How to save for Model 3?

[geoffreak]

I'm surprised nobody mentioned the realistic way to save. Start right now by putting aside $400-500/month into a savings account. Within 2 years (which is about the time many orders will take to ship) you will have saved $10-12k. This will be enough for a down payment, taxes, charger installation, and any adapters you'll need. After your purchase, your car payment will likely be at most $400-500/month, but it's a good thing you'll be used to paying that. If you can't manage that much a month, you really can't afford this car without making some really risky decisions.

 

[ModelNforNerd]

I'm surprised nobody mentioned the realistic way to save. Start right now by putting aside $400-500/month into a savings account. Within 2 years (which is about the time many orders will take to ship) you will have saved $10-12k. This will be enough for a down payment, taxes, charger installation, and any adapters you'll need. After your purchase, your car payment will likely be at most $400-500/month, but it's a good thing you'll be used to paying that. If you can't manage that much a month, you really can't afford this car without making some really risky decisions.

Look into a variable-rate CD that you're allowed to add money to every month. Not every bank/CU offers them, but USAA does. If that money is just going to sit in an account collecting interest until it's time to use it, you might as well get the best rate on it.

 

[Rockster]

If this were five months ago I would recommend the program YNAB (ynab.com), financial software aimed at creating and sticking to a budget. No matter one's income level, it's a pretty amazing tool to proactively plan and budget (unlike many other financial apps, like Quicken, that play lip service to budgeting but it's all look-back budgeting).

However, YNAB switched to an online, subscription model that's not nearly as compelling, due to its reduced feature set and the increased cost. If you can find and install the non-subscription version and use that, I would recommend giving it a chance. It's amazing how much discretionary income one can pare back with just a little effort.

 

[tander]

I'll throw this idea in for those who don't want to buy stock or options; buy a bike (and helmet and stuff) and use it when you can. You can save money on gas+maintenance, insurance (if you get rid of your car), you'll probably feel better from the exercise and fresh air, you might actually get healthier and save money on medical expenses, and some workplaces offer bonuses/cheaper insurance rates for biking, and you'll get some karma bonus points for not polluting as much. Oh and there's always walking.

 

[erthquake]

I'm surprised nobody mentioned the realistic way to save. Start right now by putting aside $400-500/month into a savings account. Within 2 years (which is about the time many orders will take to ship) you will have saved $10-12k. This will be enough for a down payment, taxes, charger installation, and any adapters you'll need. After your purchase, your car payment will likely be at most $400-500/month, but it's a good thing you'll be used to paying that. If you can't manage that much a month, you really can't afford this car without making some really risky decisions.

Actually, I said the same thing back on page 2 of this thread, but not as clearly as your post

 

[erthquake]

If this were five months ago I would recommend the program YNAB (ynab.com), financial software aimed at creating and sticking to a budget. No matter one's income level, it's a pretty amazing tool to proactively plan and budget (unlike many other financial apps, like Quicken, that play lip service to budgeting but it's all look-back budgeting).

However, YNAB switched to an online, subscription model that's not nearly as compelling, due to its reduced feature set and the increased cost. If you can find and install the non-subscription version and use that, I would recommend giving it a chance. It's amazing how much discretionary income one can pare back with just a little effort.

Totally agree with this. I've been using YNAB for 2 years. The classic version is awesome especially if coupled with the mobile app.

 

[Tiberius]

I'll actually have to buy TWO cars around this time as my daughter will be starting to drive around the time the Model 3 comes out. (straight As, highly responsible, can't really say no to that...)

I'll probably just finance the Tesla and sell/trade my Mustang for something that is more sensible for her.

 

[vinnie97]

I'm surprised nobody mentioned the realistic way to save. Start right now by putting aside $400-500/month into a savings account. Within 2 years (which is about the time many orders will take to ship) you will have saved $10-12k. This will be enough for a down payment, taxes, charger installation, and any adapters you'll need. After your purchase, your car payment will likely be at most $400-500/month, but it's a good thing you'll be used to paying that. If you can't manage that much a month, you really can't afford this car without making some really risky decisions.

Well, it's either not being able to afford this car or not being able to afford gas in 3 years. I find them both equally risky scenarios for subsisting.

 

[wilhelmspencer]

My method of "saving" is by paying off all our existing debt (except mortgage). My wife and I currently have about 85K in various other loans (student loans, car loan, etc). We are quickly paying it all down by using the snowball method.

Once this is all paid off...we will have no problem affording a 400 or 500/month payment on our 3.

 

[EasterEgg]

Sell my 2011 Prius, which is probably worth $10K by the time I get the M3.

$42,000 Tesla M3 Mid Range
- $7,500 Federal Tax Rebate
- $2,500 CA Rebate
- $10,000 Sold Prius
___________________
$22,000 = Cash Purchase

 

[Camera-Cruiser]

My method of "saving" is by paying off all our existing debt (except mortgage). My wife and I currently have about 85K in various other loans (student loans, car loan, etc). We are quickly paying it all down by using the snowball method.

Once this is all paid off...we will have no problem affording a 400 or 500/month payment on our 3.

Paying off consumer debt first, is the best thing you can do. Especially if you have high credit card debt.

 

[nd4spd569]

I'm 25 and I've never bought my own car before. I got a 95 Civic when I was 16, and then when I transferred to a new college when I was 20, my parents wanted me to have a safer car for the 3 hour drive to school, so they sold my Civic and got me a 2004 Galant (For less than they sold the Civic for, somehow). So long story short, I don't have a car payment and I'm very excited to buy my first car.

To do so, I set up an separate savings account that I have my other savings account auto-pay $300 in to every month. Then I also plan to put half of my tax return every year in to the fund as well. Rough math in my head says I should have around $10,000 or so to put towards that 1st payment. Hoping that means my ACTUAL car payments will be no more than $300 a month, although I have never had a payment so I have no idea how much to expect to pay per month.

If you take out a 25,000 loan say 1.9% apr which is probably the best you could get gives you a $437 per month for 60 months.

 

[SD Diver]

Ok, Since many, many folks are now hundreds of thousandth in line for the model 3 (and sorry, I haven't paid attention on how to type in the Tesla 3 symbol yet), I think we should figure out creative ways to save up for it.

It could be as simple as I'm giving up daily Starbucks at $5.00 a day to people's ideas about a small stock portfolio that you plan to grow to achieve the funds to buy the car. No, I am not talking about people that have blocks of stock that see their portfolio change in value by multiples of model 3 by hour or day – that's no fun.

I am thinking more mad money investments – heck maybe a portfolio that starts out with the same $1,000 that was put down for your reservation.

Keep it real, but fun!

Well, I currently have a 2013 Fusion Energi and a 2014 Focus EV - both paid for. When the M3 arrives, I'll probably sell off the Focus and make the up balance up with some of my AAPL which despite the last 9 months has been very good to me. I hope that the matte black makes it to production!