How Young is too Young for a Model S?

[Kevin Harney]

In the original tests it was a marshmallow, and yes, deferred gratification was very highly correlated with later success. I don' t know that anyone has performed a similar test with 23 year olds

For a 23 YO the test would be here is a georgous naked woman/man but if you wait 2 hours you can have 2 !!!

 

[AnOutsider]

For a 23 YO the test would be here is a georgous naked woman/man but if you wait 2 hours you can have 2 !!!

Uhhh.. take the woman, then take the chance you're smooth enough to get many more in the intervening 2 years.

 

[Majerus]

I didn't want to really say anything in regards to this thread until the input of others was out there. Being very young my self 21, I have a house and make around 60k in rural Illinois with very little debt other then my home. I do not see there being any way to really afford the S. I have tried to twist the numbers to convince myself to purchase one and cannot seem to do it. If I were you I would invest the money into some stock and look for a good return. This is finally what I decided to do when Tesla had their IPO which was rather risky however it has worked quite well to this point. I looked at it like I do not want to be trapped under a car loan in case something comes up such as a new job or other opportunity. Ultimately a car is a car.

 

[SittingMoose]

I didn't want to really say anything in regards to this thread until the input of others was out there. Being very young my self 21, I have a house and make around 60k in rural Illinois with very little debt other then my home. I do not see there being any way to really afford the S. I have tried to twist the numbers to convince myself to purchase one and cannot seem to do it. If I were you I would invest the money into some stock and look for a good return. This is finally what I decided to do when Tesla had their IPO which was rather risky however it has worked quite well to this point. I looked at it like I do not want to be trapped under a car loan in case something comes up such as a new job or other opportunity. Ultimately a car is a car.

Yeah, this is what I tried doing (more financial analysis) over the last couple of days. Definitely a no-go. Thanks to everyone for your input.

As for the wait 10 min and you get two naked woman? I'd go for the one, I'd hate to give the ladies something to fight over ;-). Yeah who am I kidding, I'd take two ladies.

Also, for what it's worth, I have no debt! Totally debt-free. "Bluestar" here I come!

 

[Majerus]

That is what I am thinking as well. Good decision.

 

[dsm363]

SittingMoose: think you're making the right decision. Don't give up on the Model S dream though. Maybe you can take a few years and build up a stable mutual fund or something low risk that is dedicated only to the car. It could also be your rainy day fund if you ever needed cash urgently. If you can get the car with cash and your income is enough that you handle any expensive repairs outside warranty then I think you could do it. Having a dream car can be fun and something to work towards.

 

[FalconNinetyD]

There should be a few of us in San Diego who would be happy to give you a ride in our S's once we get delivery, unless that would be too painful for now. I've been in touch with another local forum member who has graciously offered to give me a ride in his Roadster to hold me over until my number is called later this year, and I think this might help make the wait to have my own Tesla a little more bearable.

Yeah, this is what I tried doing (more financial analysis) over the last couple of days. Definitely a no-go. Thanks to everyone for your input.

As for the wait 10 min and you get two naked woman? I'd go for the one, I'd hate to give the ladies something to fight over ;-). Yeah who am I kidding, I'd take two ladies.

Also, for what it's worth, I have no debt! Totally debt-free. "Bluestar" here I come!

 

[engle]

SittingMoose,

Good question.

Most people who become wealthy on their own during their lifetimes are what are called "PAW"s = Prodigious Accumulators of Wealth. It is based on living BELOW your means. I suggest you read a book called "The Millionaire Next Door", or at least this Wiki summary:

http://en.wikipedia.org/wiki/The_Millionaire_Next_Door

Some pertinent excerpts:

"
Spend less than you earn

If you are always spending up to or above what you earn, you will never increase your net worth no matter how much you make. The author discusses being prugal: prudent and frugal.

Avoid buying status objects or leading a status lifestyle

Buying or leasing brand-new, expensive imported vehicles is poor value. Buying status objects such as branded consumer goods is a never-ending cycle of depreciating assets. Even when you get a good deal on premium items, if you choose to replace them frequently, the older items hold no value and have become a sunk cost. Living in a status neighbourhood is not only poor value, but you will feel the need to keep buying status objects to keep up with your neighbours, who are mostly UAWs. The authors make the point that Hyperconsumers must realize more income to afford luxury items and become more vulnerable to inflation and income tax.

Car shopping habits

According to the authors, a common UAW drives current model car, purchased new, and may have financed it on credit. PAWs rarely purchase new model cars and are less likely to own foreign or luxury vehicles. An example from the book details a UAW that spent roughly 60 hours researching, negotiating and purchasing a new car. In the end, while the car was purchased "near dealer cost," in the long run the UAW's time and money could have been more efficiently spent creating wealth rather than collecting possessions notorious for depreciating in value. The authors contrast the story with a PAW who decided that the pride of owning a brand new car wasn't worth the $20,000 price difference.
"

As a TSLA investor, I probably shouldn't have posted the above!

