Tesla buying money guilt :-(

[Plagued]

yea been there got the t-shirt. Did man math to justify the purchase, but knew that that wasn't REAL math and I'd possibly made a big mistake. Kept my bike as the previous years of Audi, volvo, nissan, BMW driving had made me a bit sad and missed it. That was back in 2019 and looking over my expenses it turns out that my man math wasn't actually that far off in terms of actual cost over the 2+ years when you factor in depreciation and fuel costs. The enjoyment of driving removed my longing to get the bike back on the road and now my real regret is leaving the bike rotting in the garage for so many years and not selling it. I've got kids and a mortgage, and if I was put in the same position again I'd do the same thing. So sleep easy, it's very unlikely you're making a mistake. Also regarding the neighbourhood, just don't wash it. Mine's so dirty when someone hit the back of it last month and drove off, I quickly looked over it I couldn't see that under the dirt it's scuffed the bumper quite a bit... as I just found out ....

 

[Snowy77]

Yeah, AutomaticMan, same position here as you. The last car I bought new was back in 2001.

I spreadsheet the pants off this. I'm maxing out the PCP, to get monthly down to about £480. Yeah it's some 15K up front..... BUT then a revelation hit me, I paid OFF credit card, paid off DFS finance, my old Currys finance, my old Lloyds loan, and realised... after this... i'm only really laying out about £200 a month more for the PCP! Now if someone said you can have a M3LR for £200 a month... (yep please) .....

I do regret something though... I regret I missed the whole TSLA.NQ thing. So back in the summer I dumped a bunch of cash on LUCID. I'm lucky it's gone up by twice since then, around the $26 mark when I bought... and is now $41 / $42 ~but projections do tend to lean to it being a possibility for those that missed the big Tesla share explosion. I can't afford any decent number of TSLA shares now especially >1k. BUT I'm taking a personal risk that LCID is currently 2019 TSLA price which could under go some serious movement in the next few years. Depending on that, we'll see if it covers the balloon payment of 15K at the end. I have secured another 17k of shares elsewhere, so will see. Hopefully I'll not need to foot any more chunky lump sums from my own pocket. For the record, I have no interest in Lucid, other than now, the share price! It's fitting that Lucid could pay for my Tesla.

Anyway waffle aside, I have a child and Mrs, she's out of work but, even still, I made the decision to get a Tesla. If anything, it may encourage us to spend more time together travelling the country as English Heritage members enjoying our lands a bit more. Not having to worry about the price of petrol effectively makes the Tesla ALMOST a costless mode of transport, and ridiculously fun. Who can argue with that. I was able to persuade myself that the COST of a car like a Tesla is more upfront, with other than wear and tear, is almost comparatively, costless.

(Until the government realise they're losing too much money and find a way to TAX the bejeez out of us).

 

[Tony Hoyle]

Yeah the Tesla was way beyond what I was ever prepared to pay for a car previously. I had a hard cap of £200/month and never went above that. My Model 3 is £700.

Had plans to go lots of places.. Covid put paid to that and it's mostly sat in the driveway.. maybe this summer..

OTOH I own the decision I made which was right at the time, so don't regret it (indeed I'm looking at trading up to a 2022, esp. with trade in values so high).

One thing though is I do often feel slightly embarrassed about having such an expensive car when lots of people I know couldn't afford to buy one worth a tenth of the price. If I meet them I keep a low profile & never mention it.

 

[Snowy77]

One thing though is I do often feel slightly embarrassed about having such an expensive car when lots of people I know couldn't afford to buy one worth a tenth of the price. If I meet them I keep a low profile & never mention it.

Depends, some members of the family here are BAD with money. 3 or 4 holidays a year, permanent tech gadgets, latest iphones, watches, always getting house renovations, permanently appearing to recycle their cars....

They'd be the first to ask me if I'd won the lottery when I get the Tesla. My usual blunt retort is, it's what happens when you save 50 quid a month for 20 years!

(lol)

 

[AutomaticMan]

Sounds like I'm in good company here with my decisions I suppose the only bit of 'man maths'-ing I can't do is the running cost savings over my previous car bit, seeing as my previous car was an EV as well. But one bit of creative man maths I am interested in is whether I get any value out of camping mode. Obviously only good when I'm going on solo trips, but when I do saving a night in a hotel here and there might provide some extra value as well.

