How did you Justify 95k car purchase?

[gene]

I drove the Tesla and was smitten, but the cost seemed like an insurmountable hurdle--it was roughly 35K more than I'd ever spent on a car,

Me, I drove the car, loved it. It was $75K more than I had ever spent. Tossed and turned in bed a few weeks, finally pushed that finalize button. From the first hour I owned my Model S I asked myself "why did I even doubt this purchase!" Now 7 months and 15,000 miles later, I can't wait for Gen III to buy one for my wife and another one for my son!

 

[YoteDown]

Me, I drove the car, loved it. It was $75K more than I had ever spent. Tossed and turned in bed a few weeks, finally pushed that finalize button. From the first hour I owned my Model S I asked myself "why did I even doubt this purchase!" Now 7 months and 15,000 miles later, I can't wait for Gen III to buy one for my wife and another one for my son!

Hearing this is definitely helping me while I wait on my pick up date. I can feel the Tesla grin on my face already!

 

[bareyb]

My logic was very similar to rcc's, above. I drove the Tesla and was smitten, but the cost seemed like an insurmountable hurdle--it was roughly 35K more than I'd ever spent on a car, and even that particular car (an E90 M3) I ended up getting rid of because I didn't drive it enough to justify the cost.

But I kept thinking about it.

Our current family car is a 535 wagon, which has plenty of space for our daily needs but cannot accommodate 3 kid seats. When we need to carpool with another kid for whatever reason, we are SOL. So, I started making a list of all of the cars that would give us that ability.

What I came up with was: 1) a faceless army of soul-destroying 3 row vehicles based on domestic or Japanese FWD sedans, like the Honda Odyssey/Pilot/MDX, the Ford Flex/Explorer, and Toyota Sienna/RAV4, or 2) Brobdingnagian European 3-rowers whose girth was matched only by their thirst and price, like the X5, Q7, LR4, etc, or 3) full-size domestic sedans like the Taurus SHO or Dodge Charger that might fit three seats across the back.

None of these vehicles, with the potential exception of the SHO and maybe the SRT-8, had even the slightest sporting pretensions. All of them cost a minimum of 40K (optioned as I'd want), on up to 70+ for some of the European SUVs. None of them inspired even the slightest interest in me.

So, armed with the conclusion that there really isn't anything else out there that both does what I need to do AND would put anything other than a grimace on my face every time I saw it in the street, I revisited the Tesla.

I don't drive as much as some on the board, but even compared to our current car my gas savings are going to be 150+ per month. Compare it to the M3 I used to have, and the gas savings jump past 200 (that car drank fuel like it had been designed by Saudi royalty). If you do the math on cost of ownership with the RVG, the high retail price is offset somewhat by the tax credit--the car "leases" for a lot less than you might think given the kind of crappy residual and the high retail cost. At the end of the day, the total per monthly cost for the 95K S should be about the same as what I spent every month on my 60K M3.

That was the moment it really "clicked" for me--I think I submitted my down payment the next day.

That's sounds so familiar. I had all but decided to either get another of what I had or a Jeep Grand Cherokee. I kept putting it off because the car I had while ten years old still ran well and I just didn't care enough about the choices I had to bother. So I drove around in a dinged up 2004 SUV and decided to just keep it and save the money. When I saw my first Model S in the wild it was love at first sight. This makes up for not having new Wheels for ten years. I tell myself it's the same as if I'd bought one $50k car every five years.

 

[DIL]

That's sounds so familiar. I had all but decided to either get another of what I had or a Jeep Grand Cherokee. I kept putting it off because the car I had while ten years old still ran well and I just didn't care enough about the choices I had to bother. So I drove around in a dinged up 2004 SUV and decided to just keep it and save the money. When I saw my first Model S in the wild it was love at first sight. This makes up for not having new Wheels for ten years. I tell myself it's the same as if I'd bought one $50k car every five years.

Again, yes! I'm coming out of an 11 year old car with >175K miles, so I've been good till now.

 

[Nathan Smith]

8 months ownership. 29k miles. over $7000 saved in gas, oil changes, and ez-pass toll discounts compared to my previous ICE vehicle. without even going into a single tidbit of how awesome this car is, the money savings alone is enough justification for pulling that trigger.

