Buy Model 3 with intent to trade for Model Y - is this crazy?

[jazzer]

As a relative newbie to Tesla (and EVs for that matter) I am hoping for some words of wisdom on my current predicament and maybe a much needed injection of reality and/ or practicality.

I recently decided I was going to trade in my Mini Clubman for a Tesla and originally planned to get a M3. However, with two kids and two dogs, the hatch-less M3 seems less attractive than initially thought -- particularly to my wife. After doing some reading on the MY, it seems that would ultimately be the best fit for us, but I hate the idea of waiting 2+ years to get into a Tesla. So, I am considering moving forward with buying a M3 even though there is a good chance that I will be trading it in after a relatively short period for a new MY and losing a fair amount of money in depreciation in the process. My wife (always the voice of reason) thinks this is crazy. I am wondering if there are others out there who are considering this (which might make me feel less impulsive) or who have other opinions. While I see her point, I also feel like it is possible that we may stick with the M3 as we currently have a VW station wagon, which serves as the family vehicle for trips and for carting the dogs around.

Just to make my head spin a bit more, I've also considered getting a CPO MS given the hatch and additional room. However, I am turned off by the sheer size of that car.

Any advice/insights would be much appreciated! Many thanks.

 

[C141medic]

If you really need the space and design features of the Model Y, I’d wait for it. If you’re definitely intent on trading in the Model 3 when the Model Y is available, fiscally it’s not a good option. However; if you really need/want the Model 3 the best option, imho, would be to get the SR+ as a lease.

 

[DirtyT3sla]

I mean if money is no object, then sure why not. Why wait to buy a tesla? It's the best.

From a pure financial stand point, yeah it's pretty dumb, but nothing is so black and white.

And if there's a chance you stay in the 3...I'd go for it. We have a TM3 and an equinox so our hatch needs are met with that. I'd love to get my wife a Y in a couple years but it may still be out of our budget at that time...we will see when it's released

 

[ngogas]

Just wait. Cars depreciate too much to risk it.

 

[Triplett]

Don't forget the money you waste in paying tax on your purchase, unless you live in a tax free state.

 

[UnicornDriver]

I'm on the list for a Model Y, but I'm planning to buy a "CPO" Model S sometime soon. For my needs, the trunk of the Model 3 is awful. I also like the idea of free supercharging for used cars sold by Tesla. I think the size of the Model S will be manageable for me. I can use the extra space!

 

[sandange]

If there is a chance you would keep the M3 and ride height is a concern (rough roads, deep snow) There is an aftermarket 1.75" suspension lift kit mod available from Mountain Pass Performance.

 

[nicholb]

Pro's
You get to enjoy driving a Tesla sooner
You likely won't have any maintenance in those two years other than tire rotation and maybe replacing once.
You'll probably save some money over gas.
You will be driving the safest car on the market (usually a good selling point to mothers)
You'll get the current tax rebate.

Con's
Might be too small for you and you'll have to endure a displeased wife for a couple years (but as you said you have the wagon too)
You may not get as much as you hope on the sale/trade of the 3 as there may be a few more used ones on the market as other people also switch to the Y.

You should really get a close up look at a 3 and possibly even drive one (your wife too). See if there is a local Tesla club. If so, someone will most likely be willing to let you spend some quality time with a 3.

If you plan on trading that soon, I would not get the FSD option. Good chance there won't be that much released in it before you trade. AP would be useful now. If on the other had you may keep the 3 and change the station wagon for the Y, then it could be worth while depending on how much you trust Tesla to start delivering features.

 

[brobinson]

Does money have value to you?

If yes - wait for the Model y

If no - go for it

 

[Leafdriver333]

I would get a model 3 ASAP. We could all die within 2 years.

 

[dmd2005]

I would recommend a CPO Model S with free Supercharging and with some warranty left. The exterior dimensions of the S isn’t too much greater than a 3 and you get the utility of the hatch as well. If you trade in a two years old 3 for a Y, you’re gonna take a big hit on depreciation for the first two years of ownership.

 

[norbert-tx]

If money was a concern, he’d probably would just buy a Corolla. So I say go for it. 2-3 years is a long time.

 

[zhu-]

Have you considered a used Model 3?

You could buy the Model 3, turn it into a Robotaxi in 2-3 years and let it pay for your Model Y

 

[GolanB]

An unhappy wife is an unhappy life ... No matter how much you enjoy your Model 3, if she's unhappy it won't be worth it.

 

[GenSao]

I would recommend a CPO Model S with free Supercharging and with some warranty left. The exterior dimensions of the S isn’t too much greater than a 3 and you get the utility of the hatch as well. If you trade in a two years old 3 for a Y, you’re gonna take a big hit on depreciation for the first two years of ownership.

I agree. Especial if the OP does not need the latest AP of FSD hardware and want to drive a Tesla sooner. The depreciation cost of a used model S is much better than a New Model 3 that would not work for the OP.

The S will have similar cargo capacity of 63.3 CF (total with rear seats down) vs the Y with 66 CF (total with rear seats down).

Depending how long you hold out (say 4 years), you can then trade in your S for a new or "slightly" used model Y. Trading a used car for newer used car is generally more cost effective way to trade up.

 

[mikevbf]

If there is a chance you would keep the M3 and ride height is a concern (rough roads, deep snow) There is an aftermarket 1.75" suspension lift kit mod available from Mountain Pass Performance.

Has anyone on TMC tested this lift kit out yet?

 

[rickdogg82]

Rent a Model 3 on Turo and see how it fits into your life before biting the bullet.

 

[MXWing]

I have bought a Model SR with the purpose of selling it in 2 years for 25K. Will put that towards the Y.

Math worked out to 250 per month of ownership for me factoring all taxes and fees.

The math made so much sense I just bought it and then told my wife after the fact.

There’s not much money a 35K SR that is actually an SR+ can lose.

You will lose more than the cost of an entire Model 3SR if you dropped a top of the line S/X Performance in 24 months.

There is no better deal than this. Not even the lowest priced CPO S.

 

[TJtv]

I have bought a Model SR with the purpose of selling it in 2 years for 25K. Will put that towards the Y.

Math worked out to 250 per month of ownership for me factoring all taxes and fees.

The math made so much sense I just bought it and then told my wife after the fact.

There’s not much money a 35K SR that is actually an SR+ can lose.

You will lose more than the cost of an entire Model 3SR if you dropped a top of the line S/X Performance in 24 months.

There is no better deal than this. Not even the lowest priced CPO S.

I very much agree with this. The $35k SR M3 should have fairly low depreciation. A significant fraction of the cost of a SR M3 is the battery and motors. Those things are valuable, and since Tesla does such a good job at preventing batteries from degrading they really shouldn't depreciate very much over 2-3 years.

 

[turtlesz]

If you really need the space and design features of the Model Y, I’d wait for it. If you’re definitely intent on trading in the Model 3 when the Model Y is available, fiscally it’s not a good option. However; if you really need/want the Model 3 the best option, imho, would be to get the SR+ as a lease.

Leasing is the worst option for a Tesla. I'd buy a SR and take advantage of all the current state and federal rebates. Even if you sell in 2 years it shouldnt depreciate too heavily after rebates which will be cut ($3750 fed rebate is gone this year) and likely the SR Model at the 35k price may be killed off or stripped of it's current premium features. The current SR is basically a SR+ with some software limitations. MXWing had a great thread about it.

That being said, I believe the Y isn't all much bigger than a 3. If you need space, don't settle and get a used X. Will have more storage space for your family and they will thank you for it. If you do contractor work look to see if you may qualify for section 179, even a new X can be had near the price of a loaded Model 3.