On the low profile bit, yeah, I'm more likely to be embarrassed at having an expensive car than proud of it as you can see by this thread! I got into conversation the other day with someone in a shop that led him into talking about cars. When he asked what car I have I said I have a Tesla on order, and he started acting like I was a big shot and all like "what do you do for work? I wish I had your money!" and I was mortified... haha. It's when stuff like that happens that I think "are Teslas only for rich people?? I'm not rich though! What am I doing??" haha

I mean, I was talking earlier in this post about sleeping in my car to save money on hotels... I feel like rich people are staying in very comfortable hotel rooms every night haha

 

[Snowy77]

I think it's a mind set, though. A Tesla is a life investment, but it's also a quality of life improvement. It's a lot of money but, from the way things are right now, think of it as a money box or valuable asset rather than expenditure. You'll suffer a small amount of depreciation, but if you ever need to hit that 'OH #@*!' button, you know you have capital that can be recovered. It's also valuable to remember that it costs negligibly compared to any ICE. Little servicing, and little 'fuel' costs as well. If anything if you suffer hard times, and car is lifeblood, I'd rather be stuck with a virtually costless Tesla, than a 'cheaper' car that is a background money pit.

Also, if it improves your enjoyment of driving, just like me, I have already promised the little one (11 yr old Daughter) that we'll go camping more and promised the Mrs we'd go exploring more English Heritage sites around the UK... also I can go see family up north MORE because it's peanuts to travel up there. At the moment, a round trip to Manchester in my ICE costs around £70 - £80. (£35 - £45 each way). With home charge a model 3 could do it on about £3.50 each way.. perhaps skimp a free destination charger somewhere and it becomes free.

I needed to really persuade myself the car was doable, and when it was, I went through the pain of trying to talk myself in to it, then quantifying it. When I realised it was money set aside, not spent, was when I made peace with it... especially after clearing out my old festering monthly debts, and realising also that I was going to be just £200 a month out of pocket, the fuel saving alone mitigates that.

In 6 months you'll be here telling the same to someone else with guilty doubt

The Tesla family is a great one.

 

[GRiLLA]

A better way to think about this is in terms of actual cost over say 3 years, depreciation on Tesla's is nothing like the typical ICE car for several reasons but the major one being a set RRP which isn't hidden behind many dealer fees.

A simple cost example of my ownership over 2 years
Tesla
Cost £50k
Valued £45k
+ Fuel Savings 30k miles vs ICE £5k
=£0

ICE car example
£20k ICE
valued £14k
=-£6k

Another comparison would be to other EVs but I expect depreciation to be worse than a Tesla due to the dealership pricing factor

Who valued your 2yo car with 30K miles at £45K ?

After 2 years and 20K miles WBAC/Motorway/Tesla all offer just over 41K. I am currently trying to find the most expensive tyres to convince myself to upgrade the car rather than replace them.

 

[Snowy77]

I suppose the only bit of 'man maths'-ing I can't do is the running cost savings over my previous car bit, seeing as my previous car was an EV as well.

Out of curiosity what one did you have? Was it a FEV? (or some kind of hybrid / plug in)?

 

[DM206433]

"what do you do for work? I wish I had your money!"

If that happens next time I'd have some fun with it. Rotate answers between "McDonalds, lots and lots of overtime", "I can't really talk about it, lets just say it's above tax man and below James Bond", "Have you seen the film 'Leon'? The car's frunk comes in very handy for my 'tools'", etc etc.

 

[Leejmoff]

I think most people go through this. I do this with small purchases. I think for me, 20 years left of work (hopefully). I'm at a point where I know I can cover the cost. I'm early 40's too so had a bit of a mid life crisis going on. Went through all the costs etc and it ended up about the same as what we have now. Yes we will miss the big boot etc, but in the end you only live once.

If you have the money for it and know you will enjoy you, just do it. If all fails and you can't afford it, just sell it.

 

[SilverString]

Just wondering how many of you out there are buying Teslas on normal incomes and do you feel guilty about it? I keep going back and forth between excitement at getting a Model 3 LR, and guilt/worry about it being a stupid financial decision.

My personal situation is that I'm a higher rate taxpayer, but only just. I am in my late-30s, have no kids (nor want any), am dating but not cohabiting. I don't have any debt except my mortgage, which is about 75% LTV on a 2-bed property in a reasonably priced area (so, not London!). I currently have a VW ID.3 that I just sold for £33k, and a motorbike that is worth between £15-18k that I'm intending to sell this summer as I've fallen out of love with motorcycling a bit. The money I'm getting for the car and bike will essentially pay for the Tesla, and my excuse for getting the Tesla is that it will combine the 'fun vehicle' factor of my motorbike with the day-to-day practical car factor of my ID.3 into one vehicle. I have about £50k in investments in an ISA, £5k emergency cash fund, and I'm saving/investing about 20% of my salary each month. I also pay into my workplace pension.

