AMPd
Well-Known Member
So you’re not going to explain which part about GAP I’m mistaken about?Not 100% sure, but I dont think gap works in the way you are thinking...
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So you’re not going to explain which part about GAP I’m mistaken about?Not 100% sure, but I dont think gap works in the way you are thinking...
Recently involved in a car accident that led to my 18 S to be deemed total, happened just a few days ago so i dont have the settlement value yet, according to kbb 2018 Model S go for around 60-70k. It had less than 25,000 miles.
I need help as the value is completely screwed up, I paid roughly 112k plus sales tax for the 100D back in 2018, i know i can get a similair 2020 S long range for about 85k now including fsd.
So I put about 50k down, so we finaced around 67k to the bank, we still owe 42k. So if the settlement is around 60-70k im down so much money as we will only get 18-28k back in cash after my insurance pays the bank.
This accident was deemed the other parties fault by the police, my insurance, and his own insurance.
So what i am asking is, is there anyway to recover the 40k or so extra that was lost during the 2 and a half years of owning my 100D?
Im hoping if the insurance offerse a low offer, i can argue that i had EAP which is 5k, premium interior which cost 5k back then, 3500 for the black interior color of inside, 1500 for midnight silver metallic, and free unlimited supercharging, which i hope can get more money so i won't have lost 40k of driving the car for two years.
I know that i can get a new 2020 S long range for 85k now compared to 112k when i bought but i feel this is insane how i lost so much money due to my car being totaled.
EDIT: is it possible to get back the sales tax i paid for the vehicle? in my state for 112k car it was around 6-7k of taxes alone.
If insurance offers you 70k I say take it and run! I mean come on do you realistically believe your vehicle has only depreciated 15k in value over the last 2 years? Really?
Also sorry for your loss, I too went though a similar situation and that’s when I learned to put down as little as possible and get GAP insurance. That way if it’s totaled you Walk away with minimal financial hit.
free unlimited supercharging
Elon Musk @elonmusk
Oct 26, 2018
It was underpriced. Anyway, if you want $5k refund & free Supercharging turned off, we will do that.
Ok, I understand what you’re saying but you’re both right and wrongIn my opinion, that's backwards handling of financials. Sure, you are covered in the event of worst case scenario, but statistically speaking, by far, most owners dont end up with totaled or unrecovered stolen cars.
So if the goal is maximizing ones dollars and minimizing the financial impact of a car purchase, it wouldnt be financing $100k (for example) and paying auto loan interest (which is heavily front loaded in years 1 through 2 or 3) and paying Gap premiums . It would be to put as much down as one could afford (to save on interest), skip the premiums associated with Gap, and have full coverage from the best provider out there. Extra points if the buyer purchased 2-3 years old, and paid 100% cash for the car.
What is a good down payment on a car? | Life Lanes
"So, how much should you put down?
I know this may not be the answer you want to hear, but the answer is as much as you can afford without liquidating your emergency fund or making you feel strapped for cash"
In my opinion, that's backwards handling of financials. Sure, you are covered in the event of worst case scenario, but statistically speaking, by far, most owners dont end up with totaled or unrecovered stolen cars.
So if the goal is maximizing ones dollars and minimizing the financial impact of a car purchase, it wouldnt be financing $100k (for example) and paying auto loan interest (which is heavily front loaded in years 1 through 2 or 3) and paying Gap premiums . It would be to put as much down as one could afford (to save on interest), skip the premiums associated with Gap, and have full coverage from the best provider out there. Extra points if the buyer purchased 2-3 years old, and paid 100% cash for the car.
What is a good down payment on a car? | Life Lanes
"So, how much should you put down?
