Wait. Drive the accord for a while, see what happens to the federal tax credit, see what kind of EV competition comes out in the next couple of years, and wait for the used car (especially Tesla) market to come back to reality.
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In the face of a recession, should I buy a Y now or wait?
- Thread starter Macgyverfever
- Start date
Leeclanual
Member
I’d wait until your take home pay gets much higher… Model Y is overpriced and being car poor is no fun.
Buy it. Buy the car, not the “fsd package”. I have FSD Beta, it’s overhyped garbage.
The only rhetorical question I have is what it will look like (and cost) by the time it's fully developed (admittedly if ever?)
Mateo83
Active Member
Being car broke isn't fun, I've been there financing a Mercedes CLS. Upside if you'll have a couple month waiting after ordering to save up more downpayment before your MY is built.
What we are facing now, and what is coming our way is far worse than the Obama-BIden years, or even the infamous Jimmy Carter years. Plan ahead accordingly.
Now is the wrong time to be draining your emergency reserves. In addition to the emergency fund, I advise having 3 months or more of food stocked at home. Spending $66k or more for a car makes no sense given your household salary. That money would be better spent on physical assets (think land, or an investment property). If you really need a second car, which isn't unreasonable, and an EV makes sense for you (you put on a lot of miles), then there's great deals to be had right now on the Bolt. However if you don't put on a lot of miles, keep in mind the high voltage battery in any EV degrades with time, and it's extremely expensive to replace. For planning purposes, think 10 years. If you don't drive much, I'd stick with a hybrid or gas vehicle that will serve the family's needs for a long time if needed. I drive 25-30k miles a year, so the math works out for me. You'll need to run the math for your usage.
Now is the wrong time to be draining your emergency reserves. In addition to the emergency fund, I advise having 3 months or more of food stocked at home. Spending $66k or more for a car makes no sense given your household salary. That money would be better spent on physical assets (think land, or an investment property). If you really need a second car, which isn't unreasonable, and an EV makes sense for you (you put on a lot of miles), then there's great deals to be had right now on the Bolt. However if you don't put on a lot of miles, keep in mind the high voltage battery in any EV degrades with time, and it's extremely expensive to replace. For planning purposes, think 10 years. If you don't drive much, I'd stick with a hybrid or gas vehicle that will serve the family's needs for a long time if needed. I drive 25-30k miles a year, so the math works out for me. You'll need to run the math for your usage.
awesome fiscal responsibility and nice cost avoidance on the F350 gas, makes total sense.
I see a wide range of financial advice here. Ultimately OP has to do what's comfortable for him. Just as a data point, I bought my Y ($60k after TTL) in cash, no financing, just wrote a check out of savings account. I have bought all my cars this way. I understand I may be losing a tiny bit of opportunity but I like to just "own" the car and be done with it.
As for financial health, retirement savings, investments, college savings, etc are all accounted for and done - on track for a very comfortable retirement. I have emergency cash equal to 1 year of gross salary. I would not have bought such an expensive car without all that other stuff already taken care of. Any car more than $30k is a "luxury" in my book. I would rather drive a POS car than not be healthy financially. A car is a depreciating asset and not an investment. I drive all my cars until their value is almost zero.
As for financial health, retirement savings, investments, college savings, etc are all accounted for and done - on track for a very comfortable retirement. I have emergency cash equal to 1 year of gross salary. I would not have bought such an expensive car without all that other stuff already taken care of. Any car more than $30k is a "luxury" in my book. I would rather drive a POS car than not be healthy financially. A car is a depreciating asset and not an investment. I drive all my cars until their value is almost zero.
And believe me, if I were to get such a vehicle, I have 0 plans of ever trading or selling it (I still have my note 9 as my phone and before that was using a note 3 until the battery was replaced for the 2nd time) - I would drive this car 'til the wheels fell off, and then repair it and drive it some more.
I suspect from the comments my biggest hurdle is not having an emergency fund set aside. Should a life event occur now, I won't be prepared, even by the time I receive the vehicle which is due this Sep. I do know confidently, however the conservative family-oriented company I work for wouldn't dare think of letting my wife or I go (and I swear to you all I am not trying to brag but I don't just play the role of System Admin, DBA, Help Desk, Veeam, vCenter, and Network Admin for them, but I am (and have been) also their eyes and ears through this crazy rollercoaster of a pandemic; I analyze sales data, item cost increases, contract pricing, I build reports, etc so that sales reps can not only maintain but improve upon their GPs which helps the company's bottom line, and apparently as a result, I've done so well that company profit margins have increased by 8% compared to our best year ever and are on-track to do even better. They've therefore promised a 15% raise the beginning of next year).
