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

[neroden]

I'm still confused. If having the cash is better, why not finance all 70-90k?

The concept is called "emergency fund". It is good to have an "emergency fund" of liquid cash equal to some number of months of expenses in case of sudden disaster (how many months varies according to how conservative you are, and I don't mean conservative in the political sense). *After that* there is no particular reason to have cash, and it's certainly not worth borrowing in order to have more cash than your emergency fund amount.

I have enough cash to buy the car in cash and maintain my emergency fund, so I pay cash.

 

[neroden]

while my company can make more than 7 ~ 8% with that 'cash'.

You have one profitable company poised for expansion there.

In this market, that rate of return on cash is NOT common.

 

[neroden]

Have no illusions though. A car is a consumable, not a durable

No, it's a durable with depreciating value, just like a washing machine. There's actually no hard line between durable and consumable; it's really all about how long it lasts and what the maintenance costs are. A car isn't as durable as a book or an education , but I expect this one to last for over 10 years and have significant resale value afterwards, so that's what I'm basing my computations on. I certainly don't think a car is an investment; it's a depreciating asset, but there are plenty of durable depreciating assets (factory equipment, appliances, etc.), and even my house is likely to depreciate as it gets slowly damaged by weather and wear and tear.

 

[W.Petefish]

I can pay for it in full on the day of customization. As it stands right now, I could still pay for it in full with all the options that I'd like.

 

[jimbakker666]

I can pay for it in full on the day of customization. As it stands right now, I could still pay for it in full with all the options that I'd like.

You, sir, are a lucky man :smile:.

 

[W.Petefish]

You, sir, are a lucky man :smile:.

Good investments FTW.:biggrin:

 

[Tessier]

While I can afford it I have not placed a reservation for a model S yet. I would love to buy a Tesla and support EV’s and American made products and all that but I need to know what the price is going to be all said and done out the door! Tesla has yet to announce the cost of the option packages they are going to offer and what they will include. If I knew what it would cost to configure the car the way I want it I’d consider it but I don’t see the need to put down 5K for a place in line when I am not even sure that I am willing to pay the final price for the car configured the way I want.
Let’s face it Tesla is changing the game on cars! Putting down $5k for a car I won’t be getting for another two years is too much for me right now(two years figuring were my place in line would be right now). Who knows what the technology landscape will look like 2 years from now, so I’ll invest my money in Tesla stock and hopefully see it appreciate to the point where I can buy a car with that investment instead.

 

[Trnsl8r]

You know the deposit is refundable, right? I am by no means certain I'll end up getting the car, but the deposit opens up the option to get it. Also, you're probably looking at more 18 months top if I'm reading their production plans right.

 

[Robert.Boston]

As for me, yes, I can write the check today. I like to pay cash for cars -- dealing with auto financing makes me feel like a need to wash my hands, although I admit I'm not above taking zero- or near-zero-interest loans. As soon as I buy one car, I start stashing money away to buy my next car. It'll be about 6 years on my Audi once I take delivery of the Model S next year, so that works out.

I'm not spending more for this car than I would otherwise; for me, it's a matter of choosing amongst a set of very nice cars. The all-electric element sealed the deal for me.

 

[Dan5]

Plan on paying cash for the "base" car and the a loan on the upgrades. The way I figure it, between the 300 mile battery, panoramic roof, rims, and interior, probably looking at another 35 K (corresponds to the amount I spend on gas and a "cheap" car payment on my current car- which is fine)

 

[mklcolvin]

Woah!

Plan on paying cash for the "base" car and the a loan on the upgrades. The way I figure it, between the 300 mile battery, panoramic roof, rims, and interior, probably looking at another 35 K (corresponds to the amount I spend on gas and a "cheap" car payment on my current car- which is fine)

Dan5,

I hadn't thought of that! I, too had planned for paying cash for the "base" car, but never even considered getting a loan for the upgrades... Time for another talk with the wife!!!