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Ordering Advice

Discussion in 'Model S: Ordering, Production, Delivery' started by Vittitow, Aug 4, 2016.

  1. Vittitow

    Vittitow Member

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    I'd like to preface this thread with the statement that I'm only 24 years old and obviously ordering a Model S will be a massive purchase for me.

    It's been a dream of mine since 2012 to own a Tesla and back in April I preordered the Model 3 thinking that was the only way I'd ever be able to afford one. However, with the new entry level price of the Model S coupled with the $1,000 referral bonus and it being so close to the end of the year (get the $7500 tax credit back sooner), I'm starting to think ordering a Model S may be in the cards for me.

    I'm debt free with the exception of my home mortgage. My income has tripled within the last year and a half (obviously I understand this isn't sustainable) and I'm making more than double the median income in Kentucky. Job security isn't much of a concern either because I'm a manager at a Fortune 50 company that's been around for over 100 years.

    I'm not mentioning all of this to brag, I just feel it will answer a lot of questions that will likely be asked of me.

    With all of that being said, the Model S I'm looking to order is $74k with the $1k off and the build can be found here: http://bit.ly/2auV1AE. I do plan to upgrade the battery and add auto pilot later on once I save up enough.

    The two things I keep going back and forth on are one, the dual motor option and two, whether or not to get the carbon fiber décor. Living in Louisville, KY the winter weather can get pretty bad so I see the benefit of getting the dual motor option. From the simulated images the dark ash wood décor does not look very good to me but, I don't know if it's worth the extra $1k to upgrade.

    Financing wise I'll likely use the Alliant Credit Union 1.74% 78 month option unless I can find a better deal elsewhere (yes I do qualify). The amount financed will likely be around $60k to keep my payments around $800 a month. Insurance wise, it's going to be about an additional $150 every six months from what I'm currently paying.

    After delivery I plan to have the windows tinted and the 19" slipstream wheels powder coated black costing around $800 for both. Once I get the $7,500 tax credit back I may invest in paint correction plus Xpel for the front end and Opti-Coat Pro+ on the whole car (haven't received any quotes back on that yet).

    I have about $2k a month in what I refer to as discretionary income above and beyond bills (mortgage, utilities, insurance, foot etc.) so, I can afford a $800 a month payment.

    What I'm really looking for as an advice or words of wisdom with making such a large financial commitment at a young age.

    Thanks,
    Corey
     
  2. blc1017

    blc1017 Member

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    Congratulations on being able to afford the best car in the world! I'll try to stick with what options I have experience with, and I'm sure others will chime in. I have, on my in production Model S, the carbon fiber decor. I loved the Lacewood on my old car, but since that is no longer an option decided to skip the woods altogether. I have seen the dark ash in person and if you don't want to spend the $1000 for the carbon fiber upgrade I think it will look really nice with your black interior. In a way, I'd skip the carbon fiber and if you can afford it go with the UHFS...I am not an audiophile, but even I noticed the difference between the basic sound and the UHFS system when I switched to FLAC music files. Pano roof...can't go wrong, particularly if you will have passengers who are over 6 feet tall sitting in the back...and I never have problems with it being too hot or too bright in the car with the pano roof. I live in an area with a lot of potholes and though I love the 21" wheels, the 19's are a must. For me as well, the smart air suspension is a must, as I live and park in some pretty steep driveways and the geofencing is a nice addition. Enjoy in any case...you'll love it!!
     
  3. Vittitow

    Vittitow Member

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    Thanks for the response!

    I think I'll be satisfied with the 19" wheels once I get them powder coated because that way won't have to swap rims in the winter/summer and I'll get more miles on them.

    I plan to test driver a Model S up in Ohio before ordering to make sure I can live without some of the features I'm skimping on. The smart air suspension is something I may need to grab because I'm used to driving a truck. I'll also be getting the all weather floor mats too of course.
     
  4. kort677

    kort677 Active Member

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    get the dual motor for sure. don't skimp on technology and decorative upgrades are the place to skimp.
     
