TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

Should I buy? (Financial)

Discussion in 'Model S: Ordering, Production, Delivery' started by Koryin, Aug 29, 2014.

  1. Koryin

    Koryin Member

    Joined:
    Jul 20, 2014
    Messages:
    64
    Location:
    Victoria
    I've been driving my current car since I was a teenager, so I'm not really a car person. However, the Tesla Model S excites me in ways that only technology can.

    Right now I make enough money to have a mortgage, save for retirement, invest, and have plenty left over for entertainment.
    I'm looking at getting a raise that would give me an extra $1000 a month or so. Using a local bank, I can get a 10 year car loan which would make the monthly payments for a Tesla around $950 or so.

    Would it be worth taking out that 10 year loan to get a Model S? I don't intent to be paying for it for 10 years, but its a start until I start getting bonuses (which I'll put towards the car)

    I normally wouldn't even buy a car nearly that expensive but I love technology and I love where Tesla Motors is going. That, and all other electric cars don't meet my basic range requirements.
     
  2. Dutchie

    Dutchie Member

    Joined:
    Jun 9, 2013
    Messages:
    469
    Location:
    Canada
    Well, I think the question you asked can only answered by you. It seems that you are OK with the payments but what does your guts say? Of course the technology is great but on the other hand it is just a car. Just follow your instinct and you will be alright.
     
  3. steve841

    steve841 Active Member

    Joined:
    Jan 17, 2010
    Messages:
    1,397
    Location:
    Ft. Lauderdale, FL
    You've got the right attitude ... keep thinking forward.

    If that's the case, go for it.
     
  4. Jackyche

    Jackyche Member

    Joined:
    Sep 30, 2012
    Messages:
    319
    Location:
    Seattle
    Please don't take out a 10 year car loan. For ANY car. Technically, financially speaking, you shouldn't take out any loan for any car.
     
  5. steve841

    steve841 Active Member

    Joined:
    Jan 17, 2010
    Messages:
    1,397
    Location:
    Ft. Lauderdale, FL
    For those who can't throw out the cash, gotta do what you gotta do.

    Id shy away from a 10 year loan ... but if that's what works best for him. It's a lot of interest to pay up front.
     
  6. Koryin

    Koryin Member

    Joined:
    Jul 20, 2014
    Messages:
    64
    Location:
    Victoria
    Technically, financially speaking, buying any car is a waste of money. But that's not the point.


    And like I mentioned above. I don't plan on paying for 10 years.
     
  7. Lump

    Lump Active Member

    Joined:
    Mar 31, 2013
    Messages:
    2,097
    Location:
    So. Cal.
    How about providing more info, interest rate, your age ,occupation, any kids etc...

    What configuration are you looking at, have you considered buying a loaner from Tesla, you might get a pretty good deal if your not to picky.
     
  8. Koryin

    Koryin Member

    Joined:
    Jul 20, 2014
    Messages:
    64
    Location:
    Victoria
    Sure. Interest rate is 4%, my age is not relevant (but I'm younger), software developer, unmarried.

    I'm looking at a S85 with tech, pano, cold weather, dual chargers, air suspension, sound, and parking sensors.

    As to a loaner, there is only one service centre anywhere close to me and they already quoted me their loaner. Its a S60 and the discount on it wasn't that great. (Discounted around 7k IIRC)
     
  9. Lump

    Lump Active Member

    Joined:
    Mar 31, 2013
    Messages:
    2,097
    Location:
    So. Cal.
    I believe you can buy a loaner from anywhere in their inventory not just your local service center if you want to check again.

    Searching a few threads on the board I found some guys getting qoutes from Alliant Credit Union for 1.74% for 72 months 95% of MSRP. about a month ago, I don't track rates but my guess is they haven't gone up,

    Andy Vostatek

    (773) 462-2201
    [email protected]
     
  10. dalamchops

    dalamchops Member

    Joined:
    Jan 20, 2014
    Messages:
    131
    Location:
    lam
    You're paying twice the normal interest rate, and twice the length of a normal car loan. Not sure how you can consider that financially responsible.
     
