Model 3 Affordability

[wtfuzz]

Because you’re setting yourself up with a high debt:income ratio. Want to move out of your parents house before you pay off the car? What if you lose your job? Going to school? Unforeseen medical issues? The list goes on...

As someone who made fairly poor financial decisions when I was younger, my advice is to save your money. We like to keep over a years salary on hand at all times in liquidity on top of investments and savings. There’s no room to buy toys for us as long as we’re close to that watermark.

 

[bdice18]

Because you’re setting yourself up with a high debt:income ratio. Want to move out of your parents house before you pay off the car? What if you lose your job? Going to school? Unforeseen medical issues? The list goes on...

As someone who made fairly poor financial decisions when I was younger, my advice is to save your money. We like to keep over a years salary on hand at all times in liquidity on top of investments and savings. There’s no room to buy toys for us as long as we’re close to that watermark.

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.

 

[wtfuzz]

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.

Yes, and you’ll thank yourself later when you care more about financial stability than how cool your car is.

If you’ve never lived on your own, you probably haven’t had to deal with financial stress. It’s not fun and extremely hard to get out of.

 

[wtfuzz]

Also if it takes you 5 years to save 1 years salary, that means you’re already spending 80% of your income.

If you saved 50% it would take you 2 years.

 

[bdice18]

I just don’t see the point in leasing a car, or buying a used car / cheap new car where I’ll be spending only a couple hundred less than what I would with a M3

 

[wtfuzz]

You can lease a brand new vehicle for sub $200 a month. If the bank won’t give you the money for a Tesla, take their cue. You should establish yourself financially first.

 

[inikkor]

When you add much higher insurance rates and the cost of electricity if you live in NE the affordability proposition goes out of the window.

It remains the fact that arguably the Tesla is a semi-luxury vehicle and that's what you pay more for.

 

[bdice18]

So would having $2,750 left over each month after my total car expenses be such a bad thing?

 

[wtfuzz]

You should try living on your own with $2750 a month, and come report back with us as to how that goes lol

 

[Rottenapplr]

Don’t forget insurance! That can be more than your payment if you’re young. You can get your parents to pay for your insurance though.

 

[bdice18]

Don’t forget insurance! That can be more than your payment if you’re young. You can get your parents to pay for your insurance though.

I have a $200/month quote

 

[bdice18]

You should try living on your own with $2750 a month, and come report back with us as to how that goes lol

Paying $1,000 for housing, and maybe $500 for everything else leaves me with $1250 so I’d say it’d be pretty decent

 

[bdice18]

What do y’all spend your money on

 

[davewill]

$200 a month is a LOT for insurance. A used car with just liability ins might be one-half or one-third that. Every person I know who ever got into debt trouble did it by looking at monthly payments and telling themselves it's not "that much more" instead of the overall obligation. Besides I think you could get a serviceable car with ins for under $300 a month. It looks like your M3 is going to be north of $600 a month with insurance.

@bdice18, If you want a M3, you don't need our permission. You wanted opinions and you got them. A lot of us think it's not a good plan.

Now make up your own mind and move forward.

 

[bdice18]

$200 a month is a LOT for insurance. A used car with just liability ins might be one-half or one-third that. Every person I know who ever got into debt trouble did it by looking at monthly payments and telling themselves it's not "that much more" instead of the overall obligation. Besides I think you could get a serviceable car with ins for under $300 a month. It looks like your M3 is going to be north of $600 a month with insurance.

@bdice18, If you want a M3, you don't need our permission. You wanted opinions and you got them. A lot of us think it's not a good plan.

Now make up your own mind and move forward.

I live in Michigan where insurance is the highest, so $200 is cheaper than it could be for this state. Must be nice to pay like $50 for insurance

 

[OCR1]

My, we certainly have a lot of strong opinions on this post.

But without knowing all of the details on his age, job, income history, debt, savings, living arrangements and personal lifestyle choices, it’s really not possible to know enough to give meaningful advice on what he should do.

OP, you have received a lot of feedback from the forum members but it is your decision to make and I wish you the best whatever you decide. Please keep us informed as you think it through and let us know what you decide. Best of luck whatever you do.

 

[Rottenapplr]

What do y’all spend your money on

Hoes

 

[mswlogo]

Insurance was no higher for me than a $25K car, after I shopped around. It was double before I shopped around.
Keep in mind insurance if very local and individual dependent as well as the car.

 

[mswlogo]

When you add much higher insurance rates and the cost of electricity if you live in NE the affordability proposition goes out of the window.

It remains the fact that arguably the Tesla is a semi-luxury vehicle and that's what you pay more for.

NE isn't the only place.

It cost about the same as high mpg hybrid (~50 mpg) to operate in NE per mile (for fuel).
But as gas prices are going up lately that ratio is getting better and better. Thanks to who should not be named.

 

[Dr. J]

Hoes

Lotta lawn work, eh?