Is buying a Model S still worth it?

[D.E.]

Hi everyone,

I was in line at the tesla store on March 31 and put a $1,000 deposit.

We were going to wait the 2 years and get the model 3. Then something happened about a month ago and my car (a Scion FR-S) got totaled by a drunk driver while being parked (no one hurt).

I actually don't absolutely need a car right away because I live close to work so my wife and I can potentially share our other car (Nissan Altima), however I find myself needing a car from time to time and I often end up renting one and I am kind of contemplating buying one soon.. And of course the first car that comes to mind is the Model S (70 RWD)

If tesla had not unveiled the model 3 honestly I would have pulled the trigger on a model S already. But having seen the model 3 which was pretty much advertised as a model S for half off (some could argue that it was advertised as something nicer than the current model s).. I am wondering if purchasing the model S right now would end up being a very costly financial decision.

How do you think the resale value will hold up? I know it has hold up extremely well so far but how can this keep up?

The fear of spending $80k on a car that will be worth half in 3 years is hitting me.

The stuff I like about the S over the 3
- the looks (looks more classy in my opinion)
- the hatch back trunk (kind of hoping to leave my dog in cargo)
- the guaranteed tax refund

The stuff I like about the 3 over the S:
- smaller car ( I don't need 7 passengers)
- of course the price.. Way way less

And then the stuff I really hate about the 3: 400k orders.. How long will we even end up waiting..? Sounds to me end of 2017 is very optimistic... I would expect 2 years from now at the very best case scenario and more likely end of 2018.. I live in California.

Thoughts?
Thanks

Xavier

If it is that big a decision for you then I think you should not buy the S.

The depreciation is a fairly large hit. The 3 year depreciation alone would buy you a new Civic. That Civic will have quite a bit of residual value in 3 years. The Civic is a very nice car. That Altima will be older in 3 years, the Honda might take over as the primary car. If you have small children, you'll want something a little larger.

The RWD S is no longer available as a Tesla S ordered new. The entry level is now the AWD 75D.

I love my 75D. It's an amazing car. I am not concerned with the used price in 3 years. For me the S is great. Financially there are better options, though. Since you are looking hard at depreciation, I think the financial impact of the S is a concern. Suppose you get the Civic. You will be comfortable for the next 3-4 years. By then the 3 should be going full swing. You'll be able to wait and watch until your ideal 3 is available.

I think there is a bigger difference in the 3 and the S than I think you do. I don't think the 3 will be quite an S at half price. They will maintain the S as a premium line, the 3 will be more of a mass market car. Also keep in mind that the other car manufacturers are entering the market. Your choices might be a lot wider than the current options.

Do what you want, of course, but I think the Civic and waiting 3 years will be much more satisfying for you over the long haul. If you get the S now, all the anticipation is over. Waiting will allow you to watch this rapidly evolving market. The much lower depreciation on the Civic makes it practical to trade in or sell to buy an electric pretty much whenever you want.

Best,
David

 

[Peewee]

The only doubt for me was the sheer number of Tesla's in my neighborhood. They are everywhere. My kid is in a class with 24 children from 22 families. 10 of these families have got either a S or an X. When at the supermarket, it's like driving in the delivery center, they are everywhere.

So, it's a bit of a dull car. But than again, the options are limited. The cost are for a BMW 530 or an Audi A6 in the Netherlands are roughly 800,- euro's (or $1000,-) in tax per month for the driver. A regular Panamera 1200 euro's ($1400), don't even think about a faster one.

The Tesla sets me back 150,- ($200,-)

So for me, the single most important reason, is cost. If cost wasn't a factor, I would have the BMW or Audi (or Porsche if I could).

EDIT:

Just to be sure: I'm happy with my order. And I think the Model S is a great car. But the current line-up of the other luxury brand have a better build quality, better seats, better audio, better Navigation, etc etc.

But I just checked and a BMW 6 series (which is maybe a better match for the S) starts at $130.000,- . That would be a almost $1250,- in tax for me as driver, every month.

 

[RogerHScott]

it's a bit of a dull car

I'm having trouble seeing the smilely that you must have put next to this -- is it in some really small font or something?

 

[Brutaka]

The best Tesla we could afford? My concern is getting a 2014 and having constant issues. I really don't want a car where I'll have issues one after another. I currently have a 2013 Hyundai Elantra and I hate the seats in that car. I'm literally paying 4 times more into it to finish off my payments sooner so.i can buy a Tesla. But that car has NEVER had one issue. Not a freakin issue! Been changing the oil, transmission and brake flush, rotating tires, and it still runs since I bought it day 1. So going from an annoying ice with no problems to a stupendously fun model S with issues, it's hard to decide which one do I want to sacrifice, especially since I'm limited on money.

Get the best Tesla you can afford now. You won't regret it.

 

[jerry33]

The best Tesla we could afford? My concern is getting a 2014 and having constant issues. I really don't want a car where I'll have issues one after another. I currently have a 2013 Hyundai Elantra and I hate the seats in that car. I'm literally paying 4 times more into it to finish off my payments sooner so.i can buy a Tesla. But that car has NEVER had one issue. Not a freakin issue! Been changing the oil, transmission and brake flush, rotating tires, and it still runs since I bought it day 1. So going from an annoying ice with no problems to a stupendously fun model S with issues, it's hard to decide which one do I want to sacrifice, especially since I'm limited on money.

Typically there are not issues, other than software irritations. This is somewhat like an iPhone upgrade where some things they do are improvements and some are not. Now I bought my 2013 new, but it was in the low 5000 VIN range, and there have been many improvements since then. Still, I have over 100K miles and it's been as trouble-free as any car I've had. I have no plans to get rid of it soon. Due to the simplicity of the Tesla design, things that are major issues in an ICE car are either nonexistent, or quickly fixed.

 

[Brutaka]

Typically there are not issues, other than software irritations. This is somewhat like an iPhone upgrade where some things they do are improvements and some are not. Now I bought my 2013 new, but it was in the low 5000 VIN range, and there have been many improvements since then. Still, I have over 100K miles and it's been as trouble-free as any car I've had. I have no plans to get rid of it soon. Due to the simplicity of the Tesla design, things that are major issues in an ICE car are either nonexistent, or quickly fixed.

Well let's hope that I don't get a bad one and have to spend more money into it since I would like to keep "a" Tesla for many many years and save money.