Should I buy a Tesla?

pennylane · Post by **pennylane** » Thu Dec 13, 2018 7:52 am

I have had my eye on one for a couple years and have always driven beater cars ever since I got my first car. Typically Honda’s with high miles and no equipment.

26 years old, starting new job that will pay me in the tune of 150-220k. Wife’s income is 60-80k no debt except our very modest small home.

I value safety features and autopilot feature on the Tesla. I plan on getting the rear wheel drive with the mid range battery pack. 40k is a lot to spend on a car as I typically only buy cars in the 3-8k range.

Am I getting ahead of myself by spending this much on a car?

UPDATE 12/15/18

I test drove the Tesla yesterday, without a doubt I was impressed. I am now worried about Tesla’s ability to compete once other manufacturers start releasing comparable cars.

The whole Tesla sales model frankly sucks. These guys want you to pay retail for their car but will buy your car for wholesale.

Had I walked in to any other brand, they would of made a deal on the spot. I will not be buying a Tesla as their trade offer is $4,000 lower than anyone else.

It’s a shame, was ready to make the deal yesterday but their sales model is really... terrible. Other car manufacturers will be eating their lunch once they have a comparable car.

UPDATE 12/9/18

Considering getting a pre-owned model S - P85D

My thinking is it has already depreciated so it could be a better value. Also it is not the entry level vehicle and has auto pilot.

dsmclone · Post by **dsmclone** » Thu Dec 13, 2018 8:00 am

I think it's less about the Tesla and more about spending $40k on a new car. Is there anything forcing you to buy a new car? Are you going to take a loan? Sounds like you are just starting this new job, can you wait like a year and see how everything pans out?

livesoft · Post by **livesoft** » Thu Dec 13, 2018 8:16 am

Has your investment portfolio gained or lost $40,000 or more in a single day? If so, then yes, you can spend $40,000 on a car.

I have to write though, that I've never spent that amount on a car.

Other cars have similar safety features and are less expensive. Other cars will brake and adjust steering to stay in lanes. I've been in a Tesla for an extended road trip. I didn't notice anything different about autopilot than on another car I own, except the Tesla was confused about new roads not on a map without stripes. It was terribly confused by underpasses, too. I'm sure that's probably all fixed now.

bottlecap · Post by **bottlecap** » Thu Dec 13, 2018 8:31 am

You can afford it, but I would worry about lifestyle creep almost before I got my first paycheck.

Be honest with yourself, too. You are 26 and say you are attracted to the car for old people reasons. Really?

That said, at 26, advanced safety features don’t hurt, and might be well worth the $40k.

Good luck,

JT

mw1739 · Post by **mw1739** » Thu Dec 13, 2018 9:08 am

I think you can afford it, but the better question is where are you getting a Tesla for $40,000? I’m assuming it’s used for that price. How old and how many miles does it have?

Ed_Sandwich · Post by **Ed_Sandwich** » Thu Dec 13, 2018 9:13 am

Would you put $40k into an account that loses ~10% of its value per year? That's essentially what cars do. I'd advise against a $40k car. It's likely that you want one because it's such a giant step up from a beater. I would buy a used 'nicer' car for <$20k to satisfy your wants.

Personal anecdote: When I was your age I got a good job and ditched my ancient Civic for a 3 year old TSX, for under $20k. I loved the car but the newness wore off VERY quickly. The payments never wore off though. And they were not that high! I have bought the cheapest cars (for cash) with the features I want since then.

bh7785 · Post by **bh7785** » Thu Dec 13, 2018 9:13 am

Yes you should.

caffeperfavore · Post by **caffeperfavore** » Thu Dec 13, 2018 9:14 am

This sounds like something I would have done at your age.

At my current age, I regret having done those types of things. I wish I had the money back that I spent on flashier cars.

Collect a few pay checks and settle in before making any big purchases The job can go away or you may not like it. In general, cars are one of the worst things you can spend your money on, next to boats, and crystal meth.

onourway · Post by **onourway** » Thu Dec 13, 2018 9:14 am

Impossible to answer without more context, but your sentence 'starting a new job that will pay me... indicates a big NO. First rule of financial well being. Don't spend money you don't yet have.

Get your savings rate on track. Maximize all tax-advantaged space available to you. Get a solid buffer for an emergency fund, 3-6 months expenses. Do you own a house? Do you want to own a house? Do you have savings towards that goal if it's a want?