So part of me thinks, I can afford this. It will make me happy, life is short, why shouldn't I buy it?

But another part of me feels sick at the idea of blowing £50k on a car. I drive around my neighbourhood, which isn't an affluent area, and see very few new cars, let alone new cars as expensive as a Tesla and think, am I mad? I could take the £50k, add it to the £50k I have in investments, and pay off my mortgage in a few years probably. I have to admit, I couldn't sleep last night with all the worry going around my head that I'm being far too extravagant for my means in getting this car. Was wondering how everyone else justifies it? Or maybe you're all like "meh, I earn £200k per year working in the City... £50k is nothing to me", or "it's a company car, I'd never get it as a private buyer"...?

I also know that an obvious partial solution is to get the RWD version instead of the LR. But I'll still feel guilty about buying a £43k car too... Also, the performance of the dual motor forms part of my justification for buying the car (the motorcycle replacement bit), and I'm a real audio snob and missing out on the premium audio system would be something I'd regret every single day.

My feeling is that as long as you have a legitimate retirement plan, and you own a home, then enjoy your life as much as possible and get the car. What I can't understand is people with no retirement who live in a rental with a huge boat, and a $60K+ car sitting in their driveway. Nothing but depreciating assets is a house of cards.

You appear to have a keen awareness of fiscal responsibility which is a good thing and not to be confused with guilt.

 

[AutomaticMan]

When I realised it was money set aside, not spent, was when I made peace with it

Yeah, I think that's what I need to do as well. I guess the only thing is I have a nagging voice in the back of my head when I do that saying "you're going to wake up 6 years and 100,000 miles into Tesla life realising that money you 'set aside' in the Tesla isn't in it anymore" But I know that I shouldn't look at it like that... unless I give up driving I'm always going to have some depreciation costs whatever I do. And who knows where we'll be in 6 years... I could have had a promotion and be looking at Model S's by that point for all I know.

Out of curiosity what one did you have? Was it a FEV? (or some kind of hybrid / plug in)?

VW ID.3 - full EV and excellent car in my opinion! Though taking it on very long journeys would be slightly more expensive than the Model 3 because you can't set off with as much range in it from overnight charging, and have to use rapid charging networks that are more expensive than Superchargers along the way. Still a huge saving over petrol/diesel though of course!

 

[Snowy77]

Takes a lot to even beat the RWD 3 range these days!

I looked at the ID3 ! Yeah it's a really nice looking car, it's everything you want to see from VW. BUT I had already test driven the model 3, and I wanted nothing to corrupt that fuzz whenever I thought about it I think the supercharger network is something not to be sneezed at. Sometimes genuinely feel sorry for non super charger users desperately trying to find operational neglected 3rd party ones. I'm on Zap Map, and just random charge point picking, you get an impression charging is a lottery out there. I'll keep my Tesla I think

Life is short, one of my work colleagues lost her life to COVID this time a year ago. A few months before she passed away, was stressing about finances, saving up for xyz, and never did take that Christmas break with the family. It's a brutal reminder that now is important. Make the most of it.

 

[AutomaticMan]

Takes a lot to even beat the RWD 3 range these days!

I looked at the ID3 ! Yeah it's a really nice looking car, it's everything you want to see from VW. BUT I had already test driven the model 3, and I wanted nothing to corrupt that fuzz whenever I thought about it I think the supercharger network is something not to be sneezed at. Sometimes genuinely feel sorry for non super charger users desperately trying to find operational neglected 3rd party ones. I'm on Zap Map, and just random charge point picking, you get an impression charging is a lottery out there. I'll keep my Tesla I think

Life is short, one of my work colleagues lost her life to COVID this time a year ago. A few months before she passed away, was stressing about finances, saving up for xyz, and never did take that Christmas break with the family. It's a brutal reminder that now is important. Make the most of it.

Really sorry to hear that about your colleague mate, my condolences. I think that's it though isn't it, financial responsibility and enjoyment of life is always a balancing act. Thinking about only one side of that but not the other is bad whichever way around it is. This thread has made me feel loads better about it all though.

