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Soon to graduate from University... thinking about getting a Model S...

Discussion in 'Model S: Ordering, Production, Delivery' started by Ridge Lawrence, Feb 24, 2013.

  1. Ridge Lawrence

    Ridge Lawrence New Member

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    Ok, so I'm about to graduate in December 2013 from my university with a bachelors in Management Information Systems and a minor in Comp Sci. I will most likely get a job starting at about 70-80k. I have quite a bit of shares in TSLA, and I have some money saved up too. Anyways, my main question would probably be... if I wanted a Model S, should I pre-order now or do you think supply will finally meet demand by early 2014. Also, since I will freshly be graduated I obviously won't have the cash in hand for the performance model that I want. is there some sort of financing available? What is the typical APR and down payment?

    I've already test driven the performance and I can't imagine buying any other car... I'm in love. I would even settle for the low end 40kw edition.

    Thanks!
     
  2. dsm363

    dsm363 Roadster + Sig Model S

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    Welcome!

    This was discussed a lot here
    Subjective Question: Minimum Annual Salary to Buy Perf 85kWh w/options
    and in another thread

    but it's something you should probably talk to a financial advisor about. If you have no debt of any kind, aren't looking to buy a home anytime soon and will have great job security right out of college then maybe. You might want to wait at least a year to save up some, settle into your job and see how things are going at that point. By 2014, the wait time from ordering should be very short.
     
  3. artsci

    artsci Sponsor

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    You'd be in a very strong position to be able to afford a MSP right out of university. I assuming you don't have major educational debt. The best financing can be obtained through PenFed: 1.49 interest rate on a 60 month loan for up to $70,000. Not knowing your financial situation it's hard to give advice about taking on this kind of debt. But as I bought an E-Type Jaguar a year or two after I graduated I'm not one to suggest you shouldn't do it:) In my case it was probably a mistake, but largely because the E-Type required constant maintenance, which was quite expensive.
     
  4. Ridge Lawrence

    Ridge Lawrence New Member

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    Thanks for the link, that thread is very helpful!

    1.49% interest isn't too bad if I settle with the 40kWh. Sadly, I do have about 10k of subsidized student debt because I began college right after the financial collapse and my parents were on the verge of bankruptcy. My father has stated he would pay off the debt as a graduation gift and put a down payment on a new car of my choice... so I'm very lucky if that goes through, but he can be flaky, especially since he's just now putting my 2 younger brothers (we are all 2 years apart, I'm the oldest) through college so he has been extra tight on funds.

    Untimely, I'll probably wait to see how good of a starting salary I will get and maybe if they will be coming out with a slightly updated 2014 Model S edition (anyone have an input on this?), I may as well wait till mid-2014 and having a job for at least 6 months. My current car only has about 80k miles on it (had it for 6 years now) so I can probably deal with it for another year. Anyways, thanks for the input and I'll prob hang around the forums now that I have joined (and that I'm an investor).

    PS: If there are any redditors on here, check out the subreddit Tesla Motors - they love to see and hear from owners!
     
  5. Ridge Lawrence

    Ridge Lawrence New Member

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    Hmm... I just quoted and replied to both of you by using the multi-quote button, but after posting it hasn't showed up... is it possible that it's because I included a link to an external website? I know whilst I was typing it did say 'auto-saved' a couple times during the bottom right of this text box. Should I just re-write it or wait a while? Is it possible a mod has to approve it since it has an external link? Sorry... I'm new here!
     
  6. LagunaDallas

    LagunaDallas Member

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    I'd be a bit hesitant to take on a car payment like that right out of school, but I'm a 34 year-old who has had 30 cars, so I'm not really one to talk. :) Once you experience this car, it's almost impossible to resist it. If you have any family or ties to the Austin area, Amplify Credit Union financed me at 1.99% for 66 months and even offered up to 100% financing if I wanted it. Very easy and efficient to work with, plus the loan officer (Joann Medrano) has done several Tesla loans, so she knows the process. If the 40 KWH model is the one that fits into your budget, be sure it also fits into your day-to-day needs as well. If you end up with a longish commute and don't have easy access to charging outlets, the 40 might give you some range anxiety. But as for the car itself, it's everything I thought it would be and 10x more.
     