Get on top of all these issues, and once those buffers are all filled and long-term goals worked out - then - if you happen to have an extra $40k sitting around with nothing better to do with it and you still want a Tesla, by all means, do it.

pennylane · Post by **pennylane** » Thu Dec 13, 2018 9:15 am

mw1739 wrote: ↑Thu Dec 13, 2018 9:08 am I think you can afford it, but the better question is where are you getting a Tesla for $40,000? I’m assuming it’s used for that price. How old and how many miles does it have?

Model 3 after incentives its $38,700.

birdog · Post by **birdog** » Thu Dec 13, 2018 9:42 am

Musk stated last Sunday on 60 minutes that the company is billions (not millions) of dollars in debt (even with tax subsidies) and that if the model 3 does not sell well then the company will go bankrupt. Tax subsidies are no longer a given. Further, Musk's responses during the interview were less than confidence building for me. Also, every battery charge lowers the battery capacity and a new battery pack installation looks to run about $9K. Gas is cheaper than water in some instances. I just filled my tank for $2.08 a gallon on Monday. The U.S. is now a net exporter in oil. GM went in on electric and now they are discontinuing the Volt and closing plants. Ford invested instead in full size trucks and they are not closing plants. I wouldn't consider buying what seems to a certain extent to be another status symbol for doctors. But hey, that's just me.

viewer0 · Post by **viewer0** » Thu Dec 13, 2018 9:45 am

If I fall under AMT, do I still get the $7500 federal tax credit , or would it effectively nullify ?

pennylane · Post by **pennylane** » Thu Dec 13, 2018 9:48 am

birdog wrote: ↑Thu Dec 13, 2018 9:42 am Musk stated last Sunday on 60 minutes that the company is billions (not millions) of dollars in debt (even with tax subsidies) and that if the model 3 does not sell well then the company will go bankrupt. Tax subsidies are no longer a given. Further, Musk's responses during the interview were less than confidence building for me. Also, every battery charge lowers the battery capacity and a new battery pack installation looks to run about $9K. Gas is cheaper than water in some instances. I just filled my tank for $2.08 a gallon on Monday. The U.S. now a net exporter in oil. GM went in on electric and now they are discontinuing the Volt and closing plants. Ford invested instead in full size trucks and they are not closing plants. I wouldn't consider buying what seems to a certain extent to be another status symbol for doctors.

1. I don't care about how much debt the company has, virtually every company in the U.S. has massive debt. If Tesla goes belly up, chances are another company will pick it up and support service.

2. You're wrong about the tax subsidies, a quick google search will confirm that. They are however getting chopped in half in 2019.

3. I buy a gallon of water for $1. Gas is almost $3 where I'm at.

4. Don't care what GM is doing, they are a disaster in my opinion.

5. If I cared about status symbol, I'd pick up a 911.

JediMisty · Post by **JediMisty** » Thu Dec 13, 2018 9:49 am

onourway wrote: ↑Thu Dec 13, 2018 9:14 am Impossible to answer without more context, but your sentence 'starting a new job that will pay me... indicates a big NO. First rule of financial well being. Don't spend money you don't yet have.

Get your savings rate on track. Maximize all tax-advantaged space available to you. Get a solid buffer for an emergency fund, 3-6 months expenses. Do you own a house? Do you want to own a house? Do you have savings towards that goal if it's a want?

Get on top of all these issues, and once those buffers are all filled and long-term goals worked out - then - if you happen to have an extra $40k sitting around with nothing better to do with it and you still want a Tesla, by all means, do it.

+1

TomatoTomahto · Post by **TomatoTomahto** » Thu Dec 13, 2018 9:59 am

I don’t know your finances.

I am in my later 60s and have had many cars. I loved my first car, a beater when I was a teenager, because it gave me freedom. I have since owned many cars: a Mercedes I liked a lot, a Saab I liked a bit, and numerous other cars (many Range Rover hand-me-downs from my wife, and other supposedly luxury cars) that I didn’t give two hoots about. My Tesla (X) is the first car I’ve bought for myself in decades. I love it.. I waited 2.5 years post deposit for it, and have now owned it for 2.5 years. I love it every time I drive it. I would consider replacing it with a 5 seat X with a larger battery (100kw), as I have a very early (VIN 0002xx) 6 seat 90kw one, but the improvements aren’t worth it to me.

