Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

A Bad Idea, Whose Time May have Come

This site may earn commission on affiliate links.
I don't believe it is a fund. I also don't believe in leaving cash, laying around doing "nothing"

What's why I like a little physical gold with my cash. If economy did get rocked good. The gold is worth more at that point then today.

Can I suggest the unthinkable? If you can't wait for the Model 3, the Volt (god I know, don't hate me) sounds more your fitting.

As someone that has a kid, and works away from home I feel I need to offer some advice (and I have been around your neck of the woods... Er sands)

I work remotely, many people don't really understand. When I go to work, it's for 28days straight. Helicopters are used if there are no roads. So by remote I mean at times the high Arctic islands in northern Canada. 28days straight, no weekends off. I am home with my daughter 14 days in between. FaceTime and Skype are life savers. Those 14 days off I cherish with a passion.

If your working an 8hr day and have at least 3 hour commute. Not including lunch that's 11hrs 5 days a week you don't see your kids. So possible 12 hours a day? So right there your kids wake up go to school and go to bed with out more then a glimpse. Saturday's are going to be spent resting from the week of 12hr days.

I could not do that. I understand that moving closer to the core of a city might make sacrifices on your real estate. But I would make that leap in a heartbeat before spending 12hrs a day away from home. In my mind that is absolutely crazy. Move to Miami and use transit. You will still get a nice house.

Humans have moved to survive since the beginning of time why is now different?
 
If I were in your situation I would not buy the Tesla right now. I would move 140 miles closer to the new job and enjoy an additional 400 hours a year doing what I enjoy. Once you have the move figured out and more than $3,000 in emergency savings I would buy the Tesla.
 
  • Disagree
Reactions: zenmaster
I'm young. Married with no kids yet (maybe 1 in the future). We bought our Tesla at 27. Household income under 100k a year.

We bought the Tesla (Performance version too). Like many in Seattle we rent. I didn't want to spend 500k on a house that is crap. We share a split level house with childhood friends in a suburb of Seattle. Our rent is $600 a month. It is a... old house.

I make plenty of sacrifices to afford it. I don't eat out, seems like a waste of money. Gave up that morning $3 coffee. I started my own part time ride sharing business (Uber and private clients on the side). I love the car, and have no regrets nearly 3 years later.

Honestly, this car isn't as expensive as people make it seem if you really want it. Especially if you don't have kids.

I feel bad for people that commute in crappy cars and pay for gas. I actually was involved in a total loss in my old Model S, and had to wait 3 months for a P85D. I chose to take a bus before driving an ICE.

It's just a car, but it's totally worth it to me. YMMV. Go drive one and decide.
 
Oh, and please don't consider "My true emergency fund is in the 100k of equity I can access if necessary." as an fund. It is an emergency loan unless you sell your house for that $100k.

I won't comment on you abusing the superchargers, but I will comment on this, this is not correct.

A home equity loan can be taken at about 3% APR nowadays from the equity you have. And you don't need to sell your house. But if you lose a job, I'm not sure they'll open the HELOC for you to deplete the equity in your primary residence (I just don't know), which is why I said an existing HELOC.

- - - Updated - - -

Agree. I keep a HELOC for emergencies and keep all my money in a position where it is tax advantaged, working in less liquid investments, or both. When the banks start paying 5% or 6% interest in a 90 day CD again, I will reconsider.

+1000
 
I also don't believe in leaving cash, laying around doing "nothing"

I sure do, especially in the past year looking at the market returns. Keeping money as "cash" is part of a wise investment strategy. It's not doing nothing. While it may not appreciate, it doesn't depreciate. Plus, it allows you the flexibility to buy that apartment building at a foreclosure sale without being subject to financing so your offer is accepted over others, or stock at a moment's notice when the price is right, etc. etc.

