Can I buy a Tesla?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Momus
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Re: Can I buy a Tesla?

Post by Momus »

If you need the car, and/or want to upgrade buy it... $400k gross, buying 50k car isn't too far fetched.
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Cramerica
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Re: Can I buy a Tesla?

Post by Cramerica »

Big Dog wrote: Fri Jun 29, 2018 10:37 pm does your state offer any rebates? I just received a check for $2500 from California for my M3 purchase. Add in the $7500 federal tax savings, and it takes the purchase price down $10k. A really nice discount, IMO.
I am in California too but it looks like my income would disqualify me from getting the state rebate. Would still get the $7500 fed credit though.
Big Dog
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Re: Can I buy a Tesla?

Post by Big Dog »

I am in California too but it looks like my income would disqualify me from getting the state rebate. Would still get the $7500 fed credit though.

$150k for single or $300k for two. Get married? :twisted:

SoCal Edison is also offering a credit towards installation of an EV charger. (I assume PG&E has something similar in NorCal.)
Jack FFR1846
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Re: Can I buy a Tesla?

Post by Jack FFR1846 »

This is the Boglehead dichotomy. Even a new Camry is wasteful. You must buy a 3 year old Camry so the depreciation is suffered by the first owner. Then keep that car for at least 10 years. To help pay for the car, maybe drive for Uber or get a second job.

-OR-

Buy a $100k brand new car because you can save the 2 minutes at the gas station.

Your choice. Either is acceptable.
Bogle: Smart Beta is stupid
HRPennypacker
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Re: Can I buy a Tesla?

Post by HRPennypacker »

Don't do it, Dr. OP. Tesla is a dumpster fire, the Model 3 is an overhyped embarrassment--I have multiple remorseful colleagues who can attest--and for half the price you can get a slightly-used something-else.
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TomatoTomahto
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Re: Can I buy a Tesla?

Post by TomatoTomahto »

HRPennypacker wrote: Sat Jun 30, 2018 12:38 pm Don't do it, Dr. OP. Tesla is a dumpster fire, the Model 3 is an overhyped embarrassment--I have multiple remorseful colleagues who can attest--and for half the price you can get a slightly-used something-else.
Gosh, that’s surprising. I talk to many Tesla owners, and I have yet to meet ONE remorseful owner.
I get the FI part but not the RE part of FIRE.
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DanMahowny
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Re: Can I buy a Tesla?

Post by DanMahowny »

Would not buy a Tesla in this current environment. No way.

Big push by TSLA to increase production; meet promised production rate. NO doubt they are cutting corners in effort to meet expectations/promises. They are BUILDING CARS IN A TENT. Ridiculous.

Wait a year or so. We'll know more regarding Tesla's viability as a carmaker by then.

Ever seen the movie Gung Ho? Michael Keaton's character as Elon Musk, as they push to meet production targets.
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PFInterest
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Re: Can I buy a Tesla?

Post by PFInterest »

Cramerica wrote: Fri Jun 29, 2018 2:29 pm I have a tesla model three reservation and I was recently invited to configure the car.

I wanted to know if bogleheads think it is wise given my financial situation.

My anticipated gross income for 2018 will be about 250,000. I anticipate gross income for 2019 will be about 400,000. My current net worth is just over $100,000.

The model three that I am planning on purchasing cost 55,000 with all the upgrades. That does not include taxes and other fees, but it is also before the $7500 tax credit and other potential gas savings.

Do I have your blessings to buy the car?
this is america you can do what you want.
which includes humble brags.
enjoy.
cutterinnj
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Re: Can I buy a Tesla?

Post by cutterinnj »

Cramerica wrote: Fri Jun 29, 2018 2:35 pm
phisher4 wrote: Fri Jun 29, 2018 2:32 pm A few missing pieces of information:

How old are you?
How much do you have saved for retirement?
Do you have any debt?
32 and I am just starting my career as a specialist physician.

I have about $160k in retirement

About $60k in low interest ( <2%) debt

You're a new doctor?
ABSOLUTELY DO NOT BUY IT!

You just started and have minimal savings.
Put as much money away as you possibly can, and live below your means.

Medicine is a question mark; yes, you will likely make 400k next year, but Medicare reimbursement can change drastically from year to year, and you can't assume you're going to do well for the next 30 years.

You do NOT need a Tesla. Drive a comfortable, reliable car, and SAVE everything you can.
hightower
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Re: Can I buy a Tesla?

