Buy a Tesla Model 3?

207 Replies

I am in the position to go green aka electric thanks to solar, the numbers all make sense to move in this direction. My net out of pocket expense is roughly $14K, finance it with a low payment, and rapidly pay it off. Of course this is inferring I receive the Fed Credit, CA state rebate, and cash for selling my current vehicle. 

Here's my dilemma, I know vehicles are depreciating liabilities, Tesla does not guarantee their batteries (many do not w/the exception of Hundyai) and it adds to my personal DTI which of course effects the ability to purchase additional RE. After learning of RE potential wealth growth, I no longer value a vehicle as a consumer, I see it as a liability. With that said, in RE we learn to pay ourselves first, this would be a way to pay myself first. Lastly, any vehicle I have purchased is a vehicle I intend to keep for 20 years before purchasing another.

What would you do? 

I wouldn't even consider buying it. Your initial out of pocket expense may be 14k, but that isn't what your actual out of pocket expense is. You don't have renters that are living in the car making the payments on the loan, you are. In RE we do pay ourselves first, but how is buying a depreciating liability paying ourselves first? Paying ourselves first means saving for REI or putting it away in a retirement vehicle, not buying cars.

@Dulce Beltran if you plan on getting a car that last 20 years I wouldn’t buy a Tesla yet...

The main concern is how many miles do you drive?

If you don’t drive a whole lot then I’d say buy a Lexus ES 300/350 2007-2012, Years after that ecoboost kicks in and the transmission fails but the model I mention is known to last 300k miles of properly maintain and has lasted plenty longer for some. It’s decent on gas

If you buy a Prius or a hybrid of sorts you want to make sure your miles justify the gas savings but also you need to consider that battery replacements cost 1500 in parts and 500 in labor at the cheapest...some places charge 5k all together so that in itself can buy you another car.

Cars are a pain and complicated and costly regardless of what you get so it all depends on your needs but if you want to make it last 20 years get the right model Toyota or Lexus or Honda. Not many other brands make cars that last that long unless your getting a pick up truck. Pick up trucks are where American brands prosper and hold up in value and dependability

I try to spend as little as I can on things that cost me money (a car) and as much as I can on things that earn me money (real estate, stocks, etc).  I wouldn't even consider buying a Tesla.

@Luke Grosskreutz Yes, that is correct the actual loan value is higher. I agree, that is why I am questioning this option significantly more than a MF. I was thinking of @Mark Ferguson with his purchase of his dream car, in his case, it is a collector's car and actually appreciated in value, Tesla's are not currently collectible vehicles and am aware, I suppose that should tell me even more this is not a good investment. 

@Jonathan Watt  all good points and was originally looking at Honda, Toyota, and Nissan but are short of full electric vehicles, will definitely look into Lexus too. The Solar pays for the the battery replacement in two years.

@Jacob Sampson  😂😂😂 damn ego! It became an option only because it is roughly the same cost within a couple thousand dollars for the current longer range electric vehicles; Hundyai Kona, Nissan Leaf, and Tesla all fall in the $37K-40K range, my net is $14K.

Are you aware that TSLA only has 10 months of cash burn left to continue existing as a company?  I believe they are required to hold 5 years worth of parts for existing cars but I can't even begin to imagine the problems that you would have to deal with if you buy a car from a company that no longer exists in 5 years.

Originally posted by @Dulce Beltran :

@Luke Grosskreutz Yes, that is correct the actual loan value is higher. I agree, that is why I am questioning this option significantly more than a MF. I was thinking of @Mark Ferguson with his purchase of his dream car, in his case, it is a collector's car and actually appreciated in value, Tesla's are not currently collectible vehicles and am aware, I suppose that should tell me even more this is not a good investment. 

@Jonathan Watt  all good points and was originally looking at Honda, Toyota, and Nissan but are short of full electric vehicles, will definitely look into Lexus too. The Solar pays for the the battery replacement in two years.

My cars are good for marketing and networking too! I still have never bought a new car. I try to buy them after that initial depreciation curve hits 5 years down the road or more. At that point, some of the rare, sought after cars will start to go back up again. 

I would not buy a Tesla reliability is crap and if you need a repair there are no parts. My big thing is "Time" I have to wait 30min for a charge? No way.  In your field you are an agent you will drive a lot put a lot of miles, you don't have the time to waste for a charge or if the car breaks down and wait for parts.  Buy a CPO LEXUS No brainer. Easy choice.

BTW I am all for buying nice cars. Life is short I want to drive something nice. If it gives me an edge and makes me make more sales. It's worth it!

No way on this site will any one agree with buying anything but a used beater LOL.

