Opinions on buying both a Tesla and a Lexus

[WestCoastLiving1]

I'd like to buy a Tesla Model X which could cost about $120,000 or approximately $2000 a month if I leased it instead. I need another car as well and want to buy a Lexus RX350 which would cost around $60,000.

Currently I'm getting about $13,000 a month in passive income after taxes and usually save between $1,000-$2,500 a month. I have about $2,450,000 in liquid net worth.

I have very little debt, maybe $20K or so.

EDIT: To clarify, I need 2 cars so I was thinking about buying both. The Tesla would be for me. I will not be driving both.

[exodusNH]

I'd like to buy a Tesla Model X which could cost about $120,000 or approximately $2000 a month if I leased it instead. I need another car as well and want to buy a Lexus RX350 which would cost around $60,000.

Currently I'm getting about $13,000 a month in passive income after taxes and usually save between $1,000-$2,500 a month. I have about $2,450,000 in liquid net worth.

I have very little debt, maybe $20K or so.

The Toyota is almost certainly going to be more reliable and MUCH easier to get repaired. I suspect the resale value will be much higher, too.

Tesla just implemented a huge price cut on some of their vehicles. That gives you a good idea of how much margin the have. (In other words, the intrinsic value of the vehicle is much lower than MSRP. There are many competitors ramping up that will be able to offer similar features at a lower cost.)

[WestCoastLiving1]

I'd like to buy a Tesla Model X which could cost about $120,000 or approximately $2000 a month if I leased it instead. I need another car as well and want to buy a Lexus RX350 which would cost around $60,000.

Currently I'm getting about $13,000 a month in passive income after taxes and usually save between $1,000-$2,500 a month. I have about $2,450,000 in liquid net worth.

I have very little debt, maybe $20K or so.

The Toyota is almost certainly going to be more reliable and MUCH easier to get repaired. I suspect the resale value will be much higher, too.

Tesla just implemented a huge price cut on some of their vehicles. That gives you a good idea of how much margin the have. (In other words, the intrinsic value of the vehicle is much lower than MSRP. There are many competitors ramping up that will be able to offer similar features at a lower cost.)

I agree Toyota and Lexus have good reviews online for reliability. I need to buy 2 cars, so I was thinking of buying both the Tesla and the Lexus as opposed to other brands or cheaper car options.

[jjunk]

Why not just get two Lexus's and save 60K? You should also kill off your small debt since it would be easy to do with what you make atm (unless its just short term no interest debt, then it doesnt matter).

[Watty]

You had another thread where you were thinking about renting a place for $10K a month.

I don't know anything else about your situation or finances but you seem very well off, but not "Lifestyles of the Rich and Famous" rich so you need to be careful.

There are lots of athletes, rock stars, and lottery winners who had a lot more than you seem to have but they ran into problems with overspending.

The Lexus for $60K is not so bad since a less expensive alternative might cost $45K so in some ways it is only a $15K splurge with going with a higher end model. It should also last a long time and be reliable.

An old saying, "You can pretty much afford anything you want, but not everything you want.". Consider what you else you will not be able to afford if you both these cars.

I am not really a car person but I would think there are a lot better alternative cars to the Tesla if you are going to spend $120K on a car. You might start another thread asking for suggestions about what car to buy if you are going to spend that much.

Maybe in addition to your $2.4 million liquid net worth you mentioned you also have several million more in other assets or a high income in addition to the passive income that you did not mention. That could make buying the cars more reasonable.

[WestCoastLiving1]

Why not just get two Lexus's and save 60K? You should also kill off your small debt since it would be easy to do with what you make atm (unless its just short term no interest debt, then it doesnt matter).

I do like the Lexus, but it would be nice to have something else in addition to the Lexus. I suppose instead of the $120K Tesla I could consider a less expensive alternative even though I do love the Tesla...

[126inc]

so 2.5MM and also ~250K in passive income? sure why not if your other expenses aren't out of control and this passive income is going to continue

[WestCoastLiving1]

You had another thread where you were thinking about renting a place for $10K a month.

I don't know anything else about your situation or finances but you seem very well off, but not "Lifestyles of the Rich and Famous" rich so you need to be careful.

There are lots of athletes, rock stars, and lottery winners who had a lot more than you seem to have but they ran into problems with overspending.

The Lexus for $60K is not so bad since a less expensive alternative might cost $45K so in some ways it is only a $15K splurge with going with a higher end model. It should also last a long time and be reliable.

