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CapeOne
Active Member
The general rule for typical households, although too many break it, is to have no higher than a 36% debt-to-income ratio. This percentage is typically broken down to 28% real estate and 8% everything else (car payments, student loans, other personal loans, etc).
I don’t know your personal debt situation but $876/month seems high to me for a car payment on a $100K (if wife is no longer working) income. Have you thought about leasing? Applying $20K in cash and/or trade value to the lease should get you a much more favorable (budget) payment.
I don’t know your personal debt situation but $876/month seems high to me for a car payment on a $100K (if wife is no longer working) income. Have you thought about leasing? Applying $20K in cash and/or trade value to the lease should get you a much more favorable (budget) payment.
SSD420
Member
You really think so? My MX comes with the pano. Obviously no choice with the falcon wing doors. But that's what I'm going to miss most about my previous ICE car.. My moonroof errr sunroof
SSD420
Member
SSD420
Member
I like the fresh air, so opening the moonroof was key.
Then again I now have bio defence mode, so that should help me with the fresh air, eh?
I'm appreciating all the replies, both those for and against.
Is it a poor financial decision? Of course, which pains me because in my next life I'd like to be a financial advisor (do as I say, not as I do!).
For those talking about the trade in value, I'm assuming a private party sale. To arrive at the value I did I priced out my 2013, 4 Door Civic Si in Dyno Blue Pearl w/ 22100 miles on it on Edmunds.com. I chose the lowest value that was given (dealer trade in) and assumed that, though I would go for private party.
Another consideration is that insurance would go up ~40/month, which I've already been putting aside as savings (use YNAB to budget and this makes it easy).
I think I'd stick with Pano and risk the creaks, I love having the sunroof in my Si open.
Sorry, would not get a leaf, it's just not fun and I hate how it looks. My Si is quite the peppy little car.
Is it a poor financial decision? Of course, which pains me because in my next life I'd like to be a financial advisor (do as I say, not as I do!).
For those talking about the trade in value, I'm assuming a private party sale. To arrive at the value I did I priced out my 2013, 4 Door Civic Si in Dyno Blue Pearl w/ 22100 miles on it on Edmunds.com. I chose the lowest value that was given (dealer trade in) and assumed that, though I would go for private party.
Another consideration is that insurance would go up ~40/month, which I've already been putting aside as savings (use YNAB to budget and this makes it easy).
I think I'd stick with Pano and risk the creaks, I love having the sunroof in my Si open.
Sorry, would not get a leaf, it's just not fun and I hate how it looks. My Si is quite the peppy little car.
SSD420
Member
I don't know exactly how insurance works in the USA, but my insurance is set to go up roughly $1000+ per year :/
As for debts, currently just ~8k on a 0% credit card that was used to put a new roof on the house last November. I put 423 a month towards this to pay it off before the 18month 0% apr period ends.
401k get's the full amount allowed by law per year (adjusted to maximize matching from my employer). We also fully fund our ROTH IRAs.
Also money "owed" to my wife's parents that is debt she owed them before I was even in the picture. We just send them 50/month.
401k get's the full amount allowed by law per year (adjusted to maximize matching from my employer). We also fully fund our ROTH IRAs.
Also money "owed" to my wife's parents that is debt she owed them before I was even in the picture. We just send them 50/month.
I was in the same boat as you OP. I could afford the payments, didn't have the cash unless I sold some stuff (which I wasn't going to do), and the car was 3x more than my last car.
I still occasionally think "should I have done something differently?" but the other 99% of the time, I love the car.
The mental trama of "I can afford it, but can I justify it?" is where I was for months. I drive a lot though (had the S for a year, put on 23k miles). So I did the math of gas savings vs. electricity cost, yadda yadda yadda, made the car feel cheaper, and I clicked purchase.
I still occasionally think "should I have done something differently?" but the other 99% of the time, I love the car.
The mental trama of "I can afford it, but can I justify it?" is where I was for months. I drive a lot though (had the S for a year, put on 23k miles). So I did the math of gas savings vs. electricity cost, yadda yadda yadda, made the car feel cheaper, and I clicked purchase.
SSD420
Member
Same in Canada. 6 or 12 months, but "luxury cars" which Tesla is deemed will also usually command higher deductibles.
It also doesn't help that I have a few minor traffic tickets
It also doesn't help that I have a few minor traffic tickets
SSD420
Member
Then again the question is, what is the car you're coming from.
I'm coming from a 2012 Toyota Camry SE to a Tesla Model X. Obviously there will be a difference in insurance rates. Plus it doesn't help that I have some speeding tickets and I'm relatively young (some may say).
Sorry, I had put that in an earlier reply, but this thread is moving quicker than I'd have thought.
Current daily driver is a 2013 4 door Civic Si, premium gasoline (91 octane) has 22.5k miles or so. Sticker price was something like 23.5k
I had no earthly justification for a car at all. My spouse and I live mostly in Brazil, where we can not yet have a Tesla. I wanted one desperately. My spouse of 40 years is an enabler; she pointed out we'd need a place to keep it somewhere in the USA so we bought a condo in Miami and keep our S there.
My point: regardless of financial circumstances this is not entirely a rational decision, as you point out. I would say if you can afford the payments and you spouse agrees then just do it and you'll be happy. if you cannot really afford it don't do it at all until you can.
Many of the S owners I know have been in a similar situation as the one you describe. I personally do not know anybody who regrets doing it, and I do ask people from time to time.
My point: regardless of financial circumstances this is not entirely a rational decision, as you point out. I would say if you can afford the payments and you spouse agrees then just do it and you'll be happy. if you cannot really afford it don't do it at all until you can.
Many of the S owners I know have been in a similar situation as the one you describe. I personally do not know anybody who regrets doing it, and I do ask people from time to time.
I think someone else mentioned it already, but if you can do without autopilot (which from the description of your daily driving seems palatable) and AWD (which may be more questionable given your location) you may want to consider a CPO. You can get into a nicely equipped one for the mid $50s, and it won't depreciate as much as a new car. That could be a compromise of sorts between your TESLA WANT and your inner financial responsibility. Something to consider.
