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Model 3 Affordability
- Thread starter bdice18
- Start date
Have you ever lived on your own? By that response, I am going to guess the answer is "no". Without me being snarky, the answer to that question is, paying your bills (gas / electric, cable, car etc etc). Food, Clothing. Saving for emergencies (medical, job loss, etc). Saving for retirement. Discretionary (movies, eating out, etc).
The only thing I dont pay for is rent / utilities because I obviously live with my parents. I could move in with my friend for $500 a month which includes rent / utilities, and I still have plenty of money left over. I dont understand what everyone freaks out about
Dr. J
Active Member
You are correct, the rule of thumb advice above is wrong. Housing should be no more than 30% of income.
Here's how much of your income you should be spending on housing
"As a general rule, you want to spend no more than 30 percent of your monthly gross income on housing. If you’re a renter, that 30 percent includes utilities, and if you’re an owner, it includes other home-ownership costs like mortgage interest, property taxes and maintenance."
I would get a cheap used car and save like a madman, including maxing out retirement contributions. That's what I did. It's delayed gratification, but OTOH, there wasn't anything like a Model 3 available 30 years ago.
Camera-Cruiser
Fully Charged
Michigan = Cold. How far are you driving and where are you parking and charging? Are your parents installing a charger? What about your friends place? That cold be another $500 to $2,500 bill. Living off a Supercharger is a pain.
If I could do it over and living with parents that are cool. I'd take a few thousand bucks and go to Europe, Australia, Asia, etc. Anywhere for a few months. Comeback, or not. See if you still have the Tesla bug in you, then decide. Things like car payments and rent really lock you up.
If I could do it over and living with parents that are cool. I'd take a few thousand bucks and go to Europe, Australia, Asia, etc. Anywhere for a few months. Comeback, or not. See if you still have the Tesla bug in you, then decide. Things like car payments and rent really lock you up.
I have little interest in going oversees. I do have a lot of interest in driving around the country to every MLB stadium and every NHL arena, and this car would be the best for that. It's $200-$300 more a month than the cheapest best option in a Honda Civic. And I think it is worth it
Having trouble getting preapproved for a loan. Would Tesla automatically give me a financing option, or would they possibly turn me down too?
Dr. J
Active Member
You also dont pay for food unless you eat out every single day, or give your parents money for food, which is unlikely if they are not charging you rent.
In any case, get your parents to cosign for you and then enjoy your car. Why are you asking here if you didnt want any advice about such a topic?
Don’t do it. Save your money. You have some money , enough to have some fun. Enough to feel comfortable. But not enough to pay cash for this car. Just because debt is so common doesn’t make it a good idea. Finance or get a loan only if it’s written off as business expense, otherwise you are setting yourself up for a lifetime of bills.
At this point in your life, borrowing this amount is a major fork in the road. This decision WILL literally shape the rest of your life. I’m not saying your life will be ‘bad’ if you borrow, that’s ridiculous.. but your future decisions will be more limited with this financial burden.
At this point in your life, borrowing this amount is a major fork in the road. This decision WILL literally shape the rest of your life. I’m not saying your life will be ‘bad’ if you borrow, that’s ridiculous.. but your future decisions will be more limited with this financial burden.
There is to little information to say that. But if he is thinking of borrowing the bulk of the car then yeah. But if borrows $20K and puts down $15K and has good job, with prospects to increase income etc. I see nothing wrong with getting the car. He should have enough income to comfortably pay off the car in 3-4 years. What % of income I'm not sure, 20% seems reasonable (assuming that covers it in 3-4 years). This assumes he is also saving for a rainy day and putting money away for retirement etc.
Borrowing say 80% and doing a 5 year loan is probably a red flag.
How would a car that costs slightly more than a cheap Civic shape the rest of my life?
Probably because it is exactly twice the cost of a Civic, twice the insurance, twice the maintenance, etc.
That is wrong everywhere. Model 3 would cost me in total $200 more / month than a civic
Here's the way I justified the purchase of a Tesla vs another Camry/other ICE sedan:
Yes, the purchase price is more expensive, but given how many miles my wife and I drive in a year the savings in gas and maintenance will (hopefully) make up for the more expensive purchase price. For us to buy a new ICE car and driving it for 10 years vs buying a Tesla the difference is miniscule. Now, it's hard to estimate repairs and maintenance so it's possible we'll lose out there.
The only car that I priced out that was able to beat the Model 3 SR+ in 10 year cost of ownership was the 2020 Toyota Corolla Hybrid.
Yes, the purchase price is more expensive, but given how many miles my wife and I drive in a year the savings in gas and maintenance will (hopefully) make up for the more expensive purchase price. For us to buy a new ICE car and driving it for 10 years vs buying a Tesla the difference is miniscule. Now, it's hard to estimate repairs and maintenance so it's possible we'll lose out there.
The only car that I priced out that was able to beat the Model 3 SR+ in 10 year cost of ownership was the 2020 Toyota Corolla Hybrid.
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