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BTW, 5 years of driving like this ^^^^, and the total cost of ownership for my loaded P85 will be cheaper than had I purchased a Toyota Prius instead. Most people don't actually realize how much they spend on car maintenance and fuel every year...trust me, it adds up. It adds up more than a P85. So if you had the choice of owning a decked out P85 vs a Toyota Prius for the same price (actually even cheaper), which would you purchase?

Ok,

Not to highjack the thread... But I saw this statement and couldn't wrap my head around it. So I crunched some numbers - assuming a fully loaded prius (about $39K), 3625 miles per month, $3.232/gal (today's national average), and over 5 years. Total gas cost is about $14,059 added to the $39K and we get $53,059. Assuming Toyota gives a standard 4 year warranty (didn't look that part up), 1 years maintenance cost would be in the order of $35K. This doesn't add in the cost of oil changes - depending on you area could be between every 3 - 10K miles. Assuming every 3K, that would be 72.5 oil changes. Assuming $50 per oil change and we can add another 3,625 to the overall cost. We may have some arguement about the cost of gas going up, but our government does a lot to keep the price of gas down and I don't see that changing any time soon.

Since I drive my S about the same, I would LOVE to be able to say what yobigd20 is saying -- I just don't see how he came up with that.

 

[Lloyd]

Umm.... 39 + 14 is 53!

 

[Nathan Smith]

:redface:

 

[Grendal]

My intent is to make enough on the stock market to buy the Model S free and clear while still having more in my account than what I started with. So far I have made half and I've still got a year and a half to go. No options, just straight buying and selling.

 

[neroden]

Or maybe you have an extreme hatred of oil and can't stand using gas for one more month, and require the range/storage of the Model S, maybe you can justify it.

*waves* That was me. My quality of life went up substantially by not going to the gas station. I was cursing and swearing and.... anyway. I've used the range and I've used the storage.

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I intentionally got the 8kw system with the plan to buy a tesla and drive for free. I have been fine with that plan right up until the moment it became real, then I got cold feet.

Your wife probably drives enough that the economics actually do favor a Tesla Model S, though it's really on the edge. Most people don't drive enough. The person in the ideal economic position for a Model S drives an enormous number of miles per month, but not more than ~200 miles per day. For someone who drives 200 miles every single day, the economics are highly favorable. For someone driving 110 miles per day, it's still close to favorable. Since you already have the solar panels, that makes it more favorable.

With your wife driving that much, the safety issue should also be high in your mind. Driving a lot is a good way to get killed (the rate of injury and death by auto accidents is much higher than most people think), and you want a very safe car.

Last thing I'm looking for is a little bump in the stock price this week, that will close the deal.

Never ever think about stocks that way if you're a long term investor. It'll just give you pain.

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Already had all her routes figured out, there are either superchargers on the way or she would be staying where she could charge over night. There would still possibly be the occasional trip where it wouldn't work until SC build out. It is all Moot however, with TSLA plunging I'm not selling any shares. Told the wife we will continue to drive our old cars and rent, doesn't look like that will work either. I may be forced into buying a car I don't want short term, ugh.

If you can't bring yourself to buy the Model S now, lease a car. This is when you actually want to lease a car. Leasing cars long-term is not usually sensible, but if you're just trying to get a car for a year or two until you can buy the car you really want, that's when you lease.

The one advantage of delaying your purchase is that next year's model will be even better than this year's. I have sometimes regretted getting a model from the first six months of production (though I really could not delay any longer).

 

[sub]

I think this last couple of days has been painful for anyone in TSLA regardless of their plans. I will have to say that I did alter my ER strategy because I was planning to sell some of the shares. If I had stuck to my original plan this drop wouldn't have affected me, I would actually be ahead. Lesson learned.

 

[neroden]

Not to highjack the thread... But I saw this statement and couldn't wrap my head around it. So I crunched some numbers - assuming a fully loaded prius (about $39K), 3625 miles per month, $3.232/gal (today's national average), and over 5 years.