I have solar panels at home and am installing solar batteries soon. Other than tires and windshield wiper fluid, I’m set.

ETA: where did all the “Tesla going to $0” posters go?

pennylane · Post by **pennylane** » Thu Dec 13, 2018 10:08 am

onourway wrote: ↑Thu Dec 13, 2018 9:14 am Impossible to answer without more context, but your sentence 'starting a new job that will pay me... indicates a big NO. First rule of financial well being. Don't spend money you don't yet have.

Get your savings rate on track. Maximize all tax-advantaged space available to you. Get a solid buffer for an emergency fund, 3-6 months expenses. Do you own a house? Do you want to own a house? Do you have savings towards that goal if it's a want?

Get on top of all these issues, and once those buffers are all filled and long-term goals worked out - then - if you happen to have an extra $40k sitting around with nothing better to do with it and you still want a Tesla, by all means, do it.

Thanks for the input, I should of included this in my post.

I've been fortunate enough to have earned 6 figures right out of college and earning money through entrepreneurial activities during college.

I contribute 18.5k towards my 401k every year, I have a solid emergency fund, much bigger than it should be.. reason is because I plan on using 90% of it in the next 2 years

Yes I own a house, please refer back to my original post, it states that..

Investment portfolio is in the 6 figures. projected to hit 7 figures in 3-5 years.

bottlecap · Post by **bottlecap** » Thu Dec 13, 2018 10:10 am

Go for it. You didn’t need to ask.

JT

Texanbybirth · Post by **Texanbybirth** » Thu Dec 13, 2018 10:12 am

No, you shouldn't. Yes, you're getting ahead of yourself.

matjen · Post by **matjen** » Thu Dec 13, 2018 10:15 am

I'm here still Tomato! Not sure if I ever said $0 but it is a horrible stock. (Full disclosure, I am $35 underwater on my $333 imaginary shorts) just as Teslas are horribly made cars. How long have you been talking about Tesla roof tiles? They get as much press as the 35k Model 3...just as many out there in real life as well.

I was at a CFA luncheon last week where Joel Greenblatt was the featured speaker. Greenblatt runs Gotham Funds, has been teaching finance at Columbia for 25 years and is currently running the best performing equity fund for the past 3+ years. Gotham GENIX.

The Gotham Enhanced Return Fund (the "Fund") is a long/short U.S. equity fund with a net long exposure of 100% (e.g., 170% long vs. 70% short = 100% net long). The Fund seeks long-term capital appreciation greater than that of the S&P 500® Index over a full market cycle. Joel Greenblatt and Robert Goldstein are the Managing Principals and Co-CIOs of Gotham Asset Management, LLC, the Advisor to this Fund.

Although he really isn't a quant, in describing his strategy he basically loads up on a basket of undervalued stocks and shorts a basket of overvalued "story" stocks. There was only one stock he mentioned in his entire presentation and that was when he was describing the crazy valuations on the stocks he shorts. That stock was TSLA. He also admitted that a few stocks in that basket would pull through but the odds were heavily against.

As to OP's question, too much car too early. Isn't that car 51K before incentives and incentives incredibly iffy right now and sure to be sliced 50% within a week or so.

TomatoTomahto · Post by **TomatoTomahto** » Thu Dec 13, 2018 10:16 am

I forgot to mention: my BIL rented a model 3 recently, and we both drove it. He purchased a Model 3 to go with his Model S. It seemed a wonderful car for the short time I drove it. He reports being very happy with the 3 (as he is with the S).

pennylane · Post by **pennylane** » Thu Dec 13, 2018 10:18 am

TomatoTomahto wrote: ↑Thu Dec 13, 2018 10:16 am I forgot to mention: my BIL rented a model 3 recently, and we both drove it. He purchased a Model 3 to go with his Model S. It seemed a wonderful car for the short time I drove it. He reports being very happy with the 3 (as he is with the S).

Thanks for the post! I have never heard of an unsatisfied Tesla 3 owner so far

TomatoTomahto · Post by **TomatoTomahto** » Thu Dec 13, 2018 10:21 am

matjen wrote:I'm here still! Not sure if I ever said $0 but it is a horrible stock.

My recollection is that you were one of the more moderate shorts. Someone else (can’t remember username) said it was going to $0, Musk was going to jail, etc. He made it sound like both would happen before the year was up.

