Did you guys go through this pre-purchase agony?

[derekt75]

1) Will Tesla go under? They've sold 21K cars, are a media darling, stock through the roof, new model coming out next year, etc. But what if Elon moves on to something else? What if he's pushed out? What if Tesla is acquired? What if just ONE car catches fire? What if the crash tests are horrible and a flaw is found that makes the Model S the most DANGEROUS car on the road?

At this point, I think the company is clearly valuable enough that even if it goes bankrupt, it will still emerge with warranties intact. not unlike other car manufacturers recently. Back in September, this might have been a concern. At this point, I'm not worried that my warranty will outlast the company. and I'm certainly not worried that we'll be left without parts. There are enough cars on the road that someone will make money selling parts for Model Ss.

2) It's a $100K car. How much is a fender bender? It's a wide car. Door dings and scrapes are going to SUCK! Right now our cars have been paid off forever and they just work. How much will I be bothered as an early adopter taking it in for problems?

Fender benders will be much more expensive than on a $40k car, and your insurance (comprehensive/collision) will accordingly be noticeably higher. I'd be surprised if door dings are any different for Model S.
Hopefully maintenance (other than tires) won't be more than on a $40k car.

If you'll be bothered that your car might not be perfect when you get it, you might want to choose a different car. The good news is that Tesla genuinely seems to do right by folks that have had problems. The bad news is that many of their service centers are also having startup issues.

3) What about resale value? The guarantee from Tesla has a lot of caveats. I'd go through Alliant. What if in two or three years this car is worth $40K. WOW! I just spent $70K to drive a Model S for three years!

Personally, I'm not expecting the resale value of my car to be great. I think (and hope) that Tesla is going to hurt the resale value of 2012 cars by making a much better 2015 car.
I liken it to buying a PC 10 years ago: you knew that your PC was going to suck compared to what PCs were going to be like in 3 years. Still, the PC made your life better, so you bought it anyway.

There are so many unknowns. I know the answers to all of the above. I've been lurking on this forum for 6 months and have read EVERYTHING. I'm still going to do it and I haven't heard a single one of you state that it was a huge mistake.

I don't think it's surprising that none of us think we made a mistake. Go to any car site, and you'll mostly see the same thing. As long as the manufacturer doesn't refuse to fix problems with the car, most people will be happy with their decision.

Good luck,
Derek

 

[Newscutter]

@TommyBoy
You echo most of my sentiments and experience exactly. No debt, solid assets, able to "afford" at $100k+ car, but reluctant to make the leap.

However, you're in Cali. You have the infrastructure and service to back up the car all very close to you. You have a ready and eager secondary market if need be and-- for now-- very little risk of immediate depreciation.
Buy it.
Let me live vicariously through you.

 

[earlyretirement]

@TommyBoy
You echo most of my sentiments and experience exactly. No debt, solid assets, able to "afford" at $100k+ car, but reluctant to make the leap.

However, you're in Cali. You have the infrastructure and service to back up the car all very close to you. You have a ready and eager secondary market if need be and-- for now-- very little risk of immediate depreciation.
Buy it.
Let me live vicariously through you.

I definitely know what you are going through TommyBoy. I'm one of those guys that has always been pretty good with my financial decisions. I've owned some nice cars before but I've never been a "car guy". While I've always had fairly nice cars (BMW, Audi, Mercedes) it was more because I liked them and getting from point A to point B vs. enjoying driving them. For example, my most recent car I purchased was the most expensive car I've purchased. I bought a Q7 TDI a few years ago. Totally with just about every upgrade you can get in it.

And the Model S was much more expensive than that. I was going to hold out until next year to buy it until they worked out the kinks, they improved the technology a bit, added some more features I wanted, etc. But then I made the mistake of test driving it. Long story short... I put down my deposit a few hours after test driving it. LOL.

