Tesla buying money guilt :-(

[AutomaticMan]

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.

 

[Zakalwe]

No point being the richest man in the graveyard.

 

[Mr H]

You only live once but I have kept my motorbike which I’ll probably be buried with ;-)

 

[EVMeister]

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

I don't have anything particularly insightful to add here, but this part of you will grow even stronger once you get the car. Enjoy it, you've earnt it.

 

[m80arm]

I went through all of this and then thought F*&k it and just went for it. Haven't regretted my decision yet (At least until V11 was released ). I've also just purchased the Acceleration Boost which is another thing that I didn't need

 

[Liquidv]

Just lease the car if you can't afford to blow it all in one go, that's what 99% of all Tesla owners do

 

[GRiLLA]

I'm cautious with money, wife even more so, but we are also in a comfortable position and like you spending the 50K on a car doesn't effect us day to day. No regrets at all, fantastic purchase which I love. You've got to have a reason for working.
One thing to mention, as I am 10 years ahead of you, is really plan your pension, far more tax efficient than paying tax then investing in ISA or other savings. If you are just into higher rate maybe using pension to keep under that threshold.

 

[AnthonyLR]

I did agonise about buying my M3. I am in the fortunate position of being able to afford it but had not bought a brand new car since 1996 - I would always buy used. I always saw cars as a depreciating asset and waste of money: a necessary transportation evil. Also, as a Dad of 3, my previous two cars were MPV's.

Anyway, having bought the car I understood immediately what a great company Tesla is and I liquidated all my ISA investments and went all-in on Tesla shares with my ISA. Which makes me smile every time I drive my Tesla now. So there's that!

 

[rgc1990]

Life’s short; live it!

I’m by no means on the Forbes rich list. Honestly thought that any Tesla vehicle was out of reach for the ‘normal’ income earners, but they’re really not. It really depends on your personal attitude towards income/expenditure and what brings you joy in life.

Perhaps prepare a budget and review, but it doesn’t sound like you need to; it’s just a bit of anxiety (not range ).

Get it, drive it and you’ll forget every qualm currently felt.

 

[UrbanSplash]

Look at it another way. I’ve a 2 year old 3LR that’s worth currently at least £40k. Loosing £10k (worst case) on a car over 2 years is nothing. Ive thoroughly enjoyed the last 2 years with it.

 

[Durzel]

No point being the richest man in the graveyard.

Can't say this enough times.

Money comes and goes, time only goes.

There will come a point in your life where you cant enjoy this stuff, either due to physical ailments, old age or even just unforseen events, and at that point what good is sitting on a pile of money? Obivously if you have dependants then you have a responsibility to them, but that doesn't sound like your predicament, so it sounds to me like you're worrying disproportionately. I would say, based on what you've said, you're probably doing better than most anyway and have already been very sensible with other funds & your salary.

The other thing to consider is that sticking £50k in the car - it's not like that money is going anywhere. Yes, you will lose some money in depreciation (right now it's a lot less than you would think), but the capital is always there and you can take it out whenever you want. You could easily just look at this as an "experience" for a year or so, and come out with the bulk of the money at the other end. You could consider whatever you've lost at that point as "rental costs".

 

[Sparkeur]

I've grappled with these decisions from time-to-time. The fact you're thinking about it means you're unlikely to be doing something daft. I've always found six months down the line, having thought it through and taken the decision to purchase whatever it was, I wasn't looking back with regret.

 

[DJP31]

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.

You are consolidating two assets into one and not increasing you asset/liability split so nothing wrong there. A purist might argue you are increasing risk by reducing your diversification (i.e. a bike & car provides better financial balance against falls in asset values in the personal transfer sector). But all of that is utterly boring .

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 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.

IMO this is what's really on your mind. You've blown £50k on transport, it's the fact that it's going to stand out in your locality. I'd be more concerend about some lout deciding to key the car, and would maybe keep sentry on .

Crack on with it YOLO

 

[rgc1990]

Additionally, I’d be more concerned about the delivery times and missing out on the enjoyment than whether it’s worthwhile

 

[Dilly]

In 2020 I was 67, had a pension going spare and drew down the cash to buy mine.
House was paid for long ago. No kids and no point in dying wealthy.
I miss my motorbike. Sold it to buy a company van when we we were poorer.
Nowhere to put an electric Harley…
Wish I’d bought TSLA shares. Perhaps it not too late…

 

[Paule]

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.

I'm married with two kids at school age also with a mortgage...I have a reasonable paying job which can afford me a family holiday once a year, two cars with one being a Tesla M3 LR purchased in December 21...

I have friends who are more financially set with great incomes 150k plus with no kids but there's a friendly jealousy when we fly out somewhere or when I recently showed them the Tesla...doing these things doesn't make financial sense to them...

Some people for their own reasons see buying a Tesla (or spending 50k on any vehicle) financially not making sense even though they could afford to spend 50k...by the way it's one of the lowest depreciating vehicles out there...

What I'm trying to say is do what will make you happy not what always makes complete and utter financial sense...I've had a few cars in my time and the M3 is a dream come true vehicle worthy of the money you CAN AFFORD to spend on it...I, as I'm sure you will, feel special every time I take the wheel...for that, I see this as money well spent!

Whatever you do with your money there's one thing it cannot do is buy back time you've lost in your life...enjoy life while it lasts as being the richest man in graveyard is surely worse!

 

[Jason71]

I know this does not help you but a lot of us have them as company cars though in many cases are also the company owners. The company car tax situation is such at present that its almost crazy NOT to get a company EV right now. if you compare it with taking money out of the company, paying income tax on it and buying / leasing a personal vehicle it makes a lot of sense. The current residuals are icing on the cake but were not expected to be this good when I bought.

 

[yessuz]

DUDE!

I feel the same as you. I am more or less at the same boat, just some of the figures maybe a bit different, married with daughter, but still mortgage, etc.. But I took the plunge and ordered the car as Tesla Loan. In the end of the day. even I have access to company car (list is shite, could not get anything remotely decent...), I opted for car allowance and it works, financially, more or less the same (net cash I am left with) if I compare company ICE car (BIK is huge) vs Tesla as private (no BIK + getting allowance).

Mind you, I NEVER EVER bought a new car in my life. Newest was 4 year old Saab 9-3 I had in 2009. All other cars were like 10+ years old
extremely anxious, did shedloads of maths... and well, it works out...

and now started to imagine myself traveling in new car

 

[DM206433]

Save your money and buy a banger..... said nobody on this forum, ever

If you come into this world with nothing, and you go out owing something, then you've made a profit.

On a serious note, if you've got the £50k in investments plus a cash emergency fund, then spending a bit on a car is relatively risk-free as far as I'm concerned. What else are you going to spend all of this cash on?

 

[Adopado]

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?

Your money isn't gone so don't think of it as "blowing" £50k. You can get most of that money back if you have to sell. You may never be in the same circumstances again with regard to financial commitments. Remember you can always fall back on "man maths" and environmentalism to justify your purchase when talking to friends and neighbours! You will have lower vehicle servicing and fuel bills, you will be helping to save the planet from climate change, you will be helping to keep asthmatic children out of hospital. You are bringing an electric vehicle into the market that in a few years time will be more affordable for those who cannot afford to buy new.