Post by hightower »

Cramerica wrote: Fri Jun 29, 2018 2:29 pm I have a tesla model three reservation and I was recently invited to configure the car.

I wanted to know if bogleheads think it is wise given my financial situation.

My anticipated gross income for 2018 will be about 250,000. I anticipate gross income for 2019 will be about 400,000. My current net worth is just over $100,000.

The model three that I am planning on purchasing cost 55,000 with all the upgrades. That does not include taxes and other fees, but it is also before the $7500 tax credit and other potential gas savings.

Do I have your blessings to buy the car?
I like to use the rule of spending no more than 20% of your salary on a car. So, you make 250k a year now and 400k/yr moving forward. Which means you could afford to spend 50-80k on a car using that rule. Assuming this is a long term salary we're talking about, you can EASILY afford a 55k car. HOWEVER, I see that you're a new physician. Do you have a bunch of student loans? If so, you need to pay those off first and save cash for a car. Do not borrow money to buy a car. Come on over to the white coat investor and browse the many threads there about this subject.
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TomatoTomahto
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Re: Can I buy a Tesla?

Post by TomatoTomahto »

Now that I think of it, using Livesoft’s Rule, you probably can’t afford it. Livesoft’s Rule states that you can spend as much on a car as your portfolio has made or lost in a day.
I get the FI part but not the RE part of FIRE.
cutterinnj
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Re: Can I buy a Tesla?

Post by cutterinnj »

TomatoTomahto wrote: Sat Jun 30, 2018 4:36 pm Now that I think of it, using Livesoft’s Rule, you probably can’t afford it. Livesoft’s Rule states that you can spend as much on a car as your portfolio has made or lost in a day.

That might be a bit extreme.
Assuming you have a stable job, you should have a reliable, safe car. You may not be able to get this for $5k.

I don’t see an issue getting a Camry for $15k or so assuming you have a reliable salary.
ThriftyPhD
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Re: Can I buy a Tesla?

Post by ThriftyPhD »

TomatoTomahto wrote: Sat Jun 30, 2018 4:36 pm Now that I think of it, using Livesoft’s Rule, you probably can’t afford it. Livesoft’s Rule states that you can spend as much on a car as your portfolio has made or lost in a day.
So the only people who should own cars are those that are financially independent, or just went through a stock market crash and lost half their savings. Owning a 60/40 full market portfolio means you can buy less car than someone 2X levered on a single stock, since it would have much smaller swings in price. :D
TravelGeek
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Re: Can I buy a Tesla?

Post by TravelGeek »

Jack FFR1846 wrote: Sat Jun 30, 2018 12:28 pm This is the Boglehead dichotomy. Even a new Camry is wasteful. You must buy a 3 year old Camry so the depreciation is suffered by the first owner. Then keep that car for at least 10 years. To help pay for the car, maybe drive for Uber or get a second job.

-OR-

Buy a $100k brand new car because you can save the 2 minutes at the gas station.

Your choice. Either is acceptable.
Well, no. The argument was that the OP should not buy a Tesla because he couldn’t afford to spend time charging it (and even that may not have been entirely serious). The counter point was that this isn’t how EVs are used. But I don’t think anyone argued that you should buy a Tesla because it might actually save you time.
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Cramerica
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Re: Can I buy a Tesla?

Post by Cramerica »

cutterinnj wrote: Sat Jun 30, 2018 4:21 pm
Cramerica wrote: Fri Jun 29, 2018 2:35 pm
phisher4 wrote: Fri Jun 29, 2018 2:32 pm A few missing pieces of information:

How old are you?
How much do you have saved for retirement?
Do you have any debt?
32 and I am just starting my career as a specialist physician.

I have about $160k in retirement

About $60k in low interest ( <2%) debt

You're a new doctor?
ABSOLUTELY DO NOT BUY IT!

You just started and have minimal savings.
Put as much money away as you possibly can, and live below your means.

Medicine is a question mark; yes, you will likely make 400k next year, but Medicare reimbursement can change drastically from year to year, and you can't assume you're going to do well for the next 30 years.

You do NOT need a Tesla. Drive a comfortable, reliable car, and SAVE everything you can.
I completely agree with your overall sentiment. My question is at what point is enough enough?

If I avoid all major expenses and I am hard-core about savings, I’ll probably become financially independent in about 5-7 years.