I know this may not be the answer you want to hear, but the answer is as much as you can afford without liquidating your emergency fund or making you feel strapped for cash"
@craigger - You are forgetting that he likely paid $1000+ per month in loan payments in addition to his 50K down? He's in for much more than $22K
I doubt that this is going to be what you want to hear but new cars generally lose 50% of their value in 3 to 4 years regardless of the manufacturer. Some slightly better, some slightly worse but it only swings a few percent in either direction. So you saying that you're down 40 grand in 2 years on a $112,000 car isn't too far off of about what I would expect it to be worth. This is exactly why I don't buy new cars and it doesn't matter who the manufacturer is. The hit you take in depreciation on a brand new vehicle is one of those painful things that most people simply turn a blind eye to. Personally, it's exactly why I buy used cars that are about 4-years-old. It seems to be the sweet spot on getting a nice newer and well cared for car that has already taking the largest decline in value in terms of depreciation rate. It's still going to lose value but at a much slower rate. There's a reason why the wealthiest people alive tend to not buy new cars and if they do they just keep the same one for 10 or 15 years. Meanwhile, the family down the street for me gets a new car every 6 months and then does nothing but complain about their debt and bills every time I see them.
LOL good luck with that, thanks for the laughBingo. I just put $53,500 down (the entire purchase price - I own the vehicle outright) on a 2016 P90D with every option ($127k MSRP when new). Car has 50k miles. That owner lost over $80k with tax consideration in 4 years. Actually more because he added the center console and carbon fiber spoiler. When I sell it in ~3 years, I suspect I’ll lose $5k-$10k. It isn’t that I couldn’t afford buying a new one - I just don’t want to for the reason outlined here.
Maybe it will be more, maybe not. I just sold my F-150 Platinum after holding it 34 months and only lost $3.1k. I was in the car biz a long time and generally know how to make that happen. If not, I’ll either decide to take a bigger hit or keep the car. The title is in the nightstand...doesn’t cost me anything.LOL good luck with that, thanks for the laugh
With 42k left on the loan I don’t think GAP will be coming into play.
Correct, I am assuming insurance will value the vehicle a little more than 42k.Porque no? Gap should cover anything above the valuation that you owe on the car.
If Tesla continues doing what they’re doing, innovating and messing with older vehicles, you’re in for a surprise. Unfortunately.Maybe it will be more, maybe not. I just sold my F-150 Platinum after holding it 34 months and only lost $3.1k. I was in the car biz a long time and generally know how to make that happen. If not, I’ll either decide to take a bigger hit or keep the car. The title is in the nightstand...doesn’t cost me anything.
When you take out an auto loan, the first couple years are pretty much all interest payments..
Ok, I understand what you’re saying but you’re both right and wrong
If your money is parked in a savings account then yes I agree try to put down as much as possible. But if your money is in the stock market then you’re actually losing money by not borrowing
Here’s my personal example, I want a model s, about 110k out the door. I have that in a stock that pays a 5-7% dividend I can cash that out or I can borrow it from a bank with a 2.9-3.5% interest rate. So in my case and anyone else who invests their money they’re actually losing money by paying all cash. Not to mention the extra security of not going through what op is going through.
Not for a typical auto loan. It's not nearly as much so as something like a 20 or 30 year mortgage. The OP said he financed around $67k at 1.49% APR. Assuming it was for 60 months, the monthly payments would be around $1,159 and interest paid over the first two years would only be around $1,650. About 94% of the payments would’ve gone towards the principal. If it was "pretty much all interest payments" as you stated, the OP would owe a lot more than $42k of the $67k loan.
Fair point.I think it's a false economy to talk about opportunity cost when it comes to money spent on a car. Other than necessities, any money you have is either 'working money' or 'play money'. Maximize ROI on working money and maximize fun on 'play money'. Paying interest on a depreciating asset is always a losing proposition, but if it fits into your play money budget and makes you happy - more power to you. Just be OK with the fact that it's a foolish financial move.
-craigger.
Thanks for the info on elons tweet and eap, I am waiting on my insurance offer which i hope will be atleast 70k, i should have an offer this week i will keep you guys updated on what you think.@Kush Plank this is the one thing that you will likely need to fight with the insurance company over. As no comparable 2018 Model S you can buy will come with FUSC. So how do they value the loss of that feature? (How much did you actually use it?)
Your best bet is to point them to Elon's tweet where he offered to give people $5k back in exchange for removing FUSC from the car. (As that sets a very clear value for it.)
As far as you having EAP, you will just have to say that since you can't get a 2018 with EAP now they will have to use a comparable car with FSD, or add the cost of FSD to the value. (Which is now $8k, so combined with FUSC that could add $13k to what they should offer you.)