TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

Help me not be an idiot

Discussion in 'Model S' started by Xenius, Jun 16, 2016.

  1. Xenius

    Xenius Member

    Joined:
    Apr 24, 2015
    Messages:
    405
    Location:
    Havertown, PA
    So the obsession continues...

    I've gone through about two different "I'm going to get an S" phases. Both times I made the correct decision to not spend four times the amount on a car that I've ever paid before. I currently have a reservation down on a Model 3.

    Again I'm feeling the call. I can "afford" this car in that I can afford the payments on it. I can't pay in cash "without selling investments" and wouldn't want to.

    Family income solidly in the middle of 100-200k, but wife may not be working after the summer, knocking is down to closer to 100k give or take.

    I don't drive that much (~22k miles on a car I bought in August 2013). My daily roundtrip communite is < 15 miles. Sometimes I work from home on fridays as well. I also don't like "luxury" cars and would NEVER consider buying an M7 or whatever the equivalent Acura might be. I like to keep fixed expenses low.

    That said....I wouldn't be surprised if my willpower fails. My wife has been on board since last time I went through this phase, and I was the one who bailed.

    Here's the car I'm looking at:
    60D AWD
    AutoPilot
    Interior Upgrade
    Cold Weather Package
    Blue
    Pano Roof
    Standard 19" wheels

    Cash price 80,000

    Amount available in "Tesla Fund" - 17,422
    Dealer trade in value of current car - 14,730
    Federal Tax Rebate - 7500
    State Rebate - none, expires 6/30/2016 (will not order before then even if I decided to)

    Effective Loan - Assumed 80k, financed @ 2%, 60 months = 1,400 /mo
    If cash on hand and from sale of current car applied before loan - 50k @ 2%, 60 months = 876/mo
    Current rate of savings to Tesla fund, 1105/month

    Thoughts?
     
    • Like x 3
  2. NOLA_Mike

    NOLA_Mike Active Member

    Joined:
    May 11, 2013
    Messages:
    1,564
    Location:
    Hammond, LA
    Just do it and stop torturing yourself...

    (That's all I got) :)
     
    • Like x 6
    • Funny x 3
    • Love x 2
  3. msnow

    msnow Active Member

    Joined:
    Jul 14, 2015
    Messages:
    4,275
    Location:
    SoCal
    I don't think you can expect dealer trade-in value from Tesla on your current car. Hope you are planning to sell it privately otherwise you will need to reset expectations.
     
  4. AZ Desert Driver

    AZ Desert Driver Genesis - The Beginning - MS60D in its nest

    Joined:
    Mar 12, 2016
    Messages:
    722
    Location:
    Tucson AZ
    Your mental trauma and mine are near identical. Slightly different options, but viva la difference.
    Buy now and enjoy - or - wait until next best thing (AP2?).
    I turned on the TV yesterday and did NOT fast-forward through some car commercials ...that shiny red jaguar shurrrr looks good.
    I'm at a point of...I don't need it, but I want it and I deserve it. The MS is a REWARD for past deeds. If not now, when?

    BTW - you can get the financing interest down to 1.49% if you use the Tesla loan guys Alliant. I'd rather borrow at this rate than cash in investments that hopefully grow better (opportunity cost).

    If you keep the car for 5 years - what is the salvage value? So what did those expensive options really cost? Did the AP save you life, or an accident at least once in the 5 years?
    (OK - now I'm back in my trauma too)
     
    • Like x 2
  5. cpa

    cpa Member

    Joined:
    May 17, 2014
    Messages:
    941
    Location:
    Central Valley
    Seventy-five hundred miles per year will use approximately 2,500 kWh, increased for Pennsylvania winters to 2,750 say.

    Thirty miles per gallon will be about 250 gallons of fuel. How much additional annual savings will this be for you?

    Similarly factor in the reduced maintenance costs of annual oil/filter changes, etc.