But to what end? Financial independence to allow me to quit medicine or just give me the option? Going part time? Extreme early retirement?

My thought process was that I am already ahead of the game financially so it wouldn’t be a big deal to buy a Tesla. I would still max out all available retirement vehicles and save more on top of that.

I also do not plan to buy a house for at least three years.
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TomatoTomahto
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Re: Can I buy a Tesla?

Post by TomatoTomahto »

ThriftyPhD wrote: Sat Jun 30, 2018 6:18 pm
TomatoTomahto wrote: Sat Jun 30, 2018 4:36 pm Now that I think of it, using Livesoft’s Rule, you probably can’t afford it. Livesoft’s Rule states that you can spend as much on a car as your portfolio has made or lost in a day.
So the only people who should own cars are those that are financially independent, or just went through a stock market crash and lost half their savings. Owning a 60/40 full market portfolio means you can buy less car than someone 2X levered on a single stock, since it would have much smaller swings in price. :D
It would not surprise me to discover that Livesoft’s Rule was somewhat tongue in cheek.
I get the FI part but not the RE part of FIRE.
sudo
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Re: Can I buy a Tesla?

Post by sudo »

Cramerica wrote: Fri Jun 29, 2018 2:35 pm
phisher4 wrote: Fri Jun 29, 2018 2:32 pm A few missing pieces of information:

How old are you?
How much do you have saved for retirement?
Do you have any debt?
32 and I am just starting my career as a specialist physician.

I have about $160k in retirement

About $60k in low interest ( <2%) debt
Current med student here. How were you able to get <2% interest?
240U
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Re: Can I buy a Tesla?

Post by 240U »

TimeRunner wrote: Fri Jun 29, 2018 2:58 pm Your billable time is too valuable to be hanging around a charging station. Gas and get to work! :D
I say just the opposite. Your billable time is too valuable to be wasted filling an archaic ICE vehicle when it could be charging while you sleep every night.
HRPennypacker
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Re: Can I buy a Tesla?

Post by HRPennypacker »

TomatoTomahto wrote: Sat Jun 30, 2018 12:47 pm
HRPennypacker wrote: Sat Jun 30, 2018 12:38 pm Don't do it, Dr. OP. Tesla is a dumpster fire, the Model 3 is an overhyped embarrassment--I have multiple remorseful colleagues who can attest--and for half the price you can get a slightly-used something-else.
Gosh, that’s surprising. I talk to many Tesla owners, and I have yet to meet ONE remorseful owner.
They never express remorse publicly. But I hear them talking to each other, and they've let me into their circle of trust. The Model 3 is not that good, and while the Model S/X is considerably better, a lot of little things go wrong.
PhilosophyAndrew
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Re: Can I buy a Tesla?

Post by PhilosophyAndrew »

HRPennypacker wrote: Sun Jul 01, 2018 1:00 am
TomatoTomahto wrote: Sat Jun 30, 2018 12:47 pm
HRPennypacker wrote: Sat Jun 30, 2018 12:38 pm Don't do it, Dr. OP. Tesla is a dumpster fire, the Model 3 is an overhyped embarrassment--I have multiple remorseful colleagues who can attest--and for half the price you can get a slightly-used something-else.
Gosh, that’s surprising. I talk to many Tesla owners, and I have yet to meet ONE remorseful owner.
They never express remorse publicly. But I hear them talking to each other, and they've let me into their circle of trust. The Model 3 is not that good, and while the Model S/X is considerably better, a lot of little things go wrong.
Have there been any reputable surveys of Tesla owners’ satisfaction? Debating anecdotal evidence is silly.

I haven’t looked at its methodology, but apparently Tesla was ranked first in the 2016 and 2017 Consumer Reports’ owner satisfaction survey.

http://www.businessinsider.com/tesla-is ... ts-2017-12

We’ll have a sense in a few years whether this changes in the Model 3 era.

Andy.
JustinR
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Re: Can I buy a Tesla?

Post by JustinR »

No.

Get FI first (enough money to retire now), then think about what you want to splurge on.

Also, the Model 3 has many well known quality control issues:

The Biggest Problems Tesla Model 3 Owners Have Reported

Model 3 owners report quality problems. Do they care?

Tesla Model 3 Falls Short of a Consumer Reports Recommendation

Model 3 delivery issues continue even on late builds
Jack FFR1846
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Re: Can I buy a Tesla?

