2024 Model 3 Performance Announced - Discussion thread post announcement

[Jeremy3292]

You probably have been better off leasing with the 3 years schedule. I plan to buy next year and at that point, my car would have been in use for 6 years. Also, my car is a 2019 model but she has been solid while I have other friends with Teslas that have been a disaster. Hard to part with a car thats been so good to me

Can’t lease in SC

Plus I’m hoping this will be the car I keep for 5+ years this time. Told myself that last time though so I’ll continue to lie to myself in bliss

 

[Newdoc]

If you’re worried about depreciation, you shouldn’t be buying. Cars are an expense, plain and simple. You either accept the expense at the time or you don’t. No such thing as a good investment when it comes to any car. Residual sale value is simply a luxury and usually can’t be predicted.

I'm not worried about depreciation. Our cars are kept for at least 5 years and we are paying cash. I'm not eligible for tax credit but I cannot think of another car with the value price point with the efficiency, practicality and performance, so we'll take the $7500 hit as just an added income tax. The M3P at the full price is still a good buy. I just thought the depreciation discussion was interesting due to some of the car's interior and paint options that disqualify it for the credit.

And why there are almost no vehicles that are an "investment", some will hold value much better and make a smarter buy if you are flipping cars more often than every 5-8 years. If you are willing to wait a couple of years, the M3P may be a great value used but my concern with used performance is what cars were constantly hammered and tracked vs those driven more gently.

 

[jyavenard]

If you’re worried about the price and residual value, then you shouldn’t buy the car. A car is an expense; a house is an asset.

when the model 3 was announced in 2016 for a price of "US$35000" I placed that sum in TSLA stock. 2300 shares. Can buy a few model 3 for free!

 

[terranx]

when the model 3 was announced in 2016 for a price of "US$35000" I placed that sum in TSLA stock. 2300 shares. Can buy a few model 3 for free!

If you do that today you’ll probably end up losing more than the depreciation

 

[fetar30310]

when the model 3 was announced in 2016 for a price of "US$35000" I placed that sum in TSLA stock. 2300 shares. Can buy a few model 3 for free!

I'm curious - how much of a profit did that turn?

 

[Jeremy3292]

I'm curious - how much of a profit did that turn?

Approx $15 a share in 2016. Today’s price is approx $175 a share.

2300 shares x $165 appreciation = $380k approx profit

 

[GregD60]

Approx $15 a share in 2016. Today’s price is approx $175 a share.

2300 shares x $165 appreciation = $380k approx profit

Tesla had a 5 to 1 stock split in 2020 and a 3 to 1 stock split in 2022, so that 2300 shares in 2016 would be 34,500 shares today if none were sold. The, 2300 shares bought in 2016 at $15 per share would have cost $34,500, and today they'd be worth $6,037,500, so a little more than $6 million appreciation.

 

[GregD60]

Approx $15 a share in 2016. Today’s price is approx $175 a share.

2300 shares x $165 appreciation = $380k approx profit

I don't see any accounting here for the stock splits here.

 

[Jeremy3292]

Tesla had a 5 to 1 stock split in 2020 and a 3 to 1 stock split in 2022, so that 2300 shares in 2016 would be 34,500 shares today if none were sold. The, 2300 shares bought in 2016 at $15 per share would have cost $34,500, and today they'd be worth $6,037,500, so a little more than $6 million appreciation.

You’re right

 

[jyavenard]

so that 2300 shares in 2016 would be 34,500 shares today if none were sold.

no, that's 2300 shares *today* after the split, I included that in my earlier calculations.

 

[jyavenard]

I don't see any accounting here for the stock splits here.

because there's no need to. Historical prices ($15) is the share price after stock split. It wasn't $15/share back then, it was $89ish (can't recall exactly now)

 

[Jeremy3292]

You’re right

no, that's 2300 shares *today* after the split, I included that in my earlier calculations.

Jk turns out I was right

 

[GregD60]

because there's no need to. Historical prices ($15) is the share price after stock split. It wasn't $15/share back then, it was $89ish (can't recall exactly now)

Thanks for the clarification.

 

[mpgxsvcd]

I'm not worried about depreciation. Our cars are kept for at least 5 years and we are paying cash. I'm not eligible for tax credit but I cannot think of another car with the value price point with the efficiency, practicality and performance, so we'll take the $7500 hit as just an added income tax. The M3P at the full price is still a good buy. I just thought the depreciation discussion was interesting due to some of the car's interior and paint options that disqualify it for the credit.

And why there are almost no vehicles that are an "investment", some will hold value much better and make a smarter buy if you are flipping cars more often than every 5-8 years. If you are willing to wait a couple of years, the M3P may be a great value used but my concern with used performance is what cars were constantly hammered and tracked vs those driven more gently.

Remember, the used value of this car is going to be judged against the lowest amount anyone could pay for it and not based upon what you actually paid for it. It is very likely that this car will only be worth $32K or less in 2 years on the used wholesale market. It is going to be tough to pay down $23K+ of principal in that time.

Sure paying cash makes the deal a lot better because you don't pay interest but the money you pay upfront has opportunity cost losses.

The bottom line is that if you qualify for the tax credits and you can pay cash then that we be the cheapest way to acquire the car. If you get the tax credit but you need a loan then it will probably be better than the lease as long as the interest is about 5% or less. If you don't qualify for the tax credit then as bad as the lease is it is still probably worth it. That $7,500 is a huge discount and these cars depreciate WAY more than people realize. The lease insulates you from the depreciation being more than you expected.

 

[SO16]

If one cares about resale value, buy used or lease.

 

[oreobbq]

If people want to drive fun cars that depreciate pretty quickly, leasing is….convenient. By renting you have no equity but you get to move onto the next shiny thing that will do an improved 10.899 1/4 mile yay!

I make bad choices though. Do as I say, not as I do lol.

 

[elambo]

I dunno. People knock leasing but I jumped into a MYP lease prior to the price drops and I'm feeling pretty good about it today (no offense to those whose cars depreciated overnight).

Everyone's situation is different so there's not a universally right or wrong method, just one that's best for an individual. I typically buy but my last two cars have been leases and each worked out rather well. In three years I might feel differently again.

 

[Destiny1701]

If people want to drive fun cars that depreciate pretty quickly, leasing is….convenient. By renting you have no equity but you get to move onto the next shiny thing that will do an improved 10.899 1/4 mile yay!

I make bad choices though. Do as I say, not as I do lol.

All comes down to perceived value and what someone is willing to pay to enjoy their product/toy.

If that 2.9/60, 10.8 1/4 mile puts a smile/laugh on the owners face daily…then how much is that worth?

Satisfaction factor always seems to take a back seat to prudent fiscal responsibility.
What if someone is a car buff and derives max enjoyment out of driving and not just an A to B for them? That payment to them seems like a good value.

Some want that 8oz $150 wagyu steak and don’t care one bit. Other’s would consider this an extravagance and irresponsible.

Potato…potahto..

 

[flash3d]

2021 vs 2024

 

[oktane]

M3P Lease, 24 mo, 10k miles, in CA comes out to $872/mo including taxes with $3k due at signing. That works out to $23,982 all in.

Cash price is $62,304 - $7500 tax credit = $54,804

That overall, means leasing x 2 years/20k miles use is 43.8% of the cost to own it outright if paying cash and qualify for tax credit, or a difference of $30,822.