Btw, I wouldn’t buy Tesla stock, even if I bought individual stocks. I love the cars.

onourway · Post by **onourway** » Thu Dec 13, 2018 10:25 am

pennylane wrote: ↑Thu Dec 13, 2018 10:08 am
Thanks for the input, I should of included this in my post.

I've been fortunate enough to have earned 6 figures right out of college and earning money through entrepreneurial activities during college.

I contribute 18.5k towards my 401k every year, I have a solid emergency fund, much bigger than it should be.. reason is because I plan on using 90% of it in the next 2 years

Yes I own a house, please refer back to my original post, it states that..

Investment portfolio is in the 6 figures. projected to hit 7 figures in 3-5 years.

Sounds like if you want one you should buy one then. It's not going to make a material difference to your long-term finances.

fareastwarriors · Post by **fareastwarriors** » Thu Dec 13, 2018 10:30 am

Go for it. Enjoy the car.

matjen · Post by **matjen** » Thu Dec 13, 2018 10:32 am

TomatoTomahto wrote: ↑Thu Dec 13, 2018 10:21 am Btw, I wouldn’t buy Tesla stock, even if I bought individual stocks. I love the cars.

LOL. We are both too smart to invest real $$ on a single story stock but like arguing about the company.

mhc · Post by **mhc** » Thu Dec 13, 2018 10:41 am

Since you are starting a new job, I would wait a year to see how the job works out before you drop $40k.

I would also make sure you have a proper emergency fund and max out all tax advantaged accounts before spending $40k.

HomerJ · Post by **HomerJ** » Thu Dec 13, 2018 10:56 am

onourway wrote: ↑Thu Dec 13, 2018 9:14 am Impossible to answer without more context, but your sentence 'starting a new job that will pay me... indicates a big NO. First rule of financial well being. Don't spend money you don't yet have.

This.

When you can pay cash for it, you can buy it.

Get your savings rate on track. Maximize all tax-advantaged space available to you. Get a solid buffer for an emergency fund, 3-6 months expenses. Do you own a house? Do you want to own a house? Do you have savings towards that goal if it's a want?

Get on top of all these issues, and once those buffers are all filled and long-term goals worked out - then - if you happen to have an extra $40k sitting around with nothing better to do with it and you still want a Tesla, by all means, do it.

Great advice here.

HomerJ · Post by **HomerJ** » Thu Dec 13, 2018 10:59 am

pennylane wrote: ↑Thu Dec 13, 2018 10:08 am
onourway wrote: ↑Thu Dec 13, 2018 9:14 am Impossible to answer without more context, but your sentence 'starting a new job that will pay me... indicates a big NO. First rule of financial well being. Don't spend money you don't yet have.

Get your savings rate on track. Maximize all tax-advantaged space available to you. Get a solid buffer for an emergency fund, 3-6 months expenses. Do you own a house? Do you want to own a house? Do you have savings towards that goal if it's a want?

Get on top of all these issues, and once those buffers are all filled and long-term goals worked out - then - if you happen to have an extra $40k sitting around with nothing better to do with it and you still want a Tesla, by all means, do it.
Thanks for the input, I should of included this in my post.

I've been fortunate enough to have earned 6 figures right out of college and earning money through entrepreneurial activities during college.

I contribute 18.5k towards my 401k every year, I have a solid emergency fund, much bigger than it should be.. reason is because I plan on using 90% of it in the next 2 years

Yes I own a house, please refer back to my original post, it states that..

Investment portfolio is in the 6 figures. projected to hit 7 figures in 3-5 years.

Oh, then yes, you can buy a Tesla. Congrats!

RollTide31457 · Post by **RollTide31457** » Thu Dec 13, 2018 11:14 am

Stick with Honda. Or consider an F150.

pennylane · Post by **pennylane** » Thu Dec 13, 2018 11:37 am

RollTide31457 wrote: ↑Thu Dec 13, 2018 11:14 am Stick with Honda. Or consider an F150.

Why would I consider buying a gas guzzling oversized vehicle? especially since I have no use for a pickup.

matjen · Post by **matjen** » Thu Dec 13, 2018 11:55 am

pennylane wrote: ↑Thu Dec 13, 2018 11:37 am
Why would I consider buying a gas guzzling oversized vehicle? especially since I have no use for a pickup.

