Buy a Tesla Model 3?
Dulce BeltranPro Member
Real Estate Agent · San Diego, CA · Member since 2017 · 99 posts · 52 votesBuy a Tesla Model 3?
Most Popular Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votesNo 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. !!
213 Replies
- Flipper/Rehabber · Los Angeles, CA · Member since 2018 · 61 posts · 11 votes7y
@Dulce Beltran
Tesla does actually have a pretty good warranty their batteries. For the model 3, from Tesla’s website (https://www.tesla.com/support/vehicle-warranty)
Model 3 - 8 years or 100,000 miles, whichever comes first, with minimum 70% retention of Battery capacity over the warranty period.
Model 3 with Long-Range Battery - 8 years or 120,000 miles, whichever comes first, with minimum 70% retention of Battery capacity over the warranty period.
I was in a similar position last year, and I decided to go with the Long Range version. I don’t actually drive much for my day job or life (I live in Chicago which has excellent public transport), but I’ve found having a car invaluable for “Driving for Dollars”. If you’ve set up an entity for your real estate investing (check with your CPA), you can lease the car to that entity for the miles driven in support of that business.
Also, for the days I’m not using the car, I list it on Turo (AirBnB for cars). In the past month, I’ve made ~$1000 from Turo net of their fees and additional insurance (provided by Turo). Yes, it is a tad risky loaning your car to complete strangers, but I always do my due diligence on the renters AND the beauty of the Model 3 (or any Tesla) is that you can always track where it is and selectively disable certain features (like autopilot, driving above 70 mph, etc). I typically put the car into “Valet Mode” which limits many of the higher end features.
All in all, I love the car and, between the real estate side gig and Turo, it is more than paying for itself.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Julie McCoy:
@Dulce Beltran Full disclosure, I only read your original post and not the thread. I'm sure there's lots of great perspectives about the pros/cons etc. All I have to say is: I LOVE my Model 3. It's a fantastic car and driving experience. I love that I never have to put gas in it. Did I mention I love driving it?
Is it a good investment? Eh, probably not. I got the full federal tax credit (that's phasing out now, make sure you take that into account, and it only applies to new vehicle purchases) but not the CA one, as my income (barely) exceeded the threshold for qualifying. I almost certainly won't drive it for 20 years like you intend to.
BUT. I also believe that enjoying life is the whole point of making money and investing. There still needs to be a balance with responsibility, and certainly one shouldn't be pushing oneself beyond one's means. But if you have the money to spend, and it's something that will bring you pleasure every time you use it... isn't that why we're doing this? (well, it's why *I'm* doing this, at least)
Buying my Model 3 was not financially wise, but the yield I'm getting is genuine pleasure every time I get behind the wheel, and doing my small part to contribute to a better environment for us all. That's not an ROI that can be measured in dollars and cents, but it's an investment I have zero regrets about.
we all know that no car is an investment unless they are collector cars.. its a necessary evil.. and well if owning a car with payments keeps you from buying your home to live in.. ditch the car. if your DTI is too high to get investment loans and you want to own rentals then obviously ditch the car.. if you make good income in your day job.. car payment has zero effect on your dti or very little then hey that's what we all work for or at least many work for.. of course there are always those who stuff their money in the mattress , and live frugal lifestyles no problem with that if that's what makes them happy.. If it were not for Teslas being so darn cool. I would still be sticking to my old style of just buying a new car every three years on walk away leases and buy the one I liked for a payment that I was comfortable with..
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Seyi A.:
@Dulce Beltran
Tesla does actually have a pretty good warranty their batteries. For the model 3, from Tesla’s website (https://www.tesla.com/support/vehicle-warranty)
Model 3 - 8 years or 100,000 miles, whichever comes first, with minimum 70% retention of Battery capacity over the warranty period.
Model 3 with Long-Range Battery - 8 years or 120,000 miles, whichever comes first, with minimum 70% retention of Battery capacity over the warranty period.
I was in a similar position last year, and I decided to go with the Long Range version. I don’t actually drive much for my day job or life (I live in Chicago which has excellent public transport), but I’ve found having a car invaluable for “Driving for Dollars”. If you’ve set up an entity for your real estate investing (check with your CPA), you can lease the car to that entity for the miles driven in support of that business.