In my case, I do buy new, and waste way too many hours (like right now!) researching my purchases on the internet because I'm a geek so I enjoy it. That is UAW (under accumulator of wealth). However, since 2000, I pay cash to avoid debt, and I keep my vehicles for a looooong time (4-car garage) (unless leased for business). My first new car was a 1983 380SL I bought when I was 23 years old as a tax deduction at the end of my first high-income year computer consulting in 1982. I just got it back from my stepfather, who decided to stop driving it at the age of 95! I was like what you are considering with Model S: Paid $25K cash and borrowed the rest of $41K price from my folks.

Paid cash for a 2000 ML 320 and still have it, about 120K miles on it and runs fine and still looks good. Sure, I could afford a new SUV every 2-3 years, but I don't have the "need". I'd rather buy more dividend paying stocks for my retirement.

In case of Model S, I plan to use it as primary business vehicle at least through the 8 year warranty on performance model, and hope I can get at least 10 years out of it before it needs a new battery. So I look at the annual cost, $100,896.56 / 10 = $10,896 per year - the gas and maintenance savings. That is manageable for me.

Since it will be an iconic sedan, I'm sure I will keep it indefinitely. I am getting white or pearl white, because I've had black/dark paint vehicles before and the finish gets too hot in the sun which can lead to paint damage over time...

 

[NigelM]

Oh wow.

I used to be a YUPPIE
Then we were DINK's
Became a NUCLEAR FAMILY (why no acronym??)
Now we're PAW's
Soon we'll be WOOFFIE's

 

[Joel]

Oh wow.

I used to be a YUPPIE
Then we were DINK's
Became a NUCLEAR FAMILY (why no acronym??)
Now we're PAW's
Soon we'll be WOOFFIE's

I'm familiar with Yuppie, Dink, and Woofies, but what is the acronym PAW?

 

[ElSupreme]

Most people who become wealthy on their own during their lifetimes are what are called "PAWS" = Prodigious Accumulators of Wealth.

I'm familiar with Yuppie, Dink, and Woofies, but what is the acronym PAW?

Here you go. What is a Woofie?

 

[NigelM]

WOOFFIE = Well-Off Over Fifty-Five

 

[Robert.Boston]

I'm familiar with Yuppie, Dink, and Woofies, but what is the acronym PAW?

Prodigious Accumulator of Wealth

 

[Lloyd]

Prodigious Accumulator of Wealth

I thought it was Pint After Work!

 

[de704]

You should really be making around 60 K/year to afford the car

I'm currently 35 & make well over $60k and currently have savings for the non-signature 85kw Model X but I still worry that my payment will be over $1k a month (Which I could afford I just don't want to).

My advice Save, Save Save, invest in Tesla (But don't put all your eggs in one basket), get a part time job too & save some more.

Funny fact. The Model X may cost more that my house, but then again the Model X is the ultimate Digital Nomad's vehicle which I consider myself to be. & I don't do debt

CHEAP VACATIONS EVERY WEEK!!

 

[david_42]

You pay California sales taxes on new vehicles. Last time I checked that was anything with less than 7000 miles on it. Many people were buying vehicles outside California (RVs in particular) and bringing them into California as 'used' with only a few miles on them.

 

[SittingMoose]

There should be a few of us in San Diego who would be happy to give you a ride in our S's once we get delivery, unless that would be too painful for now. I've been in touch with another local forum member who has graciously offered to give me a ride in his Roadster to hold me over until my number is called later this year, and I think this might help make the wait to have my own Tesla a little more bearable.

Very gracious of you kind sir but that would do more damage than good haha. Although as an investor/enthusiast I might enjoy seeing other enthusiasts in the Model S...

 

[engle]

What are PAWs

I'm familiar with Yuppie, Dink, and Woofies, but what is the acronym PAW?

"PAW" = Prodigious Accumulators of Wealth, from the book The Millionaire Next Door: The Surprising Secrets of America's Wealthy (1996, ISBN 0-671-01520-6) by Thomas J. Stanley and William D. Danko.

This book is a compilation of research done by the two authors in the profiles of 'millionaires'. In this case they used the term 'millionaire' to denote U.S. households with net-worths exceeding one million dollars (USD).

The authors compare the behaviour of those they call UAWs (Under Accumulators of Wealth) and those who are PAWs (Prodigious Accumulator of Wealth).

 

[Joel]

"PAW" = Prodigious Accumulators of Wealth, from the book The Millionaire Next Door: The Surprising Secrets of America's Wealthy (1996, ISBN 0-671-01520-6) by Thomas J. Stanley and William D. Danko.

This book is a compilation of research done by the two authors in the profiles of 'millionaires'. In this case they used the term 'millionaire' to denote U.S. households with net-worths exceeding one million dollars (USD).

The authors compare the behaviour of those they call UAWs (Under Accumulators of Wealth) and those who are PAWs (Prodigious Accumulator of Wealth).

Engle - Thanks for the thorough explanation.

How far do you live from the Tesla Factory?

 

[de704]

How Young is too Young for a Model S?

You should start saving for the $30k Gen3 Tesla now. When I receive my Model X I will have been saving for 5 years (since 2009 when Model S was announced).

In the Book "Rich dad, Poor dad" the author points out that having a nice car is much more enjoyable when you don't have to stress over paying for it each month.