Am I getting ahead of myself? Pls read

[Brandon332]

It's also mostly been men renting it out because their in-laws are in town and they want to show them a good time. All very respectable, responsible and nice. Have someone scheduled next week who is considering a MX purchase and wants to rent it to show the wife and convince her XD

 

[azdryheat]

I don't understand all these people paying cash. It's 1.72% interest. What mortgages do you all have 1%? I mean finance the car and pay down a house.. Mind blown.

Next argument, but my home interest is deductible.. Write off the car.

I have no debt.

Investments are making some money, but cash is not.
Ultimately, I decided to use Alliant (1.49%) for part of the car so I could still have a nice cash cushion and not cash in any investments.

Everyone's situation is different.

 

[number12]

The website vets the people, and insures the car for up to $1 million of value. I'm about 30 minutes from Boston so there are people around there, though oddly half of the people I've rented to aren't in or around the city. I have the website standard of 200 miles per day for my car, though you can modulate it to whatever number you want. If there are any issues with the car afterwards, you can file an easy quick claim on Turo's site. I haven't had any issues though but do like to creep sometimes using the phone app to see where people are going :E

What is demand really like... being business minded like you say. If you could even get half the days rented you could afford to get a second X just to rent out and it would pay for both cars... after both expenses.. insurance and all.

360*15=$5400/mo Easily pays for 2 model X full loaded and a small income.

Something is not adding up

 

[Brandon332]

@number12 I have the car listed all days a month, getting 5 hits per month so that's pretty much the demand. However this might not be optimal, for example if I lowered the price to $275 that could rise to 10 hits per month which would be better. But I want to use my car most of the time so I'm more than happy with 5 days. @number12 I also completely agree on the financing, I financed as much as I possibly could through Alliant at the low rate, and took my money and instead invested it into the market, specifically long Gamestop and short Sears =) Can't get any better than 1.78%.

 

[LuckyX]

Renting is only short income generation as it gets older the demand will decline along with potential dollars earned. Who would want to rent a 3 yr old X vs nearly new?

 

[number12]

Renting is only short income generation as it gets older the demand will decline along with potential dollars earned. Who would want to rent a 3 yr old X vs nearly new?

Supply would depict that, and price.. maybe 3 year old one would be cheaper. AND/OR there cant be that maybe Xs on TURO total. Not many people with a $100K tech car probably want to rent it out. Maybe range rovers and the like or older S classes

 

[Brandon332]

I'll add that people renting it are tending to

Renting is only short income generation as it gets older the demand will decline along with potential dollars earned. Who would want to rent a 3 yr old X vs nearly new?

Valid points, but I'll point out that 1) you can omit/change the car year on the website, and 2) For everyone I've rented to, it's all about the doors, they couldn't care less about the year etc.

But it does need to be intended only to reduce the total cost, not to create the expectation that the car will be free. Currently I'm making over 100% of each monthly payment, if in a couple years we don't get any hits anymore, than it might even out at having covered half the cost.

 

[Brandon332]

Supply would depict that, and price.. maybe 3 year old one would be cheaper. AND/OR there cant be that maybe Xs on TURO total. Not many people with a $100K tech car probably want to rent it out. Maybe range rovers and the like or older S classes

These are also good points; there is another Model S on Turo in our area from 2013 that is listed for $250 and receives fairly routine hits.

 

[bonaire]

An RV shop owner in Spartanburg, SC described owning a good RV should include renting it out when you're not out driving it around. I suspect that is similar to renting the MX - as long as the renters are trustworthy and you are insured with at least an umbrella insurance policy and maybe get bonded for the company name that the renting of the unit is being done under. I do hope you plan to pay taxes appropriately on the income from the renting of the MX.

 

[number12]

I do hope you plan to pay taxes appropriately on the income from the renting of the MX.

Statements like this are why I have to pay more taxes.

You want him to pay income tax on renting his car out for 3-5 days a month?

Better yet start and LLC put car in it. No way you make a profit. You'll get a tax deduction and increase this countries debt. Pick your battles.

