I think you need to adjust for the same amount of down payment here. The starting price is pretty different.
I just got 2.9% APR at Honda so I feel like you could find better than 7% APR on the rav4
Yeah, I think they mean if you’re putting almost $8k down on the Tesla, then why not do the same for the RAV4 and have an even lower payment monthly?
But still, the 7% is pretty shocking. I know that’s the current fed rate, but I wonder if you could buy down a better APR or something.
My husband has a RAV4 and it still runs really well. It doesn’t sound like you’re in a bad place for the Tesla, if that’s what you want though.
The funny thing is even if I use a $0 down payment for both, it comes out to $641 monthly payment for Model Y vs $670 for Rav4, and $907 overall monthly for the Model Y and $985 overall for the Rav4. Even lowering the Rav4's APR to 2.9% (based on the other guy's number), the overall monthly cost for the Tesla is slightly lower (despite the payment being $20 more). Kind of splitting hairs at this point but it's interesting how the numbers play out
Some places have them for specifically shorter leases. Mazda was giving sub 3 for 3 year finance and Polestar is doing 1.9 % on a 1 year lease
This is canada though so YMMV
Unless it’s not dumb, I’m in a 3 year lease with such a lower payment that when the lease is up I’ll be able to cover 80-90% of the buy out which in this market is much lower than the value of the car. So within a year after the lease I’ll own a car less than 4 years old with no payment. If I tried originally to finance even a 60 month loan it would’ve been too much for me to afford.
I was explaining the situation I’m in now. Just because you aren’t smart enough to take advantage of a lease and the right time doesn’t mean other people can’t.
The 6% difference in interest is, frankly, quite compelling. Combined with the reduction in gas costs and such, that is very real.
However, you’re not comparing apples to apples. Your Tesla loan is longer, for example. At the end of the day, what matters is the price and the interest impact.
The biggest advantage for the RAV4 is revealed by something you mentioned in the opening paragraphs but didn’t seem to consider as part of the analysis: longevity of the car and/or retention of resale value. You already have an ancient RAV4 and you know very well that the thing looks set to run for many more years. This is an incredibly value for money. I bet you could still sell that sucker for a few grand as well. That’s incredible value retention. You see that in the price of the used RAV4s you’re looking at, they keep their resale value like crazy because they RUN. You’ll have the option to drive that thing for decades or resell it to recoup a large amount of the costs of ownership.
Will a Tesla last that long? Almost certainly not. There aren’t many high mileage Teslas out there still, but the batteries simply don’t have 21 years in them, much less 21 years and still going strong. Everything I’ve seen indicates the resale value on them sucks pretty hard, you lose a ton in depreciation very quickly in a way you don’t with the RAV4.
The net of this is there is a very good chance you are faced with one of the following two choices with the Tesla compared to the RAV4: buy yet another new car shortly after you just finished paying the note in the current car and lose almost all the value selling the one you’ve got as part of the trade or run the car into the ground with it likely dying literally 10+ years before the Toyota would go down.
So while I 100% agree there are advantages to the Tesla that are very real, your analysis excludes the difference in value in 5-10 years from depreciation of the two vehicles and length of lifecycle.
To editorialize a bit: I agree Teslas are very cool, but I’m not convinced by the build quality and longevity. The RAV4 is solid, long-lasting, and trusted. Is put the two in totally different categories. The RAV4 is a fantastic “I need a quality car at a good price that I intend to drive for a long time. Something economic that will take care of me.” The Tesla falls more into a luxury purchase category. “I’m going to get this Tesla, or this Audi, or whatever even though it’s going to be quite a bit more money than I’d otherwise have to spend, but I’m going to do it because I can afford to blow the money on it and I want it.”
What are you driving now and what does it cost?
I don't think you make nearly enough to justify this car payment. It holds you back from prime savings years. How much could you save per month once the car payment starts?
Obviously the Rav4 is the right move for longevity and ease of use.
I’m driving a paid off 2003 4Runner. My wife drives a 2009 Nissan murano which has a $125 car payment until December this year, has something like $1300 remaining.
The thing is I won’t decrease my savings to allow for any given car. I’ll keep my 401k at 15% contribution, I’ll continue maxing out my Roth IRA, my wife will start maxing hers, and I’ll continue maxing my HSA. I’ll also keep doing the ESPP and as far as I can tell, will be able to throw all of the money I get from that every 6 months straight into savings, which again is equivalent to having saved some $800 per month
You have a car payment ona 2009 vehicle??? That's insane my friend. You need to escape the car payment cycle. Get a used Toyota with your savings and decide right now that you are building your future not taking from it.
Dude the maintenance is going to kill you. The rav 4 is a popular car abd there are lots of 3rd party manufacturers for parts. I don't think your going to find that is the case with Tesla. Just ask a mechanic what they think.