You shouldn't. But you should seriously look at a Hyundai Kona IMO. Getting great reviews. Company will be around in 5-10 years for sure. Great warranties. Fun to drive. Huge range. Autopilot stuff probably not quite at Tesla level but has radar cruise, lane keep assist, etc. It also has important things that Tesla doesn't have. Blind spot monitoring, heads-up display, Qi wireless charging, Apple CarPlay and Android Auto. Going without these things in a 50-125K car these days is mind boggling to me. On the bright side, the autonomous features won't drive you into a wall or fire truck. Also, if you get into a fender bender you won't wait months for repair.

Hyundai Kona, a game changer? | Fully Charged
https://www.youtube.com/watch?v=LATZ0g-Sz2s

https://www.youtube.com/watch?v=KIWX0hY3Msw

investor997 · Post by **investor997** » Thu Dec 13, 2018 1:20 pm

OP, you might want to review the thread I started:

viewtopic.php?f=11&t=260839

BTW - I LOVE the car, but don't count your chickens before they've hatched.

alfaspider · Post by **alfaspider** » Thu Dec 13, 2018 1:39 pm

livesoft wrote: ↑Thu Dec 13, 2018 8:16 am Has your investment portfolio gained or lost $40,000 or more in a single day? If so, then yes, you can spend $40,000 on a car.

That metric seems a bit silly. The market rarely swings more than 2-3% in a day. Under your test, you'd need around $1M in the market to buy any new car. A bit over-aggressive for a high-income young professional IMO.

OP: One thing to keep in mind is that if you take delivery after this month, the tax subsidy is cut in half. You may not be able to get one in time for the price to effectively increase. On the other hand, running costs should be significantly lower than an ICE vehicle. I'd say buying a $40k Tesla is probably pretty close economically to a $30k ICE car over a 7 year ownership period. It's a bit of a splurge, but not extravagant when you consider that a new Honda Accord can go well north of $30k.

Whakamole · Post by **Whakamole** » Thu Dec 13, 2018 1:47 pm

matjen wrote: ↑Thu Dec 13, 2018 11:55 am On the bright side, the autonomous features won't drive you into a wall or fire truck.

I have to comment on this. I recently was in a carpool, driver had a Model X with the auto features on. More than once did the car start jerking around because it thought it was the "safe" thing to do (it wasn't.) No desire to ride in one again.

On the other hand, I rode in a Bolt the other day and it was a pleasurable experience. Underrated car, owner was very happy with it.

HomerJ · Post by **HomerJ** » Thu Dec 13, 2018 1:49 pm

alfaspider wrote: ↑Thu Dec 13, 2018 1:39 pm
livesoft wrote: ↑Thu Dec 13, 2018 8:16 am Has your investment portfolio gained or lost $40,000 or more in a single day? If so, then yes, you can spend $40,000 on a car.

That metric seems a bit silly. The market rarely swings more than 2-3% in a day. Under your test, you'd need around $1M in the market to buy any new car. A bit over-aggressive for a high-income young professional IMO.

It's very silly.

MAYBE as a metric to buy a luxury car.

But not to just buy a car.

HomerJ · Post by **HomerJ** » Thu Dec 13, 2018 1:50 pm

Does the bottom line ($40k) Tesla have all the Auto-drive features?

mouses · Post by **mouses** » Thu Dec 13, 2018 2:17 pm

pennylane wrote: ↑Thu Dec 13, 2018 10:08 am
onourway wrote: ↑Thu Dec 13, 2018 9:14 am Impossible to answer without more context, but your sentence 'starting a new job that will pay me... indicates a big NO. First rule of financial well being. Don't spend money you don't yet have.

Get your savings rate on track. Maximize all tax-advantaged space available to you. Get a solid buffer for an emergency fund, 3-6 months expenses. Do you own a house? Do you want to own a house? Do you have savings towards that goal if it's a want?

Get on top of all these issues, and once those buffers are all filled and long-term goals worked out - then - if you happen to have an extra $40k sitting around with nothing better to do with it and you still want a Tesla, by all means, do it.
Thanks for the input, I should of included this in my post.

I've been fortunate enough to have earned 6 figures right out of college and earning money through entrepreneurial activities during college.

I contribute 18.5k towards my 401k every year, I have a solid emergency fund, much bigger than it should be.. reason is because I plan on using 90% of it in the next 2 years

Yes I own a house, please refer back to my original post, it states that..

Investment portfolio is in the 6 figures. projected to hit 7 figures in 3-5 years.