An old saying, "You can pretty much afford anything you want, but not everything you want.". Consider what you else you will not be able to afford if you both these cars.

I am not really a car person but I would think there are a lot better alternative cars to the Tesla if you are going to spend $120K on a car. You might start another thread asking for suggestions about what car to buy if you are going to spend that much.

Maybe in addition to your $2.4 million liquid net worth you mentioned you also have several million more in other assets or a high income in addition to the passive income that you did not mention. That could make buying the cars more reasonable.

I was able to resolve my rent situation. I am not currently paying that much thank goodness. I am not sure what else I would not be able to afford. I am able to cover everything else. Usually my "luxuries" are limited. I do not spend excessively on things such as fine dining, etc. I will look into alternatives to the Tesla even though I really love it. I know there are many nice cars that cost a lot less. I have other assets but they are illiquid.

[WestCoastLiving1]

so 2.5MM and also ~250K in passive income? sure why not if your other expenses aren't out of control and this passive income is going to continue

It is around $150K. But it would just be a major expense for me all at one time paying $180K for a couple cars. I've never spent $120K on a car before. I will research into less expensive cars because there are many that are fantastic.

[BrandonBogle]

so 2.5MM and also ~250K in passive income? sure why not if your other expenses aren't out of control and this passive income is going to continue

It is around $150K. But it would just be a major expense for me all at one time paying $180K for a couple cars. I've never spent $120K on a car before. I will research into less expensive cars because there are many that are fantastic.

Any particular reason why you specifically were looking at Tesla Model X Performance Plaid? If you really want a performance model Tesla SUV, you could also look at the Y, which would be half the price of the X.

Without knowing the details around why two cars suddenly is desired, it’s hard to advise. As a one-time expense, you can afford it. But if you live in a HCOL area, the passive income could disappear, or a myriad of other things, that’s plenty to spend suddenly.

Side note, it sounds like you are renting vs. owning a home. If you do go electric (regardless of brand), be sure you can have charging at home. Waking up to a fully charged car is good. Waking up and then having to go to a charger for some time will get old fast.

[idc]

What do you want to do with the cars?

Would you be able to describe why those brands and how you'd like to use them? Almost feels like you'd like to buy/lease just because they are brands that make certain statements than for other practical reasons. Not criticizing, and not being judgemental, just curious. And try to be honest with yourself

Do you need or want two cars? How are you going to use them? Any particular reason you want an EV and ICE/hybrid? Since you're thinking of leasing the Tesla, reliability is not a consideration, since you're covered by warranty.

Again, not being judgemental, just curious. If you're driven by brands, then why and the question would be more about what statements you'd like to make around you, rather than other considerations, and that is totally fine. Just be honest with yourself, even though it might come across as bragging on this forum

Have fun with your selection.

[goodLife]

I'd like to buy a Tesla Model X which could cost about $120,000 or approximately $2000 a month if I leased it instead. I need another car as well and want to buy a Lexus RX350 which would cost around $60,000.

Currently I'm getting about $13,000 a month in passive income after taxes and usually save between $1,000-$2,500 a month. I have about $2,450,000 in liquid net worth.

I have very little debt, maybe $20K or so.

EDIT: To clarify, I need 2 cars so I was thinking about buying both

What is your question?

[LongMoney]

You're on the wrong forum if you think a boglehead is going to tell you that this is a good idea

[RobLyons]

Opinion? You can easily afford it. It's not the most Boglehead thing to do but that model x plaid would be a lot of fun.

[galawdawg]

I'd like to buy a Tesla Model X which could cost about $120,000 or approximately $2000 a month if I leased it instead. I need another car as well and want to buy a Lexus RX350 which would cost around $60,000.

Currently I'm getting about $13,000 a month in passive income after taxes and usually save between $1,000-$2,500 a month. I have about $2,450,000 in liquid net worth.

I have very little debt, maybe $20K or so.

EDIT: To clarify, I need 2 cars so I was thinking about buying both

Since you mentioned in your "Opinions on spending $10k per month in rent" thread that the apartment was just going to be for you (and family when they visit), why do you need two (2) cars?

Recognizing the difference between needs and wants is a key aspect of financial success!

By the way, congratulations on paying down your credit card debt from $60k in May to $20k now.

[WestCoastLiving1]

I'd like to buy a Tesla Model X which could cost about $120,000 or approximately $2000 a month if I leased it instead. I need another car as well and want to buy a Lexus RX350 which would cost around $60,000.