With the ID.3, I think if someone said to me they had £30k-£40k to spend on a car and wanted an EV I'd the ID.3, having owned one, is my top pick (until the Model 2 comes out maybe!), but if you're spending more than £40k on an EV it has to be a Tesla. On driving pleasure alone, the ID.3 is 200bhp which I think puts it in 'warm hatch' territory maybe, but the Model 3 is on another level so there really is no comparison.

 

[Marvin03]

Personally buying a car for cash vs lease/pcp then latter wins everytime. I’d suggest the OP pays down the mortgage with the 50k and leases the tesla

 

[Snowy77]

Yeah I chose PCP, as it makes things a bit more variable when it comes to swapping for a new vehicle. Especially if the car has accrued equity, which is an insane prospect. Cash buy seems a lot of cash to release in one hit. I just put 6k aside a year for the duration of the lease which is 4 years for me. 4 years should give Tesla plenty of time to release a hover car

 

[AutomaticMan]

Personally buying a car for cash vs lease/pcp then latter wins everytime. I’d suggest the OP pays down the mortgage with the 50k and leases the tesla

Would have to pay a penalty to pay off my mortgage early though. Next opportunity to pay off mortgage without a penalty is in 3 years.

I accept, though, that there is a good argument that I should invest the £50k and the return I see will probably be more than I've lost in paying interest on the PCP. Reason I decided against is that the period of time people tend to own cars isn't long enough to insulate me from stock market fluctuations I don't think. I also don't like being tied into something like a PCP or a lease. If I own the car and do want to sell it again in a year I can, whereas if I'm tied into a PCP it's more complicated, and if I'm tied into a lease it's probably ruinously expensive to do that.

 

[Snowy77]

PCP and buy LCID !

No don't do it just because I said.. I'm bitter as heck I missed TSLA. BUT it's an interesting prospect!

 

[Peter 224]

I swapped a 4 year old potential money pit (Mercedes C63 Estate) for a LR with about 50% of the price on a Tesla PCP over 5 years.
You seem to be preparing logically for a properly funded future, given you will probably be working in some way into your 70s.
Remember, money is a tool, it lets you make choices. It has no intrinsic value, so is not to be held for no reason.
I'm 70 in a few month and I'm in a similar state of indecision about putting a reservation in for a new roadster.

We have, other than the Tesla PCP, no debt, a well funded SIPP, a couple of good final salary schemes and of course the State pension. the kids are self funding now, so it is a similar decision.

 

[Kenners]

Just wondering how many of you out there are buying Teslas on normal incomes and do you feel guilty about it? I keep going back and forth between excitement at getting a Model 3 LR, and guilt/worry about it being a stupid financial decision.

My personal situation is that I'm a higher rate taxpayer, but only just. I am in my late-30s, have no kids (nor want any), am dating but not cohabiting. I don't have any debt except my mortgage, which is about 75% LTV on a 2-bed property in a reasonably priced area (so, not London!). I currently have a VW ID.3 that I just sold for £33k, and a motorbike that is worth between £15-18k that I'm intending to sell this summer as I've fallen out of love with motorcycling a bit. The money I'm getting for the car and bike will essentially pay for the Tesla, and my excuse for getting the Tesla is that it will combine the 'fun vehicle' factor of my motorbike with the day-to-day practical car factor of my ID.3 into one vehicle. I have about £50k in investments in an ISA, £5k emergency cash fund, and I'm saving/investing about 20% of my salary each month. I also pay into my workplace pension.

So part of me thinks, I can afford this. It will make me happy, life is short, why shouldn't I buy it?

But another part of me feels sick at the idea of blowing £50k on a car. I drive around my neighbourhood, which isn't an affluent area, and see very few new cars, let alone new cars as expensive as a Tesla and think, am I mad? I could take the £50k, add it to the £50k I have in investments, and pay off my mortgage in a few years probably. I have to admit, I couldn't sleep last night with all the worry going around my head that I'm being far too extravagant for my means in getting this car. Was wondering how everyone else justifies it? Or maybe you're all like "meh, I earn £200k per year working in the City... £50k is nothing to me", or "it's a company car, I'd never get it as a private buyer"...?

I also know that an obvious partial solution is to get the RWD version instead of the LR. But I'll still feel guilty about buying a £43k car too... Also, the performance of the dual motor forms part of my justification for buying the car (the motorcycle replacement bit), and I'm a real audio snob and missing out on the premium audio system would be something I'd regret every single day.

If you don’t want kids buy a bloody performance. Or a Taycan!