Post by Jack FFR1846 »

Cramerica wrote: Sat Jun 30, 2018 6:45 pm
I also do not plan to buy a house for at least three years.
Wait.

So do you need to figure in the cost of that 1000 foot extension cord from a 4th floor apartment to charge the thing?

Tesla owners seem to assume that everyone has a house with a garage where they can plop in a charging station.
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ThriftyPhD
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Re: Can I buy a Tesla?

Post by ThriftyPhD »

HRPennypacker wrote: Sun Jul 01, 2018 1:00 am
TomatoTomahto wrote: Sat Jun 30, 2018 12:47 pm
HRPennypacker wrote: Sat Jun 30, 2018 12:38 pm Don't do it, Dr. OP. Tesla is a dumpster fire, the Model 3 is an overhyped embarrassment--I have multiple remorseful colleagues who can attest--and for half the price you can get a slightly-used something-else.
Gosh, that’s surprising. I talk to many Tesla owners, and I have yet to meet ONE remorseful owner.
They never express remorse publicly. But I hear them talking to each other, and they've let me into their circle of trust. The Model 3 is not that good, and while the Model S/X is considerably better, a lot of little things go wrong.
Huh. So with tens/hundreds of thousands of owners, how do you think they manage the conspiracy to only portray happy customers publicly while remaining bitterly remorseful internally? How did you gain entry into the cabal, given their incredible cohesiveness? I wonder why other car makers are unable to pull off the same trick. Plenty of Honda/Toyota/etc owners are allowed to complain about their cars. What prevents Tesla owners from doing so?
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TomatoTomahto
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Re: Can I buy a Tesla?

Post by TomatoTomahto »

ThriftyPhD wrote: Sun Jul 01, 2018 9:00 am
HRPennypacker wrote: Sun Jul 01, 2018 1:00 am
TomatoTomahto wrote: Sat Jun 30, 2018 12:47 pm
HRPennypacker wrote: Sat Jun 30, 2018 12:38 pm Don't do it, Dr. OP. Tesla is a dumpster fire, the Model 3 is an overhyped embarrassment--I have multiple remorseful colleagues who can attest--and for half the price you can get a slightly-used something-else.
Gosh, that’s surprising. I talk to many Tesla owners, and I have yet to meet ONE remorseful owner.
They never express remorse publicly. But I hear them talking to each other, and they've let me into their circle of trust. The Model 3 is not that good, and while the Model S/X is considerably better, a lot of little things go wrong.
Huh. So with tens/hundreds of thousands of owners, how do you think they manage the conspiracy to only portray happy customers publicly while remaining bitterly remorseful internally? How did you gain entry into the cabal, given their incredible cohesiveness? I wonder why other car makers are unable to pull off the same trick. Plenty of Honda/Toyota/etc owners are allowed to complain about their cars. What prevents Tesla owners from doing so?
There’s a gang sign : we bang our heads with our left hand and give the middle finger in the direction of our car with the right hand. ETA: Gang sign, circle of trust, what’s the difference?

[sarcasm]If we say anything positive publically, it’s because of cognitive dissonance.[/sarcasm]
I get the FI part but not the RE part of FIRE.
chevca
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Re: Can I buy a Tesla?

Post by chevca »

OP, yes, you can buy a Tesla if you want.

Nothing much else to add. As a much more common man, I find this thread ridiculously funny.... no... absolutely not... get FI first... only on Bogleheads is someone about to make hundreds of thousands of dollars a year told they need to get their financial house in order before buying a decent car. It's not like the OP is making $50k/year and looking at a $50k car. :shock:
randomguy
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Re: Can I buy a Tesla?

Post by randomguy »

Jack FFR1846 wrote: Sun Jul 01, 2018 7:52 am
Cramerica wrote: Sat Jun 30, 2018 6:45 pm
I also do not plan to buy a house for at least three years.
Wait.

So do you need to figure in the cost of that 1000 foot extension cord from a 4th floor apartment to charge the thing?

Tesla owners seem to assume that everyone has a house with a garage where they can plop in a charging station.
Why wouldnt you just plug it into the charger next to your parking spot? Maybe I am assuming too much but doesn't everyone.who thinks about an EV think about their charging situation?
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Cramerica
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Re: Can I buy a Tesla?

Post by Cramerica »

My job has multiple charging stations for free.

My apartment has a lot of nearby chargers.
DH0
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Re: Can I buy a Tesla?

