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What percentage of your liquid assets is being used to fund your Model S purchase?

Discussion in 'Model S' started by onlinespending, Jan 18, 2012.

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What % of your Liquid Assets is being used to buy your Model S?

  1. The cost of the Model S I want is more than the money I have. I'll be forced to borrow money

    48 vote(s)
    22.4%
  2. 87.5% - 100% of my assests are being used to purchase the Model S

    9 vote(s)
    4.2%
  3. 75% - 87.5%

    4 vote(s)
    1.9%
  4. 62.5% - 75%

    3 vote(s)
    1.4%
  5. 50% - 62.5%

    11 vote(s)
    5.1%
  6. 37.5% - 50%

    13 vote(s)
    6.1%
  7. 25% - 37.5%

    16 vote(s)
    7.5%
  8. 12.5% - 25%

    19 vote(s)
    8.9%
  9. < 12.5% of my assests are being used to purchase the Model S

    91 vote(s)
    42.5%
  1. onlinespending

    Joined:
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    642
    Without anyone actually answering that question directly (since it indirectly reveals your net worth), I'm curious through a poll to see just how much people are stretching themselves to purchase this car. By liquid assets, I mean money in your checking, savings, and brokerage accounts, or other short-term investments that can be liquidated in the near future. Don't include the value of your house, existing cars, or 401k/IRA. And calculate it based on the model and options you plan on getting with your Model S.
     
  2. ckessel

    ckessel Active Member

    Joined:
    Jan 15, 2011
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    4,266
    Pretty much 100% of my liquid assets. It's a giant stretch. On the other hand, previous cars were financed.
     
  3. Beavis

    Beavis Signature 991

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    Colorful Colorado
  4. gg_got_a_tesla

    gg_got_a_tesla Model S: VIN P65513, Model 3 Res Holder

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    I'll be begging, borrowing or stealing :smile:
     
  5. rlawson4

    rlawson4 Member

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    Seems a little personal. I think it's fair to say that this is a major purchase for most.
     
  6. onlinespending

    Joined:
    Oct 3, 2011
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    That's the beauty of the poll. Keeps it anonymous. Although it's a small sampling size, so far you see both extremes. Those that can comfortably afford the car, and those that are willing to sell their second kidney to get it :) Such is the passion for this one-of-a-kind automobile.
     
  7. hcsharp

    hcsharp Active Member

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    Doesn't seem like a very useful poll to me. Most people will re-establish the same level of liquid assets within a year or so after purchasing a car like this. What if we are expecting to sell some non-liquid assets and may or may not need to borrow short-term while waiting for that event? There are many scenarios for juggling assets that make it hard to answer the poll.

    I would rather see a poll that compares the purchase to net worth, and separately how many will borrow. You could have a net worth of tens of millions and still borrow to buy the car because the timing is bad or the rates from B of A are significantly lower than your normal cost of capital.
     
  8. goyogi

    goyogi Member

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    ::Silicon Valley:: ::Home of Tesla::
    "The cost of the Model S I want is more than the money I have. I'll be forced to borrow money"

    I don't know about being forced. I qualify for 6 year loan @2.5% through keypoint credit union here in the bay area and it makes more sense for me to borrow the money. I'll be financing and taking the money that I would normally use to buy the car and invest it.
     
  9. AndrewBissell

    AndrewBissell Member

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    Apr 16, 2009
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    #9 AndrewBissell, Jan 19, 2012
    Last edited: Jan 19, 2012
    WARNING: Polls are not anonymous. I followed a link to a poll on TMC recently (I think it was plugincars.com reporting about us). I was taken to a page which showed the login handles of everyone who voted EDIT and what they voted for. I was taken aback.
     
  10. AndrewBissell

    AndrewBissell Member

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  11. WhiteKnight

    WhiteKnight _____ P85 #549 _____ Sig Red / Sig White

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    That's very interesting! On the battery size poll, when you're viewing results, if you click on the results numbers that's when you can see who voted for what. On this poll, when you click on the numbers, nothing happens. I've never created a poll (don't know how to do it) but maybe you can toggle a button to keep it anonymous.
     
  12. AnOutsider

    AnOutsider S532 # XS27

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    Yes, you can specify if a poll is anonymous or not.
     
  13. onlinespending

    Joined:
    Oct 3, 2011
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    That's besides the point. The first option is only for those that have no choice but to borrow money because the cost of the car exceeds their liquid assests. You may still opt to get a loan even if you can comfortably afford the car, but that's not what this poll is about.
     
  14. onlinespending

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  15. Citizen-T

    Citizen-T Active Member

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    Yeah, with interest rates this low, I'll be taking a loan, no doubt.
     
  16. neroden

    neroden Happy Model S Owner

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    Interesting range of choices there. Note that for people living off investments there's a big difference between spending 1% of liquid assets (less than a year's income) and 12.5% of liquid assets (several years' income, unless you have great investments)!

    Given the distribution I'd suggest two follow-ups; one asking the borrowers what percentage of the price they'll have to finance, and one asking the <12.5% folks how *much* less than 12.5% they're spending.
     
  17. Robert.Boston

    Robert.Boston Model S VIN P01536

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    Frankly, I think this poll is already pretty intrusive and not likely to produce useful information. Another, more detailed round is only going to make it worse.
     
  18. ckessel

    ckessel Active Member

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    I thought about it. I got a 401k statement recently for the funds I'd rolled everything into in 2004. It's worth a few % less now than it was then. I picked the funds that had had the best running 15 year average at the time.

    I can get a 2.99% loan, but unless I think the market is going to be nicer in the next decade than the last, I'm better off paying cash and not paying the interest.
     
  19. onlinespending

    Joined:
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    How so? It's completely anonymous, no one is forced to answer, and I think quite a few people are a little curious just how much people are stretching themselves to get this one-of-a-kind car. I think it is at least somewhat interesting and speaks to the passion surrounding this automobile. If this information is useless, so is every other thread that asks the opinions of others (such as what color they prefer, which options they plan on getting, etc.).
     
  20. Beavis

    Beavis Signature 991

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    +1 Boston
     

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