I LOVE LOVE LOVE technology and this is by far the coolest gadget I've seen. Like you, I don't have any debt, have solid assets, etc. But still, I really had to think about spending this kind of money on a car that is totally new technology with an unproven track record.

One thing that helped me seal the deal is Elon. The guy is brilliant. I actually have several friends that went to college with him when he was in Canada a few years. It's funny listening to them because they say the guy is arrogant but they all say he is the smartest guy they ever met. Watching what he did at Paypal and Space X, this guy really doesn't know how to fail.

Tesla is going through many of the same growing pains as Paypal. Their communication isn't the best. But I remember in the early Paypal days, it was HORRIBLE!! They didn't even publish a phone number on their websites for years and avoided customers! It was really horrible. But it improved.

I don't think you can look at this car as an investment at all. It's something to buy to have fun. It's revolutionary, amazing technology, gorgeous and a game changer.

I do think it's wise to get the extended warranty. Something tells me that everything related to this car including warranty claims will be massively expensive and I can't imagine anyone that wouldn't get the coverage. Also, it makes sense to increase your insurance coverage to make sure that you're totally covered, especially with underinsured/uninsured motorist to cover the complete purchase price in the event someone hits you.

But I don't regret my decision to put my order in and can't wait until I get it later this month.

 

[purplewalt]

You are buying a Luxury Item.
Sort of like purchasing fine art: you buy it because you LIKE it (the MS is more than merely transportation), not because you expect it to gain or even hold a certain monetary value.
If we always did the completely rational thing, there would be no Sistine Chapel, Mona Lisa, or Statue of David.
We would still only have hand prints on the walls of our caves.
So Live a Little, and enjoy the fruits of your labors.

 

[FarrarEV]

You are buying a Luxury Item.
Sort of like purchasing fine art: you buy it because you LIKE it (the MS is more than merely transportation), not because you expect it to gain or even hold a certain monetary value.
If we always did the completely rational thing, there would be no Sistine Chapel, Mona Lisa, or Statue of David.
We would still only have hand prints on the walls of our caves.
So Live a Little, and enjoy the fruits of your labors.

Love this post, I'm currently in my two-week configuration period and have never had a mix of so much excitement and consternation. I'm almost feeling a bit guilty that I may have this car when others don't have so much. Crazy thoughts but wanted to share.

So excited...hope I can hold out for another few days. Once it's a done deal (non-refundable deposit) I'll feel better...no going back!

 

[TommyBoy]

Love this post, I'm currently in my two-week configuration period and have never had a mix of so much excitement and consternation. I'm almost feeling a bit guilty that I may have this car when others don't have so much. Crazy thoughts but wanted to share.

So excited...hope I can hold out for another few days. Once it's a done deal (non-refundable deposit) I'll feel better...no going back!

You know if you go back into your dashboard you have an option to Confirm Now, correct? I did that because it just cuts all chances at backing out off.

I agree that the whole people are starving/a Camry would suit my needs fine thinking has crept into my mind a lot lately too. Best of luck to you!

 

[earlyretirement]

You know if you go back into your dashboard you have an option to Confirm Now, correct? I did that because it just cuts all chances at backing out off.

I agree that the whole people are starving/a Camry would suit my needs fine thinking has crept into my mind a lot lately too. Best of luck to you!

Yep. I didn't even do the 2 week waiving period thingy. I placed a deposit and then called to waive the waiting period. That way there was no backing out.

I don't think people should get too worried or feel guilty about spending this much money on a car if they can clearly afford it. I think where the problem might come is some people really really stretching to buy a car they can't afford. (The Tesla is no different vs. other luxury models when it comes to people doing that). But ultimately my attitude is I've worked really hard and I think it would give me pleasure to drive this car. I didn't buy it for the "save the planet" halo effect. LOL. Although it will be cool never to buy gas again.

It's like one of those things like buying Prada shoes or Prada shirts vs. normal ones. Buying an Armani suit vs. other cheaper ones. I think it just comes down to personal preference, being able to afford it and wanting something that will make you happy.