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If Tesla shipped your S today, could you pay for it?

Discussion in 'Model S' started by jimbakker666, Oct 18, 2011.

  1. jimbakker666

    jimbakker666 Member

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    #1 jimbakker666, Oct 18, 2011
    Last edited: Oct 18, 2011
    Hey there guys and gals, just starting some conversation to see where everyone stands on finances and their Model S. I'm sure some of us have millions upon millions of dollars, while others *cough* like me *cough* don't. My wife and I just received our reservation # today, for what will be the 160 mile range model.

    The idea here is that, through hard work and dedication, we will take shipment of our vehicle late next year or, more likely, in the Summer of 2013 (given Tesla's stated production goals and our 53xx reservation #). Our finances are good as it stands now, low debt and good savings, but our overall income is just a little over $100k. Needless to say, a $50k car is stretching it.

    But we have dreams, and the Model S has found its way into those dreams. Taking everything into consideration though, if that car shipped tomorrow, it wouldn't be going to my house. Not now, at least.

    So what's up with you all? Anyone else reserve a spot with the hope of being ready for this vehicle come showtime?

    -Ron
     
  2. Mycroft

    Mycroft Life happens

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    Nope, I'd have to finance half of the $100k expected cost if it was delivered today. I should be pat by June or July though. :smile:
     
  3. neroden

    neroden Happy Model S Owner

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    Yes, I could. Wouldn't have reserved a Sig otherwise.

    I have actually quite a low income, but I have a lot of money thanks to inheritance, and enough of it is "in cash" since I sold a lot of stock just before the crash. My family brought me up to spend on durables but not on consumables (so, for instance, I'm in a super-efficient house with tiny utility bills), which makes an electric car totally logical...

    ...but it's still freaking me out more than a little to buy a car which may cost (after options, delivery charge, sales taxes, etc) something like half the value of my house. I've been hellbent on getting an electric car for over 5 years, but not capable of doing a conversion, and in a location where I need a long-range car... so this is my first chance. I am betting on gas prices going up soon and fast, betting on the car lasting over ten years, betting on it having low maintenance costs, betting on it having a greater resale value than a comparable gas car. I'm actually betting on the battery degradation to shorter range happening after more charging stations are installed, allowing me to hang on to the battery for a long time. And of course I'm betting on electric cars taking over in the next couple of decades. I think it's a good bet, and I can afford it, but it's making me really nervous. So I'm worrying over every little detail of the car!
     
  4. gg_got_a_tesla

    gg_got_a_tesla Model S: VIN P65513, Model 3 Res Holder

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    Would be able to make it to the roughly 75K mark for a 230 mile barebones version (after sales tax etc. but before the federal and CA tax credits) but with part financing, partly on purpose. I don't think buying an expensive car outright, cash down, makes financial sense for most folks (i.e. "the other 99%" :wink:) - given the current low interest rate regime, the interest paid on a sizable car loan spread over 5-6 years is not that bad. I like the GAP insurance option in some car loans that covers the depreciation in case of a total loss (hopefully not). Also, I'm going to prioritize having liquid cash assets in hand otherwise. Am targeting a car loan with a monthly payment that'll not significantly impact our current situation with respect to contributions to 401k, college savings plan contributions, savings account buildup etc. Sorry to sound like a financial planner but, this is the thought process that my wife and I went through.
     
  5. jimbakker666

    jimbakker666 Member

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    I probably worded my question wrong, I don't mean pay for it outright. I mean 'pay' as in take on the extra cost. I hear what you're saying about the interest rates and I agree. I'd much rather finance if I can make more on my money than they charge me for the loan.
     
  6. VolkerP

    VolkerP EU Model S P-37

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    #6 VolkerP, Oct 19, 2011
    Last edited: Oct 20, 2011
    paying mortgage for my new, super-efficient, photovoltaics equipped house. No cash laying around.
    Will replace a little diesel family hauling car with Model S. I do hope that lower running costs will help finance it.
     
  7. mwu

    mwu Member

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    I have not reserved just yet because I couldn't afford the car if it were to be delivered in my current situation. I figure that tying up $5k in something which doesn't make money in reservation for something I cannot afford yet is a mistake.

    That said, I do plan on buying a Model S. Much depends on how well I am perceived at doing at a job I started early this year. They have a bonus pool which I am in good standing for and based on numbers I have seen, it has the potential to provide me enough capital to take enough off of the cost of the vehicle to allow me to afford the financing.

    In other words, I am crossing my fingers, knocking on wood, and doing my absolute best at work. I work from home and I put a poster I got of the Model S when the prototype was in town on the wall to remind me of what I'm going above and beyond for every day.
     
  8. de704

    de704 XP268

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    #8 de704, Oct 19, 2011
    Last edited: Oct 19, 2011
    No, I couldn't...

