Finance Advice for the M3

[Jdhillon1]

Hey guys so I'm looking at getting a sr+ m3. I own my own business and it will primarily be used for that. Currently my wife and I are sharing a 2005 Ford explorer with a v8 engine. We are spending a minimum of $400/month on gas as it's an average of $1.30/L here In BC and around $1000 a year on maintenance at least.

We are expecting in June and she really wants a dodge caravan for space purposes and comfort for long trips etc with the baby. We would be buying used and our budget is $15k which we already have saved up.

Now she really likes the m3 but we would be financing it as we will only have another $5k saved up to put as a down payment. My business is fairly new but is growing steadily and we are confident in it but she won't be working after June and will be getting her mat leave so we will be living off that and my income for the first year. We have our own home and no other debt at the moment.

My question is after she gets the Van should I just keep driving the explorer and spending that much in gas and maintenance because of fear of not enough Income coming in as an absolute worst case scenario or finance the m3 now and save on the gas and maintenance and have a more reliable enjoyable car? She can't seem to swallow the high price tag and long financing term. Also our $3000 BC rebate is about to finish as well and we also get a federal $5000 rebat, I could also easily get 2.99 for 84 months with my bank. Even if I were to have let's say half of the cost of the m3 as a down payment would that even make sense putting into the car or would it be better to invest and keep as cash flow for business etc.

Sorry for the long story but I needed to provide some insight for some real answers on this. Thank you.

 

[kmstivers]

With low interest rates, if you don’t have the money to cover it in cash, I’d just finance the whole thing. Yes, you’re paying more over the life of the term when you don’t have a down payment, but it helps fit your budget more.

If you’re truly spending $400/mo in gas, let’s assume your wife is half of that. So buying an M3, you could knock $200 off the monthly payment.

Can you afford the net $315 + insurance and charging? That’s the decision you’ll have to make. But I know I’d save the $5K, as that only saves you $65/month. I’d rather have the extra cash in my account.

 

[justsomeguy]

You also have to consider the added insurance cost. I don't know what you're paying now, but myself with max discount my yearly premium went up $1500 or so when switching to the Model 3 from a Toyota Corolla through ICBC.

I don't know what you mean by home, if it's a detached house or something where your charging needs can be covered then that's great, but if you're at all going to rely on supercharging or public infrastructure (for daily needs, not road trip), it might be a bad time.

 

[C141medic]

Hey guys so I'm looking at getting a sr+ m3. I own my own business and it will primarily be used for that. Currently my wife and I are sharing a 2005 Ford explorer with a v8 engine. We are spending a minimum of $400/month on gas as it's an average of $1.30/L here In BC and around $1000 a year on maintenance at least.

We are expecting in June and she really wants a dodge caravan for space purposes and comfort for long trips etc with the baby. We would be buying used and our budget is $15k which we already have saved up.

Now she really likes the m3 but we would be financing it as we will only have another $5k saved up to put as a down payment. My business is fairly new but is growing steadily and we are confident in it but she won't be working after June and will be getting her mat leave so we will be living off that and my income for the first year. We have our own home and no other debt at the moment.

My question is after she gets the Van should I just keep driving the explorer and spending that much in gas and maintenance because of fear of not enough Income coming in as an absolute worst case scenario or finance the m3 now and save on the gas and maintenance and have a more reliable enjoyable car? She can't seem to swallow the high price tag and long financing term. Also our $3000 BC rebate is about to finish as well and we also get a federal $5000 rebat, I could also easily get 2.99 for 84 months with my bank. Even if I were to have let's say half of the cost of the m3 as a down payment would that even make sense putting into the car or would it be better to invest and keep as cash flow for business etc.

Sorry for the long story but I needed to provide some insight for some real answers on this. Thank you.

Buy, buy, buy. Or perhaps talk to a financial advisor first

 

[Jdhillon1]

You also have to consider the added insurance cost. I don't know what you're paying now, but myself with max discount my yearly premium went up $1500 or so when switching to the Model 3 from a Toyota Corolla through ICBC.

I don't know what you mean by home, if it's a detached house or something where your charging needs can be covered then that's great, but if you're at all going to rely on supercharging or public infrastructure (for daily needs, not road trip), it might be a bad time.

Yah I checked with them I'll be paying about $300/month apposed to $230.

We have a home in Chilliwack with a detached garage where I can install a supercharger .

 

[Jdhillon1]

With low interest rates, if you don’t have the money to cover it in cash, I’d just finance the whole thing. Yes, you’re paying more over the life of the term when you don’t have a down payment, but it helps fit your budget more.

If you’re truly spending $400/mo in gas, let’s assume your wife is half of that. So buying an M3, you could knock $200 off the monthly payment.

Can you afford the net $315 + insurance and charging? That’s the decision you’ll have to make. But I know I’d save the $5K, as that only saves you $65/month. I’d rather have the extra cash in my account.

Yah I would pay it off in half the time probably 4 years as I wouldn't want to accumulate that much interest. That quote is in usd with the rebates and my options I'd be paying $680 with 0 down.

 

[ewoodrick]

Don't get the Tesla.
If you only have that amount saved, you won't be able to afford it at this time. You will be looking at a monthly cost significantly higher than the Ford.
And with a newborn coming, you are going to be spending a lot more than ever believed.

