[POLL] Do you have $10K to lend yourself?

[insaneoctane]

I posted this in another thread :

"People assume that the credit /rebate does not help their loan..... Well, just front the credit /rebate yourself and it doesn't have to go into your loan. Then replenish your account (pay yourself back) when you get the credit /rebate. Seems pretty straightforward to me. Obviously you need to have the means, but if you are buying a $60K vehicle, you likely do..."

@smak refuted my statement, saying most couldn't afford to do this.

So, I agreed to start a poll to see if most model 3 buyers could afford to lend themselves $10K for 15 months...

" You're on. I think more than 50% could lend $10k to themselves for 15 months."

If you're unsure what I mean, like in the bank? Or in my pocket? Or invested? Etc, please read the linked thread for any specifics...

 

[flashflooder]

I tend to agree with smak... most people really do live paycheck-to-paycheck, regardless of income level.

The results you're going to get here are not even close to representative of the population-at-large, for various reasons.

 

[insaneoctane]

I tend to agree with smak... most people really do live paycheck-to-paycheck, regardless of income level.

The results you're going to get here are not even close to representative of the population-at-large, for various reasons.

Maybe, but it is the best I can do....

 

[WileyTheMan]

I do not. If I had the means to lend myself that kind of cash, I would have already set it aside to reduce my payments as much as possible. The tax credits will simply be a nice boon for the following year that I can use for other purposes.

 

[thelastdeadmouse]

I tend to invest heavily in my 401k instead of having the money in a bank account or other account where its easy to get to. I also consider my Telsa stock to be a non-liquid asset.

Combine that with the fact that I just put on a new roof and solar system this year, I couldn't lend myself 10k even though I can afford this car.

 

[Unpilot]

Does cryptocurrency count?

Although it has been in a free fall the last day or so.

 

[Foxhound199]

I mean, I do, but it's called my down payment. If I had more money to lend myself, that would be part of my down payment as well.

 

[run-the-joules]

Continuing the discussion from the other thread, I do have the money in my investments and my emergency fund (which is, as the name indicates, for emergencies). If I needed more cash in the short term than I have in checking, I could sell some bond funds if I didn't want to take a major capital gains hit I guess.

I do think that the money is better off in the market though, which is why I'm only putting down the minimum required by Tesla + my trade-in value. I'd rather finance $45k at 2.x% and keep that $45k in generating money for me. Even with very conservative average returns, I should profit $14k or so across the life of the loan by doing that.

 

[Twiglett]

Yep
I’ve been saving since before I made my reservation.
Have no car payment so guesstimated what my Model 3 payment would be and been saving that each month. That way nothing will change after delivery.

 

[smak]

I think part of the "lending" yourself money, is that you're lending yourself the money at no charge.

A lot of people could easily loan themselves the money out of their house, or any other kinds of ways, but at a charge.

That's not what I was referring to.

 

[Foxhound199]

I've said it before: The best way to get the $7500 to help with your loan terms is to take out a longer loan than you otherwise would want. That lowers your monthly payments immediately, then when the credit comes, dump the $7500 straight into the loan.

 

[dgpcolorado]

I could come up with $10k fairly easily but wouldn't choose to do so since the interest paid on a car loan is less than I earn on my income oriented investments.

 

[ProphetM]

I've said it before: The best way to get the $7500 to help with your loan terms is to take out a longer loan than you otherwise would want. That lowers your monthly payments immediately, then when the credit comes, dump the $7500 straight into the loan.

If you change your paycheck withholding to account for your lower tax burden, you get the extra money on every paycheck over the course of the year, without having to wait until you file your taxes.

 

[voip-ninja]

Anyone who doesn't have a minimum 6 months of living expenses on-hand for emergencies in the form of either cash or easily liquidated assets is just financially foolish.

 

[run-the-joules]

Anyone who doesn't have a minimum 6 months of living expenses on-hand for emergencies in the form of either cash or easily liquidated assets is just financially foolish.

Well that's a bit harsh given some folks' situations. I'd say anyone who doesn't have that *but is buying a god damned Tesla* is financially foolish

 

[whitex]

I tend to invest heavily in my 401k instead of having the money in a bank account or other account where its easy to get to. I also consider my Telsa stock to be a non-liquid asset.

Combine that with the fact that I just put on a new roof and solar system this year, I couldn't lend myself 10k even though I can afford this car.

Did you know you can borrow against your 401K, which given your heavy investment should have a healthy balance?

 

[lithiumfire]

If you change your paycheck withholding to account for your lower tax burden, you get the extra money on every paycheck over the course of the year, without having to wait until you file your taxes.

Agree with this... It should more than offset the higher monthly payment.

 

[voip-ninja]

Did you know you can borrow against your 401K, which given your heavy investment should have a healthy balance?[/QUOTE]

Not a good idea since you will pay both income tax and early withdrawal penalty on that loan since loaning to yourself for a car purchase is not an exempt case from 401K penalties.

 

[idealsol]

I've said it before: The best way to get the $7500 to help with your loan terms is to take out a longer loan than you otherwise would want. That lowers your monthly payments immediately, then when the credit comes, dump the $7500 straight into the loan.

You don’t get a check for 7500. You get a credit against taxes owed. If you don’t owe 7500, you lose part of your credit


In California, we did get checks from the state ( 2500 ) and SCE ( 450 )

 

[Dynastar]

This question is a little strange to me. Do most people have $10k sitting around doing nothing? Sure I could come up with $10k, but then it wouldn't be doing what it's doing right now. So the question is does it cost more to borrow the $10k from a bank or to take it from what it's doing right now.