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I just convinced my wife to get a Model X and now I'm getting cold feet

Discussion in 'Model X: Ordering, Production, Delivery' started by Rockster, Sep 4, 2018.

  1. Rockster

    Rockster Active Member

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    Here's the situation, we love our Model S but it's getting a bit older and starting to have some out of warranty repairs. We love the Model X for a variety of reasons. My wife, who much prefers the look of the S, has finally conceded that the X is more functional and has warmed up to the idea of trading the S in on an X.

    Here's the good part. She's a consultant who operates under her own LLC and who drives a TON of miles tending to her clients. Using the X for business use 100% of the rest of 2018 and 95+% of it from then on for the rest of the life of the X is a certainty, so we'd be looking a great tax incentive for buying the X now. Money is absolutely not a problem for us in buying the X, either. Nor are we concerned about an audit because we have a great accounting firm doing our taxes and her business use of the X is completely above board without a bit of imaginative interpretation.

    The problem? Even with the tax incentives, our net cost on the X we've configured is probably around $75k, all said and done. We're about five years away from our planned/hoped retirement date and I'm suddenly thinking that, as cool as the X would be, I'd just rather add the money to our retirement instead, not because it's a necessity, but just because more options, freedom, and possibilities when we retire (and maybe retiring a tad early) is the better thing to do. Having a more fun car to commute in now suddenly doesn't seem as desirable as the ways in which the money will possibly enhance our retirement.

    My wife is okay with switching to the X but is equally keen on the idea of padding our retirement by another $75k (more with growth, insurance savings, etc.). Even with a few thousand here and there keeping the S going for another few years is a significant savings over switching to an X now.

    I'm a logical, numbers type person but his feels more like a philosophical decision than a financial one, so I'm struggling with it. And I can't believe I'm even thinking this after spending nearly a year convincing my wife that an X is more functional than an X.

    Aaaahhhhh!
     
  2. wesley888

    wesley888 Member

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    Consider after both of you are retired, you can have year long road trips driving your X all around the country for free. No need to buy another car for many years! I think it is a much better investment than you are thinking. :)
     
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  3. LoveEV

    LoveEV Banned

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    Awesome decision best car ever
     
  4. HankLloydRight

    HankLloydRight No Roads

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    Or lease the MX and write-off 100% of the payments.
     
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  5. ewoodrick

    ewoodrick Active Member

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    Maybe you should look at the Model 3. Probably better range and bigger nest egg contribution.
     
  6. mongo

    mongo Well-Known Member

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    Some thoughts:

    Have you run the numbers for using the IRS mileage rate v.s. depreciation? The first year 100% deduction is nice, but when she retires/ stops using it for business purposes, I believe that triggers depreciation recapture.

    The 75k isn't an upfront lump sum (unless you pay cash), so the impact on retirement funds is not like pulling out 75k now.

    When you are retired, you'll need a car to drive.

    No car is cheaper than the one you already have (till the wheels fall off)...

    If you need a different car, get the one you want. If you don't need a car, wait (unless you want a new car, then get the one you want). if you will need a car soon, then math out whether the $7,500 is worth the slightly older car down the road.

    Only you two know the boxes you most want to check.
     
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  7. Nilnoc

    Nilnoc Member

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    I am retired.
    I bought an X.
    Numbers made no sense.
    I wanted.
    I could.
    Life is short.
    Life can be unexpectedly short.
    I'm happy.
     
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  8. Rockster

    Rockster Active Member

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    We already have a 3.
     
  9. Uncle Paul

    Uncle Paul Active Member

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    Not sure about your situation, but after all tax incentives, my net cost for a 75X was about $35,000.

    If you own a profitable business, buying a Model X is a financial no brainer.

    Cherry on the cake was a lifetime of free Supercharging.

    Talk to your accountant.

    If your wife takes customers out to lunch/dinner, picking them up in the Falcon wing Model X will make a lasting impression.
     
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  10. Shateam

    Shateam Member

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    I'm sure I will get blasted for stating my opinion but considering you just bought a 3 and have stated that keeping the S will provide signification savings vs purchasing an X, I would put that 75K towards your retirement!

    I just don't see it making financial sense to buy TWO brand new cars (even if they are Teslas) within 5 years of retirement.
     
  11. Rockster

    Rockster Active Member

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    Exactly 50% of me agrees with you completely. The other 50% agrees with Nilnoc completely. Hence my dilemma! :eek:
     
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  12. Rockster

    Rockster Active Member

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    The thought that keeps bouncing in my head is that this is a chance to get a fully configured Model X, 100D for not much more net cost than the Model 3 we just bought. And this opportunity expires soon.
     
