American electric vehicle manufacturer Rivian Automotive has introduced leasing for select models of its R1T electric pickup truck for customers in some US states. The option has been made available in 14 states: Arizona, California, Colorado, Florida, Georgia, Massachusetts, Michigan, Missouri, New Jersey, New York, Nevada, Pennsylvania, Texas and Washington. The introduction of leasing is a move to expand sales of the pickup truck and increase the customer base beyond early adopters of electric vehicles.
Rivian is working with its financial partner Chase for the leasing program, which it plans to expand over time. Customers who prefer leasing will also benefit from the $7,500 federal tax credit for electric vehicle purchases, thus boosting demand. The option is mostly available on higher-spec models of the pickup truck that can cost more than USD 90,000. Earlier this month, Rivian raised its production forecast for the full year by 2,000 vehicles to 54,000 units as it witnessed sustained demand.
What is vehicle leasing?
Leasing is becoming a popular way of owning or using a vehicle for customers as it involves no long-term commitment. It means owning a motor vehicle for a fixed period of time at an agreed amount of money. Leases are essentially contracts signed between the lessee and lessor – and sometimes the lessor is not the seller but merely the financer. These are mostly long-term contracts spanning a year or more. The option makes it possible for people to own vehicles without having to invest heavily.
Price war with Tesla
The introduction of leasing option for R1T comes days ahead of the launch of EV pioneer Tesla’s Cybertruck pickup. The latter’s upcoming pickup is a head-on competition for Rivian at a time when high interest rates have affected demand for EVs. Tesla in fact sparked a price war earlier this year to improve sales and grab a larger pie of the EV market.
Rivian R1T electric pickup truck
The R1T comes in three AWD drive systems: dual-motor, performance dual-motor and quad-motor. Based on the drive system and the battery pack one chooses, the vehicle delivers a driving range of 270 to 410 miles. The top-spec quad-motor variant can accelerate from 0-60 mph in under three seconds. It churns out max power of 835 hp and max torque of 908 lb-ft. It offers nine drive modes – all-purpose, snow, all-terrain, sport, rally, drift, rock crawl, soft sand and converse.