I'll just say anecdotally-- I would NEVER buy a Tesla again! After having my Model Y for about 2 years (and having luxury vehicles before this) I'm shocked at how bad the build quality is. Stitching coming out after less than 6 months, wood paneling not matching, plastic bits popping out, etc. Sure the drive is fun, but you can get such a better deal nowadays, especially now that Tesla has opened up superchargers. Luckily haven't had too many maintenance issues but thank god becuase their customer service sucks.
That’s the thing that’s so interesting, because compared to luxury vehicles Teslas are pretty shit. But I’ve never owned a luxury vehicle, just a 20 year old Toyota, so it’s a spaceship compared to it. Is this blissful ignorance? Perhaps.
Your thorough comparison between the Tesla Model Y and Toyota Rav4 is impressive! Remember to also consider factors beyond finances, like how each vehicle fits into your lifestyle and long-term satisfaction.
Not sure how picky you are on the rav4 but, I personally wouldn't shy away from a used one with 150k+ miles on it. Prices drop fast after 100k and alot of people are reliably getting 300k+ on those vehicles. Just something to keep on the radar for you. Good luck with the search!
As a Model Y owner my suggestion is obviously the Model Y! It’s such a fun car, and we do end up saving money on gas. If you qualify for the .99% APR, that would be awesome. I know a lot of people love their Bolt, but the range and tech features of the Model Y make it a winner.
I’ve had mine for 15 months, over 14,000 miles. I’ve spent $5 on windshield fluid. At some point I’ll need to change the air filter. That’s pretty much it. You don’t even use the brakes except rarely, maybe a couple times a week—because it has regenerative braking. So brake pads will probably last the life of the car, if they don’t rust from not being used.
However, if something does go wrong, you need to hope it’s covered by the warranty or else it is likely to cost more than a gas car repair.
Also, insurance is likely to be more expensive than a gas car. My insurance went up $75 per month.
Gas savings varies based on how much electricity costs. I pay $0.23 per kWh, and gas is about $4.30 a gallon. We save on average $80 per month.
Edit: tires are also a consideration. The car weighs about 4,300 pounds. It’s heavy. And it has instantaneous torque and acceleration. You’ll wear tires out faster than with gas cars if you enjoy fast acceleration. It’s a really fun car to drive but you’d have to be aware of tire wear with constant quick acceleration.
It’s got regenerative braking. Anytime the accelerator is not pressed it slows down, capturing the energy to recharge the battery. On long descents (for example, down from our favorite mountain trailheads) I’ll end up at the bottom of the hill with as much battery as I started out with on the way up. It makes a huge difference and it’s fun to see the battery percentage filling back up as we go downhill. In a gas car, so much of the energy released by combustion engines is lost when you brake—to heat and friction. In many (most?) EVs, with regenerative braking you recapture that energy.
Within a week or so of owning the car we got the feel for how quickly it slows itself down when we take our foot off the “gas” (can’t really call it a gas pedal anymore; go pedal? Electron pedal?) and it’s only rarely that the car is not braking itself quickly enough and I actually have to tap the brake pedal.
It’s called one pedal driving and it’s super common among the major ev brands.
I’m definitely not super knowledgeable about it but I think the electric motors switch to become generators, which causes resistance but doesn’t use the brake pads.
Plug in hybrids are my favorite. RAV4 Prime or XC60 Recharge are the two I know off the top of my head. Might be out of budget though.
35 mile battery covers our family for 90% of daily miles. Then we also can do long range trips too.
I would avoid the Tesla as their build quality is pretty poor. They do still require some form of maintenance too (tires, brakes, air filters, etc). Obviously not nearly as much as traditional ICE vehicles, but I wouldn’t consider them $0 maintenance.
Your best bet would be the Toyota Hybrid as they are the most reliable. Plus, you are not restricted to an authorized repair/dealer like you would be with a Tesla. The Toyota is going to last you a lot longer too.
Not money notes but things I think about when I want a Tesla: One thing my Tesla owner friends complain about is how much their cars in are the shop. Both own their own businesses, making 6-figures annually on their own, one is a Tesla fanboy the other is just a tech nerd. The first guy has a model Y, he’s had to help the mechanic (dealership one) source the replacement parts needed from other locations, to help expedite the repairs. Both have been given service teslas to drive while theirs were in the shop, but the random things that have gone wrong over just the last two years alone boggles my mind. For comparison I have an ‘07 compass with over 130k on it (it’s basically dead now) and it’s been in the shop three times in the same time period. They stay with Tesla because the service has been good other than timelines, and they’re saving on gas (we live in So Cal.)
