Bytor
Member
Sorry for the long post...
I'm a huge believer in financial fitness. Too many times I see people getting trapped in the hedonistic treadmill to keep up with what society deems as success. Sharing a bit of my purchase thought-process if it helps:
- Originally family of 2, with a wife that wanted to purchase an SUV
- I personally was looking at "upgrading our car" which was model year 2013 purchased in 2012 back in 2015 in line with a "promotion" from work (treat myself with an expensive toy)
- Looked at the S3 (too small for my wife as we were planning to start a family), A3-Etron (found out it didn't start in -25C, no battery temp management system and only went 30km max on Elec. only). Our commute (dual income same work location) was 8km each way...
- Itching to spend money, but heard about the Model 3 reveal and seemed interesting. Wife still wanted an SUV to drive future kids future friends, waiting for XC60 refresh to see what pricing would be like or XC40. X1 maybe, but X3 was too expensive and I grew up in small sedans (3 series, accord -tinier than today's civic!), where we took road trips across NA with my grand parents as well; no issues, not buying into the SUV marketing
- More I learnt about EVs the more I was able to convince myself and wife that EV was the future, looked at i3 (expensive and range was not enough, would need an ICE backup even though 90% of driving was covered -> car2go for day trips not convenient enough)
- Made up mind and reserved in early 2017, estimating that I would need to save $~75k to pay in cash, started increasing additional cash reserves that I'd been building since 2015
- Kid born while waiting thinking of the trade offs between dropping $75k on a car vs. kid's future education (private school debate with wife). Decide that private school system supports inequality, and "justify" that donation to Telsa would be a better use of money.
- Calculate gas savings based on premium fuel and decide that I can use savings to upgrade home panel to 200A also can be used for marketing house as "future ready", $3k invstement would be recovered in first year (note gas savings are after-tax! for us that's ~8% ongoing return so decide to keep the car for 8 years min to "feel good about the decision financially")
- Alternate permutations, of AWD, SR, LR to figure out if we really should be spending so much on a car. Decide to go from 2 cars to 1 car to running costs low, and "bet the farm on EV reliability", AWD not required as we used to drive a RWD 3 series in winter + FWD hatch and know that winter tires are the most critical element to winter driving
- Settle on LR RWD with no options as the others are upgradable in the future via software and an $80k is a little extravagant in our minds even for dual high-income earners (not science more just personal opinion).
- Get the news that the car is coming early to Canada, struggle again to decide between private school or the model 3, as I'm more and more not a fan of working (FIRE mindset). Also look at opportunity cost of dumping it into the market ($75k in 10 years could be $122k or alternatively at 4% dividends, +$250 per month for the foreseeable future), but got to live a little
- Resolve that we will need at least 1 car and that we could offset ~$200 per month in gas spending also insurance savings from 2 to 1 consolidation. Hit the Order button.
- Receive call, write huge bank draft, take car
- Love car (step change in mobility, comfort and features), wife would not go back, more than enough room for baby + stuff + grandparents
- Read/learn more and realize that our Model 3 could be my kid's first car in 15 years given reliability, happy with purchase (BMW was 12 years old so not a stranger to keeping things for a while...), hope by then there will be lots of cheap & good EVs to choose from for ourselves.
Wow. Just wow! Thanks for sharing. It was nIce to read about your journey-totally get it! I often catch myself by asking what else could I do with 75k. My other vehicle was a polluting diesel Audi...took the buyout and was hoping to do some good for the environment as a pay back for the wrongs Audi did bit as u said financial fitness is a measure everyone should contemplate. Still looking around at other vehicles but my gut keeps going back to the M3!