What should a 23 year old consider before purchasing a Tesla?

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sd323232
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Re: What should a 23 year old consider before purchasing a Tesla?

Post by sd323232 »

Danimals543 wrote: Tue Dec 08, 2020 1:21 am Currently 23, making $100k a year, I calculated that I would be able to max out Roth IRA, 401k, and save an extra $600 a month even if I have a car loan (and I included my current fun spending into my expenses). I feel like on the one hand $50,000 over 5 years can be a lot of money in the end, but also I don’t want to just hoard money. If I think like “oh I could have invested that money instead of spending it” I would never have fun and just live on ramen noodles. Or is there other things I should consider? I value saving but I also don’t want to die with a lot of money and haven’t had enjoyed it.
car loan? you are not buying car cash?
klondike
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Re: What should a 23 year old consider before purchasing a Tesla?

Post by klondike »

Get the damn car you want! You're on the right track to FI early. Enjoy along the journey!

When I was younger, I can't afford a car I wanted. I bought a used Honda Accord equal to half of my networth. Now I can literally buy any street cars with cash comfortably but I don't enjoy cars much.
harikaried
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Re: What should a 23 year old consider before purchasing a Tesla?

Post by harikaried »

Gabelli2020 wrote: Thu Dec 10, 2020 12:03 amEvery time I get into that car I smile. EVERY Tesla owner immediately ascends to a higher Karma level. It’s not a car.
This is probably one aspect many commenters here as well as analysts and automakers don't really understand. Suggestions of other electric vehicles or sporty cars implies they're comparable alternatives to a Tesla, but many (most?) Tesla owners wouldn't want to go back to the legacy auto experience.
fanmail
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Re: What should a 23 year old consider before purchasing a Tesla?

Post by fanmail »

2tall4economy wrote: Thu Dec 10, 2020 1:47 am
Gabelli2020 wrote: EVERY Tesla owner immediately ascends to a higher Karma level. It’s not a car.
Unless you installed solar panels sufficient to charge the battery of that car you’re just trading one source of pollution for a different one. No karma to be had.
Most electricity is powered by natural gas or coal.
vasaver
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Re: What should a 23 year old consider before purchasing a Tesla?

Post by vasaver »

fanmail wrote: Thu Dec 10, 2020 4:45 pm
2tall4economy wrote: Thu Dec 10, 2020 1:47 am
Gabelli2020 wrote: EVERY Tesla owner immediately ascends to a higher Karma level. It’s not a car.
Unless you installed solar panels sufficient to charge the battery of that car you’re just trading one source of pollution for a different one. No karma to be had.
Most electricity is powered by natural gas or coal.
Except the OP lives in Washington State and "Washington leads the nation in electricity generation from renewable resources."

"In 2018, Washington led the nation in the amount of electricity generated from renewable resources. On average, about four-fifths of the state's electricity generation originates from renewable energy, mostly hydroelectric power, and Washington produced about one-eighth of the total electricity generated nationwide from renewables in 2018." https://www.eia.gov/state/analysis.php?sid=WA
Carguy85
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Re: What should a 23 year old consider before purchasing a Tesla?

Post by Carguy85 »

I’ve changed my vote. Go get the Tesla right now! Thinking back to your age I had bought a house and a new loaded Cherokee and also had a new family fresh out of school before even starting my job not really knowing what I’d make... you are MUCH better off than that on so many levels. You will never enjoy that car as much as you do right NOW. Get it before work steals your soul.
fanmail
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Re: What should a 23 year old consider before purchasing a Tesla?

Post by fanmail »

vasaver wrote: Thu Dec 10, 2020 5:27 pm
fanmail wrote: Thu Dec 10, 2020 4:45 pm
2tall4economy wrote: Thu Dec 10, 2020 1:47 am
Gabelli2020 wrote: EVERY Tesla owner immediately ascends to a higher Karma level. It’s not a car.
Unless you installed solar panels sufficient to charge the battery of that car you’re just trading one source of pollution for a different one. No karma to be had.
Most electricity is powered by natural gas or coal.
Except the OP lives in Washington State and "Washington leads the nation in electricity generation from renewable resources."

"In 2018, Washington led the nation in the amount of electricity generated from renewable resources. On average, about four-fifths of the state's electricity generation originates from renewable energy, mostly hydroelectric power, and Washington produced about one-eighth of the total electricity generated nationwide from renewables in 2018." https://www.eia.gov/state/analysis.php?sid=WA
Good info, thanks
2tall4economy
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Re: What should a 23 year old consider before purchasing a Tesla?