  5. Max*

    Max* Autopilot != Autonomous

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    Right now that's $22.5k to upgrade the battery. I'm not sure you want to do that. At that pointed, coupled with depreciation and deprecated technology, it might be wiser to sell and buy a new one.

    Wait, let's take a step back here.

    Does the $2k include leisure activities? (I don't know what you like to do for fun - going out to eat, watching a ball game, going to the movies, traveling, etc. etc.)

    When you say you have $2k left over, does that include
    -contributing to your 401k (some people will say maxing it out, but I'll ask it differently - contributing at least to get the full company match)
    -having an emergency fund that will last you for 3-6 months assuming you lose your job/get sick/etc.

    Basically, is that $2k that you drop into savings every month or is that $2k that you end up spending on other activities that you will then spend on the Tesla?

    You're going to get a lot of people here telling you that it's too big of a purchase for your age. I don't necessarily agree. I think it depends on how you answer above.
     
    • Like x 1
  6. ABCCBA

    ABCCBA Member

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    @Vittitow It is really easy to say congrats on buying a Telsa, the best car in the world, blah, blah, blah.

    But, you asked for financial advice "What I'm really looking for as an advice or words of wisdom with making such a large financial commitment at a young age." So, here goes.

    Congratulations on having a wonderful job in this current economic time. Living where you live, and having an above average income makes it seem almost too easy to live. But, money is a precious resource. It takes an awful lot of effort to make that money, and even more effort to save it for the future rather than be tempted to squander it on today's pleasures.

    You stated that in order to afford the car, you will have to finance it for 78 months. That is 30 months longer than the warranty, so be prepared to foot huge out-of-warranty expenses or budget for the extended warranty. Financing the car for 78 months will most certainly leave you very much upside down when it comes time to trade, if you have to trade or want to trade.

    Life Happens. 78 months is an eternity. 78 months ago, you were 17 years old and in high school. In 78 months, you will be almost 31 years old. A lot of things can happen in that time. Marriage, Divorce, Kids, Medical Issues, etc. These are not things to lose sleep over, but to plan for. You say that you have $2k of disposable income. After you take delivery of the $800/mo car, you will have far less. Can and do you really want to be stretched that you have less than $1,000 per month or just $225 per week of cushion for the next 78 months? It just doesn't seem to be practical or safe. Why must you strain and burden the prime of your life, when so many things will change? There is always a time later in life to enjoy the fruits of your labor. Now, at the young age of 24 is not the time to be flashy and burden the next 78 months of your life, IMHO. Good Luck with your decision.
     
    • Like x 2
  7. democappy

    democappy Member

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    Let me start by saying what I think should sort of be an obvious disclaimer about buying any expensive car from a purely financial perspective. Buying an expensive car is a bad financial investment for just about everyone. It is probably an absolutely terrible financial investment at your age.

    With that disclaimer out of the way, it is a very personal perspective on how you want to spend your money and what level of enjoyment you think you will get out of it. Would you be happier spending that money on traveling and going on vacations each year? How much are giving up in possible extra retirement saving contributions you could be making to do it? Will it limit your ability to do other fun things you would like to do?

    About 10 years ago I was probably in a fairly similar situation to you and I never even considered spending even a third of that much on a car. However, my priorities and risk acceptance are probably very different from yours. There is always the option to delay gratification until later in life. I am now in a situation in my life where a S60, while still a very major purchase for me, has no chance of derailing my financial well being or preventing me from spending money on the other things I want to do.

    If you have weighed all of the pros and cons and still feel like this would give you the most satisfaction for your money then I would tell you to go ahead.
     
    • Like x 1
  8. habanero69

    habanero69 I Dont Need Cialis. I Drive an EV.

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    How about considering getting a used and/or CPO? The largest portion of depreciation will have occurred. Obviously get some form of extended warranty. You might be able to get a higher up model, with more options, and still have the ability to do some of the customizations you are considering.