Post by DH0 »

Any interest in or plans for kids? I'm surprised this hasn't been mentioned already. If you have kids, your housing and childcare costs may be significant and limit your ability to save. Right now you have a nice window with a good salary, minimal expenses and no family obligations to get your financial house in order.

If you want kids, now is the time to button down and save. Frankly your NW is low for your age and status, and the future is uncertain. I would compromise and drive a fun but reliable $20k used luxury car for a few years. Very soon the halo around Tesla will fade, more cars will be available and, ironically, they will be better with the kinks having been worked out.

If you don't plan to have kids, FI is easy at your salary – go for it and enjoy.
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Cramerica
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Re: Can I buy a Tesla?

Post by Cramerica »

DH0 wrote: Sun Jul 01, 2018 11:54 am Any interest in or plans for kids? I'm surprised this hasn't been mentioned already. If you have kids, your housing and childcare costs may be significant and limit your ability to save. Right now you have a nice window with a good salary, minimal expenses and no family obligations to get your financial house in order.

If you want kids, now is the time to button down and save. Frankly your NW is low for your age and status, and the future is uncertain. I would compromise and drive a fun but reliable $20k used luxury car for a few years. Very soon the halo around Tesla will fade, more cars will be available and, ironically, they will be better with the kinks having been worked out.

If you don't plan to have kids, FI is easy at your salary – go for it and enjoy.
First kid is probably 3-5 years away.

Although NW looks low, it's above average for a graduating resident/fellow. Most people have a net worth of negative 200-250k at this point.
telecaster
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Re: Can I buy a Tesla?

Post by telecaster »

My humble 2 cents after growing a few grey hairs.

Are cars your passion and will it bring you actual happiness? If yes then go for it ... you might check out god forbid in a few years.

If the answer is no then don't buy it. It's a waste of money and a status symbol.

For me cars are a utility. I drive a 14 year old dodge.
If you aren't a car junkie, buy a 7 year old Honda and invest the large sums you'll save. Don't let stuff that isn't your passion drive your life.
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TheAccountant
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Re: Can I buy a Tesla?

Post by TheAccountant »

randomguy wrote: Fri Jun 29, 2018 8:05 pm
TheAccountant wrote: Fri Jun 29, 2018 7:49 pm
If you really want the car, I'd buy it and then daily drive something like I mentioned above to keep the miles off the 3 and keep resale up. If you don't want it after a year or two you can probably sell it for close to what you paid for it, given the current demand.
So you can spend 5k drive a beater and get 5k more when you sell you Model 3 with low miles in a couple years. Optmizing for resale (either house or cars) has never struck me as a great way of living. I think expecting demand to be high in 12-24 months is being optimistic. Demand for these type of cars dissipate quickly as production ramps. OP might do ok with tax credit phaseout but given the huge number of alternatives hitting the market over the next 6-36 months, I wouldn't bet on it.
That car will look like a POS in 3 years with heavy daily driver use.
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DanMahowny
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Re: Can I buy a Tesla?

Post by DanMahowny »

telecaster wrote: Sun Jul 01, 2018 1:05 pm My humble 2 cents after growing a few grey hairs.

Are cars your passion and will it bring you actual happiness? If yes then go for it ... you might check out god forbid in a few years.

If the answer is no then don't buy it. It's a waste of money and a status symbol.

For me cars are a utility. I drive a 14 year old dodge.
If you aren't a car junkie, buy a 7 year old Honda and invest the large sums you'll save. Don't let stuff that isn't your passion drive your life.
Great advice.
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Cramerica
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Re: Can I buy a Tesla?

Post by Cramerica »

Just wanted to update here since I got so many useful replies.

I bought the fully loaded model 3 :sharebeer
FoolStreet
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Re: Can I buy a Tesla?

Post by FoolStreet »

Cramerica wrote: Sat Aug 11, 2018 7:00 pm Just wanted to update here since I got so many useful replies.

I bought the fully loaded model 3 :sharebeer
Congrats! So excited for you!

Did you get AWD? FSD? Color combo? I am thinking light silver on black. Or blue on white. AWD and FSD. Aeros.

I’ve given my situation in other posts, so won’t digress, but I am waffling hard, basically on timing. I’d like to buy now in time for fall/winter road trip season, but realistically don’t have to rush yet.
Traveler
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Re: Can I buy a Tesla?

