Should I?

[Clomer]

How does your GF feel about it? As long as you are in a serious relationship with her, she should be involved in major financial decisions. If she's not on board with it, that should end the consideration right there unless and until you can convince her otherwise. This is especially true given that you are looking at her potential future income in your considerations.

Other than that, I can share you my thoughts on my personal situation:

I'm in a similar situation to you, though I don't make quite as much money as you. However, I anticipate that my income will increase by a fairly significant amount in the next few years (I've reached a point where I can see a clear career path to get to where I want to be). I could stretch to afford a Model 3 right now, but in discussions with my wife, we've determined that it would be better to buy a house first. One reason for this is that we are renting, and there isn't any realistic prospect of being able to charge an EV at our current residence. Another is that owning a home is higher priority for our long-term plans than owning an EV. I'm guessing that since your parents are your landlords, you won't have any trouble with arranging for installing charging, but you have to have the discussion with your GF about prioritizing getting a new car vs buying a house.

For us, another consideration is that my wife's car is older than mine and is starting to have major mechanical problems. Our hope right now is that we can string it out long enough so that we can first buy a house, and then take a serious look at replacing her car with a Model Y.

You say that you worry that you want it so badly that you worry that your judgement is clouded. This is a very real concern, and shows maturity on your part that you acknowledge it. Don't underestimate the resource you have in your GF - she can help you view it more objectively. She knows you and your situation better than any of us here.

In any case, good luck!

 

[rdlink]

I have concerns with all the suggestions of investing. It will bite you one of these days because all these people tell you borrow because you can invest in something low risk and make more than what your APR is. Yes it maybe true this time. It maybe true a second time but it won’t last forever. If you get in the habit of thinking this way and carry debt to invest it will bite you back hard.

Pay down as much as you can. Save your borrowing power for a mortgage. Then continue to save.

Don’t carry a $1000 car loan. Carry a small loan on depreciating assets. So when u see the opportunity to get a house use that borrowing power to get that house. You don’t want to be in the situation where you lost that $15k investing in what was suppose to be small risk and then you can’t borrow enough to get a mortgage loan you want at the time you want.

That's why you do your homework. Not saying just be a dope about it. But also don't blindly "pay for everything with cash" when the economy rewards those who think a little out of the box.

 

[smatthew]

BTW: Plenty of room in the back seat of a Model 3 to start a family ;-}

 

[MXWing]

So... after all of that "Get off my lawn" wall of text

My counter to your argument is if I don't enjoy my Tesla now, my insufferable spoiled spawn are just going to flush my ashes down the toilet and enjoy a 2040 Roadster on daddy's dime. That's what a lifetime of frugal spending and strict financial discipline will get you!

I'm so tired of their BS that I think I might just go for the reverse mortgage and enjoy a Roadster with the SpaceX package.

How does your GF feel about it? As long as you are in a serious relationship with her, she should be involved in major financial decisions. If she's not on board with it, that should end the consideration right there unless and until you can convince her otherwise. This is especially true given that you are looking at her potential future income in your considerations.

A key take away from an old dude who squandered his prime 20's being married is its easy to bring a car into a marriage - not easy to get one after.

He is also renting his parents house. I knew immediately the right question to ask is what happens to that house in 30 or 40 years? It's his anyways.

Also, a girlfriend is not the same as a wife. Doesn’t matter if it’s the same person.

Wisdom and life experience will teach you this.

BTW: Plenty of room in the back seat of a Model 3 to start a family ;-}

Bolt backseat supposedly bigger but I’m sure no families were started in the backseat of one.

 

[ratsbew]

Do it! I have absolutely zero regrets and I don't think you will either. The Model 3 is an amazing piece of engineering!

 

[hotony13]

quick question for those in the thread, I'm also interested in purchasing the model 3 very soon, but the 7500 tax credit plays a big role in my situation. If I were to place an order within the next month, most like by September 25th or earlier, how likely would it be that I would get a delivery before Dec 31st (the last day that the full credit is available)?

 

[wbhokie]

quick question for those in the thread, I'm also interested in purchasing the model 3 very soon, but the 7500 tax credit plays a big role in my situation. If I were to place an order within the next month, most like by September 25th or earlier, how likely would it be that I would get a delivery before Dec 31st (the last day that the full credit is available)?

As long as you aren't ordering the standard battery, very likely

 

[hotony13]

That's a good point, I'm looking at these specs: RWD, red-coat, regular Aero wheels, and neither Enhanced Auto Pilot nor FSD.

 

[njsrikar]

BTW.. if I could go back in time I would have told myself "go ahead and buy that E46 M3... you can bring a car into a marriage easily. Getting one after being married is a different story."

100% agreed. I was in a similar situation as the OP about 8 years ago and I am glad I pulled the trigger on a 20k motorcycle (my dream) back then before getting married (6 years ago) and having a kid. It is much less riskier and given the stable job and less expenses you can pay it off early before taking on bigger stuff in life (marriage, kids, house!)

 

[BestHand]

I would buy model 3, why not. The only thing I would change is I would not buy FSD, especially if I finance. Just put that money into your down payment. You can buy it later, if it really will be available. Frankly, I am buying cash, I have enough for my retirement, no debts, payed off house mortgage, and I am still not buying FSD. First: I prefer to be a driver, not a passenger, and a second: I am not sure if it happened tomorrow.

 

[ItsNotAboutTheMoney]

I don't see any mention of how much you drive.