    Everyone so far seems to have provided valuable insight. I Lean towards democappy's input. :cool:
     
  9. JSkrehot

    JSkrehot Member

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    Get what you want if you can afford it. Rewarding yourself for the hard work you do is always nice. I will say this though, as you said you put a reservation down for the Model 3. I live in the Bay Area, am a RN and make 125k before any voluntary overtime or extra days, I only work 32 hours a week. I do a number of double shifts as I function well on little sleep the next day and add about 30k annualy to my baseline. My wife works from home doing regulatory work and makes 98k per year. We bought our home at the bottom of the housing market and now have roughly 300k in equity. We do max contributions to my 403 b and her 401 k, $18,000 each year to both, she has a 3% company match, I do not, I get more retirement percentage in leu of 403 b matching. Can I afford a optioned Model S, yep. However, I can't fathom spending that kind of money on a car. I spent a little less than 50k on my wife's 2014 GMC Acadia (wanted 3rd row for our 3 kids) and that is the most I have ever spent on a vehicle. I will be going from my 04' Mitsubishi Galant (only made 23k per year when I purchased this) and cannot wait for the Model 3. I test drove a P95D pre refresh to get the feel for electric and it was AMAZING! INSANELY IMPRESSED WITH THE CAR. However, do I need handles that pop out, no. Do I need to do 0-60 in 2.8 seconds, yep, for 10-20 times when I get the car and then probably never again, so no. The Model 3 is going to be an extremely nice car and I plan to option mine to about 50k. Yes, i'm hoping for the Federal and State rebates but they are not a deal breaker for me. The base S will go 5 miles less than the Model 3 and you will be able to get extended range and "gagets" for far less than the S and the car looks FANTASTIC. I personally don't think any car is worth 75k, that is just insane to me but as I started out with, if that is what you want and you can comfortably afford it, go for it. Just make sure that extra 25k is really worth it to you. Enjoy. I installed my own 6.12 kW home solar system and putting a 15-50 Nema outlet to be paired with PG&E EV-B paln where my charging will only be 10 cents per kWh, if I even pay for that as I have 8 level 2 chargers for free at work and my solar will produce 110% of electricity I used all of last year.
     
    • Like x 1
  10. scottm

    scottm Active Member

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    words of wisdom...

    The 28/36 Rule
    Another helpful guide is one mortgage lenders use: the "28/36 rule." This rule suggests that your monthly household debt service not exceed 28% of your gross monthly income. And your total debt service, including your house payments and all other financial obligations, should not exceed 36% of your gross monthly income.
     
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  11. jchag

    jchag Member

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    My two cents worth. Waiting to pick up My 60D. I waffled on the Dual motor, but in the end I bought it. Can't add the motor later if you decide you want it. Most of my driving is local and when traveling I'm not in a big hurry the 60 should be enough battery. If not I can add 15KW at a later time. Any options that you think you want and can't add later get them now. Others like bigger battery, wheels, Auto Pilot,can be added later. I waffled on the premium interior upgrade and finally followed my above advise and ordered it.. Good luck, you are way ahead of me. I had to wait till I am 52 and youngest finished college before getting a Tesla
     
  12. Galve2000

    Galve2000 Member

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    I would splurge and add active air, subzero, and premium interior all for roughly an extra $100/month or $900 bc u cannot add those later. the heated steering wheel does come in handy in winter. the power liftgate does come in very, very handy and the car looks much nicer with the premium interior.

    I had a loaner with coils for 6 days when my car was undergoing annual service. The ride is much nicer with air suspension.

    That said, I am not sure I would spend 1/2 of my disposable monthly income on a car payment. I would spend 1/3rd tho.

    What are u driving now?
     
  13. ApauloThirteen

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    Congrats! V cool to be in a good situation.

    Dual motor. Pros (from what I've read): A tad more range, better wet/snow traction (safety aspect, accident avoidance), buy now - cannot upgrade, and more even tire wear. Would say yes.
    $1K for int trim.... seems a bit steep. If it's a must have however, would understand.

    Best of luck and maybe we'll see you on the delivery info side (Model S, or who knows, maybe you'll wait a bit for the 3).
     