Simplify taxes Bc if anything he is owed a deduction not a tax liability.

 

[Brandon332]

Statements like this are why I have to pay more taxes.

You want him to pay income tax on renting his car out for 3-5 days a month?

Better yet start and LLC put car in it. No way you make a profit. You'll get a tax deduction and increase this countries debt. Pick your battles.

Simplify taxes Bc if anything he is owed a deduction not a tax liability.

Agreed. I follow all applicable laws; I do feel like I pay too little and vote accordingly for a more fair and simplified system. As we all should

 

[jbcarioca]

Everyone needs to chill a bit. The OP clearly is in control of his finances and has no illusion that a car is a depreciating asset. So his question is whether to buy a very expensive outrageously attractive toy or be prudent. There is no purely rational justification today to buy any current production Tesla. That said, if you're inclined to do it anyway, calculate how much you'll save on insurance and maintenance on two ICE's, plus no more gasoline, then figure out if you're read to pay the differential for the sheer joy of it.

If the answers are affirmative then you can make the simple calculation about cash vs lease vs buy.

FWIW, AAPL common yields around 2% right now and actually has real appreciation potential. You'd definitely need 1% money or a mortgage deduction to make financing wise IMHO. However, no two people have the same risk appetite.

 

[MrJones390]

I don't understand all these people paying cash.

Two words: NO PAYMENTS

 

[phaduman]

great input from all - seeing the swing in options, thoughts and risks, I am getting wiser. Also, in the last week, reading up about AP2.0 and other enhancements that may require an "upgrade" to h/w (read that as trade-in), looks like a longer term ownership planning (owning for 6-8yrs) is less likely these days, particularly for Tesla buyers - who are drawn to technology. So if that is the case, the general ownership is 2-4yrs, amounts to about losing 50% of the value of the car by then, so that is 50K, give or take.

Now, it is a race to see how "less" one bleeds. From:
* pay off mortgage a bit more (your bleed is reduced by the saving of interest gap between mortgage and tesla loan: likely a $1-2K)
....to (AAPL, TSLA, bonds...)
* rent your car - be the pimp metamorphically speaking . Apologies don't mean to offend - I think Turo is a good idea and I remember reading the blog about that guy who did 100K in 2yrs).

I hear a recession is likely (20%+) in the next 12-18months (might come earlier if Trump wins - but that is another thread). So bottom line to me, makes sense not to pay cash for car, and recover some of the fast-depreciation through other means (depending on risk). But that said, need to pass the wife-test of having a "small" monthly - so it doesn't impact other plans/spendings...

 

[ThomasB]

I paid for my X cash, i plan to keep my car as long as possible.
In Canada/Montreal the rates on the loan are higher then what I saw in this thread. Whats important isI can you afford paying it cash and also have money in the bank?

I prefer owning my cars personally.

 

[Brandon332]

I would never pay cash. Just couldn't do it. Why would I pay 100k up front when I could finance 80k at 1.78% through alliant, then invest the 80k I left myself into something like a low risk corporate bond from like Apple or Microsoft which yield up to 4-5% in some cases.

 

[azdryheat]

I would never pay cash. Just couldn't do it. Why would I pay 100k up front when I could finance 80k at 1.78% through alliant, then invest the 80k I left myself into something like a low risk corporate bond from like Apple or Microsoft which yield up to 4-5% in some cases.

Current yield is about half that. And taxable, so you at best break even and your money is still tied up.
I wish there were some good bonds that yielded 5% right now, but I don't see them.

 

[Snerruc]

I don't understand where you guys do your investing. My tax frees average a little over 5%. Stocks are about 3.2% plus appreciation. Almost all investments are conservative as I am a value investor. Obviously I took advantage of the 1.49% money. Also, you are forgetting capital gains tax if you pull money out of long term investments

 

[NathanielHrnblwr]

Next argument, but my home interest is deductible.. Write off the car.

Help me understand - doesn't one have to be self employed?

 

[number12]

Help me understand - doesn't one have to be self employed?

Not in America. Several ways to "start a business" LLC with expenses. Separate business income and deductions.