Also, for the days I’m not using the car, I list it on Turo (AirBnB for cars). In the past month, I’ve made ~$1000 from Turo net of their fees and additional insurance (provided by Turo). Yes, it is a tad risky loaning your car to complete strangers, but I always do my due diligence on the renters AND the beauty of the Model 3 (or any Tesla) is that you can always track where it is and selectively disable certain features (like autopilot, driving above 70 mph, etc). I typically put the car into “Valet Mode” which limits many of the higher end features.
All in all, I love the car and, between the real estate side gig and Turo, it is more than paying for itself.
Teslas on Turo are going to get rented before almost any other car.. I ran into a couple at a super charger here in Oregon that had rented one and were touring Mt.. Hood..
what I really have come to rely on is the google earth.. I do a lot of land deals.. and its instant access to google earth .. I use it to find timber tracks and or other bigger parcels.. No one has as robust of MFD ( multi function display) as tesla.. its just wicked smart. And yes I can always tell if my wife is at the mall. I call here and let her know about being frugal when she is there.. LOL
for the audience on the Tesla app.. your car shows up on a google earth exactly where it is.. and how fast its driving.. BIG brother on steroids.
- Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes7y
I do not recall one can get Tesla to finance your purchase. It is a cool car if you can get discounted charge.
FYI: About 25% realtors drive an electric, hybrid in Northern CA. Prius is not popular anymore so try other electric.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Sam Shueh:
I do not recall one can get Tesla to finance your purchase. It is a cool car if you can get discounted charge.
FYI: About 25% realtors drive an electric, hybrid in Northern CA.
Sam Tesla is like any other car company.. U fill in their application they shop it to a number of banks and within an hour U have financing quotes.. now I found my local credit union to be the most cost effective.. no reason to pay cash when money is at 3% or less..
- Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes7y
I get wanting a nice vehicle. I bought my wife one last year and it's fun and cute as heck.
But... Not new. Let others take the depreciation beating.
Not on a note. No payments on liabilities.
I wish all the rah rah I bought one and love it (excluding Jay and Cody who can obviously afford them) had to declare their payment and working for money status.
I love it but the payments keep me working 60 hours a week... Probably. There's usually always a but left unsaid.
- 7yNick GiulioniPro MemberRental Property Investor · Carmel, IN · Member since 2016 · 1k+ posts · 615 votes
Be transparent here. You want a model 3. Do you want it more than the downpayment on your next house?
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Steve Vaughan:
I get wanting a nice vehicle. I bought my wife one last year and it's fun and cute as heck.
But... Not new. Let others take the depreciation beating.
Not on a note. No payments on liabilities.
I wish all the rah rah I bought one and love it (excluding Jay and Cody who can obviously afford them) had to declare their payment and working for money status.
I love it but the payments keep me working 60 hours a week... Probably. There's usually always a but left unsaid.
your age were your at in your life cycle and priorities.. we all talk about this on BP the tenant who has the 100k beamer and nice cloths and nothing else.. no one is advocating that on this site for sure.. and I totally agree with that.
and it relates to the higher end Teslas for sure they can run as high at 150k and I wont spend that .. bought the absolute cheapest ones in both models.. Still more than I normally would.. but the 3 now is the price of a Honda or Camry as others have said or a series 3 beamer and there is simply no comparison in my mind between the two then you add in huge gas savings and there you go.
people are funny and Steve as we know many cant really do basic math for whatever reason.. I remember 40 acre parcel I had out of Portland we logged it had a nice home on it.. I lease optioned it to a nice couple they paid cash to put up a pole barn..
what do they do they go out and buy a back hoe ( case 580) brand new and now when the time to exercise their option came their DTI was blown and well they had to move.. and I got a free 20k pole barn.. no you cant coach this.. ..
Cars are discretionary spending items.. Although since I drive / we drive more than most since we are full time real estate .. I have always been keen on driving SAFE cars.. Teslas is the safest car on the road these days.. and with all the nuts out there.. I value that as well
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Seyi A.:
@Dulce Beltran
On more thing: don’t forget that you can charge for free at many places. Here in Chicago, every Whole Foods has free Level 2 chargers.
are main residence is Vegas and there are 3 superchargers within 15 minutes. and here in Portland 2 within 10 minutes.. but I just charge at home every night.. you don't even see it on the electric bill. you would need to really dive into it..
One of my partners has one in Honolulu and he has full solar on his home. so he spends zero .. on charging..
- Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes7y
Originally posted by @Jay Hinrichs:
Originally posted by @Steve Vaughan:
I get wanting a nice vehicle. I bought my wife one last year and it's fun and cute as heck.
But... Not new. Let others take the depreciation beating.