Post by Traveler »

With your income, I'd wait until I had the money to buy it for cash. I personally would hesitate on the Tesla because I think they will be bankrupt soon - bleeding cash and have debt due soon, but that's whole other story.
targetconfusion
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Re: Can I buy a Tesla?

Post by targetconfusion »

Cramerica wrote: Sat Aug 11, 2018 7:00 pm Just wanted to update here since I got so many useful replies.

I bought the fully loaded model 3 :sharebeer
Good for you. Cars are an odd mix of (1) practical necessity and (2) aesthetic consumption item - so which of the two are we after here? If (1) it's a hard "No, get (e.g.) a 5-year old Camry." If (2), then it's a function of your personal preferences. For some reason, cars polarize people that have no trouble spending for other personal enjoyment items, like vacations, or eating out, or rounds of golf. Maybe because cars, for most trying to save, are one of the easiest ways to knock down expenses and so reflexive aversion lingers even when finances permit (as yours do) car purchases above "this is an appliance and nothing more."

Your answers, and that you're posting at all, suggest to me you want it.

For all of its flaws, Tesla has done something pretty revolutionary in upending a (capital-intensive) market with giant incumbents that are now racing to follow suit. Maybe TSLA succeeds, maybe it fails. Either way, it will have left a mark on the world.
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StevieG72
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Re: Can I buy a Tesla?

Post by StevieG72 »

You can afford it!

Just don’t buy everything you can afford and forget to save for retirement!
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ny_rn
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Re: Can I buy a Tesla?

Post by ny_rn »

Do not buy this car. Not because you can't afford it, but this might trigger a trend of "I make enough, so I can afford it." One day you might wake up with all of this "stuff" and realize it's pretty much worthless. This will probably happen when you're headed to work and realize you could have stopped working if you saved and invested all that money you spent on stuff you could afford.

It's your money. Do what makes you happy.
cityscapex5
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Re: Can I buy a Tesla?

Post by cityscapex5 »

No financial reason not to if you're in the market for that class of car. It's an amazing vehicle and once you go electric everything else will seem like gaslight.
ColoradoNewBiker
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Re: Can I buy a Tesla?

Post by ColoradoNewBiker »

Cramerica wrote: Sat Aug 11, 2018 7:00 pm Just wanted to update here since I got so many useful replies.

I bought the fully loaded model 3 :sharebeer
Congrats! enjoy! :sharebeer
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HomerJ
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Re: Can I buy a Tesla?

Post by HomerJ »

chevca wrote: Sun Jul 01, 2018 9:16 am OP, yes, you can buy a Tesla if you want.

Nothing much else to add. As a much more common man, I find this thread ridiculously funny.... no... absolutely not... get FI first... only on Bogleheads is someone about to make hundreds of thousands of dollars a year told they need to get their financial house in order before buying a decent car. It's not like the OP is making $50k/year and looking at a $50k car. :shock:
It's real simple. Make the hundreds of thousands first, then buy stuff.

No one gets a pass because they are ABOUT TO make a bunch of money.
"The best tools available to us are shovels, not scalpels. Don't get carried away." - vanBogle59
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HomerJ
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Re: Can I buy a Tesla?

Post by HomerJ »

Cramerica wrote: Sat Aug 11, 2018 7:00 pm Just wanted to update here since I got so many useful replies.

I bought the fully loaded model 3 :sharebeer
Congrats. Where are you charging it?
"The best tools available to us are shovels, not scalpels. Don't get carried away." - vanBogle59
Bogle-007
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Re: Can I buy a Tesla?

Post by Bogle-007 »

I really cannot believe some of these replies, considering the average American household will easily drop 30k with a 50k household income. :happy
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Nate79
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Re: Can I buy a Tesla?

Post by Nate79 »

NewbieBogle007 wrote: Sun Aug 12, 2018 11:17 pm I really cannot believe some of these replies, considering the average American household will easily drop 30k with a 50k household income. :happy
The average American household is broke, in debt up to their eyeballs in consumer and student loans, living pay check to pay check and not saving for retirement. And yes, these average people make bad financial decisions as you describe.
ThePrince
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Re: Can I buy a Tesla?

Post by ThePrince »

Nate79 wrote: Sun Aug 12, 2018 11:33 pm
NewbieBogle007 wrote: Sun Aug 12, 2018 11:17 pm I really cannot believe some of these replies, considering the average American household will easily drop 30k with a 50k household income. :happy
The average American household is broke, in debt up to their eyeballs in consumer and student loans, living pay check to pay check and not saving for retirement. And yes, these average people make bad financial decisions as you describe.
+1
Valuethinker
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Re: Can I buy a Tesla?