  7. bonnie

    bonnie Oil is for sissies.

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    It was because you haven't reached the minimum number of posts yet - meaning a moderator looks at each one and approves. (That's how we keep some spammers out of here.) I've approved it. It shows now.
     
  8. abasile

    abasile Independent Software Eng.

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    Disclosure: I drive a LEAF, not a Tesla.

    My advice: Don't do it! Stay as far away from Tesla cars as possible until you are on better footing financially. Get out of debt, build up your savings until you have at least 3-6 months of living expenses, possibly buy a reasonably priced home, then consider a Tesla, preferably a good used one for cash. Deferring gratification definitely has its long term rewards. But what do I know, my wife and I have been listening to Dave Ramsey...
     
  9. astrotoy

    astrotoy Member

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    If you were my son or daughter, I would say that cars are the one thing that will certainly decrease in cost and value with time. If you can save the monthly payment, you probably will be able to buy a used Tesla Model in 3-4 years for cash and owe nothing more. It also gives you something to look forward to. We used to call it 'delayed gratification.' You can buy an old used Corolla for a few thousand that will cost relatively little for fuel, repairs and insurance and was probably even built in the same Fremont plant that the Teslas are built.
     
  10. Ridge Lawrence

    Ridge Lawrence New Member

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    Ah, I see. Thank you! Also, want to approve my post in the 'Introductions' sub-forum? Hah...

    And everyone else, thanks for the advice!
     
  11. hershey101

    hershey101 Member

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    Awesome, I'm also graduating this summer and am going to stay for an extra semester for my MEng (both undergrad and MEng in CS +1 :D). I'm buying the P85 for myself. I wanted to get it as a graduation present so I put in the order in Jan. when I was home for winter break but will be getting it by the time Spring break rolls around. So you don't have anything to worry about. If you want the car by Jan I would say just put down your deposit by Sept. (or maybe even later).

    P.S. I'm also invested in TSLA, hoping that the stock will payoff a certain % of the car for me :)
    Good luck with graduating and the job search. I would recommend waiting until you at least have a job offer (and maybe taking the sign on bonus as the down payment for the car).

     
  12. Plug Me In

    Plug Me In Member

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    Great car, glad you're interested, but a bad idea. That's a huge amount of debt to take on right out of college. If you want to be in on the auto revolution, I would suggest, for your current stage of life, do it with the TSLA stock and wait on the car.
     
  13. spatterso911

    spatterso911 MSP#7577 **--** MX#1891

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    I think I'd have to agree. If you've got a great handle on finances, career, education, debt, and a plan for how to swing getting a Tesla, you're off to a good start. But, if the rest of us have anything to say/do about it, Tesla isn't going anywhere anytime soon, so time is on your side. Yours will have auto-folding mirrors, parking sensors, BLIS, ACC, 500 HP, lighted sunshades and O'Schitt handles...
     
  14. yobigd20

    yobigd20 Well-Known Member

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    I highly suggest you wait a while for many of the above reasons pointed out above. For one, don't get your hopes up too high at getting a $70k-$80k salary right out of college. I have a Bachelors in C.S., a Masters in C.S., and a Masters in Software Engineering, and have worked my way up the ladder at 4 different companies. I've never seen a starting salary that high in our field, even if you had a m.s. That being said, once you are working in our field, it is pretty easy to get big increases as long as you work hard and don't stay at one place for very long (keep moving companies every 2-3 years a few times, this will broaden your experience and jump salary much higher each time).

    But lets forget about that and take the benefit of the doubt and just say you do nail a job at that rate at a good company, there's more to consider here. I'm going to make some assumptions here but lets think - you've probably never had a mortgage, never had a car loan installment, (both of these are negatives on your credit report) and basically don't really have much of a credit history yet. You probably don't have a bad credit history, but probably not a high one either. You definitely won't get approved until you have a job and can prove salary (so you have to wait until you have the job first). And even after that, a lot of banks will be hesitant to give out a big loan if this is your first job with only a few weeks or few months working unless you get it cosigned by someone with a long established credit history.