Wait a few years until things are much more stable

 

[ElectricIAC]

Have to agree with the above on one side....On the other....A caravan? Get ready for more misery, poor energy consumption and repair bills aside from the fact it’s a dodge.

 

[Fresnel]

Hey guys so I'm looking at getting a sr+ m3. I own my own business and it will primarily be used for that. Currently my wife and I are sharing a 2005 Ford explorer with a v8 engine. We are spending a minimum of $400/month on gas as it's an average of $1.30/L here In BC and around $1000 a year on maintenance at least.

We are expecting in June and she really wants a dodge caravan for space purposes and comfort for long trips etc with the baby. We would be buying used and our budget is $15k which we already have saved up.

Now she really likes the m3 but we would be financing it as we will only have another $5k saved up to put as a down payment. My business is fairly new but is growing steadily and we are confident in it but she won't be working after June and will be getting her mat leave so we will be living off that and my income for the first year. We have our own home and no other debt at the moment.

My question is after she gets the Van should I just keep driving the explorer and spending that much in gas and maintenance because of fear of not enough Income coming in as an absolute worst case scenario or finance the m3 now and save on the gas and maintenance and have a more reliable enjoyable car? She can't seem to swallow the high price tag and long financing term. Also our $3000 BC rebate is about to finish as well and we also get a federal $5000 rebat, I could also easily get 2.99 for 84 months with my bank. Even if I were to have let's say half of the cost of the m3 as a down payment would that even make sense putting into the car or would it be better to invest and keep as cash flow for business etc.

Sorry for the long story but I needed to provide some insight for some real answers on this. Thank you.

How many miles do you drive? Im sure your Ford Explorer is pretty in efficient but have you checked that your est total miles will work with financing? or will you have to pay extra per mile for going over the max miles per year?

 

[Jdhillon1]

How many miles do you drive? Im sure your Ford Explorer is pretty in efficient but have you checked that your est total miles will work with financing? or will you have to pay extra per mile for going over the max miles per year?

I've never heard such a thing for finance you should be able to drive a much as you want? It's not a lease.

I drive about 15k kms a year. I am going to hold off on the Tesla for now and re think about it and of this year. Thank you.

 

[Fresnel]

I've never heard such a thing for finance you should be able to drive a much as you want? It's not a lease.

I drive about 15k kms a year. I am going to hold off on the Tesla for now and re think about it and of this year. Thank you.

Damn sorry. For some reason I read lease, forget what I said about that. Changing to a Tesla to avoid high gas usage is such a great savings. You're spending 15k on gas in 3 years.

 

[Jdhillon1]

Damn sorry. For some reason I read lease, forget what I said about that. Changing to a Tesla to avoid high gas usage is such a great savings. You're spending 15k on gas in 3 years.

Yah man it's brutal I just spent $225 in 9 days this month ..its been hard to convince the wife

 

[Fresnel]

Yah man it's brutal I just spent $225 in 9 days this month ..its been hard to convince the wife

Yeah, I was spending 250-300 a month on gas before I got my 3 and it's so nice to not pay that anymore. I hear you on convincing the wife haha. I recommend making a spreadsheet with all the numbers on it with both scenarios over x amount of years because EVs over time is really where the cost savings come in. Also, look up "Teslanomics" on Youtube. He and his wife have dedicated videos on how to convince your wife to buy a Tesla haha. Some very helpful info on it.

 

[Jdhillon1]

Yeah, I was spending 250-300 a month on gas before I got my 3 and it's so nice to not pay that anymore. I hear you on convincing the wife haha. I recommend making a spreadsheet with all the numbers on it with both scenarios over x amount of years because EVs over time is really where the cost savings come in. Also, look up "Teslanomics" on Youtube. He and his wife have dedicated videos on how to convince your wife to buy a Tesla haha. Some very helpful info on it.

That's sick let me check that out man. Your one lucky dude with that m3 hope you love it like I would.

 

[silentride]

We are expecting in June and she really wants a dodge caravan for space purposes and comfort for long trips etc with the baby. We would be buying used and our budget is $15k which we already have saved up.

I'm not familiar with BC pricing. With $15k, is it possible to purchase a 6-7 year old Sienna/Odyssey and smaller sedan? With a growing family and business, I would personally prefer to have zero debt while purchasing slightly newer vehicles in cash. The Model 3 is nice but not worth slowing down the growth of your business.

 

[ewoodrick]

Sorry for the long story but I needed to provide some insight for some real answers on this. Thank you.

And look at other EVs instead of Teslas, the payback story, especially for a commute vehicle is often vastly superior. A used Leaf can be really cheap.

 

[Fresnel]

And look at other EVs instead of Teslas, the payback story, especially for a commute vehicle is often vastly superior. A used Leaf can be really cheap.

Just make sure they have enough range for your commute in your given winter....

 

[ElectricIAC]

And look at other EVs instead of Teslas, the payback story, especially for a commute vehicle is often vastly superior. A used Leaf can be really cheap.

If the battery pack isn’t trashed...

 

[tvad]

New baby. Spend your money on your family. Save for his/her college. Buy life insurance. You get the idea.

If your business takes off, and you find yourself with serious bank...then buy a new Tesla.

 

[CAAD]

Your family stability is far more important than a Tesla + bragging rights.