LEASE VS. BUY
Leasing a Rivian no longer gets you a tax credit.
The $7,500 lease loophole closed on September 30, 2025. That single change flipped the math, and most lease-vs-buy advice still hasn't caught up. Here is what actually applies to a 2026 Rivian, including the money factor Rivian won't show you until you've paid a non-refundable deposit.
9 min read · Last updated August 2026
THE QUICK ANSWER
- The federal lease credit is gone. Section 45W — the commercial credit leasing companies claimed and passed through as a price reduction — expired for vehicles acquired after September 30, 2025
- Rivian's lease money factor runs roughly 8–9% APR. Reported figures convert to about 7.95%–8.86%
- Rivian's purchase financing runs 0%–1.99%. Rivian is subsidizing buying, not leasing — that gap is the whole story
- Section 179 requires ownership. Business buyers who lease forfeit the largest federal tax benefit still available
- Bottom line for most 2026 buyers: finance, don't lease. The exceptions are real but narrow
The lease loophole, and why it closed
Until September 30, 2025, leasing was the smart move for most Rivian buyers, and the reason had nothing to do with leasing itself.
The federal Clean Vehicle Credit under Section 30D had income caps and MSRP caps that disqualified most Rivian buyers. But Section 45W — the commercial clean vehicle credit — had neither. A leasing company could claim the full $7,500 on a vehicle it owned and leased to you, then pass it through as a capitalized cost reduction. Your income didn't matter. The vehicle's MSRP didn't matter.
That was the loophole. People leased R1S models they intended to keep, then bought out the lease shortly after delivery, purely to capture a credit they couldn't get by buying directly.
The One Big Beautiful Bill Act killed all three credits at once. Section 30D (new purchase), Section 25E (used), and Section 45W (commercial and lease) all terminated for vehicles acquired after September 30, 2025.
There is no longer a federal credit to bypass into. The reason to lease a Rivian evaporated on that date, and the reason most lease-vs-buy comparisons written before then are now actively misleading.
If you signed before the deadline: buyers who entered a binding written contract and made a qualifying payment on or before September 30, 2025 may still claim the credit at delivery, even if delivery happened later. See the federal tax credit guide for documentation requirements.
Rivian's lease rate is roughly 8% APR
This is the part that decides the question, and it's the part hardest to find.
A lease doesn't quote an interest rate. It quotes a money factor — a small decimal. Multiply it by 2,400 to get the equivalent APR.
Reported Rivian money factors have run around .00331 to .00369, which converts to roughly 7.95% to 8.86% APR.
Now compare that to what Rivian offers on a purchase:
| Path | Effective rate |
|---|---|
| Lease (money factor .00331–.00369) | ~7.95%–8.86% APR |
| Finance, 2026 R1 Tri, 60 months | 0% APR |
| Finance, 2026 R1 Dual, 60 months | 1.99% APR |
Rivian is subsidizing purchases and not subsidizing leases. A buyer taking 0% APR over 60 months is borrowing free money. A lessee at .00369 is paying near-9%. That is a very large gap, and it swamps most of the other considerations on this page.
The disclosure problem
Rivian does not publish the residual value or the money factor. Owners report that those figures are controlled by Chase, doing business as Rivian Financial Services, and are not disclosed until you pay a $500 non-refundable deposit.
That means you cannot evaluate whether a Rivian lease is competitive until you've committed $500 you can't get back. If you're leasing with the intent to buy out early, the residual — the buyout price — is the single most important number in the deal, and it's the one you can't see.
Practical advice: if you're considering a lease, budget the $500 as the cost of finding out. And when you get the numbers, convert the money factor immediately — multiply by 2,400 — so you're comparing it to the APR you'd get buying.