    I am buying the base car. But then again I will be 36 when I receive the car next October-ish (P2138). I saw it written somewhere lately that most Model S Reservation holders are 45 or older. So I don't feel so bad about my lack of finances when compared to the Signature crowd. The Model S is a car I am aspiring to. I have been saving since 2009 when the car was announced, I reserved June of 2010. I am taking the "Rich Dad, Poor Dad" approach. Most people say "I can't afford that, I choose to say HOW can I afford that." So since 2009 I have been saving, making sure my financial house is in order, and doing other business related things to insure I will be able to afford the Model S next year, or at least be able to put down a large down payment. Plus, I'd be a crazy person not to try with the $12.5k that I will receive from the government for purchasing an EV (Federal/Georgia Rebate).

    You could make the argument that if I spend $49k and, another person spends $87+ on their Model S Signature. We will both get the same attention from the laymen person but my purchase will be a better return on investment. Don't forget, I can always upgrade my battery years down the road when there's a cheaper/500 mile range battery option.

    My 2 cents...
     
  9. AnOutsider

    AnOutsider S532 # XS27

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    I'm with GG, I've got 40k in, but if I can finance the rest, I'd rather remain liquid. Any news on I'd tesla will be offering financing? Or will we need to go to third parties?
     
  10. Kevin Harney

    Kevin Harney Active Member

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    Hate to break it to you but NO CAR is an investment !!! They are all losses. So you may have limited your loss :)
     
  11. de704

    de704 XP268

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    #11 de704, Oct 19, 2011
    Last edited: Oct 19, 2011
    Semantics. Still the point remains. We will both get the same attention. :tongue:
     
  12. mwu

    mwu Member

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    Yes based on Tesla's site: "A full suite of payment options including leasing and financing will be offered." That can be found at the fourth bullet point in the pricing information on the "Facts" page on Tesla Motors' site under the Model S drop-down menu. I imagine there would be a lot of angry people if they went back on that.
     
  13. AnOutsider

    AnOutsider S532 # XS27

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    Cool :) I pored over the specs and such, but never went into pricing since I "knew" it. Well, there ya go. If they do financing, I may do that since they've already got a sizable deposit from me anyways :tongue:
     
  14. WhiteKnight

    WhiteKnight _____ P85 #549 _____ Sig Red / Sig White

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    I sure hope they offer it from day one. I heard a comment about not offering financing until 2013. That would be a big mistake (Tesla if you're listening). There seem to be a lot of aspirational buyers who have never spent more than $30,000 on a car and now they're going to spend a minimum of $60,000 with sales tax, delivery, et cetera. I myself fall in this category.

    I really hope they will allow leasing at attractive terms. You cannot take super long trips in the car so your annual mileage will be 12,000 miles or less (mine probably under 10K). I love having the option to just turn the car in at the end of the lease and walk away. That kind of flexibility could get a lot more people interested as well. There's no fear about how many years the battery will last under that scenario.
     
  15. de704

    de704 XP268

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    I fully plan to do more road trips in my 160 mile Model S then I ever did in a gas powered car & I don't plan to charge in extended range mode. So that will give me around 100 to 120 miles of range before needing to recharge. Yah, so It will take a little planning. I will have to charger hoop & charge at a friends/family house maybe "gorilla charge" LOL!! & my trips may take longer but I can access everything from my Model S's 4G internet. TV Shows, Email, Facebook, etc.. Digital Nomad style.

    Just think, I can go on a vacation for 20 bucks & a little planing.
     
  16. bonnie

    bonnie Oil is for sissies.

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    Many of us do. I just did over 1300 miles RT to SoCal in my Roadster without any problems & am planning a trip north to Seattle. The Model S will make it even easier.
     
  17. ckessel

    ckessel Active Member

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    Right now? No. I plan to pay as much cash as possible. I'm not really understanding the folks that want to finance and keep cash on hand. After taxes, there aren't many investments that are likely to earn you more than you're losing in interest even at today's low rates. And if you end up desperate to liquidate, it's not that hard to get a loan secured on the car later.
     
  18. AnOutsider

    AnOutsider S532 # XS27

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    Hypothetically speaking, if I had 77k in my savings, I'd feel much better putting down 40k and financing the remaining 37k and having cash on hand for anything that may come up than I would paying in 100% cash, having the car paid off, but no liquidity to do something else. It's generally accepted that cars are a depreciating asset and a poor investment. There are a number of things you could do with 37k over 5 years that may be more beneficial than the comfort you would receive from knowing you 100% own your car.

    I'm one that likes to tinker with, and keep my cars for a long time, so I tend to avoid leasing unless I know it's a short-term thing, but certain cars, I plan to 100% own and keep eventually. The Model S is one of those, so I won't be leasing, but I will finance.
     
  19. ckessel

    ckessel Active Member

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    I'm still confused. If having the cash is better, why not finance all 70-90k? Your Sig deposit isn't required to go into the purchase, it's just a deposit. Unless you can find an investment that's guaranteed to better than paying off the 3-4% auto loan (which, after taxes, means you'd better be making 5-6% ROI), you might as well pay on the car. If you then do find a good investment, then why not take the car loan then? Why sit on 80k, effectively paying 3% interest on it, unless you've got an immediate plan for it?

    I'm so confused.
     
  20. bonnie

    bonnie Oil is for sissies.

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    ?? The attention matters as part of the buying/options decision?
     

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