I have two teslas that I bought brand new  an X and An S  both going on 3 years old both never been in the shop.

they are the best cars I have ever owned and I would no way go back to a ITC engine..

my out of pocket for energy to drive the cars is less than 20 a month each.. and I get free super charging so when I am on the road I pay nothing for gas.. no oil no maintenance there is Nothing to maintain..  software updates come in over the internet.. so your car is always evolving and your getting the latest and greatest features all for free.  you plug it in at home at night when rates go down .. you can time when it starts charging.   So depending on battery you choose in the model 3 unless you routinely drive more than 200 to 250 miles PER DAY  you simply plug it in when you come home each evening just like you would a golf cart after  a round of golf.   If you cant set up your own charging at your home then it can be an issue..  it cost about 150 to have a electrician run a 240 from your breaker box.. its like setting up for a dishwasher . 

My daughter bought a 3 6 months ago and just loves it.. and I know numerous other folks that have them that love them.

just like many talk about doom and gloom in the economy..  I think Tesla has paved the way to change how auto manufacturers are going to look in the future.. like in Scandinavian countries they out law gas cars after 2022 I think all cars have to be electric.  Not to mention crash worthy wise they are the safest car on the road.. and you don't need that until you really need it.. I would never drive some little light weight thing that would get crunched in a wreck.

With Telsas incredible supercharging network they are miles ahead of everyone else..  I get free super charging for life for my cars.. 

But then again it depends on where your at in your life and career..  

and is a US company creating US jobs.. 

Let me also add for California drivers  FREE use of the HOV lane with only one person in the car.. RIGHT there that's worth the price of the car.. Time is money.

PSS  also with the new model 3 you will be able to get a full charge at the super charger in 15 minutes .. no slower than stopping and pumping gas and getting all dirty doing that.. now I Oregon its illegal to pump your own gas generally so many people in this state don't know how to pump gas or work a gas pump.. :) truth. !!

@Frank Wong Thanks for your input, unfortunately Lexus does not make electric vehicles. Although I do consider charging time and am compensating for that on purchasing a long range EV, for my numbers the EV is paying me back, a hybrid is not as I'll still have a fuel cost.

Originally posted by @Dulce Beltran :

@Frank Wong Thanks for your input, unfortunately Lexus does not make electric vehicles. Although I do consider charging time and am compensating for that on purchasing a long range EV, for my numbers the EV is paying me back, a hybrid is not as I'll still have a fuel cost.

 see my post above as a long time Tesla owner .. of course I have my bias  but after I bought my S  and went through the process IE no dealers to talk to which is a super pain.. you buy it on line in less than 10 minutes.. no up sells no wondering if you got a deal. price is the price there are only a few options to consider..  

I did trade in my bnz suv for the S they gave me more money than anyone else would for that car.. 

you will save at least 200 to 300 a month in fuel. you will never have to have service there is no oil or maintenance .. 

you will get to use the HOV lanes by yourself.

to me its a no brainer .. 

LOL @: "No way on this site will any one agree with buying anything but a used beater LOL."

Originally posted by @Jay Hinrichs :

No way on this site will any one agree with buying anything but a used beater LOL.

I have two teslas that I bought brand new  an X and An S  both going on 3 years old both never been in the shop.

they are the best cars I have ever owned and I would no way go back to a ITC engine..

my out of pocket for energy to drive the cars is less than 20 a month each.. and I get free super charging so when I am on the road I pay nothing for gas.. no oil no maintenance there is Nothing to maintain..  software updates come in over the internet.. so your car is always evolving and your getting the latest and greatest features all for free.  you plug it in at home at night when rates go down .. you can time when it starts charging.   So depending on battery you choose in the model 3 unless you routinely drive more than 200 to 250 miles PER DAY  you simply plug it in when you come home each evening just like you would a golf cart after  a round of golf.   If you cant set up your own charging at your home then it can be an issue..  it cost about 150 to have a electrician run a 240 from your breaker box.. its like setting up for a dishwasher . 

My daughter bought a 3 6 months ago and just loves it.. and I know numerous other folks that have them that love them.

just like many talk about doom and gloom in the economy..  I think Tesla has paved the way to change how auto manufacturers are going to look in the future.. like in Scandinavian countries they out law gas cars after 2022 I think all cars have to be electric.  Not to mention crash worthy wise they are the safest car on the road.. and you don't need that until you really need it.. I would never drive some little light weight thing that would get crunched in a wreck.

With Telsas incredible supercharging network they are miles ahead of everyone else..  I get free super charging for life for my cars.. 

But then again it depends on where your at in your life and career..  

and is a US company creating US jobs.. 