If your parents have paid for your college education, I suggest that you keep talking to them about how much you want a Tesla but it's a lot of money and you're carefully managing your finances. Maybe they'll crack and buy one for you. If they don't you'll just have to figure out what "accident" they'll have so you can inherit the house. After that you'll be able to get whatever Tesla you want.

But now seriously:
I say "Never borrow for fun".
You'd be borrowing for fun.
So, no.

 

[rachelhikes]

The Model 3 is a very practical car. It isn't a cheap car, but it is a practical car. It has ample storage, and for carrying kids, you can easily get two car seats in the back, and, with some of the narrower boosters, you can even squeeze in three. If you're family gets bigger than that: time to get that minivan you've always dreamed of. (The minivan would be in addition to, not instead of, the Tesla: the Tesla makes a fine second car for even a big family.)

Lots of people worry about range with a Tesla, but very few people should. For you, go to Go Anywhere | Tesla and plot out trips to a variety of places you're likely to go. This will show you whether the supercharger network will cover your needs. (If you need to drive to Fargo ND, for example, you're covered; if you need to drive Fort McMurray in Alberta, you're not.)

With snow and mountains, the AWD drive does indeed sound like the way to go.

Regarding your finances, it does sound like you've thought about that pretty well. In general, a young person in a solid career is usually excellently placed to comfortably manage early debt and transition strongly to later savings. (When I was right out of college, I took on debt. My later, higher income easily paid off AND that debt supported savings far beyond what I could have managed with my smaller income right out of school.)

 

[lotusland]

I did not vote but here is my opinion. I too am an engineer. I bought a car right at graduation -- an RX-7 that cost around $13k. Great car! I was making around $30k (1985) so the numbers looked OK. Huge mistake! In the early years of earning you really should be saving as much as you possibly can. Get into real estate -- that you actually own. Get into some other investments. Buy a car that you can pay cash for! Don't have any debt, other than the least amount of mortgage debt that you can when you eventually buy a house. IMO nobody should ever have a car loan or credit card debt unless they simply cannot do without.

 

[ReddyLeaf]

I did not vote but here is my opinion. I too am an engineer. I bought a car right at graduation -- an RX-7 that cost around $13k. Great car! I was making around $30k (1985) so the numbers looked OK. Huge mistake! In the early years of earning you really should be saving as much as you possibly can. Get into real estate -- that you actually own. Get into some other investments. Buy a car that you can pay cash for! Don't have any debt, other than the least amount of mortgage debt that you can when you eventually buy a house. IMO nobody should ever have a car loan or credit card debt unless they simply cannot do without.

Great advice. I definitely agree about the real estate aspect. looking back at every location that I have lived, the the appreciation has been huge.

Also an engineer, I took the more prudent path, driving a 15 yo freebie from my Grandmother until my late 30s (well, actually I mostly bicycled because I hated the thought of giving even one dollar to the oil industry). Saved >50% of my income and have paid cash for every house (after the 1st) and vehicle (92 PU, 11 Leaf, 15 70D). I highly recommend bicycling when you’re young to save money, improve quality of life and reduce environmental impact (if that is one of your motivations). Bicycling is way more exhilarating than driving a car (unless you’re outside the law or on a closed track), no spreadsheet required.

Something that hasn’t been mentioned: By 2019 there will likely be 100,000+ Model 3s sold. In another three years many of them will come up for sale on the used market at between 50-60% new. Right now we’re seeing P85s at 30-50%. A new car is a depreciating asset while real estate is an appreciating one. Since th OP already has a vehicle for his needs, it would be prudent to evaluate a new purchase with these things in mind.

 

[MXWing]

I don't see any mention of how much you drive.

If your parents have paid for your college education, I suggest that you keep talking to them about how much you want a Tesla but it's a lot of money and you're carefully managing your finances. Maybe they'll crack and buy one for you. If they don't you'll just have to figure out what "accident" they'll have so you can inherit the house. After that you'll be able to get whatever Tesla you want.

But now seriously:
I say "Never borrow for fun".
You'd be borrowing for fun.
So, no.

You are sick and a sociopath.

What’s wrong with you?

 

[MXWing]

Something that hasn’t been mentioned: By 2019 there will likely be 100,000+ Model 3s sold. In another three years many of them will come up for sale on the used market at between 50-60% new. Right now we’re seeing P85s at 30-50%

What you have failed to account for is that it is 4 years without driving a Tesla.

Any new purchase is fine given a sufficient holding period. No one is going to drive a Model 3 for 1 mile and turn around and sell it for 30% off.

Used Model 3s also slow down their depreciation as tax credits wind down.

AP3 upgradibility gives 2018 Model 3 longer legs than the past AP release cycles.

There is a bigger difference between a Tesla and no Tesla versus a BMW M3 and a Mazda M3 as well. We’re not talking performance but game changing technology.

 

[xyeahtony]

do it now and get the tax credit. $7500.

 

[seattlite2004]

Wait for the 35K version....more money in your pocket, lower monthly payments are pretty compelling and empowering. The 35K version is still a Tesla and will scratch both that Tesla and EV itch.

 

[MXWing]

Wait for the 35K version....more money in your pocket, lower monthly payments are pretty compelling and empowering. The 35K version is still a Tesla and will scratch both that Tesla and EV itch.

35K into a used Model S is better than 35K into a SR Model 3 in 2018. It’s an instinctualy intuitive decision.

 

[seattlite2004]

35K into a used Model S is better than 35K into a SR Model 3 in 2018. It’s an instinctualy intuitive decision.

"Into"....so...more money for a USED Model S.