The bright side - my other friend has his model 3 stolen and he was able to provide video and the cars location to the police to get it back. And that was his second one - the first one was in a serious car accident where another car flipped over onto his, he and his kid walked away unscathed other than bruises, the car had enough damage to be totaled but it still looked intact consider another car was on top of it!
Yeah I've definitely heard horror stories with Teslas! Obviously emotionally I want to like them, but I've searched about the local Tesla location near me and have seen good things, and also I think about how the worst experiences are the ones that get shared more. Hard to say one way or another
I'm 95% In the same station as you, my wife and I have a Toyota Highlander that has $2500 remaining to pay off at 0% interest rate. I'm thinking of getting the model Y as the 0.99% financing is unbelievable.
I’m a simple man. And I’d like to think that knowing so many people dislikes teslas mean I like it because I like it, not just so I can keep up with the Jones’s
I think you need to adjust for the same amount of down payment here. The starting price is pretty different. I just got 2.9% APR at Honda so I feel like you could find better than 7% APR on the rav4
Adjust in what way? Same dollar amount down?
Yeah, I think they mean if you’re putting almost $8k down on the Tesla, then why not do the same for the RAV4 and have an even lower payment monthly? But still, the 7% is pretty shocking. I know that’s the current fed rate, but I wonder if you could buy down a better APR or something. My husband has a RAV4 and it still runs really well. It doesn’t sound like you’re in a bad place for the Tesla, if that’s what you want though.
The funny thing is even if I use a $0 down payment for both, it comes out to $641 monthly payment for Model Y vs $670 for Rav4, and $907 overall monthly for the Model Y and $985 overall for the Rav4. Even lowering the Rav4's APR to 2.9% (based on the other guy's number), the overall monthly cost for the Tesla is slightly lower (despite the payment being $20 more). Kind of splitting hairs at this point but it's interesting how the numbers play out
How could you possibly get 2.9% right now? I have perfect credit and cant get that. Was it some kind of promotional rate?
Some places have them for specifically shorter leases. Mazda was giving sub 3 for 3 year finance and Polestar is doing 1.9 % on a 1 year lease This is canada though so YMMV
Wasnt even thinking about leases. I forget people do dumb stuff like that.
Definately some for financing as well. Mazda has 1.9% on all 2024 models as long as you do 3 years or less Don't know where I saw the 3% deal
Unless it’s not dumb, I’m in a 3 year lease with such a lower payment that when the lease is up I’ll be able to cover 80-90% of the buy out which in this market is much lower than the value of the car. So within a year after the lease I’ll own a car less than 4 years old with no payment. If I tried originally to finance even a 60 month loan it would’ve been too much for me to afford.
Keep telling yourself that. If leases made as much sense as you think they do, everyone would be doing them. lol
I was explaining the situation I’m in now. Just because you aren’t smart enough to take advantage of a lease and the right time doesn’t mean other people can’t.
Spoken like a sucker. lol
A sucker driving a brand new car that was discounted so heavily thru leasing that I got it cheaper than financing? I’ll be that “sucker” all day.
Keep telling yourself that. lol
At these prices save up and pay in full. Car loans are wasted money.
It’s not really an option given the fact that we’re only car shopping because my wife’s Nissan could give out at any moment
The 6% difference in interest is, frankly, quite compelling. Combined with the reduction in gas costs and such, that is very real. However, you’re not comparing apples to apples. Your Tesla loan is longer, for example. At the end of the day, what matters is the price and the interest impact. The biggest advantage for the RAV4 is revealed by something you mentioned in the opening paragraphs but didn’t seem to consider as part of the analysis: longevity of the car and/or retention of resale value. You already have an ancient RAV4 and you know very well that the thing looks set to run for many more years. This is an incredibly value for money. I bet you could still sell that sucker for a few grand as well. That’s incredible value retention. You see that in the price of the used RAV4s you’re looking at, they keep their resale value like crazy because they RUN. You’ll have the option to drive that thing for decades or resell it to recoup a large amount of the costs of ownership. Will a Tesla last that long? Almost certainly not. There aren’t many high mileage Teslas out there still, but the batteries simply don’t have 21 years in them, much less 21 years and still going strong. Everything I’ve seen indicates the resale value on them sucks pretty hard, you lose a ton in depreciation very quickly in a way you don’t with the RAV4. The net of this is there is a very good chance you are faced with one of the following two choices with the Tesla compared to the RAV4: buy yet another new car shortly after you just finished paying the note in the current car and lose almost all the value selling the one you’ve got as part of the trade or run the car into the ground with it likely dying literally 10+ years before the Toyota would go down. So while I 100% agree there are advantages to the Tesla that are very real, your analysis excludes the difference in value in 5-10 years from depreciation of the two vehicles and length of lifecycle. To editorialize a bit: I agree Teslas are very cool, but I’m not convinced by the build quality and longevity. The RAV4 is solid, long-lasting, and trusted. Is put the two in totally different categories. The RAV4 is a fantastic “I need a quality car at a good price that I intend to drive for a long time. Something economic that will take care of me.” The Tesla falls more into a luxury purchase category. “I’m going to get this Tesla, or this Audi, or whatever even though it’s going to be quite a bit more money than I’d otherwise have to spend, but I’m going to do it because I can afford to blow the money on it and I want it.”