Go for it. My brother loves his.

mouses · Post by **mouses** » Thu Dec 13, 2018 2:19 pm

matjen wrote: ↑Thu Dec 13, 2018 11:55 am
pennylane wrote: ↑Thu Dec 13, 2018 11:37 am
Why would I consider buying a gas guzzling oversized vehicle? especially since I have no use for a pickup.
You shouldn't. But you should seriously look at a Hyundai Kona IMO. Getting great reviews. Company will be around in 5-10 years for sure. Great warranties. Fun to drive. Huge range. Autopilot stuff probably not quite at Tesla level but has radar cruise, lane keep assist, etc. It also has important things that Tesla doesn't have. Blind spot monitoring, heads-up display, Qi wireless charging, Apple CarPlay and Android Auto. Going without these things in a 50-125K car these days is mind boggling to me. On the bright side, the autonomous features won't drive you into a wall or fire truck. Also, if you get into a fender bender you won't wait months for repair.

Hyundai Kona, a game changer? | Fully Charged
https://www.youtube.com/watch?v=LATZ0g-Sz2s

https://www.youtube.com/watch?v=KIWX0hY3Msw

I looked at Hyundais when I was car shopping, The seats are designed for people with 14 year old bodies.

pennylane · Post by **pennylane** » Thu Dec 13, 2018 2:35 pm

HomerJ wrote: ↑Thu Dec 13, 2018 1:50 pm Does the bottom line ($40k) Tesla have all the Auto-drive features?

yes. RWD, Mid range (260miles) upgraded paint and auto-drive feature

hudson · Post by **hudson** » Thu Dec 13, 2018 2:49 pm

pennylane,

I would never personally buy anything like that unless:
I was debt free.
I had what I considered to be an adequate sized pile of AAA/AA fixed income investments to weather any "storms".
I was maxing out all available retirement opportunities including ibonds.

After saying that, it looks like you can afford it. I haven't shopped for one, but an old friend said that his cost for a Tesla was 60K. He loves it....even though he lives smack in the middle of jeep, four wheel drive, big truck country.

TomatoTomahto · Post by **TomatoTomahto** » Thu Dec 13, 2018 2:53 pm

pennylane wrote: ↑Thu Dec 13, 2018 2:35 pm
HomerJ wrote: ↑Thu Dec 13, 2018 1:50 pm Does the bottom line ($40k) Tesla have all the Auto-drive features?
yes. RWD, Mid range (260miles) upgraded paint and auto-drive feature

I have lost track of which cars get which breaks on Supercharging, and I don't know if you will have a charger at home or work, but something to include in your calculations is that a Tesla can be extraordinarily inexpensive to maintain. In almost 3 years, I've only paid for tires and replacing the AC filters. The brakes will last at least 100k miles, and since I'm good at one-pedal driving, probably 200k miles if I keep the car that long. No oil, obviously no gas, no emissions inspections, and any number of other benefits (HOV lane, EZpass discount, etc.).

Go for it. I would be stunned if you decided it wasn't a good call after you've had the car for a while.

finfire · Post by **finfire** » Thu Dec 13, 2018 2:59 pm

I calculated, based on the miles I do, that it is a dumb decision to buy a car worth more than 10K. Do you travel so many miles that the Tesla will save you money over the long term? If you do, go for it.

Otherwise, buy an appropriate car and do something smarter with the savings.

Only you should answer this question.

niceguy7376 · Post by **niceguy7376** » Thu Dec 13, 2018 3:13 pm

pennylane wrote: ↑Thu Dec 13, 2018 10:08 am I've been fortunate enough to have earned 6 figures right out of college and earning money through entrepreneurial activities during college.
Investment portfolio is in the 6 figures. projected to hit 7 figures in 3-5 years.

From my perspective, those two lines are good enough to buy a $40K car.

pennylane · Post by **pennylane** » Fri Dec 14, 2018 10:42 am

dbapaddy wrote: ↑Thu Dec 13, 2018 2:59 pm I calculated, based on the miles I do, that it is a dumb decision to buy a car worth more than 10K. Do you travel so many miles that the Tesla will save you money over the long term? If you do, go for it.

Otherwise, buy an appropriate car and do something smarter with the savings.