Post by 2tall4economy »

vasaver wrote: Thu Dec 10, 2020 5:27 pm
fanmail wrote: Thu Dec 10, 2020 4:45 pm
2tall4economy wrote: Thu Dec 10, 2020 1:47 am
Gabelli2020 wrote: EVERY Tesla owner immediately ascends to a higher Karma level. It’s not a car.
Unless you installed solar panels sufficient to charge the battery of that car you’re just trading one source of pollution for a different one. No karma to be had.
Most electricity is powered by natural gas or coal.
Except the OP lives in Washington State and "Washington leads the nation in electricity generation from renewable resources."

"In 2018, Washington led the nation in the amount of electricity generated from renewable resources. On average, about four-fifths of the state's electricity generation originates from renewable energy, mostly hydroelectric power, and Washington produced about one-eighth of the total electricity generated nationwide from renewables in 2018." https://www.eia.gov/state/analysis.php?sid=WA
Touché.
You can do anything you want in life. The rub is that there are consequences.
azanon
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Re: What should a 23 year old consider before purchasing a Tesla?

Post by azanon »

EddyB wrote: Wed Dec 09, 2020 5:32 pm
azanon wrote: Wed Dec 09, 2020 2:00 pm It's a mistake to compare an essentially risk free rate (e.g the bank will own the car until it's paid in full so they have collateral), with a risky rate such as the stock market. A comparable rate is probably more in the neighborhood of high-yield savings rates - so about 0.6%. In short, that's a really bad deal.
It’s a mistake to treat a preference as a presumption of comparability or equivalence.
I provided clear and concise explanation as to why it is more than just a preference or presumption. It's only a matter of comprehension, or lack thereof, at this point.
EddyB
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Re: What should a 23 year old consider before purchasing a Tesla?

Post by EddyB »

azanon wrote: Fri Dec 11, 2020 10:34 am
EddyB wrote: Wed Dec 09, 2020 5:32 pm
azanon wrote: Wed Dec 09, 2020 2:00 pm It's a mistake to compare an essentially risk free rate (e.g the bank will own the car until it's paid in full so they have collateral), with a risky rate such as the stock market. A comparable rate is probably more in the neighborhood of high-yield savings rates - so about 0.6%. In short, that's a really bad deal.
It’s a mistake to treat a preference as a presumption of comparability or equivalence.
I provided clear and concise explanation as to why it is more than just a preference or presumption. It's only a matter of comprehension, or lack thereof, at this point.
I took your comment as implicitly dismissing the possibility of a rational decision to accept an available risk premium, but I must have misunderstood.
hightower
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Re: What should a 23 year old consider before purchasing a Tesla?

Post by hightower »

angelescrest wrote: Wed Dec 09, 2020 7:13 pm
hightower wrote: Wed Dec 09, 2020 5:29 pm
vasaver wrote: Wed Dec 09, 2020 5:10 pm
hightower wrote: Wed Dec 09, 2020 2:34 pm
Danimals543 wrote: Tue Dec 08, 2020 1:50 am

I would spend $25k if a cheaper Tesla was available. I don’t want to spend $25k on a gas car and have it outdated since the world is moving towards electricity.
You can get a brand new Chevy Bolt for 28k now. Or a used Nissan leaf can be found for great deals too. Also, a used BMW i3 can be had for 12-14k. They are excellent cars, well made with none of the quality issues that Tesla is famous for. Save up cash and buy one of those if you want an electric car.
Used 2017 Chevy Bolts are 13k LT or go crazy with the 16k Premier (with fancy pants leather and all the options).

https://www.autotrader.com/cars-for-sal ... Records=25

See if you like electric and upgrade to a Tesla later if it meets your needs. Hatchbacks like the Bolt are much more practical than sedans like the Model 3.

As an added bonus being in the PNW - that is a great climate for having a Battery Electric Vehicle.
Agreed. I have been driving a BMW i3 for several years now. Fantastic car and fun to drive. We are upgrading to a Model Y though, because we have a 2 year old now and need a bigger vehicle. Paid cash for it and got the 7500 tax credit, but it's now only worth about 12k, which is a huge hit. If I were in the market for an i3 now, I'd be all over the used ones. They are great cars and an absolute steal for the money. Mine has 52k miles and no battery degradation or other problems to speak of. They are 100% luxury vehicles just like their ICE BMW counterparts. Auto dimming mirrors, heated seats, premium sound system, and it can parallel park itself!
Almost went with a used i3. Then I read about some extremely pricey repairs that could be upwards of $10k. Scared me off big time. What year and trim used i3 would you recommend for around 10-12k?
I haven't heard of any pricey repairs and I haven't had anything go wrong with mine (knock on wood). Mine is a 2017 battery only version (non-rex). My only recommendations would be to make sure you get the bigger battery pack (the earliest models have smaller packs, mine has the larger one. I think the brand new ones 2019 and up? have even slightly larger batteries) and to get one with as few miles as possible of course.
Topic Author
Danimals543
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Re: What should a 23 year old consider before purchasing a Tesla?