I'm concerned though because if my wife or I were to ever wreck, we won't be able to pick the other up, and being dependent on one vehicle for 5 years really does wear on you mentally. So therein lies the problem: I need a second vehicle, I will do anything and everything to get the debt paid off promptly, yet I am gambling the risk of unemployment until say, June of 2023 to have a proper 6 month emergency fund. Maybe if I switch to ramen noodles I can pull this off...
And believe me, if I were to get such a vehicle, I have 0 plans of ever trading or selling it (I still have my note 9 as my phone and before that was using a note 3 until the battery was replaced for the 2nd time) - I would drive this car 'til the wheels fell off, and then repair it and drive it some more.
I suspect from the comments my biggest hurdle is not having an emergency fund set aside. Should a life event occur now, I won't be prepared, even by the time I receive the vehicle which is due this Sep. I do know confidently, however the conservative family-oriented company I work for wouldn't dare think of letting my wife or I go (and I swear to you all I am not trying to brag but I don't just play the role of System Admin, DBA, Help Desk, Veeam, vCenter, and Network Admin for them, but I am (and have been) also their eyes and ears through this crazy rollercoaster of a pandemic; I analyze sales data, item cost increases, contract pricing, I build reports, etc so that sales reps can not only maintain but improve upon their GPs which helps the company's bottom line, and apparently as a result, I've done so well that company profit margins have increased by 8% compared to our best year ever and are on-track to do even better. They've therefore promised a 15% raise the beginning of next year).
I'm concerned though because if my wife or I were to ever wreck, we won't be able to pick the other up, and being dependent on one vehicle for 5 years really does wear on you mentally. So therein lies the problem: I need a second vehicle, I will do anything and everything to get the debt paid off promptly, yet I am gambling the risk of unemployment until say, June of 2023 to have a proper 6 month emergency fund. Maybe if I switch to ramen noodles I can pull this off...
sounds like you have it all figured out. pull the trigger, its just a car, if *sugar* hits the fan sell it! no biggie. enjoy life a little
What leads you to believe we are in for another Great Depression?
It looks like we are headed for a Yo-Yo economy rather than sustained deflation. Lots of ups and downs, but Americans are employed, productive, and buying at high rates.
Misterbee
Member
Everyone has to do what’s right for them. It was a stretch for me to buy a 3 in 2018, and I am glad I did. Last fall I placed an order for a Y, not sure if I could really afford it. But I wanted to lock in the price. A few weeks ago I got the word that delivery was imminent. The current high resale value of the 3, plus some extra cash I received from selling my old VW camper, made my decision easier. I am taking delivery of a Y this Friday.
And if I were the OP, I would place the order for the Y, and see how the new EV tax credit turns out. You can always cancel the order later.
And if I were the OP, I would place the order for the Y, and see how the new EV tax credit turns out. You can always cancel the order later.
This can all change very quickly and especially as supply increases and I would never look at a car as profit and just say how much am I prepared to loose. EV price’s especially Tesla are off the scale and it’s not normal to be paying £800 a month for a car.
Have you considered a Chevy Bolt if you really want to go the EV route? They are practically giving them away right now due to bad press. I assume they have worked out the battery issues and are good to go now. MSRP is like $27k on a 2023 model and they may have the full tax credit available again on January 1st if you can hold off delivery until then.
I don't think anyone here can convince the OP not to get his MYP with FSD package. He's going to get it and that's that. He will do whatever it takes to make the numbers work. At least if there is a real financial emergency he can always sell the car and not lose too much on it (maybe even make a few $$$).
I'm expecting all Tesla's to drop in value as the hike is ascertainable and their be old tech with the solid state batteries and Chinese cars taking the lead.
There might be a fed rebate on that Bolt in 2023. Probably not for $7.5K, but maybe something.
Fk the bolt. Might as well throw your money in the trash if you're going to buy a bolt. Buy the Model Y and enjoy life. You'll be waiting a while for the y to arrive after you order, so get your self a part time job or gig job and make as much as you can and save up at least 3-5 months of expenses in the meantime.. finance it 100% since rates are still lowish and keep cash on hand... You'll make the numbers work, when there is a will, there is a way... Don't live scared. Don't be a pu**y... Get the job done. Hope to see you post pictures of your Y after delivery.