    Ignoring all the above, lets say you do get a good salary, you have enough $$ saved up to bring down the amount to be financed, and you've been working for a few months now and can get the loan. It's still a bad idea to pay that much money for this car this early in your life. Car's depreciate in value. You're MUCH better off buying a home first and accruing equity. A major reason here is that mortgage interest and property taxes are tax deductible - reducing your tax obligation to uncle sam and saving you more money. Without those, you won't really have anything big to deduct and will just end up owing uncle sam a lot of money every year. For example, when I got my third job I sold my previous home and moved and was living at a house (rent-to-own) with the intention of buying the place from him eventually. That year I owed an extra $5k in taxes because I had nothing to deduct. (as opposed to previous years where I owned a home and get back several thousand each year). I was so appalled at how much I owed the IRS. Actually had to take a loan out to pay the government. I immediately bought the house. Then for that year, I got back $4k in refund, and the full year after than I got back $7k in refund. BIG DIFFERENCE WHEN YOU OWN A HOME. It's so much better to start building equity and paying the man less when possible.

    Ok I know the Tesla is awesome and everything, but I'm just trying to stress to you how bad it would be to do this at your age before getting a home. If that's not enough to convince you, then how about this: Your car payment may prevent you from qualifying for a mortgage. That's right. If you buy a car first, and then try to buy a house, the combination of your monthly car payment + mortgage may actually exceed the bank's debt to income ratio requirements. If you don't have a lot of down payment to get the mortgage low enough, thats a very likely scenario and one a lot of people don't realize coming right out of college. so my advice to you would be to buy a home first, which will allow you to gain equity and use the interest and prop taxes to reduce what you owe the man. Once you have this established and you're working hard and working up the ladder and get bigger salary, only then should you consider buying a very expensive depreciating asset.

    Besides, by that time the Gen III will be out with improved technology and will actually be a vehicle that is a more wise rational decision. If you still want the Model S at that point, yup as others have pointed out you can probably get a good used one by then.

     
  15. bellwilliam

    bellwilliam Member

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    NO. $70-$80k / year (that's assume you have a job), fresh out of college with debt. don't even buy a Prius. you should be shopping for used cars, at best, $15k new cars.
    no, do not finance to buy a car.

    pay off your student loan.
    pay off your credit card.
    stack away maximum in 401k / IRA
    put a down payment on a house.
    save up 6 months of emergency fund.
    then save up $100k as a disposable income.

    ONLY THEN do you go out and order a S.

    our university really need to require some basic finance class.........
     
  16. anticitizen13.7

    anticitizen13.7 Enemy of the Status Quo

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    The above is the best advice you will get. DON'T buy an expensive luxury car right out of college!

    If you must have a car, buy a used compact car with a manual transmission. You will save on fuel, it will be fun, and it should be more reliable than a car with an automatic. Pay off debts, save some cash for emergencies, build up a basic retirement nest egg, and then worry about the luxury car. Being debt free is one freedom that is far more valuable than the average person realizes.
     
  17. Kaivball

    Kaivball Member

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    Last two posts were spot on.
     
  18. NuclearPowered

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    Buy a used Prius with 100k miles. More reliable and cost effective then anything else. Use the money you would spend on an S to buy a house or two or start a business. Saving up 100k in cash is stupid. Don't listen to Dave Ramsey. If you smart enough to get an 80k/yr job right out of school you are smart enough to find better financial advice.
     
  19. anticitizen13.7

    anticitizen13.7 Enemy of the Status Quo

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    I interpreted bellwilliam's statement as meaning save up the 100k to pay cash for the Model S, as opposed to financing it. I don't think that's necessarily a stupid idea. Keeping $100k in the bank long-term definitely would not be a good idea, because inflation would slowly diminish it.

    If I had $100k sitting around that I didn't plan to spend though, I'd at the very least invest it in a broad market index fund, or a mix of index funds.
     
  20. bellwilliam

    bellwilliam Member

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    #20 bellwilliam, Feb 25, 2013
    Last edited: Feb 25, 2013
    yes I meant saving $100k to pay cash for the S.
    it is okay to finance the car, but you should already have the borrowed amount in an investment.
    point is money needs to be there (set aside in investment is fine), don't borrow for the sake of borrowing.
    and no, Tesla S is not an investment.
     

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