  11. Koryin

    Koryin Member

    Joined:
    Jul 20, 2014
    Messages:
    64
    Location:
    Victoria
    I'm in Canada, that is a low interest rate. Its 1% above the national loan rate. Banks always give the prime (national rate) rate plus some percentage on all loans. Tesla also apparently has a restriction on buying a US model and bring it up here.
     
  12. flashflood

    flashflood Member

    Joined:
    Jul 1, 2014
    Messages:
    397
    Location:
    Los Altos Hills, CA
    Don't buy anything you can't afford to lose. If you do, owning it will be a source of stress because you can't cope with anything going wrong. And in life, things go wrong.
     
  13. AMN

    AMN Member

    Joined:
    May 24, 2013
    Messages:
    209
    Location:
    Minneapolis
    You are in a good industry.
    I'd still recommend doing an MBA on top of computer science instead of buying a Tesla but I also understand that delayed gratification is very overrated these days.
    Can you wait a year? There will be more used cars on the market in a year and also could be new announcements.
     
  14. zro ltr

    zro ltr Member

    Joined:
    Jul 16, 2014
    Messages:
    67
    Location:
    United States
    This. Also, you can save for a decent down payment in that time. If you put $20k or $30k down, rather than financing the entire thing, your payments will be much lower. Then you could look at 60, 72, or 84 month loans.
     
  15. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Active Member

    Joined:
    Jul 12, 2012
    Messages:
    4,493
    Location:
    Maine
    My answer is no. With cars it's almost always financially better to save and wait. I suggest waiting 12 months. You're in BC* with a whopping 1 Supercharger. Set money aside,, make Tesla comes through on their Model X production and Canadian Supercharger network promises. Just 1 year will allow huge de-risking.

    * I presume,
     
  16. Koryin

    Koryin Member

    Joined:
    Jul 20, 2014
    Messages:
    64
    Location:
    Victoria
    That IS with 20k down.

    Also, I don't care much about the single supercharger network here.
     
  17. Subhuman

    Subhuman Member

    Joined:
    Aug 1, 2013
    Messages:
    237
    Location:
    United States
    Not sure I agree with this statement. I would much rather take the 100 grand cash in hand that I have and invest it in anything. You can get CD's now that have a higher rate of return than the interest rate you would pay for a car loan. A 100 grand invested in TSLA over the next 10 year would yield significant returns.

    If you can afford the loan payments without any issues I would go for it. As you said, you can always take out the 10 year loan and make double payments and still pay it off in 5 years. This is usually how I handle loans, that way if for some reason you get in a bind you can always fall back on the lower payment.
     
  18. scottf200

    scottf200 Active Member

    Joined:
    Feb 3, 2013
    Messages:
    1,271
    Location:
    Chicagoland ModelX S603
    VvpkFkR.png
    K3D99sH.png

    Auto loan calculator - Bankrate.com
     
  19. Jackyche

    Jackyche Member

    Joined:
    Sep 30, 2012
    Messages:
    319
    Location:
    Seattle
    This is just my opinion, nothing more. The reason you want to pay cash for a car is because it saves you from over spending. Say I have 100k in the bank. It's easy for me to get a loan and pay that for the next 3, 4 or 5 years. But if I HAVE TO pay for the car cash, most likely I'm not going to blow my savings on a damn car. I would be much more sensible and buy a 30 or 40k car that's right for me.

    Now, if I got a million saved up, sure, I'll write a check for the Model S.

    Be fiscally conservative. You'll retire earlier. Just because you could, doesn't me you should.

    No argument exists to advocate a 10 year auto loan. If you want it that badly, sure, whatever, it's your life. You're not hurting anyone. Keeps the economy going.

    But just words of wisdom from someone who's done plenty of dumb things in his life, don't do it.
     
  20. Gabzqc

    Gabzqc Member

    Joined:
    Jul 10, 2014
    Messages:
    112
    Location:
    Finland, Helsinki
    100% agree with this. It's what I'm waiting and relying on. Also return on TSLA investment.
     

Share This Page