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In the face of a recession, should I buy a Y now or wait?

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Hello,

So I will have no emergency savings after paying taxes on a new Model Y. My wife and I after all expenses take home $4000 a month. We have been driving a 2015 Honda Accord for years and has 117k miles on it. We both work for the same company hand have a 2 and 4 yo.

Should we take the plunge buying a MY with a $1300/month payment? Thanks for any and all advice!

-Mac
 
Hello,

So I will have no emergency savings after paying taxes on a new Model Y. My wife and I after all expenses take home $4000 a month. We have been driving a 2015 Honda Accord for years and has 117k miles on it. We both work for the same company hand have a 2 and 4 yo.

Should we take the plunge buying a MY with a $1300/month payment? Thanks for any and all advice!

-Mac
Based on everything you’re saying it seems like that would be a tough nut to pay every month. $1300 a month on a car payment seems very steep, Although you’re saying you have $4000 a month AFTER all expenses. Can you clarify that?
 
Hello,

So I will have no emergency savings after paying taxes on a new Model Y. My wife and I after all expenses take home $4000 a month. We have been driving a 2015 Honda Accord for years and has 117k miles on it. We both work for the same company hand have a 2 and 4 yo.

Should we take the plunge buying a MY with a $1300/month payment? Thanks for any and all advice!

-Mac
Lots to unpack there. What expenses? That's a high monthly payment with young kids...
 
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Hello,

So I will have no emergency savings after paying taxes on a new Model Y. My wife and I after all expenses take home $4000 a month. We have been driving a 2015 Honda Accord for years and has 117k miles on it. We both work for the same company hand have a 2 and 4 yo.

Should we take the plunge buying a MY with a $1300/month payment? Thanks for any and all advice!

-Mac
I wouldn’t buy now the way prices and interest rates are.

I certainly wouldn’t buy if I were carrying a $1300 monthly payment. That’s more than 3x what I pay for my MS. If you aren’t putting down at least 20%, forget about it.
 
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I did some thinking and off hand Calculations when I was contemplating the effects of an Economic Slow down on a 3rd Vehicle for my household.

Here are my thoughts:

If you purchase a well maintained and somewhat sporty/refined used Vehicle for 25-30K from a Private Party, you'll end up needing financing, and Financing options are limited, if you go through Lightstream for example you'll pay around $400-450 per month over 72 months at 4.99%.

Ontop of that you'll be paying for Gas ($3.50+ avg over the next 5 years is optimistic) which is going to increase your monthly spending on the Vehicle to somewhere around $600-750 per month depending on how much you drive. Include another $300+ per year for basic Maintenance, and probably 2-3 major repair over the course of ownership which cost upwards of $1500 each, and you're looking at driving a used Vehicle for maybe $300-400 less per month than the Model Y.

I have a Loan out at $924 per month on a New Y, why are you looking at $1300 per month? Remove FSD and options. Options do not add to Resell value.

With this Comparison the choice to buy a 2nd Model Y was simple for me, but I'm also anticipating that I will need to work a bit more in my business to sustain my current level of income and sustain overall business profitability over the next 3 years while the economy deflates and eventually stabilizes into a stable albeit slower growth pattern, at least until the next boom and eventual bust.

If you believe in doing whatever it takes to live a great life, go for it, if you feel like your earning potential is limited to your current salary, I would suggest waiting a year and seeing how things play out with Tesla's pricing, maybe they bring back a standard range rwd Model Y with a price point of 50K? You save more for a down-payment and potentially look at a monthly payment more in the realm of $700 per month with the same Fuel savings offered by an EV.
 
Straight answer is no. You both work for the same company. That's risk number one. If you both have 6+ months worth of savings, then you have a bit of a buffer. I know your honda is old, but if it's running still without much major maintenance expenses, juice it out of the car as long as you can. The savings from that a lone will get you further ahead. I would recommend to delay as long as you can. That's my opinion.
 
These people with $1000 monthlies on a MY…WTF?!

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What is the difference between $500 and $1000? $500 over the course of 60-72 months isn't making or breaking Joe Blows retirement. Joe Blow didn't plan for retirement anyway... Bubbles pop every 10-15 years in a Capitalist society, if people have any skills at all, they'll find extra work or find a way to keep their current means of income stable enough to sustain.
 
Hello,

So I will have no emergency savings after paying taxes on a new Model Y. My wife and I after all expenses take home $4000 a month. We have been driving a 2015 Honda Accord for years and has 117k miles on it. We both work for the same company hand have a 2 and 4 yo.

Should we take the plunge buying a MY with a $1300/month payment? Thanks for any and all advice!

-Mac
Absolutely not.

Honestly, even If your leftover (discretionary) income after living expenses was $4,000 or less you should think long and hard about taking on that kind of car payment.
 
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What is the difference between $500 and $1000? $500 over the course of 60-72 months isn't making or breaking Joe Blows retirement. Joe Blow didn't plan for retirement anyway... Bubbles pop every 10-15 years in a Capitalist society, if people have any skills at all, they'll find extra work or find a way to keep their current means of income stable enough to sustain.
I hope you’re not a Financial Advisor by trade.
 
I wouldn’t buy now the way prices and interest rates are.

I certainly wouldn’t buy if I were carrying a $1300 monthly payment. That’s more than 3x what I pay for my MS. If you aren’t putting down at least 20%, forget about it.
You pay $400/mo on a MS?

Crazy how expensive the Y has gotten. Our X payment is just shy of $900 and OP here asking about 1.5x that.