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How did you Justify 95k car purchase?

Discussion in 'Model S' started by sub, Nov 3, 2013.

  1. sub

    sub Member

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    ok, I thought this decision would be easier once I had the wife on board, which she finally is. I think once she said ok it became real to me and now I'm struggling with pulling the trigger. It has nothing to do with the car or the company, i'm a shareholder and a believer, it's how to justify the purchase price.

    Here is our situation. My wife travels for work so she will be doing 1000+ miles per month and gets reimbursed for that mileage. Adding our gas usage, which we have looked at for the past 6 months, the car pencils out to costing us less than what we pay in just gas right now and most likely will save us hundreds vs current expenses monthly. I would be financing 75%, I do not want to use up more of my cash than that and with loans at ~3% I feel I can make more with my cash than that. So, financing appx 75k with above numbers we come pretty close to car costing us nothing on a monthly basis. Down payment is coming courtesy of TSLA also, beautiful.

    We have been crunching the numbers and debating this purchase since our first test drive 6 months ago. Our big sticking point is we don't finance things anymore, we have paid cash for all our cars for the last 5 years. I don't even have a credit card in my name. I've tried to justify it looking at it as a "net worth" issue, meaning as long as the car has more value than what it's currently worth and I can sell it at anytime than it won't stress me out.

    I posted a while back asking for help on how to convince my wife to get on board, a 2nd test drive took care of that. Our current traveling car is a money pit, sitting in the garage right now needing repairs that I don't want to make after already spending 3k+ in the last 3 months trying to keep it on the road. Our backup plan is to buy a 3-5 year old Ice car and drive that until we can justify the Tesla. Our current vehicles have a total value of about 10k together. We recently paid cash for an 8kw solar system for our house so we would have completely free driving. No doubt we would keep the car for a decade, that is how we are. We are not the type that have to have the latest and greatest every year, my current vehicle is a 1994.

    Let me hear your thoughts.
     
  2. cantdecide

    cantdecide Member

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    Think of it not as a 95k car but a 65k car with a 30k battery (Which you can consider as a fuel prepayment)... Does that help?
     
  3. brandonmbeard

    brandonmbeard Member

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    I was able to justify the 40kWh when it was announced. By the time I got to take a test drive and place a reservation the 40kWh was gone and the 60kWh was the min. I almost had that justified, then I realized I wouldn't be happy unless I have 85kWh. End the end I had to justify $100K. I basically came the conclusion that buying a Tesla Model S is like buying a $50-$60K BMW, knowing that I would have spent that on a BMW it became easy. Plus nearly free $$$ financing made it really easy.
     
  4. bareyb

    bareyb Active Member

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    1. I hadn't had a new car in over ten years
    2. It's a good cause
    3. If I keep it ten years it would be like I bought two $50k cars in that time and would be more reasonable.
    4. I get to have a much nicer car that I would ever have bought for myself had it not been electric. Win-win!
    5. I no longer have to invest in the corrupt big oil money machine
    6. I never have to go to Oil Changers or the Gas Station again
    7. it's the nicest car I've ever driven.
    How's that for a start? :D
     
  5. ToddRLockwood

    ToddRLockwood Active Member

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    When looking at the total cost of ownership of a Model S vs. a similar gas powered car, you really have to take fuel & maintenance costs into account. Even if the gas powered car costs $25K less than the Model S when new, the Model S will still come out ahead eventually. The Tesla's fuel cost per mile is roughly one-fifth as much as a 20MPG sedan that requires premium gasoline. But another huge difference will come in the form of repair costs, especially after the warranty has expired. The Model S drivetrain has six moving parts, compared with hundreds on a typical gas powered car. There's a lot less to break. As someone who's driven an Audi 40,000 miles beyond its warranty, I speak from experience.
     