Currently I'm getting about $13,000 a month in passive income after taxes and usually save between $1,000-$2,500 a month. I have about $2,450,000 in liquid net worth.

I have very little debt, maybe $20K or so.

EDIT: To clarify, I need 2 cars so I was thinking about buying both

Since you mentioned in your "Opinions on spending $10k per month in rent" thread that the apartment was just going to be for you (and family when they visit), why do you need two (2) cars?

Recognizing the difference between needs and wants is a key aspect of financial success!

By the way, congratulations on paying down your credit card debt from $60k in May to $20k now.

I won't be driving both cars. Only the Tesla would be for me.

[WestCoastLiving1]

Opinion? You can easily afford it. It's not the most Boglehead thing to do but that model x plaid would be a lot of fun.

I guess I'm just not used to spending that much on cars. It's kind of a big deal for me personally spending $120K on only 1 car.

[galawdawg]

I'd like to buy a Tesla Model X which could cost about $120,000 or approximately $2000 a month if I leased it instead. I need another car as well and want to buy a Lexus RX350 which would cost around $60,000.

Currently I'm getting about $13,000 a month in passive income after taxes and usually save between $1,000-$2,500 a month. I have about $2,450,000 in liquid net worth.

I have very little debt, maybe $20K or so.

EDIT: To clarify, I need 2 cars so I was thinking about buying both

Since you mentioned in your "Opinions on spending $10k per month in rent" thread that the apartment was just going to be for you (and family when they visit), why do you need two (2) cars?

Recognizing the difference between needs and wants is a key aspect of financial success!

By the way, congratulations on paying down your credit card debt from $60k in May to $20k now.

I won't be driving both cars. Only the Tesla would be for me.

So who is the second car for? A gift for a friend? A spare for family to use when they visit?

[Jags4186]

You have no cars right now and want to buy 2? Or you want to upgrade vehicles?

I wouldn’t buy 2 new cars. That means you typically have to replace two cars at the same time every time. Get whatever car you want most and keep whatever car you have that’s in best shape. Then in 4 or 5 years get a second car.

[Leesbro63]

I'd like to buy a Tesla Model X which could cost about $120,000 or approximately $2000 a month if I leased it instead. I need another car as well and want to buy a Lexus RX350 which would cost around $60,000.

Currently I'm getting about $13,000 a month in passive income after taxes and usually save between $1,000-$2,500 a month. I have about $2,450,000 in liquid net worth.

I have very little debt, maybe $20K or so.

EDIT: To clarify, I need 2 cars so I was thinking about buying both. The Tesla would be for me. I will not be driving both.

A few comments:
1. A $2000/month leased car is, in my opinion, absolute financial insanity for a person with $156,000 of after tax income and under $3M net worth. Frankly it's insanity for someone with even much more than that. Warren Buffett would never spend that much on any combination of cars.

2. Even the Lexus seems pricey for your level of income and wealth. That being said, I just traded my 2020RX350 for a 2023RX350h (hybrid) and it's a FABULOUS vehicle. But when I was at your financial point I never would have considered spending that much on a vehicle. Sorry to be so blunt.

[Valuethinker]

I'd like to buy a Tesla Model X which could cost about $120,000 or approximately $2000 a month if I leased it instead. I need another car as well and want to buy a Lexus RX350 which would cost around $60,000.

Currently I'm getting about $13,000 a month in passive income after taxes and usually save between $1,000-$2,500 a month. I have about $2,450,000 in liquid net worth.

I have very little debt, maybe $20K or so.

EDIT: To clarify, I need 2 cars so I was thinking about buying both

1. you can afford it. However your "burn rate" (your level of ongoing expenses) is quite high it seems?

2. With $20k debt I wouldn't be thinking of doing anything until I had repaid that debt. Debt is just very expensive because it's after-tax dollars.

3. There *is* an advantage to leasing an EV. There's a lot of technology change going on. Also more and more new models. In 3 years' time there will be new models.

4. Normal rule of thumb is cost of car pa = gas + insurance + repairs + depreciation + financing cost if borrowed money

Depreciation = price / 10 years life, assume no resale value after 10 years (conservative)

So a $120k car is going to cost you $12k pa = $1k pcm in depreciation. But only if you hold your cars for 10 years - if you habitually change them sooner, your depreciation cost is likely to be higher.

