Lower Income model S owners

[Markolise]

I found a graph that showed there are less than 10% of owners that make less than $60k
As an owner making below $50k I'm curious to know if anyone's seen an average count of fellow owners below $60k mark.



Article and graph: Tesla Owner Survey Results

 

[bedoig]

You make less than $50k and you have a Model S?! I make 2-3 times that and I feel like a Model 3 is a stretch...

 

[Keith909man]

I’m military who makes 66k a year after incentives and owned a 2017 model S 90D. How? Investments

 

[Chaserr]

You make less than $50k and you have a Model S?! I make 2-3 times that and I feel like a Model 3 is a stretch...

There were several $20k-$30k range CPO Model S cars sold in 2017; I wouldn't expect a lot of people making under $50k to buy a $130k car but there are a lot of Model S vehicles that are well within range of that income bracket that will still come with a warranty.

 

[Lasttoy]

I'm on SS, military retired E7, I have a S. Decided at 74, I take all the equity out of house and have a wonderful senior life. Ain't looked back yet. Will get new one in 2020 if still alive.

 

[The Raza]

I’m military who makes 66k a year after incentives and owned a 2017 model S 90D. How? Investments

This is very true, especially for older folks who might be retired / early retired.

You can limit your investment income to $95K or so a year and not have to worry about paying a dime in taxes once you're fully retired and a Tesla is perfectly within your reach since you've got that nest egg of $3M+. The annual income of anyone who no longer needs to work becomes quite irrelevant in factoring purchase decisions.

 

[Markolise]

You make less than $50k and you have a Model S?! I make 2-3 times that and I feel like a Model 3 is a stretch...

Yep, same as the other guys that have commented so far time, savings, investments(me not so much). Mine was used, which helped a lot, especially since they don't make the midnight blue anymore, but also 8 years of budgeting to get completely debt free and then saving lots. No credit cards Whoop!
If you make 2-3 times more than I do and consider a Model 3 a stretch... you might want to rethink your budget. No offense meant.

 

[Markolise]

I'm on SS, military retired E7, I have a S. Decided at 74, I take all the equity out of house and have a wonderful senior life. Ain't looked back yet. Will get new one in 2020 if still alive.

That's how I want my retirement ... I have quite a few years to go though.

 

[bnsfengineer]

I'm on SS, military retired E7, I have a S. Decided at 74, I take all the equity out of house and have a wonderful senior life. Ain't looked back yet. Will get new one in 2020 if still alive.

NOW THATS WHAT ITS ALL ABOUT!! Have had a lot of friends that save every penny they have and "POOF" next thing you know ...They GONE!! Six Feet Under... Live for today and the moment " Life's Just Too Freaking Short at any Age!! Enjoy while your here cause we all gottto go sooner or later!

 

[bnsfengineer]

You make less than $50k and you have a Model S?! I make 2-3 times that and I feel like a Model 3 is a stretch...

I guess its all in perspective! Had a CPA friend who made over 250k year and drove beat up Camry with 250k miles. He died at 54 from cancer and left all his money to his wife and the POS car!!

 

[bedoig]

Yep, same as the other guys that have commented so far time, savings, investments(me not so much). Mine was used, which helped a lot, especially since they don't make the midnight blue anymore, but also 8 years of budgeting to get completely debt free and then saving lots. No credit cards Whoop!
If you make 2-3 times more than I do and consider a Model 3 a stretch... you might want to rethink your budget. No offense meant.

To be fair it wouldn't be that much of a stretch but I just don't have a habit of spending much on cars. A significant portion of my budget actually does go to savings so I can hit that $3M+ nest egg talked about above (and hopefully well before traditional retirement age). Different life stages really play a bigger role in this than current income I guess.

 

[Markolise]

To be fair it wouldn't be that much of a stretch but I just don't have a habit of spending much on cars. A significant portion of my budget actually does go to savings so I can hit that $3M+ nest egg talked about above (and hopefully well before traditional retirement age). Different life stages really play a bigger role in this than current income I guess.

Ah, I see! Then its just a difference in priority, that's the way my brother is. The way it was said I assumed 2-3 times my income and you were struggling, makes much more sense now.

Everyone does seem to make that comment though "you spent how much on a used car?". Long term though I think it'll pay off...

 

[Qbenjamin]

I agree with life being too short, but I also agree with those that choose to make sound financial decisions based upon their income levels. The one thing that constantly get's people into financial trouble, is when you're continuously trying to keep up with the Jones' (or have a D2iR above 50%).

 

[SMAlset]

I'm on SS, military retired E7, I have a S. Decided at 74, I take all the equity out of house and have a wonderful senior life. Ain't looked back yet. Will get new one in 2020 if still alive.

And now I get your user name! Enjoy your car and your retirement. May you live long enough to enjoy every penny of it.

 

[K-MTG]

It really depends on where you live...since OP is in Texas, purchasing an S may be feasible.

But very unlikely in O.C or Bay Area. When I first started working...I couldn't even afford the latest iPhone after payments on these tiny track homes that cost at least a million.

 

[mattack4000]

Yep, same as the other guys that have commented so far time, savings, investments(me not so much). Mine was used, which helped a lot, especially since they don't make the midnight blue anymore, but also 8 years of budgeting to get completely debt free and then saving lots. No credit cards Whoop!
If you make 2-3 times more than I do and consider a Model 3 a stretch... you might want to rethink your budget. No offense meant.

You live in Texas, try owning a typical home that are over $1m in the Bay Area before you talk about budget with us

 

[ghouston87]

If you make $50k and live in Texas, you can totally afford a Tesla, maybe a CPO or a very bare S75, which is still an amazing car. If driving a Tesla will make you happy, do it! other people spend that much money or more on things that are much less satisfying like drugs, alcohol or women.

 

[FlatSix911]

I found a graph that showed there are less than 10% of owners that make less than $60k
As an owner making below $50k I'm curious to know if anyone's seen an average count of fellow owners below $60k mark.

Article and graph: Tesla Owner Survey Results

Who is the average Tesla owner?

The average Tesla owner makes $271,000 (down from $290,000 in 2013) and is between the ages of 35-50. 88% of owners are male (smaller sample size). For 91% of owners, this is the most expensive car they have ever purchased. That metric is up from 65% in 2013**. After purchasing their Tesla, only 24% of owners would consider purchasing a gas powered car again. 92% of owners would purchase another Tesla in the future.

Income proved to be a differentiating factor in the survey, leading to differences in price and satisfaction. As expected, higher income trended toward a higher ASP (average sale price) with a price gap of almost $4,500 (between purchase price of the lower half and higher half of the income sample). In general, higher income owners were slightly less satisfied with the service received and that caused them to be 6% less likely to purchase a Tesla in the future. Interestingly, recent owners and early adopters showed the highest incomes compared to the running average (by quite a variance).

Above: Number of reported owners with the corresponding income

 

[Got-EMF]

other people spend that much money or more on things that are much less satisfying like drugs, alcohol or women.

Reminds me of a saying that goes something like, "I spent most of my money on booze & wild women. The rest I wasted." YMMV!

 

[David.85D]

Its not a normal distribution. Using the mean exaggerates the long tail. Median income of $150k seems like a better descriptor and includes many professionals.

$150k is top 5%, with 9.1 million people making that much or more in the US.

$270k is top 1%, with 2.2 million people making that muchbor more in the US.