As Warren Buffet says, look at the what the wealthy are doing and follow that strategy. There's no need to reinvent the wheel:

A report by Capgemini and RBC Wealth Management in 2015 cites the total cash held by high net households or those who have $1 million or more investable assets in North America as $3.8 trillion. Out of that total, $3 trillion to 3.5 trillion of those assets are estimated to be in the U.S., said Gary Zimmerman, CEO of MaxMyInterest, a New York-based company that maximizes cash balances for savers.... wealthy people are allocating large sums of their assets in cash, with 23.7% of high net worth people keeping their portfolios in cash in 2015, according to the report.

 
Last edited:
I sure do, especially in the past year looking at the market returns. Keeping money as "cash" is part of a wise investment strategy.
No it's not. If you have a mortgage, put the money there and it will yield a guaranteed return (tax free too as this is interest saved rather than earned). Keep a HELOC open but unused in case you need the money back out. Then if you ever use it, any additional cash you have goes to pay off the HELOC first, then additional mortgage payments.
 
No it's not. If you have a mortgage, put the money there and it will yield a guaranteed return (tax free too as this is interest saved rather than earned). Keep a HELOC open but unused in case you need the money back out. Then if you ever use it, any additional cash you have goes to pay off the HELOC first, then additional mortgage payments.

Exactly. I used my HELOC to finance a portion of a business expansion for one of my businesses. I am paying it off at a rate of $2500/mo and it will be zero by the end of next year. There is still enough unused credit to cover my living expenses for a year as well, if I were to need that. Low cost flexibility, that you pay interest on only when you use it, without having inflation eat at principle sitting in passbook savings somewhere. win-win-win.
 
I want to thank you all for your advice, both relating to the car and life. For the first part if I get the job, I will most likely drive the Prius until it breaks down or I go nuts which ever occurs first. I will probably establish an account and try to bank the money difference from the old job to the new job. Either way, I'll have money for a major Prius repair, or a larger down payment.

Feel free to continue to advise. I will update you all as things develop.
 
quote_icon.png
Originally Posted by TMobe viewpost-right.png
Oh, and please don't consider "My true emergency fund is in the 100k of equity I can access if necessary." as an fund. It is an emergency loan unless you sell your house for that $100k.



I won't comment on you abusing the superchargers, but I will comment on this, this is not correct.



I think you misunderstand Max if this was to me. I charge for free at my work all week and use the SC's maybe once a week if I am returning from out of town. So, I don't abuse the SC's.

- - - Updated - - -

And a HELOC...is a loan.
 
If you want to speed up the "nuts" outcome, arrange a 24hr test drive. If you'd rather wait, don't test drive at all and limit your TMC visits. ;-)
I've said it before. I'll say it again:

If you like cars, you have to test drive the Model S. There's nothing like it. [Lately that's less true with Model X out. :)]
If you test drive the Model S, you will probably buy one.
 
The car arrived with 8 miles on the odometer, and along with it the bill for $31,853. Financing arranged, I set out on the wheels of my dream. The Prius was my loyal car. Even when my commute stretched itself to 150 miles a day it saw me through. 8 years and 132k miles later I said goodbye.

... As a guy with a 9 year old prius (only 1 year of ownership is mine), and 200k miles and growing... I don't understand why you said goodbye so soon...
 
@rpiolends--

You have young kids (7, 4 and 7 month). This is the time where your presence will be needed. Sounds like you have an understanding (patient?) wife. But do not take that for granted. 150 mile commute is a considerable amount of time away from the house. Time where you cannot see your kids, help your wife or be near if something unforeseen and bad happens. Furthermore, when you get home, you will want to see and play with the kids who will be asleep. If not, they should be. Children that age need a considerable amount of sleep despite what it seems we all believe in the world. I've seen other kids fall asleep during lesson time in preschool/kindergarten because they aren't getting enough sleep... not good for developing kids and brains.

So let's say you buy the Tesla and are gone for 10-12 hours a day. Wife goes crazy by trying to raise 3 kids, without help (including yours, I'm assuming there is no nanny). 5-10 years from now that resentment will be there: how you were driving off in an expensive luxury car, while she was struggling with the kids. Doesn't matter how hard you work, your presence at home will be key. IMHO, buying the Tesla will be setting you up for a future divorce. I've seen this outcome with other folks I know, and similar circumstances.