Not on a note. No payments on liabilities.
I wish all the rah rah I bought one and love it (excluding Jay and Cody who can obviously afford them) had to declare their payment and working for money status.
I love it but the payments keep me working 60 hours a week... Probably. There's usually always a but left unsaid.
your age were your at in your life cycle and priorities.. we all talk about this on BP the tenant who has the 100k beamer and nice cloths and nothing else.. no one is advocating that on this site for sure.. and I totally agree with that.
and it relates to the higher end Teslas for sure they can run as high at 150k and I wont spend that .. bought the absolute cheapest ones in both models.. Still more than I normally would.. but the 3 now is the price of a Honda or Camry as others have said or a series 3 beamer and there is simply no comparison in my mind between the two then you add in huge gas savings and there you go.
people are funny and Steve as we know many cant really do basic math for whatever reason.. I remember 40 acre parcel I had out of Portland we logged it had a nice home on it.. I lease optioned it to a nice couple they paid cash to put up a pole barn..
what do they do they go out and buy a back hoe ( case 580) brand new and now when the time to exercise their option came their DTI was blown and well they had to move.. and I got a free 20k pole barn.. no you cant coach this.. ..
Cars are discretionary spending items.. Although since I drive / we drive more than most since we are full time real estate .. I have always been keen on driving SAFE cars.. Teslas is the safest car on the road these days.. and with all the nuts out there.. I value that as well
Yup. We bought our new (Case 580 backhoe, car, bike, boat, sea-doo, camper, atv..) and love it!
But it costed us a $20k barn and the exclusive right to buy for thousands what is now a multi-million dollar 40 acre parcel in Portlandia. And will one day be worth $500.
There's usually always a but..☺
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Steve Vaughan:
Originally posted by @Jay Hinrichs:
Originally posted by @Steve Vaughan:
I get wanting a nice vehicle. I bought my wife one last year and it's fun and cute as heck.
But... Not new. Let others take the depreciation beating.
Not on a note. No payments on liabilities.
I wish all the rah rah I bought one and love it (excluding Jay and Cody who can obviously afford them) had to declare their payment and working for money status.
I love it but the payments keep me working 60 hours a week... Probably. There's usually always a but left unsaid.
your age were your at in your life cycle and priorities.. we all talk about this on BP the tenant who has the 100k beamer and nice cloths and nothing else.. no one is advocating that on this site for sure.. and I totally agree with that.
and it relates to the higher end Teslas for sure they can run as high at 150k and I wont spend that .. bought the absolute cheapest ones in both models.. Still more than I normally would.. but the 3 now is the price of a Honda or Camry as others have said or a series 3 beamer and there is simply no comparison in my mind between the two then you add in huge gas savings and there you go.
people are funny and Steve as we know many cant really do basic math for whatever reason.. I remember 40 acre parcel I had out of Portland we logged it had a nice home on it.. I lease optioned it to a nice couple they paid cash to put up a pole barn..
what do they do they go out and buy a back hoe ( case 580) brand new and now when the time to exercise their option came their DTI was blown and well they had to move.. and I got a free 20k pole barn.. no you cant coach this.. ..
Cars are discretionary spending items.. Although since I drive / we drive more than most since we are full time real estate .. I have always been keen on driving SAFE cars.. Teslas is the safest car on the road these days.. and with all the nuts out there.. I value that as well
Yup. We bought our new (Case 580 backhoe, car, bike, boat, sea-doo, camper, atv..) and love it!
But it costed us a $20k barn and the exclusive right to buy for thousands what is now a multi-million dollar 40 acre parcel in Portlandia. And will one day be worth $500.
There's usually always a but..☺
A little off track.. but my wife when she is working with new or first time buyer.. once they are pre qualed she has a very stern meeting with them about NOT BUYING ANYTHING until the house closes..
- Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes7y
Throw it up on Turo ‘dot’ cöm and get some short term tenants to pay down the loan
- Rental Property Investor · San Jose, CA · Member since 2018 · 152 posts · 159 votes7y
@Jay Hinrichs Let the record show, this is the first opinion of Jay Hinrichs I agree with. Haha
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Jess White:
@Jay Hinrichs Let the record show, this is the first opinion of Jay Hinrichs I agree with. Haha
well I have 35,000 up votes so someone agree's with me sometimes.. the auto mobile threads on BP always go like this or the frugal don't spend a dime put it all into real estate go like this as well. I just happen to be a very happy tesla owner.. totally bias of course.
- Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes7y
Originally posted by @Nick Giulioni:
Be transparent here. You want a model 3. Do you want it more than the downpayment on your next house?
I literally had that conversation with myself. I wound up buying both. New house pays for new car. (it's a vacation rental so yeah, it really does cash flow enough to pay for the car)
- Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes7y
Originally posted by @Account Closed:
Throw it up on Turo ‘dot’ cöm and get some short term tenants to pay down the loan
I was going to do this, but there's too much risk. There's no way to assure you'll be covered if your renters get in a wreck. Yeah, Turo has their policy, but if there's some violation (such as the documented renter not being the one driving), you're hung out to dry. You can be sure your own auto policy will drop you like a hot potato if they discover you're renting the car on Turo.
- Investor · NJ · Member since 2018 · 869 posts · 921 votes7y
Personally I'd stick with the good old gas guzzling used pickup and buy a cheap used sedan that gets better mpg. I feel like Tesla's aren't viable right now, they don't have superchargers everywhere, the range isnt anything crazy, find a non-dealer repair shop that will actually work on it, the batteries don't fair as well in colder environments and the batteries are super expensive and don't last anywhere near your 20year mark.
How green are they really? You're still using electricity that most likely is being made at a plant that burns natural gas or fossil fuel.
- Melbourne, FL · Member since 2015 · 99 posts · 42 votes7y
@Dulce Beltran don't by a Tesla until you have reached your RE goals. Treat yourself once it is reached.
- Member since 2018 · 13 posts · 2 votes7y
@Dulce Beltran I bought a Model 3 in December when the full tax credit was available. I like others buy used, but the numbers did make sense. I used the 7.5k tax credit before it was halved, I qualified for the 4.5k California rebate because of my RE depreciation putting me in a lower tax bracket, $800 PGE rebate and I also currently have solar in my home.
I think the car drives great and I love it. People here mention parts, but remember there are very few to replace. You can compare the battery to a new engine, eventually it will need to be replaced. If you're set on buy a NEW car at that price point the Tesla is a great buy. If you can get a used luxury car for under what your numbers say including maintenance, gas, etc... then go that route.
- Investor · San Diego, CA · Member since 2019 · 286 posts · 135 votes7y
@Dulce Beltran
Im in SD and have solar as well. For me, it makes sense to drive electric since I can charge for .09 cents/kwh during super off peak hours. The utility company also gives you a credit in your bill if you drive electric. My electric last year including my ev car is $88.
I lease an ev every 3 years to get the benefits of CA rebate and also to get the HOV sticker. I havent bought an ev because I dont know the cost of maintenance down the road when they have 100k or 200k miles. i like my ev and I enjoy not having to wait for my oil to get changed or wait until my gas tank is filled up, but I will be leasing until I understand or know the long term cost.
P.s. I do have a backup ice car with 200k miles on it and almost legal enough to drink alcohol.
- Rental Property Investor · Madison, WI · Member since 2013 · 629 posts · 339 votes7y
Our last 4 cars have been ~6 years old and >100K miles, but in great shape. We're on year 3 now for our 2010 Prius.
Our next car will be something electric.
Looking forward to when these are ~6 years old and we will get a used one. We'll see if people start to sell them in 2021. Or maybe a used plug-in Prius or Leaf.
- Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes7y
Originally posted by @Jay Hinrichs:
Originally posted by @Jess White:
@Jay Hinrichs Let the record show, this is the first opinion of Jay Hinrichs I agree with. Haha
well I have 35,000 up votes so someone agree's with me sometimes.. the auto mobile threads on BP always go like this or the frugal don't spend a dime put it all into real estate go like this as well. I just happen to be a very happy tesla owner.. totally bias of course.
PHEEWWW BOY that was SAVAGE and amazing
- Lender · Santa Clara, CA · Member since 2018 · 46 posts · 74 votes7y
@Dulce Beltran
+1 to @Jay Hinrichs comments!
No brainer. Tesla has changed the automotive game and others will (have) follow. Their tech stack is unrivaled.
Although a technically a liability, Tesla is constantly improving their products and pushing those improvements out to their customers (old & new).
What other car on the road can receive a free over the air software update that gives you more range in your battery or more safety features?
It’s almost like a cell phone: go home plug in, charged for the next day; if there’s a software update, it’s done over night; if you do need service a lot of times they’ll come to you!
I also read their upcoming super chargers will give you about 75 miles worth of range in a 5 min charge :)
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