    You can do it! :)
     
    • Helpful x 1
  6. rcsting

    rcsting Member

    Joined:
    Dec 3, 2012
    Messages:
    206
    Location:
    Sacramento , Ca
    My vote is to buy it. I went through the same process while delaying my purchase. Now that I have received my 75D its been worth every cent. Such an amazing vehicle. You won't regret it. :).
     
    • Like x 1
  7. jtpassat

    jtpassat Member

    Joined:
    May 26, 2015
    Messages:
    104
    Location:
    Providence, RI
    I'm in the same boat, financially and obsessively. The only thing keeping me from pulling the trigger is that I still have my Honda Fit EV for $200 a month for another 2 years. The S would be a nice upgrade but logically the Fit EV does the same thing as S for my driving needs for now. What I have been doing is stashing what the car payment would be for a Model S in savings so in 2 years I can pay more of it off lowering my monthly. Good luck either way.
     
  8. CUBldr97

    CUBldr97 Member

    Joined:
    Apr 20, 2015
    Messages:
    58
    Location:
    MD
    a Model S is a great car, should not give you any regrets... with a relative drive of only 30 miles a day, the model S would be overkill like buying an Ford F450 to tow a dingy, vice a 45 foot fifth wheel..

    Maybe a Nissan Leaf is a better choice... I drove one for 2 years, great car and a perfect daily driver. however, going the s route will not bring you any regrets... but if the cost is the real issue, and can live without autopilot, then look at the CPO route. i don't regret it at all, even without autopilot.
     
    • Like x 1
  9. ShotgunF15E

    ShotgunF15E Member

    Joined:
    Jan 30, 2016
    Messages:
    342
    Location:
    San Diego, CA
    Get the 90D. You can thank me later and buy me a beer.
     
    • Funny x 2
    • Like x 1
  10. nexsuperne101

    nexsuperne101 Member

    Joined:
    Apr 12, 2016
    Messages:
    190
    Location:
    London, England
    I feel your pain. I am on a test drive of a Model S on the 13th July.

    I want the pano roof, pearl white, AWD and black leather on the 60KWH, as 200 miles per charge is plenty for me, as I only drive 140 miles on a bad day. AP can be activated later.

    I keep thinking that an extra £22,000 is a lot more than the £40,000 I am going to spend on a similarly specified Model 3, but I can't get the thought out of my head.

    Realistically, that's another £323 a month over a 72 month HP at 5.9% (the USA get all the good deals at 2%!!). Compared to the £367 that a £40,000 Model 3 will cost each month with £12k deposit, the best part of twice as much again, is a lot to find.

    If I wasn't paying off a credit card at 0% for the next 2 years @ £300 a month then I would jump at this, but I need to be SENSIBLE (and therein lies the problem!!!).
     
  11. SSD420

    SSD420 Member

    Joined:
    Mar 29, 2016
    Messages:
    854
    Location:
    ON, Canada
    I expected at least $12,000 trade value for my car and Tesla offered me a mere $6500. (I have since sold it privately for somewhere in the middle).

    You are definitely over valuing your car, even without telling us what you have.
     
    • Helpful x 1
    • Funny x 1
  12. MXFLA

    MXFLA Member

    Joined:
    Mar 18, 2016
    Messages:
    23
    Location:
    Florida
    I went through the same anxiety and ended up purchasing the 70D (at the time the cheapest model) earlier this year. I do not regret it. AP alone has added years to my life. I did look into used, and was tempted to buy a late 2014 p85d with AP from a Texas used car dealer I found online, but the tax credit for new Teslas somewhat balanced out my normal urge to save and buy used. I waited until I could pay cash for the car, which at your rate of savings looks prohibitive. If the car is going to stress you financially, I would say hold off. Because you can afford it doesn't mean you should. A good money manager is going to tell you to buy a five year old Prius. I rationalized that I would not need to pay for gas, oil changes, etc.. And that helps me sleep at night after paying over $80k for a rapidly depreciating asset (plus knowing my awesome ride is in the garage!)
     
