EXOTIC1
Member
If things stay the same
you'll be able to get 5 years financing for under 2% (a few credit unions like alliant were offering this on MS)
keep some of the $ in your pocket
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If things stay the same
you'll be able to get 5 years financing for under 2% (a few credit unions like alliant were offering this on MS)
keep some of the $ in your pocket
Krugerrand
Meow
That's a lot of effort when the simple answer is that the number came from a dark, smelly place.
ModelNforNerd
Active Member
I have an 800+ credit score and USAA. I'll take out a long term loan and pay it off early. No sense paying interest on something I can pay off up front.
AZ Desert Driver
Rare combination
$35,000 + $7,000 = $42,000 <= musk expected average sale price. And my preferred option package. Hope it is true!!!
MiamiNole
Member
Well... if you can use that money to earn interest at a higher rate than you are paying...
ModelNforNerd
Active Member
Hmm, maybe if i Invest it. CDs and savings accounts aren't paying out at rates that can do any better than the 2.25% my car loan would be.
All things to worry about down the road. I also have an ICE to sell that should net me ~$25-30K. So the Tesla won't completely deplete my funds.
Meh. There are so many schools of thought regarding this - maybe better suited for a finance specific discussion board. There are things to consider on both sides. In general, I lean in the direction of paying down debt quickly, but you don't want it to create any liquidity problems should you run short of cash at any point, and so it's advisable mostly if you still have an emergency fund.
To earn money at a greater rate than you'll borrow at this time, you likely have to take duration risk. You're not going to borrow for 5 years at a rate so low that you can turn around and invest it in 5 year bonds with a similar duration (you'd really need a ladder portfolio with an average maturity of 2.5 years, because you'll make principal payments the whole time and not a balloon payment at the end) to earn a greater return. In reality, you have to take duration risk - invest the money in the equity markets, 10 or 30Y bonds, etc. and now you have a mismatch.
I know there are many other options, and for some that duration mismatch isn't an issue, but all things equal... I suggest people make a choice that is best for their situation and what they are comfortable with.
ModelNforNerd
Active Member
The only reason I would take the car loan in the 1st place is because I'll have a small window where liquidity would be an issue post-delivery. But we're talking days, not weeks or months.
Once I take delivery, I take the Audi (which has been paid off for over a year and a half) to CarMax, get their check, and pay off the loan on the Tesla. I'll have it paid off before any interest accrues.
The proceeds from the ICE sale will go into a CD, more than likely.
MiamiNole
Member
Didn't mean to turn this into a finance course lol, I was just making a retort about not wanting to take a 2% loan for conversation's sake. I do have a question about your use of CarMax though. Are you using CarMax because it's the least painful option of selling your car vs trying to sell it privately, or do they actually give competitive prices? I'm in the same situation as you as far as selling my current car...
ModelNforNerd
Active Member
From other threads on here (mostly over in S, or in your regional ones), current owners who have been through this say it's a decent mix of less painful and competitive price.
Private sale will take too long. I don't have the space for 3 cars (wife's, Tesla, AND Audi), so obviously, one has to go when the 3rd shows up.
Found the link I think. I am not sure I would even call it a tweet
MB threadview page
Edit: I see the OP in that thread is claiming it was an Elon tweet. $7k for lifetime or $1500/ year.
MB threadview page
Edit: I see the OP in that thread is claiming it was an Elon tweet. $7k for lifetime or $1500/ year.
Last edited:
Trev Page
Member
While those are staggeringly high figures for supercharging access, I do wonder if there would be a plan that high that included local charging or business use of the supercharger network (i.e. taxi services, etc)
I find it difficult to believe that the person who made that post did not realize that there was never any such tweet from Elon. I think he was just making stuff up and posting it to create a reaction. There is a word for that...
Yeah, normally even if Elon deletes a tweet he has enough people watching his feed like a hawk that it gets caught and screen shotted.
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