There's no doubt the Lexus is a reasonable buy in the luxury car class. Whether you need the $120k Tesla is another story. There should be better cars & possibly quite a bit cheaper in 2-3 years time. Perhaps find a cheaper alternative?

[saagar_is_cool]

Why don’t you look at Tesla Model Y

[bradinsky]

I'd like to buy a Tesla Model X which could cost about $120,000 or approximately $2000 a month if I leased it instead. I need another car as well and want to buy a Lexus RX350 which would cost around $60,000.

Currently I'm getting about $13,000 a month in passive income after taxes and usually save between $1,000-$2,500 a month. I have about $2,450,000 in liquid net worth.

I have very little debt, maybe $20K or so.

EDIT: To clarify, I need 2 cars so I was thinking about buying both. The Tesla would be for me. I will not be driving both.

A few comments:
1. A $2000/month leased car is, in my opinion, absolute financial insanity for a person with $156,000 of after tax income and under $3M net worth. Frankly it's insanity for someone with even much more than that. Warren Buffett would never spend that much on any combination of cars.

2. Even the Lexus seems pricey for your level of income and wealth. That being said, I just traded my 2020RX350 for a 2023RX350h (hybrid) and it's a FABULOUS vehicle. But when I was at your financial point I never would have considered spending that much on a vehicle. Sorry to be so blunt.

Get serious. A $55K Lexus isn’t out of line for them. The days of cheap new vehicles are gone. The average cost of a new vehicle near the end of 2022 was about $48K. The OP makes enough money to drive whatever they wish. Me, I wouldn’t mind making that kind of passive income. I drive a 2022 RX350 & I’m on social security. Does that make me some kind of crazy spendthrift?

[galawdawg]

Plus it appears that OP's passive income has increased significantly from $8k/mo last May to $13k/mo after taxes now and his portfolio value is nearly the same despite the market decline from last May to now! Perhaps OP needs to share his investing secrets.

[TomatoTomahto]

[snip…] his portfolio value is nearly the same despite the market decline from last May to now! Perhaps OP needs to share his investing secrets.

We did as well; I have the secret: just close your eyes and keep adding new money to the portfolio every month.

[galawdawg]

[snip…] his portfolio value is nearly the same despite the market decline from last May to now! Perhaps OP needs to share his investing secrets.

We did as well; I have the secret: just close your eyes and keep adding new money to the portfolio every month.

That works great when you have new money to add! That's what we did in 2008-2009 when I was still working. Cut back a little on spending and shoveled the surplus into VTSAX. I love a good sale!

[Jack FFR1846]

Have you tested the Audi Q Tron? Or the Q Tron GT? Both are "real" cars that happen to be electric. Unlike the Tesla, which I find to be tupperware with a great motor and great charging system, sitting in the Audi, you almost think that they put you in the wrong car and you're in a luxury ICE car until you start driving. The Q Tron is half the price of the Tesla.

For the Lexus, I'd look at used ones to see how they hold up depreciation wise. Lexus goes forever with a model before making any changes. I've been looking at an is350 F sport that hasn't changed since 2013, so buying a decade old car can save me a bunch of money while driving a car that looks brand new. The good thing with a Lexus is that they last forever and if you're a do it yourselfer like me, there are tons of Toyotas in the junkyards with the same engines.

[TomatoTomahto]

[snip…] his portfolio value is nearly the same despite the market decline from last May to now! Perhaps OP needs to share his investing secrets.

We did as well; I have the secret: just close your eyes and keep adding new money to the portfolio every month.

That works great when you have new money to add! That's what we did in 2008-2009 when I was still working. Cut back a little on spending and shoveled the surplus into VTSAX. I love a good sale!

And, apropos of this thread, I might add that I resisted the temptation to get a new car to replace my 2016 Model X - it still works fine. I enjoy my portfolio keeping up with market losses more than I would a shiny new car.

[Valuethinker]

[snip…] his portfolio value is nearly the same despite the market decline from last May to now! Perhaps OP needs to share his investing secrets.

We did as well; I have the secret: just close your eyes and keep adding new money to the portfolio every month.

That works great when you have new money to add! That's what we did in 2008-2009 when I was still working. Cut back a little on spending and shoveled the surplus into VTSAX. I love a good sale!

And, apropos of this thread, I might add that I resisted the temptation to get a new car to replace my 2016 Model X - it still works fine. I enjoy my portfolio keeping up with market losses more than I would a shiny new car.