National averages are misleading. Try running with $4/gallon, which is going to be a roughly correct average for the next few years in the more expensive parts of the country.

Total gas cost is about $14,059 added to the $39K and we get $53,059. Assuming Toyota gives a standard 4 year warranty (didn't look that part up), 1 years maintenance cost would be in the order of $45K. This doesn't add in the cost of oil changes - depending on you area could be between every 3 - 10K miles. Assuming every 3K, that would be 72.5 oil changes. Assuming $50 per oil change and we can add another 3,625 to the overall cost. We may have some arguement about the cost of gas going up, but our government does a lot to keep the price of gas down and I don't see that changing any time soon.

Since I drive my S about the same, I would LOVE to be able to say what yobigd20 is saying -- I just don't see how he came up with that.

I still don't get to "pays for itself" with $4 gas, but it is closer.

 

[digitaltim]

Not so for me. I just changed out the 21" wheels and Continental tires for the winter. 7,000 miles on them and about 7,000 miles left with rotation when they're put back on in the spring. And I'm a very aggressive driver.

Ditto here - I got about 15k out of the original Contis.

 

[Denarius]

I've got 9.2k on my PS2s and based off of current wear it looks like I'll get 14k out of them.

 

[RoverS]

I will have to say that I did alter my ER strategy because I was planning to sell some of the shares..

what is an "ER strategy"?

 

[ssq]

If you can't bring yourself to buy the Model S now, lease a car. This is when you actually want to lease a car. Leasing cars long-term is not usually sensible, but if you're just trying to get a car for a year or two until you can buy the car you really want, that's when you lease.

The one advantage of delaying your purchase is that next year's model will be even better than this year's. I have sometimes regretted getting a model from the first six months of production (though I really could not delay any longer).

Are there any indications when the model S design refresh would happen ?

 

[Shumdit]

what is an "ER strategy"?

Early Retirement? Emergency Room, Equity Retention, Extended Range, Equity Ratio, Emergency Rations

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Are there any indications when the model S design refresh would happen ?

I heard 6 years mentioned, but also a refresh possibly at 4 (meaning bumper covers, taillights, etc, but not body changes usually)

 

[David_Cary]

I am guessing ER is Early retirement.

Changing oil every 3k miles is something rational people only do when they are trying to justify an EV purchase. There is no 2013 car that I know of that gets 3k miles on an oil change. My last 2 cars were well over 10k miles (545 and Civic).

It should be noted that the majority of the population lives where gas is well below $4 a gallon and will likely stay that way (although who the heck knows). And where gas is $4 a gallon, electricity is rarely $.10 a kwh.

In my local area, the pump says $3.17. My TOU rate is $.05 kwh. We have 2 new regional superchargers and we have Tesla's all over (store and SC 15 miles away for me).

Financial justification is almost never possible - except in Norway. Doesn't mean it isn't a fantastic car.

 

[YoteDown]

ER is Earnings Report. Think he was talking about his strategy around earnings, sell before, or after report was released.

 

[Chickenlittle]

What a strange topic, how do I justify a 95 k car purchase....easy I am an adult with the means to and don't have to justify it to anyone. I had reasons to buy it but I will not justify it to others. I enjoy not gassing it up. I enjoy not smelling the fumes and hope others will buy so I don't smell theirs. I enjoy the performance (which of course does not mean being irresponsible). I enjoy being a part of change and hoping for a better future. I enjoy low maintenance. I enjoy the safety factor

 

[neroden]

Are there any indications when the model S design refresh would happen ?

They just keep changing things continuously, believe it or not.

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It should be noted that the majority of the population lives where gas is well below $4 a gallon and will likely stay that way (although who the heck knows). And where gas is $4 a gallon, electricity is rarely $.10 a kwh.

Regular gas is averaging $3.60 where I am, which means that premium (which is what you'd use for a comparably luxurious sedan) is more like $3.80. Electricity is running $0.10, and dropping.

Your numbers will vary wildly depending on where you live, but when I set up a spreadsheet, it made it very clear that the people who gain the most financially from an electric car are people who drive a great deal, but never go very far from home. (Limo services are an ideal market for the Model S financially.)