  6. Vger

    Vger Active Member

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    All of this! ^^^

    Plus we already owned a Roadster and had had lots of contact with Tesla from the earliest days, and believed that this would be the game-changer that it is now becoming!
     
  7. Doug_G

    Doug_G Lead Moderator

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    There is no justification. Life is short.
     
  8. evme

    evme Member

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    If your saying that the monthly costs cover themselves in your case. Then why not just go for the Tesla financing? Then you have 3 years to decide.

    Also, why wouldn't you have a credit card to your name? credit cards are more than just financing, they offer convenience, rebates and protections.
     
  9. lolachampcar

    lolachampcar Active Member

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    I drove the car.
     
  10. wormhole

    wormhole Banned

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    There is no justification other than you want it.
     
  11. Denarius

    Denarius Active Member

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    Why drive anything else when you can drive the tesla virtually free? Pull the trigger!
     
  12. Michael2000

    Michael2000 Member

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    This must be "new math".:smile:

    I've crunched the numbers, and even though there are gas savings, it doesn't make up for the extra depreciation of a more expensive car. It is in the same ballpark in costs per mile as other luxury cars.

    Michael
     
  13. sub

    sub Member

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    All good points that I have already considered, thanks everyone. Earlier on in life I had no problem financing things and being in debt but as time went on I started looking at things as "want" or "need". It's almost entertaining to me to drive around junky cars, I'm just into the "show" anymore. However, I want to get off gas/oil and we need a new car and the Tesla is the only car that will do what I want. The 60 is out of the question because I need all the range we can get. I do feel that I don't go some places because I don't want to add in the cost of the gas to whatever it is I want to go do.

    As far as the credit card issue, I can see the advantage of using it to purchase things for protection, but I don't like using them at all. We don't live paycheck to paycheck so I don't need it for "emergencies" either.

    The one last issue I didn't mention is I would be selling a small portion of my TSLA shares to make the down payment, hurts to do that.
     
  14. Jeeps17

    Jeeps17 Cath Jockey in a P85

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    +1000 to this.

    I also agree with all the other responses :wink:
     
  15. Denarius

    Denarius Active Member

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    OP stated

    "My wife travels for work so she will be doing 1000+ miles per month and gets reimbursed for that mileage. Adding our gas usage, which we have looked at for the past 6 months, the car pencils out to costing us less than what we pay in just gas right now and most likely will save us hundreds vs current expenses monthly."

    I don't see how that is "new math"
     
  16. leonari

    leonari Member

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    Gotta live today. Life is short and a car lime the Model S is pure emotion. Rare that you get some kind of emotional high (for a long time) from any other thing you spend money on. Only a very nice house comes to mind
     
  17. sub

    sub Member

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    The "life is short" argument is the best one so far. I told my wife this exact same thing a few weeks ago when she was on a business trip, exhausted, that she needed a reward and something enjoyable that would also make her traveling easier. It's a big reason I want the car, I want her driving it and I want to feel she is safe. I'm not sure she will make it home in our current car, we have resorted to renting for her business trips.
     
  18. MikeC

    MikeC Active Member

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    There's your justification. Also, as a shareholder you technically getting a cut of that 95k you dish out. Just wait until after 11/5 to sell, hopefully you'll need to part with fewer shares.
     
  19. Shumdit

    Shumdit Member

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    I agree that it can be hard to make the numbers work, but there have been some really good points made. Also, I am a believer in investing in products you use/believe in. Since you are already an investor it seems like being the the other sort of investor would be a easy jump (and a much more satisfying one!)
     
  20. gene

    gene Active Member

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    Absolutely everything everyone says already

    PLUS: I was tired of a military killing all over the world in the name of oil, I was tired of the Amazonian tribes dying of cancers and birthing defects due to poisoned rivers by Occidental petroleum, and mostly, after a year taking care of my wife in a cancer/leukemia ward I was determined to no longer be part of the problem but to be part of the solution.

    This is likely our only opportunity to support change like this.
     

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