  14. Vittitow

    Vittitow Member

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    I agree that a lot can happen between now and then and I appreciate you feedback, it's something I'll definitely take into consideration before I jump into anything too rash.

    I'm referring to the software update to unlock the additional 15 kwh on a 60 kwh Model S, not bumping up to the 90 kwh battery.

    Yes that's about $2k that I drop into saving every month. I'm more than maxing out the full company match plus I also qualify for a pension. I will still have quite a bit in emergency reserves as well along with quite a bit in company stock than can be liquidated at any time.


    I hear you on the retirement savings, I'm putting in a fair amount there along with an employer match and a separate pension. Will it limit my ability to do other fun things? If I want to take all my vacation each year going out of the country than maybe but that's unrealistic in my opinion.

    I cannot find any CPO that have the features that I want from tesla pre owned site, ev-cpo.com or teslainventory.com. At least none that make as much sense as buying new especially with missing out on the $7,500 tax credit.


    I'm not entirely confident that I'll receive delivery anytime before the end of 2018 early 2019 even though I preordered online on April 1st. I think there were over 175k preorders before me. Not sure I can wait that long and not sure I'd be happy with as small of a vehicle the Model 3 is.

    I'll definitely take that into consideration, thank you.

    Yeah being single without kids has and no plans to have any has definitely afforded me a lot of freedom.

    I'm driving a 2009 Chevrolet Silverado Hybrid HY2 which is paid for. I've never had heated anything in any of my cars so I think I can do without on that aspect.

    I'm pretty impatient which is why I'm considering the Model S over the Model 3 :)
     
  15. zedkyuu

    zedkyuu Member

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    Honestly, your mortgage is probably a much bigger commitment, and for much, much longer. If you are comfortable with maintaining your mortgage, and your budget is realistic (and it sounds like it, if you know how to separate your discretionary income from your financial commitments and basic spending needs), the Tesla should be cake.

    The big question to me is whether you'd rather spend $800/mo x 78 months elsewhere. Or save it. Or do something other than finance a car you don't need. Would you do something like chop $800/mo from your discretionary spending elsewhere? Or would it come out from somewhere else? Would it bug you to be nailed down to the $800/mo payment for that long?

    I just took delivery of my car this morning, and that's an almost $1500/mo x 72 months commitment. I'm surprised I made it to this point without feeling any remorse, but I did feel some, wondering what the hell I'm doing. I can comfortably do it, but perhaps I should have asked the question of myself more strongly. As it is, if I weren't going to spend that, it'd go into long-term savings anyway, so it's not like I'm shorting anything except my future. (That $108k could go to something like a real estate investment.)

    In the end, you need to decide what you want to get out of life at this point, and whether you would trade what you might get out of life later for it. We can scrimp and save every penny and have 7-digit savings by the time we hit 65. But if all we do is work, eat, and sleep for 40 years, life will be terrible, and we'll likely have spent our prime years being a wage slave when we could have gone and done other things. I think this is more how I'm leaning (I'm 35), and I'm willing to sacrifice long-term outlook for life enjoyment now. And that's not invalid. (I have friends who are also in their 30s and are climbing mountains and going all over the place, and I wonder if I want to be doing that instead.)
     
  16. Vittitow

    Vittitow Member

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    I took the time to respond to everyone but I guess I quoted too many people because the post only shows up when I'm logged in and my post count didn't go up after I posted it.