    • Like x 4
  13. Johann Koeber

    Johann Koeber Member

    Joined:
    May 1, 2012
    Messages:
    664
    Location:
    Nuremburg, Germany
    I was in a similar situation before I bought the roadster. I calculated for weeks (and I am an accoutant). Finally I took a leap of faith and just bought the thing (being frugal all my life, that was really a 180 for me). Never looked back, enjoy it every day.

    What is life for?
    It is short and doesn't end well.

    Consider this:

    After you bought the Model S you will not need the 1,105 per month to lay away in your Tesla fund. This ist more then the payments will be, esp. if you consider gas savings.
     
    • Like x 2
    • Helpful x 1
  14. SSD420

    SSD420 Member

    Joined:
    Mar 29, 2016
    Messages:
    854
    Location:
    ON, Canada
    My wife jokes around that my (soon to be delivered) is my house on wheels. She's not so far fetched. One of her co-workers just bought a house, yes I said a HOUSE for less than I'm about to shell out for my car.
     
  15. Chopr147

    Chopr147 Active Member

    Joined:
    Apr 3, 2016
    Messages:
    1,131
    Location:
    Wantagh, NY
    Ahhhhhh................misery loves company :) I am test driving an S tomorrow and tell myself not to make any quick decisions. My present car has been paid off, so no monthly nut right now. Can I wait for the M3? Can I? Can I? Can I? Sorry, zoned out again. Paying 80k makes absolutely no sense! But i'm retiring in a few years and need to give myself an early retirement present. 2018 seems so far off. Alright so I am not helping you at all with this decision but thanks for letting me ramble :)
     
    • Like x 2
  16. SSD420

    SSD420 Member

    Joined:
    Mar 29, 2016
    Messages:
    854
    Location:
    ON, Canada
    Oops forgot to say Model X
     
  17. AZ Desert Driver

    AZ Desert Driver Genesis - The Beginning - MS60D in its nest

    Joined:
    Mar 12, 2016
    Messages:
    722
    Location:
    Tucson AZ
    I made the mistake of watching some car commercials. These slick things, well marketed, shiney new toys at a lower price than Tesla....
    Why are the alternatives not discussed here? Help me kill those thoughts!! I want no regrets when I place my M60 order.
     
  18. MSullivan

    MSullivan Member

    Joined:
    Apr 6, 2016
    Messages:
    190
    Location:
    New England
    I also went through this exact internal fight. It makes no sense to buy the car but I did and I am very happy I did.
    I retired two years ago so my 250 mile a week commute is down to a run to the store or down to Boston once a month.
    I had a Volt that had a lifetime MPG of 229 so it was covering almost all my driving needs on electricity only.
    But I couldn't shake the desire I felt for this remarkable automobile.
    Alliant is doing 1.49% interest so cashing in investments is not prudent, tax implications on gains plus you are earning more than that in the market.
    I thought about how I could have bought a condo in the Mid-West and rented it out for the money I spent on my car. But this car makes me a lot happier than doing that.
     
    • Like x 4
    • Love x 1
  19. SSD420

    SSD420 Member

    Joined:
    Mar 29, 2016
    Messages:
    854
    Location:
    ON, Canada
    An early retirement present? How about saving your money FOR retirement.

    I hate to be a hypocrite (but I am), if you can't afford it, maybe holding out for the M3 is your best bet.
     
    • Like x 1
  20. jmanning

    jmanning Member

    Joined:
    Feb 26, 2015
    Messages:
    82
    Location:
    Shrewsbury, Ma
    I would say sell your car privately. Don't get pano roof unless you REALLy like sunroofs, creaks and paying to fix in future may not be worth it, we live in N.E. cold package is not necessary but nice add on if you can swing the cost. Blue is a great color and I would have ordered if mine wasn't an inventory car. 60D will be plenty of battery for your needs even if you want to take trips. Enjoy the delivery process and get your playlist ready for that first drive !!!!
     

Share This Page