Your best bet (if you HAVE to take the promotion, which based on other comment you have to, otherwise there is no work):

1) Move closer.
2) Drive the prius until it dies.
3) Be around for your family. Be around for your wife. Invest in your family now.

Good luck.

PS--

I know folks here talk about HELOC, etc.. but remember the biggest lesson from the great recession. Cash is king.
 
Make sure you get autopilot ... it will dramatically improve your quality of life.

This is a primary reason for the car. I'm a poster child for the need of autopilot. 1. to maintain my sanity commuting. 2. My parents are getting older and live 1/2 a country away. Driving 1600 miles might be a bit easier if *someone* else was driving most of the way.

At the same time it seems to be very hard to find a CPO 85 made after October 2014 in the 60-70k range

... As a guy with a 9 year old prius (only 1 year of ownership is mine), and 200k miles and growing... I don't understand why you said goodbye so soon...

At the time we had just gotten rid of my wife's pacifica, as we no longer had need of the AWD moving from NY to FL and having only 1 kid, and her just tooling around town, we got the leaf. fast forward to next kid, and visiting relatives, she felt the car was not to her needs. So as my commute shortened, I took the leaf and the prius was traded for a HyHighlander.

Now that the leaf is almost off it's lease, I bough a used Prius similar to the one I traded.(1 year newer, 30k less miles)

@rpiolends--

You have young kids (7, 4 and 7 month). This is the time where your presence will be needed. Sounds like you have an understanding (patient?) wife. But do not take that for granted. 150 mile commute is a considerable amount of time away from the house. Time where you cannot see your kids, help your wife or be near if something unforeseen and bad happens. Furthermore, when you get home, you will want to see and play with the kids who will be asleep. If not, they should be. Children that age need a considerable amount of sleep despite what it seems we all believe in the world. I've seen other kids fall asleep during lesson time in preschool/kindergarten because they aren't getting enough sleep... not good for developing kids and brains.

So let's say you buy the Tesla and are gone for 10-12 hours a day. Wife goes crazy by trying to raise 3 kids, without help (including yours, I'm assuming there is no nanny). 5-10 years from now that resentment will be there: how you were driving off in an expensive luxury car, while she was struggling with the kids. Doesn't matter how hard you work, your presence at home will be key. IMHO, buying the Tesla will be setting you up for a future divorce. I've seen this outcome with other folks I know, and similar circumstances.

Your best bet (if you HAVE to take the promotion, which based on other comment you have to, otherwise there is no work):

1) Move closer.
2) Drive the prius until it dies.
3) Be around for your family. Be around for your wife. Invest in your family now.

Good luck.

PS--

I know folks here talk about HELOC, etc.. but remember the biggest lesson from the great recession. Cash is king.

Interesting points. Worth pondering. I have done this commute before. I do generally leave before the kids are awake, so that we can have time at the end of each day to be a family. The points kind of weigh into the idea of I should drive the Prius for a while in the beginning, just to see how the transition is going. Hopefully that will also give time for more CPOs to show up.
 
I retired recently at 56. Last year, I bought a P90DL and it is by far the most expensive car that I have ever purchased. When I got out of college I bought my first car. I bought a modest car and took a 3 year note. After paying it off, I kept the car for three more years and made payments into my saving account. I traded that car and with the money I saved, I paid cash for the next one and every car since. Savings ahead rather than taking car loans caused each of my cars to be worth about 20% better based on the difference in interest rates . I looked at a car as an expense rather than an asset. I sometime kept my cars ten years. I paid off my mortgage with increases in income rather than change my lifestyle. My plan was to build real assets and minimize expenses. Over time my investments made more money than I did. The excess on income went into more investments. Today I can buy any car I want, live most any house and do what I wish. I have raised five kids and passed on this advise to them. The moral of the story is early sacrifices in life few pay tremendous returns later in life. I love my Model S, it is the most fun, best car ever. If I were you I would keep the Prius and put the excess earnings into paying off notes and building your investment portfolios.
 
  • Like
Reactions: techmaven