hooked” on the EV trend. I went all in on solar with enough capacity to charge an EV for 12.5K miles per year. At least mentally we are sort-of committed to an EV but we would be 100% cool with a plug-in-hybrid. The T8 XC90 PHEV is our favorite, but it sucks that we are on the verge to transition to a new generation of that car. The new version of that car would also be a great candidate for us.
Right now, i am just thinking what is the best option… until better options become available I think the idea of doing a short-term lease (swap or transfer) might be the best here based on an earlier comment above. I could look for a mini-van or 3row suv and not have to worry about reselling when the second hand market cools-off.
Minivans might work, except they’re in even shorter supply than other segments and thus even higher priced vs normal times. Averaging 8%-20% over sticker.
It would be elder cruelty to give and then take them out of the comfort of a minivan third row and stuff them into something much smaller with a taller floor that’s tough on older knees.
@larsib I got excited when I saw Care by Volvo and it would have probably been perfect, but looks like it doesn’t work in California. I looked at other subscription services for cars and the prices are horrendous, Care by Volvo is much more competitive.
Looks like I’ll have to end-up monitoring the Private Transfer area of this forum, and pick something up that way that has less than 12 months left on it.
Why not lease a new SUV from a company that allows transfers (BMW)? Avoid sales tax upfront and will probably lose less transferring the lease than paying tax and buying/selling a used car.
All of your options have risk but, given your scenario, I would consider leasing and transferring.
It’s not your early 2000s Sienna anymore, and I’d think would retain value relatively well for such a flip whilst transporting the crew in relative comfort…
But I like the idea that it is “temporary” and that could work.
I think the idea of doing a short-term lease (swap or transfer) might be the best here based on an earlier comment above. I could look for a mini-van or 3row suv and not have to worry about reselling when the second hand market cools-off.