Buy now or 2020

[salejandro]

Hello everyone, first post, dying to buy Model 3 Tesla. I live in california and may be limited to waiting until next year to buy my Tesla 3. Are there any advantages/disadvantages to waiting until 2020 versus purchasing before the end of the year? I'm thinking about incentives, or any other perks that may disappear in 2020.

Thank you in advance,

 

[ducktales]

either

 

[rickdogg82]

You will lose the $1875 federal tax credit. But historically Tesla has compensated for lost credit $ with reduced prices. I believe the state $2500 rebate is still good (but could increase in the future) and HOV access will still be available for the full four years.

 

[El0n]

Buy it now. Think of the opportunity cost. Not just monetary.

 

[Gwgan]

End of quarter may get you a perk like more free supercharging; there will be intense pressure on the end of this current Q4. The longer you wait the better and cheaper the car gets, but then that's more days you are not driving electric so my advice is make the switch as soon as you can manage it.

 

[therealmrmike]

wait i hear the 2021 models are gonna be insane.

 

[salejandro]

Thank you for the reply everyone. I'm a bit of a bind since I have a lease that runs until September of next year. If I trade in, I will lose about $6,000 which I would not be happy to lose but I'm eager to get into a Tesla

 

[tvad]

Buy when it makes financial sense for you. Nothing else matters.

Tesla constantly changes pricing. You can’t win that game.

 

[CharleyBC]

If I trade in, I will lose about $6,000

As pointed out above, you'll lose the $1875 US tax credit. Even if there are no price reductions to compensate for that, losing $1875 beats losing $6000.

But you also defer a year of fun!

 

[bjrosen]

Your lease loss is a lot more than the $1875 tax credit that you'll lose, so the only reason to buy now is because you really want a Tesla. If you wait until your lease expires you'll have another choice, the Model Y, so that gives you another reason to wait.

 

[XLR82XS]

If you want one and are in the position since you're thinking/looking - get one! Life is short, enjoy the ride.

 

[SalisburySam]

@salejandro, you have a decision between a desire and a financial outcome. Only you can evaluate either of those in your situation. My guiding financial position is that when I can pay for a depreciating-in-value asset like a car in cash and not miss it, I buy. If I can’t, I don’t. I have learned that, for me, I enjoy things far more when they’re not a financial drag on my life. But that’s me.

 

[Kamban]

Not worth it to lose $6000.
Wait until Sept 2020. The Model Y will be there. Even if you don't get that there will be less demand for the M3 and the cost will be lower to keep up with loss of Fed credit.

 

[tashtibet]

I get this question all the time specially from my co workers I tell this: you won't stay at home until you purchase a Tesla/EVs, you will keep driving ICE vehicles until then etc. What you lose is incentives, you'll put money fueling, fixing, maintenance, service etc on that ICE and you lose the fun to drive Tesla/EVs.

 

[salejandro]

Great points everyone. I may wait another 6 months when the loss is less Test drove my neighbors Model 3 and I was hooked! 5 minutes driving the car made me feel like I was getting in Model T at best when I climbed back on my Mazda CX9 which I do like a lot

 

[El0n]

Not worth it to lose $6000.
Wait until Sept 2020. The Model Y will be there. Even if you don't get that there will be less demand for the M3 and the cost will be lower to keep up with loss of Fed credit.

I would not want to get an early build Model Y. They are still working on cleaning up the manufacturing for the Model 3. look at the rust issue. It’s been 3 years and the build quality is, to be quite frank, just not there yet.

The counter argument is the “but the Model Y will share so many parts tho”

Well if it’s taking this long for the SAME parts, imagine what it will be like for: MOSTLY SAME parts!

 

[woodisgood]

Finances tend to trump (haha) everything else, but after that, life is short.

 

[user212_nr]

6k a year on the lease... you are (a) rich (b) spent all your money on car, (c) both. Lets assume (a), then if you buy the Tesla, all you loose is 12 months interest (debt or lost investments).

You might be fixed on the idea of leasing, in which case you pay for the "time" with the car vs. owning where you pay for the miles you drive on it + depreciation (imaginary until you sell) which doesn't seem to be much right now on the Tesla's.

 

[tvad]

Leasing a Tesla is throwing away money unless the lease payments are tax deductible.

 

[user212_nr]

Leasing a Tesla is throwing away money unless the lease payments are tax deductible.

Looks like he is buying (I suspect he might mean lease, but he said "buy"). He also uses the words "trade-in" which I don't think is applicable ending a lease - I had assumed hes got 6k left on the lease and has to pay that no matter what, but maybe he's got 8k on the lease left and he will get back 2k (loosing 6 in theory, but not having to pay it).

In any case, there are ways to make it happen it sounds like. Also, just going for the RWD model will save him 10k. That's what I did - I was thinking about the long range version, but I said to myself, "if I have to think about the car @55k then it will delay me buying it for a long time". So far, I haven't needed the extra range.

So if hes thinking about the LR buying it in Sep. 2020 (55k), he can go w/ SR+ (45k + 6k "trade in loss") and he comes out +4k.