What's on the table right now
- A rebate toward capitalized cost reduction on new 2026 R1T and R1S Tri Max leases, offered for a limited ordering window with a defined delivery deadline
- 0% APR for 60 months on new 2026 R1 Tri vehicles
- 1.99% APR for 60 months on new 2026 R1 Dual vehicles
Read the lease contribution correctly.A one-time credit toward the amount due at signing on a six-figure vehicle at a near-9% money factor does not close the gap against 0% APR financing. It reduces the amount you're financing; it does not change the rate you're paying on the rest.
Lease and finance offers change monthly and vary by trim, region, and credit tier. Confirm current terms at rivian.com/offers before you order.
Running the numbers
The clearest published example comes from the R2, where the lease and finance payments land almost identically:
| Lease (36mo) | Finance (72mo) | |
|---|---|---|
| Monthly payment | $1,031 | $1,027 |
| Due at signing | $3,356 | Equivalent upfront |
| Total spent at 3 years | Roughly the same | |
| Equity at 3 years | $0 | $4,091 |
Same money out the door. One path ends with nothing; the other ends with over $4,000 in positive equity.
That analysis used a 64% residual on a 36-month, 10,000-mile lease — Rivian Financial Services valuing a $59,485 R2 Performance at $38,070 after three years. The residual is healthy. The money factor at .00369 (8.86% APR) is what kills it.
The same logic applies to the R1 lineup, more strongly. Higher vehicle price means the rate gap compounds harder, and the 0% APR offer on Tri models is more aggressive than anything on the lease side.
Figures are illustrative and reflect published offers at time of writing. Your payment depends on configuration, credit tier, state tax treatment, and the offer window you order in. Run your own numbers before signing.
If you're buying through a business, leasing costs you more than the rate
This is where the gap gets widest, and it's the point most lease-vs-buy content misses entirely.
Section 179 and bonus depreciation require ownership. If you lease, you don't own the vehicle and cannot take either one. You deduct the business-use portion of your lease payments instead, subject to a lease inclusion amount.
For a business buyer with strong business use, that's a dramatically worse outcome. A purchased R1S at $92,000 with 100% business use can generate a full first-year deduction through Section 179 plus 100% bonus depreciation. The same vehicle leased generates a fraction of that, spread across the lease term.
The OBBBA auto loan interest deduction also excludes leases. Up to $10,000 per year of deductible interest on a qualifying new vehicle loan, through 2028 — financed purchases only.
If you're a business buyer, the question isn't close. See the full analysis on the Section 179 guide.
The cases where leasing is still the right call
Leasing isn't wrong for everyone. It's wrong for most people in 2026. Here's the honest list of exceptions:
- You genuinely want a new vehicle every 2–3 years. If you were never going to keep it, equity you don't build isn't a loss.
- Battery and technology risk worries you. Rivian's R1 platform has changed substantially across generations. A lease transfers residual-value risk to Chase.
- Your business use is under 50%. Section 179 is off the table either way, so ownership's biggest tax advantage doesn't apply to you.
- You need the lower monthly payment and understand the tradeoff. Sometimes cash flow constraints are real. Just go in knowing you're paying near-9% for that flexibility.
- You expect to move states or change circumstances. A three-year commitment you can walk away from has genuine option value.
What is no longer a reason: capturing a federal tax credit. That reason is gone.
Does leasing and buying out still work?
It was a very popular play through September 2025, and it worked because of Section 45W. Lease to capture the credit, buy out shortly after, keep the car.
Without the credit, the arithmetic reverses. You'd be paying a near-9% money factor for however many months you hold the lease, plus an acquisition fee, plus the buyout price — versus simply financing at 0–1.99% from day one.
There's also a structural warning worth repeating: a down payment on a lease lowers your monthly payment but does not reduce the buyout price. The buyout is based on the residual, not on what you've paid in. If you're planning an early buyout, a large capitalized cost reduction is money you may not recover.
Verdict: if you intend to keep the vehicle, finance it. The strategy that justified the detour no longer exists.
Colorado buyers: how leasing affects your state credit
Colorado's Innovative Motor Vehicle Credit applies to both purchases and leases, so leasing does not disqualify you at the state level.