Post by Valuethinker »

targetconfusion wrote: Sun Aug 12, 2018 1:28 pm
Cramerica wrote: Sat Aug 11, 2018 7:00 pm Just wanted to update here since I got so many useful replies.

I bought the fully loaded model 3 :sharebeer
Good for you. Cars are an odd mix of (1) practical necessity and (2) aesthetic consumption item - so which of the two are we after here? If (1) it's a hard "No, get (e.g.) a 5-year old Camry." If (2), then it's a function of your personal preferences. For some reason, cars polarize people that have no trouble spending for other personal enjoyment items, like vacations, or eating out, or rounds of golf. Maybe because cars, for most trying to save, are one of the easiest ways to knock down expenses and so reflexive aversion lingers even when finances permit (as yours do) car purchases above "this is an appliance and nothing more."

Your answers, and that you're posting at all, suggest to me you want it.

For all of its flaws, Tesla has done something pretty revolutionary in upending a (capital-intensive) market with giant incumbents that are now racing to follow suit. Maybe TSLA succeeds, maybe it fails. Either way, it will have left a mark on the world.
Compared to history, there are very few ways to demonstrate via consumption in modern life.

Conspicuous Consumption mostly boils down to your house and your car. And in middle class America, 3000 square foot houses are not uncommon, neither are cleaners (servants!). But big suburban subdivisions full of nearly identikit homes - hard to pull one on your neighbours*.

(we should understand that throughout western history, conspicuous consumption is a thing. Social class definition via how and what you consume. Having a green and well kept lawn meant you could afford servants to mow it. Humans seem to hardwired for it).

The hipster in your office has a $1000 iphone and the Apple watch. Car leasing means anyone in the top 80% of American incomes can afford to drive a newish looking car. Every middle class kid has straight, white teeth.

Cars polarize people because it is visible consumption, where we can all look up the cost.

Tesla, full credit to Elon Musk, has played that incredibly well. Creating "geek chic" if you will. Nobody is going to get a "Tesla nod" for driving a Nissan Leaf -- but a Tesla ....

* those who live in such places will expound on the differences between the 4 bedroom plan and the 5 bedroom plan, and the difference between the keystone lot and the corner lot, etc. etc. That we notice such things is just a sign of how hardwired the human ape is to such signals.
aqan
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Re: Can I buy a Tesla?

Post by aqan »

You can certainly afford it and if you wait you’ll loose out on the federal tax credit. I would go for it If i were you.
redbeard25
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Re: Can I buy a Tesla?

Post by redbeard25 »

Cramerica wrote: Fri Jun 29, 2018 2:35 pm
phisher4 wrote: Fri Jun 29, 2018 2:32 pm A few missing pieces of information:

How old are you?
How much do you have saved for retirement?
Do you have any debt?
32 and I am just starting my career as a specialist physician.

I have about $160k in retirement

About $60k in low interest ( <2%) debt
A doctor you say?? If you don't mind me asking, how much does college really cost to become a doctor?
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Cramerica
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Re: Can I buy a Tesla?

Post by Cramerica »

HomerJ wrote: Sun Aug 12, 2018 10:52 pm
Cramerica wrote: Sat Aug 11, 2018 7:00 pm Just wanted to update here since I got so many useful replies.

I bought the fully loaded model 3 :sharebeer
Congrats. Where are you charging it?
Thanks. My work has charging stations. I live in Southern California so there are charging stations everywhere.
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TomatoTomahto
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Re: Can I buy a Tesla?

Post by TomatoTomahto »

Cramerica wrote: Mon Aug 13, 2018 12:03 pm
HomerJ wrote: Sun Aug 12, 2018 10:52 pm
Cramerica wrote: Sat Aug 11, 2018 7:00 pm Just wanted to update here since I got so many useful replies.

I bought the fully loaded model 3 :sharebeer
Congrats. Where are you charging it?
Thanks. My work has charging stations. I live in Southern California so there are charging stations everywhere.
My brother-in-law just ordered a Model 3 to go with his Model S. He says that charging in California is a snap: at work and elsewhere. He only charges at home on rare occasions.
I get the FI part but not the RE part of FIRE.
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