Let me also add for California drivers  FREE use of the HOV lane with only one person in the car.. RIGHT there that's worth the price of the car.. Time is money.

PSS  also with the new model 3 you will be able to get a full charge at the super charger in 15 minutes .. no slower than stopping and pumping gas and getting all dirty doing that.. now I Oregon its illegal to pump your own gas generally so many people in this state don't know how to pump gas or work a gas pump.. :) truth. !!

 Jay...you and me are there on having the nice cars. I dont really like Tesla though, I have an Audi now that Im about to get rid of likely for a BMW. However I think the cost of cars is relatively minor to our incomes, and for me, its a business expense as an added bonus.

Originally posted by @Russell Brazil :
Originally posted by @Jay Hinrichs:

No way on this site will any one agree with buying anything but a used beater LOL.

I have two teslas that I bought brand new  an X and An S  both going on 3 years old both never been in the shop.

they are the best cars I have ever owned and I would no way go back to a ITC engine..

my out of pocket for energy to drive the cars is less than 20 a month each.. and I get free super charging so when I am on the road I pay nothing for gas.. no oil no maintenance there is Nothing to maintain..  software updates come in over the internet.. so your car is always evolving and your getting the latest and greatest features all for free.  you plug it in at home at night when rates go down .. you can time when it starts charging.   So depending on battery you choose in the model 3 unless you routinely drive more than 200 to 250 miles PER DAY  you simply plug it in when you come home each evening just like you would a golf cart after  a round of golf.   If you cant set up your own charging at your home then it can be an issue..  it cost about 150 to have a electrician run a 240 from your breaker box.. its like setting up for a dishwasher . 

My daughter bought a 3 6 months ago and just loves it.. and I know numerous other folks that have them that love them.

just like many talk about doom and gloom in the economy..  I think Tesla has paved the way to change how auto manufacturers are going to look in the future.. like in Scandinavian countries they out law gas cars after 2022 I think all cars have to be electric.  Not to mention crash worthy wise they are the safest car on the road.. and you don't need that until you really need it.. I would never drive some little light weight thing that would get crunched in a wreck.

With Telsas incredible supercharging network they are miles ahead of everyone else..  I get free super charging for life for my cars.. 

But then again it depends on where your at in your life and career..  

and is a US company creating US jobs.. 

Let me also add for California drivers  FREE use of the HOV lane with only one person in the car.. RIGHT there that's worth the price of the car.. Time is money.

PSS  also with the new model 3 you will be able to get a full charge at the super charger in 15 minutes .. no slower than stopping and pumping gas and getting all dirty doing that.. now I Oregon its illegal to pump your own gas generally so many people in this state don't know how to pump gas or work a gas pump.. :) truth. !!

 Jay...you and me are there on having the nice cars. I dont really like Tesla though, I have an Audi now that Im about to get rid of likely for a BMW. However I think the cost of cars is relatively minor to our incomes, and for me, its a business expense as an added bonus.

I have owned pretty much every high end car made..  Porsche I really did not like..   you simply get used to never going to a gas station :)

@Dulce Beltran If you’ve done the numbers and can comfortably afford it, buy it. Tesla’s are awesome cars. If you have solar to charge it you’re making a smart move. If it’s only a few thousand more that the other electric cars you’re considering go for it. The fact that your on here asking means that you’re frugal and reluctant to splurge. If you have a splurge problem I would say don’t do it, but the occasional splurge makes other sacrifices more manageable.

I agree 100% with @Jay Hinrichs regarding Tesla.  This is the website of 100 year old Toyota and Honda people.  A business associate has had both the S and 3 and loves them.  He use to have his own mechanic place before he sold out.

I have been in them as well as others and they seem to be a good car.  He charges them on weekends since his electric bill is very low at that time.  The technology in them is far better than what I have seen in the other priced vehicles.

Originally posted by @Alan Dunlap :

@Dulce Beltran

Any reason why you can’t do used Tesla?

Should be all the features you’re looking for at a discount. May not get tax credit, but savings could go back into investments instead of paying a car note

 one benefit of buy and S or X that is 2017 or older is they are grandfathered into FREE supercharging for the life of the vehicle.

Originally posted by @Lynn Burson :

I agree 100% with @Jay Hinrichs regarding Tesla.  This is the website of 100 year old Toyota and Honda people.  A business associate has had both the S and 3 and loves them.  He use to have his own mechanic place before he sold out.

I have been in them as well as others and they seem to be a good car.  He charges them on weekends since his electric bill is very low at that time.  The technology in them is far better than what I have seen in the other priced vehicles.

 its very much a badge of honor on Bp to have 5 rentals and a 2k beater  LOL>  which is fine I get it.. 

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