Why I am okay with losing the $7500 tax credit

[T34ME]

This is a decision that is personal from my perspective. It is somewhat unique but may apply to a minority of a few others. Rather than give me a disagree, tell me why you disagree with my logic.

I have a driving lifestyle that makes a 310 mile range car, as opposed to a 220 mile range car, meaningless to me. I make trips longer than 300 miles maybe once a year. A 220 mile range is more than sufficient for me for daily driving. I am in the slow lane of life at this point and spending an additional 30 minutes at an extra supercharger stop on a 500 mile trip once a year is inconsequential to me.

I realize that waiting for the SR version might defer my delivery to late 2018 or even early 2019. That scenario will put my qualification for the full $7500 tax credit in serious jeopardy although $3750 tax credit would be likely.

Because of my position in line, I will probably be invited to configure in 30-60 days. So, I would need to spend $9000 on LR version to save a $7500 tax credit. I would be losing $1500! Yes, I understand that means I could get the LR, an option I would rarely if ever use, for only $1500. That does not make financial sense to me in my particular, specific, unique situation. By waiting for the SR version, I can save $9000 plus an additional $3750, that equates to $12,750. That sum will buy me a lot of options on the SR version - PUP, EAP, paint, wheels.

So yeah, I will wait for model 3SR.

 

[WileyTheMan]

As you say, it's a personal choice. I live in CA where on occasion I travel outside the Bay Area, and having the extra buffer of miles means I stress less about "filling up" wherever I go. This car will be replacing a car with similar range, so less compromises with the gas/electric migration.

 

[sreams]

Although it may not be a big deal to you, keep in mind that the SR Model 3 will also charge more slowly at any given Supercharger stop. Adding 200 miles of range to a LR Model 3 will be much faster than adding the same 200 to a SR version. So it's extra stops on a long trip plus more time at each stop.

One more consideration... The battery in the LR version should have a longer lifespan. Fewer charge cycles per miles driven.

 

[Pkmmte]

Also keep in mind natural disasters. In the event of a major catastrophe and you need to get away quickly, a longer range + faster charging times will help. Very rare situation but still something to keep in mind.

(P.S. I could use that reservation if you won't be using it yet. )

 

[Dogwhistle]

Also, the LR apparently lays down almost 400 hp in recent dyno tests. I bet the SR will be much less. Factor that in as well!

 

[Skidmark]

Don't forget about resale value.

 

[LCR1]

Faster charging both at superchargers (important) and at home with 32 vs 48Amp (maybe not so important)


Resale. When you go to sell you're getting more for it, even if you only recoup 50% of the option cost you're getting 4,500 back and you paid 1,500. sounds like you made 3,000 on the deal and got all of the benefits in the interim.

 

[EVNow]

1st production : $49,000 - $7,500 = $41,500.

SR (w/ premium) = $40,000 - $3,750 = $36,250

SR (not premium) = $35,000 - $3,750 = $31,250

So, you would get LR for $5,250 instead of $9,000.

 

[N5329K]

I would certainly spend the incremental $1500 for the extra range alone. Unfortunately, that extra range is (for now) packaged with things I really had no use for, and the LR, non-fluffed version might be a while longer (post $7500 incentive) showing up.
Robin

 

[T34ME]

Thanks for your replies, all valid points, but still doesn't change things for me.

• range anxiety is not an issue for me since driving out of my way to the nearest supercharger once a year is unimportant to me ( but I will follow the supercharger "yellow brick road" when driving for distance)
• 10 minute longer stops at superchargers are unimportant to me since I am in no hurry
• longer battery life could be an issue, but I suspect that there will be a battery swap program in a few years either by Tesla or aftermarket
• natural disasters where I live in California are currently limited to wildfires (200+ miles is more than enough to get me out of harms way) or earthquakes (and that lasts for just a minute or two and I am not going anywhere)
• the SR version (slower than LR) will be the fastest car I have ever owned (including Porsche and Jag and street rod). I have no need for insane speed at this time in my life
  
• resale is a wild card, but this will be probably the last car I ever own so resale doesn't matter.

No, neither of my two reservations are for sale. This is my dream car.

 

[lirandy]

Don't forget about resale value.

Exactly the first thing comes in my mind too. I actually am in the same boat. My daily commute is only about 35 round trip and I have a van for long trip. I definitely can live with the SR. Yet, APR-JUN'18 for the LR and Late 2018 for the SR (early 2019 is more realistic to me) makes a big different in the tax credit - $7500 vs. $1875. I am going with PUP regardless LR or SR. So for me, I only invest $1875 more for a $9000 option. And it's pretty sure that the larger battery will be more easier to sell in the future when other manufacturers come up with their over 200-mile EV's.

 

[LCR1]

If the OP planned on the premium package with SR then there's no reason to wait. Actually regardless of what he planned on, get it now unless you plan on dying with the car in your possession, the resale alone will make up for it

 

[fiksegts]

long range has better resale, best to get now...

 

[T34ME]

1st production : $49,000 - $7,500 = $41,500.

SR (w/ premium) = $40,000 - $3,750 = $36,250

SR (not premium) = $35,000 - $3,750 = $31,250

So, you would get LR for $5,250 instead of $9,000.

So I would spend $9000 to save $5250? Still doesn't make financial sense.

 

[T34ME]

Actually regardless of what he planned on, get it now unless you plan on dying with the car in your possession,

For some of us, that is a real factor that must be taken into consideration.

 

[LCR1]

Then yes, that changes it. However you'd then consider where it ends up in the estate, tell your beneficiary to cough up $1,500 now and they're guaranteed a a LR

 

[EVNow]

So I would spend $9000 to save $5250? Still doesn't make financial sense.

No. You are paying $5,250 for an option that costs $9,000.

It would be easier to resell - and will fetch you, depending on when you sell, 20% to 50% of that $9k.

BTW, I'm in the same boat as you. I've not decided yet. My problem is more with the premium package than LR.

longer battery life could be an issue, but I suspect that there will be a battery swap program in a few years either by Tesla or aftermarket

Looking at the past 7 years, I'd not bet on aftermarket. Tesla probably will have a replacement.

 

[ℬête Noire]

So I would spend $9000 to save $5250? Still doesn't make financial sense.

Numbers aren't exactly right there (do you mean the $5625 difference between 1st tier and 3rd tier Fed tax credit?) I think but....

You also don't have climate driven HVAC budget issues that others may have. I'm definitely in for the LR but if I lived in your region (not as charger rich, generally longer distances to "regular places"), had your climate, and wasn't planning a lot more far ranging touring, I'd probably break towards sitting it out for SR, too. Doubly so since you're getting that extra $2500 back from the state, anyway.

 

[voltage]

Thought about waiting for SR as well as I don’t really need extra range. The problem I see is that batteries degrade over time. My volt is at 80% of range after 7 years. Also, winter time range gets hit by another 20%. For extra $1500, LR is worth it to me.

 

[Shygar]

You haven't factored in sales tax. If you wait for the SR you are paying less in sales tax. So that extra $9k in costs is almost $900 in sales tax where I live. But on the flip side, I would not be comfortable with 150-175 miles of real world range (thinking cold night in the rain). 220 should be considered as best case. But if that works for you then it should make financial sense to wait.