Post by Danimals543 »

Carguy85 wrote: Thu Dec 10, 2020 7:06 pm I’ve changed my vote. Go get the Tesla right now! Thinking back to your age I had bought a house and a new loaded Cherokee and also had a new family fresh out of school before even starting my job not really knowing what I’d make... you are MUCH better off than that on so many levels. You will never enjoy that car as much as you do right NOW. Get it before work steals your soul.
I ended up not doing it as I have a dream of moving to NYC in the near future (after COVID) and I realized that buying an expensive car only to sell it in like a year or two would be a pain. I just plan on renting one from Turo from time to time. Then hopefully in a year I won’t need a car.

I also decided not to get it since I don’t need a car for commuting and spending $40k is so much money for something I’ll barely use, even if it’s a lot of fun. Sigh, it’s hard being an adult.
random_walker_77
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Re: What should a 23 year old consider before purchasing a Tesla?

Post by random_walker_77 »

Danimals543 wrote: Sun Dec 13, 2020 3:20 am I ended up not doing it as I have a dream of moving to NYC in the near future (after COVID) and I realized that buying an expensive car only to sell it in like a year or two would be a pain. I just plan on renting one from Turo from time to time. Then hopefully in a year I won’t need a car.

I also decided not to get it since I don’t need a car for commuting and spending $40k is so much money for something I’ll barely use, even if it’s a lot of fun. Sigh, it’s hard being an adult.
Yes, but for a young adult, you're amazingly mature. Deferred gratification is *hard*. Most would give in and drop the cash (they don't yet have) now, especially at your age. May you find success -- it sounds to me like you've got an above-average shot at achieving FI early.
harrychan
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Re: What should a 23 year old consider before purchasing a Tesla?

Post by harrychan »

Danimals543 wrote: Sun Dec 13, 2020 3:20 am
Carguy85 wrote: Thu Dec 10, 2020 7:06 pm I’ve changed my vote. Go get the Tesla right now! Thinking back to your age I had bought a house and a new loaded Cherokee and also had a new family fresh out of school before even starting my job not really knowing what I’d make... you are MUCH better off than that on so many levels. You will never enjoy that car as much as you do right NOW. Get it before work steals your soul.
I ended up not doing it as I have a dream of moving to NYC in the near future (after COVID) and I realized that buying an expensive car only to sell it in like a year or two would be a pain. I just plan on renting one from Turo from time to time. Then hopefully in a year I won’t need a car.

I also decided not to get it since I don’t need a car for commuting and spending $40k is so much money for something I’ll barely use, even if it’s a lot of fun. Sigh, it’s hard being an adult.
Not gonna lie. I'm surprised at your decision as it seemed early you were set but your future self will thank you later! To put it into perspective, I'm double your age, I have NW of $1.5M+, income $200k and have cash to buy the Y and I'm still hesitating. DW already gave me the green light but its gonna be the biggest purchase after our home.
This is not legal or certified financial advice but you know that already.
Topic Author
Danimals543
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Re: What should a 23 year old consider before purchasing a Tesla?

Post by Danimals543 »

harrychan wrote: Sun Dec 13, 2020 12:16 pm
Danimals543 wrote: Sun Dec 13, 2020 3:20 am
Carguy85 wrote: Thu Dec 10, 2020 7:06 pm I’ve changed my vote. Go get the Tesla right now! Thinking back to your age I had bought a house and a new loaded Cherokee and also had a new family fresh out of school before even starting my job not really knowing what I’d make... you are MUCH better off than that on so many levels. You will never enjoy that car as much as you do right NOW. Get it before work steals your soul.
I ended up not doing it as I have a dream of moving to NYC in the near future (after COVID) and I realized that buying an expensive car only to sell it in like a year or two would be a pain. I just plan on renting one from Turo from time to time. Then hopefully in a year I won’t need a car.

I also decided not to get it since I don’t need a car for commuting and spending $40k is so much money for something I’ll barely use, even if it’s a lot of fun. Sigh, it’s hard being an adult.
Not gonna lie. I'm surprised at your decision as it seemed early you were set but your future self will thank you later! To put it into perspective, I'm double your age, I have NW of $1.5M+, income $200k and have cash to buy the Y and I'm still hesitating. DW already gave me the green light but its gonna be the biggest purchase after our home.
Haha I was surprised at myself too. I even placed the order, went to delivery day, and I just had this massive gut feeling that something wasn’t right. Normally I would be out of space in happiness if I knew I was getting a Tesla but I wasn’t. Because the decision isn’t right.

I’ll have to make a new post on how to best invest my money now since I already max my 401k and Roth IRA. I wanna be Financially Independent by 40.
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