Only you should answer this question.

about 25k miles per year. This figure will drop to maybe 15k in 1-2 years.

wrongfunds · Post by **wrongfunds** » Fri Dec 14, 2018 6:30 pm

OP did not mention where he lives. If there is winter, then cut the stated range by at least 50%. You also usually don't charge it over 90% for daily use and shouldn't let it discharge below 20%. So take the range and divide by half and then take 60% of that.

Don't get me wrong, I love my P3D+ even with our outrageous electric prices. I bought it because it is stupidly fast. I purchase new vehicles every 20 odd years. I also completed paying college tuition for couple of kids.

And most importantly, my wife and kids did NOT do their job to put some good sense in to my head and should have prevented me from going completely crazy. I blame them squarely

Seriously, if you feel comfortable writing that $40K check, go for it. If you think you will be financing it, then reconsider your decision unless you can pay it off in couple of years.

bluquark · Post by **bluquark** » Fri Dec 14, 2018 7:53 pm

Americans are by and large too cavalier about safety. Having the maximum chance of protecting you and your family's life is an excellent reason to spend a lot on a car.

Americans are also too cavalier about the huge portion of their life they waste commuting. Autopilot and a pleasant driving behavior will make the most tedious part of your life significantly more bearable.

You can afford it and your reasons are good in my opinion, so ignore the naysayers who don't share your values and go for it.

BSBHead · Post by **BSBHead** » Fri Dec 14, 2018 8:28 pm

pennylane wrote: ↑Thu Dec 13, 2018 9:15 am
mw1739 wrote: ↑Thu Dec 13, 2018 9:08 am I think you can afford it, but the better question is where are you getting a Tesla for $40,000? I’m assuming it’s used for that price. How old and how many miles does it have?

Model 3 after incentives its $38,700.

I don't think you can get the mid-range batter pack for under $40k after incentives. You definitely cannot get the self-driving feature, but you can always download that at a later date.

I'm probably more open to it than most here as Tesla's in theory should last longer than any gas powered car with less maintenance costs. Questions to ask is if you have really good access to 220 volt charger at home? I know people who don't have that charger that are constantly trying to manage the logistics of a charge.

averagedude · Post by **averagedude** » Fri Dec 14, 2018 8:30 pm

You got the income to buy a Tesla, however i would suggest you keep buying beater cars only because you are 26 years old. Age is a big factor when you are factoring in opportunity costs of spending a large amount of money. Since you are so young, i would recommend that you write down a list of goals with action plans to achieve them. Does buying a new Tesla today hinder you of accomplishing your long term goals? Would postponing a large purchase and letting that money compound at a high rate of return for 30 years give you the resources to accomplish your goals? If you have done the math and you feel that your goals can be easily reachable and a purchase of a Tesla adds value to your life, then go ahead and buy it.

209south · Post by **209south** » Fri Dec 14, 2018 8:30 pm

If you are looking for a new car the Model 3 is the value play, even ignoring subsidies. You will save a lot on maintenance and will almost certainly save 50% or more on fuel depending where you live. I got my Model 3 six weeks ago to replace an Audi S4 and I am blown away. Anybody buying a midsize sports sedan should buy the 3 if they have a convenient charging solution.

BrandonBogle · Post by **BrandonBogle** » Fri Dec 14, 2018 9:11 pm

Pennylane, as others have chimed in, your income and current savings support making such an expense, but I still would honestly recommend you wait until you've had a few months into the new job before you make any big decisions -- unless your current vehicle has broken down. While you have good savings and income, you don't want to let lifestyle creep get ahead of you. With the number of miles you drive, you will want to take a serious look to see if charging would be convenient for you.

On the flip side, if you have looked at all this and its an itch you desire to scratch (we all have our vices), I added a Mid-Range Model 3 to my garage alongside my S 85. The vehicle is great, fun to drive, and Tesla has come a long way between my 2013 S and the 2018 3. I knew getting the mid-range wouldn't have high-end performance, but my Teslas are plenty fast enough for me. The range in 3 is the same as my S and that hasn't been an issue traveling all around the East Coast US. My S has over 78k miles on it and its still a pleasure to drive every time I get into it.

So I'm afraid I haven't helped you too much. As a techie and a fan of Teslas, its a great car to get if that's what you love (there are also plenty of other great cars too, it depends on if you love them). As a Bogleheads, it would be prudent to think with you mind first, have a budget for splurging after you've met the savings and other such goals, and then let your heart decide what you want.

Either way, I don't think you will be making a bad choice.