    In summary:
    • 401k wise I'm not putting the full $18k in a year but I am putting a decent amount along with an employer match plus a separate pension fund. I also get yearly bonuses as company stock half cash/half RSUs and I reinvest that half cash into other stock.
    • The $2k in "discretionary funds" is essentially what I'm able to save each month.
    • Vacation wise etc. in all honesty I haven't been on one other than a weekend trip in over 3 years (I've also never even been out of the country). I understand that's something that I should be doing more of but I've focused solely on my education and career thus far.
    • The CPO option is something I would consider however I haven't seen any dual motor options up for grabs that aren't prices above what I can buy one for new because of all of the extra upgrades.
    • At 24, patience is still something I haven't mastered so likely waiting until the end of 2018 early 2019 to get the Model 3 is going to seem like a lifetime.
    I'm currently weighing all of the options, pros and cons. I've spent the last few hours pouring over every single CPO I could find and looking at private party sales, again nothing with dual motor but some other nice to haves. Financially it makes more since and I know I can afford a $500 payment without even noticing a difference in my funds. If anyone has any tips outside of using the Tesla preowned site, ev-cpo.com or teslainventory.com I'd really be interested in hearing that as well.

    Thanks,
    Corey
     
  17. BigAirHarper

    BigAirHarper Member

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    I'll give you my .02 as I'm only 4 years older than you but have only been working for 2 years due to post grad education. Spending this amount of money on a car is cringe worthy. But I pick ours up next weekend. I still can't believe my wife and I will be getting one after waiting 3 years but her car is on its last leg and the time for a new car is now. Is it stupid expensive, yes. But like some have said you have to weigh the benefits of living an enjoyable life. I just caution, you aren't married, so life could change when you find the one for you, so make sure you think that through. Also, ensure that you are still keeping a very healthy savings plan going even after car purchase. Personally with just $2k a month in "fun money" above and beyond the normal expenses in life I would be nervous. But we all have our personal comfort limits. I just enjoy not being strapped for cash to buy other trivial things (nice dinners, spontaneous trips, etc). But if you are willing to sacrifice those things go for it. Only you can decide!
     
  18. NikeWings

    NikeWings Member

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    #18 NikeWings, Aug 4, 2016
    Last edited: Aug 4, 2016
    Corey.......my $.02......you are off to a great start financially and I think your conscience is speaking. Something is nagging at you. Louisville is sort of a giveaway, so if your employer is who I think, you should be maxing your 401k contribution as their match is above and beyond normal and continue post tax. The multiplier effect at your age is huge...seriously stockpile your cash. Also max the VPA along with your pension. And despite its long history, its also known for sweeping and cyclical layoffs or asset dispositions to which no one is immune. So have a flush, slush fund and pile up the RSUs. Tesla is far from an investment and in your case, a very long term debt on a depreciating asset and a substantial commitment. Since you can effectively afford new, rather than settle for a CPO, try saving your payment for a full year on top of everything else maxed out and kept current. If after a year, the cash pile doesn't feel as good as a new car, then splurge new on the 3 or S or buy a rental property and let the cash flow pay for your new Tesla.

    Good luck to you. I envy your youth, but would rather envy your ability to retire debt free by 50.
     
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  19. e-FTW

    e-FTW New electron smell

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    Am unsure what that is, but I sure do hope it's fun!

    A note on the carbon fiber decor: I got it, like it, but feel like it does not show enough in the dark areas of the dash and console. A different choice, and even the piano black may actually contrast better. YMMV, depends what you are going for.

    On getting such an expensive car at a young age: you seem to have your affairs in order. Cars are never an investment. So take some of that foot money, invest it wisely long term, and never have to care about spending some of the rest of the available money on very awesome depreciating assets. A Tesla is the best one of those around.
     
  20. superm1

    superm1 Member

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    I'm in the finance/mortgage industry. Look at your DTI (debt-to-income) after the purchase. (Consider leasing if its beneficial to you and consult an accountant if needed).

    The 28/36 rule seems like a good guideline. At the maximum you really want your DTI to be below 40% inclusive of mortgages, credit cards, and other obligations. If it is much above 40-43% you will have a huge difficulty getting a refinance or other loans. It just signals that you are overburdened by current lending standards.

    You want to get into a 6-7 year loan when you are 24? I guarantee you'll regret it later. What if you need to move? Cost of living is magnitudes higher in other places where it probably won't be affordable to own a Tesla, or even a car for that matter.

    If I were you and if I were your financial advisor, I'd prob say no. But I'm not so go for it and enjoy!.
     
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