But the $80,000 MSRP cap does. No R1S configuration qualifies, and the R1T Premium only qualifies at base spec. Leasing doesn't change that math — the cap is on the vehicle, not the transaction.
The OBBBA auto loan interest deduction, however, is lease-disqualifying, and for a Colorado buyer under the income phase-out that's a meaningful swing toward financing.
Full state breakdown on the Colorado incentives page.
Which path fits you
| Your situation | Recommendation |
|---|---|
| Business use over 50% | Finance. Section 179 plus bonus depreciation require ownership |
| Plan to keep the vehicle 5+ years | Finance. 0–1.99% APR vs. ~8% money factor |
| Income under OBBBA phase-out, financing | Finance. Up to $10,000/yr deductible interest |
| Want a new vehicle every 2–3 years | Lease. Equity you weren't going to build isn't lost |
| Worried about residual value risk | Lease. You transfer that risk to Chase |
| Planning a lease-then-buyout | Finance. The credit that justified this is gone |
| Cash flow constrained, understand the cost | Lease, with eyes open on the rate |
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Frequently asked questions
Does leasing a Rivian still get the $7,500 tax credit?
No. The Section 45W commercial clean vehicle credit — the provision leasing companies used to pass through a $7,500 capitalized cost reduction — terminated for vehicles acquired after September 30, 2025 under the One Big Beautiful Bill Act. There is no federal credit on a Rivian lease in 2026.
What is Rivian's lease money factor?
Rivian does not publish it. Owners report money factors around .00331 to .00369, which converts to roughly 7.95% to 8.86% APR when multiplied by 2,400. The figure is set by Chase, doing business as Rivian Financial Services, and is typically not disclosed until you pay a $500 non-refundable deposit.
Is it cheaper to lease or buy a Rivian in 2026?
For most buyers, financing. Rivian has offered 0% APR for 60 months on select 2026 R1 Tri models and 1.99% on R1 Dual, while the lease money factor runs near 8 to 9% APR. Published comparisons show similar monthly payments either way, but financing ends with positive equity while a lease ends with none.
Can I claim Section 179 on a leased Rivian?
No. Section 179 and bonus depreciation both require ownership. On a lease you deduct the business-use portion of the lease payments instead, subject to a lease inclusion amount. For a business buyer with high business use, that is a substantially worse outcome than purchasing.
Does the auto loan interest deduction apply to leases?
No. The OBBBA deduction of up to $10,000 per year in vehicle loan interest through 2028 applies to financed purchases of qualifying new vehicles. Leases do not qualify.
Should I lease a Rivian and then buy it out?
Generally no, not in 2026. That strategy existed to capture the Section 45W credit, which expired September 30, 2025. Without it you would pay a near-9% money factor plus an acquisition fee before reaching a buyout price that a straight 0 to 1.99% purchase loan avoids entirely.
Does a down payment on a lease lower my buyout price?
No. A capitalized cost reduction lowers your monthly payment, but the buyout price is based on the residual value, not on payments made. If you plan to buy out early, a large down payment is money you may not recover.
Do Colorado's EV incentives apply to leases?
Colorado's Innovative Motor Vehicle Credit applies to both purchases and leases, so leasing does not disqualify you. But the $80,000 MSRP cap does — no R1S configuration qualifies regardless of how you acquire it.
Configure your Rivian today
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I'm Rick, a Rivian R1S Dual-Motor in LA Silver owner in Morrison, Colorado. Lease terms, money factors, residual values, and manufacturer offers change frequently and vary by credit tier, configuration, and region. Figures on this page reflect published offers at time of writing. Confirm current terms directly with Rivian before signing anything.
Nothing on this page is tax or financial advice. Talk to your own CPA about how Section 179, bonus depreciation, and the OBBBA interest deduction apply to your specific situation. Primary sources: IRS Publication 463, IRS Publication 946, and Form 4562.
Last reviewed: August 2026