Model 3 Affordability

[Rottenapplr]

Lotta lawn work, eh?

Yup foreign hoes. The big and heavy kind.

 

[Tummy]

$48,000 saved ($2k a month for 2 years) and invested in index funds for the next 40 years would be a $1 million or more at retirement age without any more savings. Or you could buy a Model 3 now and have $1 million less later. Dilemma.

 

[mswlogo]

Using that rule, I’d have to live with my parents with a POS car and live frugally for 5 years. It’s also not a toy. It’s the safest car out there and that’s a huge priority.

Safety is hard to argue with and put a value on.

But keep in mind a lot of Safety tests are "Normalized" to their own weight.
This partly done because if they didn't everyone would be driving a Hummer.

If you were in a head on which would you be better off in a Model 3 or a Hummer?

I'm not suggesting you get a Hummer. Just making a point the Model 3 is safest in it's "Class".

Even though Elon says Model 3 is safer than Model S. I'll bet on average you'd fair better in a Model S (purely because it's heavier).

But it depends if you hit a Brick wall or another car. Larger/Heavier car will decelerate slower than a smaller car.

The Tesla's are absolutely part "Toy". Don't kid yourself. There is certainly a practical aspect to it. And it does keep getting better.

It partly depends on electricity cost. If it's high (like $0.25 or higher) you can get a safe, efficient hybrid for much less (less toy) with similar cost of ownership. But if you can get electricity for (like $0.12 or less) now you can justify a bit more up front cost for an EV.
You are effectively prepaying what you would pay for fuel in an ICE.

Also depends on your tax breaks you get and which model you're targeting as well.

 

[Rottenapplr]

$48,000 saved ($2k a month for 2 years) and invested in index funds for the next 40 years would be a $1 million or more at retirement age without any more savings. Or you could buy a Model 3 now and have $1 million less later. Dilemma.

Some how I don’t think OP thinks long term.

 

[mswlogo]

$48,000 saved ($2k a month for 2 years) and invested in index funds for the next 40 years would be a $1 million or more at retirement age without any more savings. Or you could buy a Model 3 now and have $1 million less later. Dilemma.

To be fair, we all have to balance things.

I could ride a bike (as in bicycle) to work for my whole life and have a couple million extra at retirement. Assuming a bus doesn't run me off the road on the bike before I retire.

You could also argue a nice car could open up opportunities. Strike up a conversation at the SuperCharger with the CEO of great new startup. Who knows.

 

[Mr X]

All of our situations are different. If it will make your life better and the numbers check out and you can afford it then go for it. SR is definitely affordable, if that's the one you're looking to get.


Remember, life is like levels. You should be progressing and aiming to increase your income every year. As long as you have goals you want to achieve and are actively working towards them then you'll be good. Having the Tesla should motivate you even more since you'll be rollin in it

 

[ammulder]

Not that I want to mix it up in this thread, but...

My first job out of college was with Andersen Consulting. I was working away from home and I paid $700 a month on the company card for a car rental. A year later when I got on a different plan, I had to buy a car, and I thought $700 a month was just what you paid for a car. So I got a $700/month car.

My wife and I did have some financial problems in those early years. It wasn’t fun. It was downright miserable at times. We got past them, though, and paid off the cars before the loans were up.

I loved that car and I drove it for 21 years, until I got a Tesla. Certainly got my money’s worth. OK, it wasn’t as much fun in recent years when you couldn’t read the radio display but they didn’t make replacements any more, and every state inspection came up with $2000 of problems... but still cheap compared to most new cars.

So I can’t really say what my point is here, except it’s not automatically better to go with the most financially conservative option, and some financial obstacles aren’t the end of the world.

But still, few people would actually *recommend* starting with a $700/mo car... never mind what that would be in today’s dollars.