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  13. JPWX

    JPWX Member

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    Can someone show me how to like a post? lol I can't figure this out.
    But I just picked up on Sunday, I love it, and I still worry that the numbers don't make sense. But life can be unexpectedly short. We bought this to replace a Prius my wife was driving with our 10 month old at the time that was totaled by some lady on her phone. We decided to protect ourselves and the baby with the safest SUV currently on market (we think)
     
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  14. Plan B

    Plan B Active Member

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    After my insurance went up I could not off load my X fast enough.
     
  15. Nilnoc

    Nilnoc Member

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    I shopped and found that my then-current insurer was by far NOT the least expensive option.....

    Ended up paying ~$500 per year more. For a car that cost 8 times what it’s predecessor was worth.

    And here the numbers made sense....
     
  16. Brian's ReX

    Brian's ReX Member

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    #16 Brian's ReX, Sep 4, 2018
    Last edited: Sep 4, 2018
    Look here: adding an avatar You'll see you need many posts to 'qualify', and that thread is a good one to spam with meaningless posts to get to your desired level. o_O That's where you learn about being able to 'like', etc.

    Regarding the OP, I am in a similar situation with less than 6 yrs to retirement. My decision was purely emotional. Since I'm in a good spot financially (*knock on wood), I just went with that made my heart sing. My X.

    Do I second-guess my decision? Of course, on occasion. $121K would be a great addition to a portfolio. However, my wife told me to go with my gut (which seems to grow with my portfolio!), and my gut wanted the X.

    Happiness ensued. I am extremely glad I got it!

    On a pragmatic note: I feel that the X will provide us with fun well into our retirement also... so it's a great investment in our post-retirement lives in that it will be paid off, and there is little maintenance and virtually no cost for 'fuel' with unlimited SC for our many driving trips!

    Also, having EAP as we age is a smart idea, IMO. When FSD is available... I'll pull the plug on that too!

    Tough decision. Very personal. But, if you decide it's doable... you won't regret it!:p:p
     
  17. cwied

    cwied Member

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    I think you might want to ask this question elsewhere as well to get a more balanced view. Bogleheads.org - Index page and Early Retirement & Financial Independence Community come to mind.

    This is a really personal decision. What else could you do with $75k after retirement? Are you sure you have enough money to retire? How much earlier could you retire without the car and how much is that time worth to you?

    Honestly, my inclination would be to wait. I don't think the Model X is enough of a step up from your Model S to be worth it, especially since you're trading P for non-P. There's a high chance of regret.

    I also would amplify the comment above to look into the exact depreciation rules before taking the 100% early depreciation. I've seen comments that it might make more sense to just claim the mileage deduction since it's so generous. I'm not self-employed so I don't know the details, but it does sound like there are significant down-sides to claiming the early depreciation that sometimes are glossed over.
     
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  18. TexasRat

    TexasRat Member

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    They key here is figuring out how much you will have for retirement. Do you have enough? Then buy the X. Are you short on your retirement such that you risk not being able to live the life you want to live? Throw that $75k into your retirement savings. Either way, it's good to know what your desired annual income will be in retirement. Do you have to take a bunch out because of RMDs, or is most of your money in a taxable? Split? So many variables to consider.

    This is exactly the debate I went through, though I'm about 3 decades from retirement if I want to actually work through my 60s. I decided I'm going to earn enough and will have plenty in the bank to retire on, so splurge! I don't want to die rich, I just want to die comfortable and knowing that my loved ones are cared for. If I die rich, that means I did not enjoy my life to its fullest.

    Good luck in whatever you do! As was also mentioned, only you and your wife know what the right decision is for you guys.
     
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  19. Rockster

    Rockster Active Member

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    All very good thoughts, to be sure. And, yes, there a bunch of really good retirement calculators out there that one can use to attempt to answer this question. The problem is, they're only as good as the assumptions we provide them. Will my investments grow at the rate that I expect? Will my healthcare costs be what I expect? Will my property taxes be what I think? What about my energy costs? Will one of my adult children face a calamity that I would want to help out with? Will I die at 70 or still be using up oxygen at 90? Who the heck knows?

    I feel like we can calculate, approximate, extrapolate, and plan as best as we can, but there's pretty much no way one can know for sure that we have "enough" for retirement. The fiscally conservative part of me doesn't want to regret splurging now. And the carpe diem part of me says f--- it. Buy the X and deal with it!
     
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  20. rjdoc74

    rjdoc74 Member

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    www.whitecoatinvestor.com

    This site is geared towards doctors, but applies to anyone who wants to learn how to get their financial house in order. l live in this website :)
     

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