Unless one buys used vehicles, I think the 10 year to keep rule of thumb seems to work. (Doubtless we can all find exceptions eg high annual mileage drivers).

[SlowMovingInvestor]

I would consider a Mustang Mach-E over a model Y.

Or if I wanted to splurge, a Porsche Taycan.

[JoeRetire]

I'd like to buy a Tesla Model X which could cost about $120,000 or approximately $2000 a month if I leased it instead. I need another car as well and want to buy a Lexus RX350 which would cost around $60,000.

Currently I'm getting about $13,000 a month in passive income after taxes and usually save between $1,000-$2,500 a month. I have about $2,450,000 in liquid net worth.

I have very little debt, maybe $20K or so.

EDIT: To clarify, I need 2 cars so I was thinking about buying both. The Tesla would be for me. I will not be driving both.

What is your question?

Are you asking if you can afford it? Based on the limited data you provided, you probably can.
Are you asking if Tesla and Lexus are good car brands? They are.

My opinion is that I would never spend $60k on a car, never mind $120k. But I'm not you. Everyone gets to decide how they want to spend their own money.

[Leesbro63]

I'd like to buy a Tesla Model X which could cost about $120,000 or approximately $2000 a month if I leased it instead. I need another car as well and want to buy a Lexus RX350 which would cost around $60,000.

Currently I'm getting about $13,000 a month in passive income after taxes and usually save between $1,000-$2,500 a month. I have about $2,450,000 in liquid net worth.

I have very little debt, maybe $20K or so.

EDIT: To clarify, I need 2 cars so I was thinking about buying both. The Tesla would be for me. I will not be driving both.

A few comments:
1. A $2000/month leased car is, in my opinion, absolute financial insanity for a person with $156,000 of after tax income and under $3M net worth. Frankly it's insanity for someone with even much more than that. Warren Buffett would never spend that much on any combination of cars.

2. Even the Lexus seems pricey for your level of income and wealth. That being said, I just traded my 2020RX350 for a 2023RX350h (hybrid) and it's a FABULOUS vehicle. But when I was at your financial point I never would have considered spending that much on a vehicle. Sorry to be so blunt.

Get serious. A $55K Lexus isn’t out of line for them. The days of cheap new vehicles are gone. The average cost of a new vehicle near the end of 2022 was about $48K. The OP makes enough money to drive whatever they wish. Me, I wouldn’t mind making that kind of passive income. I drive a 2022 RX350 & I’m on social security. Does that make me some kind of crazy spendthrift?

Ok, you're actually right upon further thought. I fully fess up! About the Lexus. I guess the $2000/month-for-a-Tesla thing shocked me. But yeah, the $55K Lexus RX is actually a good value because it will run forever and/or provide decent resale value of the OP doesn't keep it forever.

I stand corrected!

[snackdog]

I suggest his and hers (or his) Lexi. Get twin Lexus RX. Skip the over-priced Tesla trash.

[Ricola]

Why not just get two Lexus's and save 60K? You should also kill off your small debt since it would be easy to do with what you make atm (unless its just short term no interest debt, then it doesnt matter).

Better yet just save some and get two Toyotas, it's the same car. Nix on Model X: https://www.msn.com/en-us/money/persona ... =windirect

[JupiterJones]

Sometimes I wonder if I'm in the right forum.

[TheOscarGuy]

I'd like to buy a Tesla Model X which could cost about $120,000 or approximately $2000 a month if I leased it instead. I need another car as well and want to buy a Lexus RX350 which would cost around $60,000.

Currently I'm getting about $13,000 a month in passive income after taxes and usually save between $1,000-$2,500 a month. I have about $2,450,000 in liquid net worth.

I have very little debt, maybe $20K or so.

EDIT: To clarify, I need 2 cars so I was thinking about buying both. The Tesla would be for me. I will not be driving both.

My opinion: X is way overpriced for what its worth.
I'd buy lexus (I assume hybrid?)
If I must get another car and dead set on tesla, I'd get a Y not X.

[TomatoTomahto]

I'd like to buy a Tesla Model X which could cost about $120,000 or approximately $2000 a month if I leased it instead. I need another car as well and want to buy a Lexus RX350 which would cost around $60,000.

Currently I'm getting about $13,000 a month in passive income after taxes and usually save between $1,000-$2,500 a month. I have about $2,450,000 in liquid net worth.

I have very little debt, maybe $20K or so.

EDIT: To clarify, I need 2 cars so I was thinking about buying both. The Tesla would be for me. I will not be driving both.

My opinion: X is way overpriced for what its worth.
I'd buy lexus (I assume hybrid?)
If I must get another car and dead set on tesla, I'd get a Y not X.

Yes. I bought an X about 7 years ago, when there weren't many options. If I were to do it today, and it had to be a Tesla, it'd be a Y.

[sureshoe]

Sometimes I wonder if I'm in the right forum.

This is the exception not the rule. Spending $120k on a depreciating asset and then buying another $60k one as a spare seems completely ludicrous to me. If the individual was intolerably wealthy, maybe. But the situation described by the OP is not that.

These forums clearly trend to wealthier people, but most of the advice is good advice for people all the way down on the spectrum earning $50k/year trying to get a few percentage points into a 401k. In this case > don't spend large amounts of your income on cars. Especially if you're only saving a couple thousand dollars a month. To put in perspective, if you take the net value of all vehicles in our family (around $40k), we save 2x their value every year (around $80k). There is no perfect rule of thumb, but if you're spending more on cars than your saving (regardless of income level), your finances are broken. Exception might be you're retired/super-rich/etc.

And to be clear > if someone said "a Tesla Model X is my dream car" (like some people do with Porsches/etc, fine) - then I might have a different opinion. But this is so out of whack, I wouldn't be surprised if it's a troll.

[sureshoe]

I'd like to buy a Tesla Model X which could cost about $120,000 or approximately $2000 a month if I leased it instead. I need another car as well and want to buy a Lexus RX350 which would cost around $60,000.

Currently I'm getting about $13,000 a month in passive income after taxes and usually save between $1,000-$2,500 a month. I have about $2,450,000 in liquid net worth.

I have very little debt, maybe $20K or so.

EDIT: To clarify, I need 2 cars so I was thinking about buying both. The Tesla would be for me. I will not be driving both.

A few comments:
1. A $2000/month leased car is, in my opinion, absolute financial insanity for a person with $156,000 of after tax income and under $3M net worth. Frankly it's insanity for someone with even much more than that. Warren Buffett would never spend that much on any combination of cars.

2. Even the Lexus seems pricey for your level of income and wealth. That being said, I just traded my 2020RX350 for a 2023RX350h (hybrid) and it's a FABULOUS vehicle. But when I was at your financial point I never would have considered spending that much on a vehicle. Sorry to be so blunt.

Get serious. A $55K Lexus isn’t out of line for them. The days of cheap new vehicles are gone. The average cost of a new vehicle near the end of 2022 was about $48K. The OP makes enough money to drive whatever they wish. Me, I wouldn’t mind making that kind of passive income. I drive a 2022 RX350 & I’m on social security. Does that make me some kind of crazy spendthrift?

There is a big difference between saying "I want to buy a $60k car" and saying "I want to buy both a $120k and $60k car". There is nothing above that suggests there is income to support that. There is also no indication of existing vehicles with some existing value. Cutting a check (or financing) $200k flat on depreciating assets makes one a crazy spendthrift unless there is dramatic income to support it.

You drive a $48k car, fine. I'm assuming you had a trade in or something that offset that cost at least a little (unless you ran your previous car completely into the ground). I'm also assuming you have a portfolio you're drawing down. BIG difference here.

[Watty]

But yeah, the $55K Lexus RX is actually a good value because it will run forever and/or provide decent resale value of the OP doesn't keep it forever.

Not sure where the $55K figure came from since the original post was about a $60K Lexus.

Either way the OP can afford it and it might be a reasonable choice but I would have hard time calling it a "good value" since the OP could likely buy a similar non-luxury SUV like a Toyota Highlander for the low $40s.

[the_wiki]

Your savings rate seems pretty low given all that income and coupled with having debt makes me think you need to get your spending under control before you add thousands in car payments per month.

[Leesbro63]

But yeah, the $55K Lexus RX is actually a good value because it will run forever and/or provide decent resale value of the OP doesn't keep it forever.

Not sure where the $55K figure came from since the original post was about a $60K Lexus.

Either way the OP can afford it and it might be a reasonable choice but I would have hard time calling it a "good value" since the OP could likely buy a similar non-luxury SUV like a Toyota Highlander for the low $40s.

Again, I guess I framed this entire discussion, in my mind, around the $2000 per month Tesla. I agree that a Lexus RX is only a good value relative to that. Relative to a $40-$45K Highlander it's less a good value. I just bought a new 2023 Lexus RX350h...the cheapest one I saw was about $50,000, most are between $55 and $60, the higher end ones are generally around $65 and the ultra luxury one is a few more grand than that. The best value OF THOSE VEHICLES is in the $55 to $56 range, I'd opine.

[billaster]

I suggest his and hers (or his) Lexi. Get twin Lexus RX. Skip the over-priced Tesla trash.

Even better, get seven Chevy Bolts. Then you can drive one car for every day of the week.

It's like those folks who say you need at least two pair of nice dress shoes so that you can let them "rest" on alternate days.

[WestCoastLiving1]

Thanks for the replies. I'm not sure how I could reply to everyone. One way I've been thinking about this purchase is that I do not withdraw from my capital. My expenses are within my passive income. Again, the RX would not be for me. For myself, I would like a car that makes me happy and that I enjoy. I think the Tesla would make me happy. I am also looking into other brands and vehicles in the same class but they are also very expensive. Specifically, I like the 2023 Range Rover but it is not much different price wise. I also like the Mercedes G Class a lot but it is very expensive too.

[cchrissyy]

hm
I haven't thought real deeply on the question what income and assets does it take before a person can afford to buy somebody a new lexus as a gift.

you have no debt, liquid assets of $2.4m, $13k per month of investment income, and maybe also earned income of some unstated amount?

hm

ok fine, you can afford for $60k of those assets to disappear into the car gift. i wouldn't advise it but the reasoning isn't affordability.

[SevenBridgesRoad]

I'd like to buy a Tesla Model X which could cost about $120,000 or approximately $2000 a month if I leased it instead. I need another car as well and want to buy a Lexus RX350 which would cost around $60,000.

Currently I'm getting about $13,000 a month in passive income after taxes and usually save between $1,000-$2,500 a month. I have about $2,450,000 in liquid net worth.

I have very little debt, maybe $20K or so.

You asked for opinions. Spending this much on cars with about $2.5 million NW and $13K monthly income is insane. You asked for opinions.

[BruDude]

Torching $2k/month on a lease with nothing to show for it at the end seems insane to me, and that’s also an awful lease rate on a $120k car. In general a “good” lease deal is a monthly payment of 1% or less of the MSRP with $0 out of pocket and all taxes and fees rolled into the lease. Harder to do now with high interest rates but that’s the rule of thumb.

The Tesla also has awful value retention and Tesla just killed the resale value of their cars even more with the price cut.

Neither car would be my choice personally but from a financial perspective the Tesla seems pretty bad while the Lexus will probably hold its value better and you have less to lose.

If you’re not dead set on an EV there are plenty of cars that hold their value much better and are a blast to drive.

[bsteiner]

I'd like to buy a Tesla Model X which could cost about $120,000 or approximately $2000 a month if I leased it instead. I need another car as well and want to buy a Lexus RX350 which would cost around $60,000.

Currently I'm getting about $13,000 a month in passive income after taxes and usually save between $1,000-$2,500 a month. I have about $2,450,000 in liquid net worth.

I have very little debt, maybe $20K or so.

You asked for opinions. Spending this much on cars with about $2.5 million NW and $13K monthly income is insane. You asked for opinions.

My income and assets are more than that but my two most expensive cars together cost less than $60,000 new.

[FIRWYW]

Although from an environmental standpoint I would LOVE every family’s main driver to be an electric vehicle, I think about how many hours of life you are working for that. FOR ME, 200 days of work to own those cars just is not worth it. Your math may vary. This also does not include any interest you would be paying, increase in insurance, etc. (Someone above said you have 20k in credit card debt so seems crazy to me)

[WestCoastLiving1]

I see many good questions and concerns. Let me clarify the best I can.

I could pay off the debt tomorrow. So for ease, let's say I have approximately $2,400,000 in capital and no debt.

I don't use that capital for anything. I don't withdraw from it- no interest or capital gains or dividends or anything like that. My hope is that it grows over time.

I get passive income. Approximately $13,000 after taxes per month. My expenses vary but I usually save a little bit each month. I have other assets but they are illiquid.

Now, I need to buy 2 cars. They are not both for me. I am not buying them to splurge just on myself. What I am choosing for myself is the Tesla. I know it is expensive which is why I am also researching other cars. But the Tesla would a dream and I am considering it.