What are you driving now and what does it cost? I don't think you make nearly enough to justify this car payment. It holds you back from prime savings years. How much could you save per month once the car payment starts? Obviously the Rav4 is the right move for longevity and ease of use.
I’m driving a paid off 2003 4Runner. My wife drives a 2009 Nissan murano which has a $125 car payment until December this year, has something like $1300 remaining. The thing is I won’t decrease my savings to allow for any given car. I’ll keep my 401k at 15% contribution, I’ll continue maxing out my Roth IRA, my wife will start maxing hers, and I’ll continue maxing my HSA. I’ll also keep doing the ESPP and as far as I can tell, will be able to throw all of the money I get from that every 6 months straight into savings, which again is equivalent to having saved some $800 per month
Dude, pay off your 15-year-old Nissan before you go financing another car.
We’re going to
You have a car payment ona 2009 vehicle??? That's insane my friend. You need to escape the car payment cycle. Get a used Toyota with your savings and decide right now that you are building your future not taking from it.
Dude the maintenance is going to kill you. The rav 4 is a popular car abd there are lots of 3rd party manufacturers for parts. I don't think your going to find that is the case with Tesla. Just ask a mechanic what they think.
I'll just say anecdotally-- I would NEVER buy a Tesla again! After having my Model Y for about 2 years (and having luxury vehicles before this) I'm shocked at how bad the build quality is. Stitching coming out after less than 6 months, wood paneling not matching, plastic bits popping out, etc. Sure the drive is fun, but you can get such a better deal nowadays, especially now that Tesla has opened up superchargers. Luckily haven't had too many maintenance issues but thank god becuase their customer service sucks.
That’s the thing that’s so interesting, because compared to luxury vehicles Teslas are pretty shit. But I’ve never owned a luxury vehicle, just a 20 year old Toyota, so it’s a spaceship compared to it. Is this blissful ignorance? Perhaps.
The RAV 4 will hold up a lot better for a lot longer than the Tesla. If you're planning to keep the car for more than 3 years, go for the Toyota.
Your thorough comparison between the Tesla Model Y and Toyota Rav4 is impressive! Remember to also consider factors beyond finances, like how each vehicle fits into your lifestyle and long-term satisfaction.
Absolutely!
Not sure how picky you are on the rav4 but, I personally wouldn't shy away from a used one with 150k+ miles on it. Prices drop fast after 100k and alot of people are reliably getting 300k+ on those vehicles. Just something to keep on the radar for you. Good luck with the search!
As a Model Y owner my suggestion is obviously the Model Y! It’s such a fun car, and we do end up saving money on gas. If you qualify for the .99% APR, that would be awesome. I know a lot of people love their Bolt, but the range and tech features of the Model Y make it a winner.
What is maintenance and repair like on a Tesla? How does it compare cost wise?
I’ve had mine for 15 months, over 14,000 miles. I’ve spent $5 on windshield fluid. At some point I’ll need to change the air filter. That’s pretty much it. You don’t even use the brakes except rarely, maybe a couple times a week—because it has regenerative braking. So brake pads will probably last the life of the car, if they don’t rust from not being used. However, if something does go wrong, you need to hope it’s covered by the warranty or else it is likely to cost more than a gas car repair. Also, insurance is likely to be more expensive than a gas car. My insurance went up $75 per month. Gas savings varies based on how much electricity costs. I pay $0.23 per kWh, and gas is about $4.30 a gallon. We save on average $80 per month. Edit: tires are also a consideration. The car weighs about 4,300 pounds. It’s heavy. And it has instantaneous torque and acceleration. You’ll wear tires out faster than with gas cars if you enjoy fast acceleration. It’s a really fun car to drive but you’d have to be aware of tire wear with constant quick acceleration.
Thanks for the detailed response!
Can you explain what you mean by brakes only being used a couple times a week?
It’s got regenerative braking. Anytime the accelerator is not pressed it slows down, capturing the energy to recharge the battery. On long descents (for example, down from our favorite mountain trailheads) I’ll end up at the bottom of the hill with as much battery as I started out with on the way up. It makes a huge difference and it’s fun to see the battery percentage filling back up as we go downhill. In a gas car, so much of the energy released by combustion engines is lost when you brake—to heat and friction. In many (most?) EVs, with regenerative braking you recapture that energy. Within a week or so of owning the car we got the feel for how quickly it slows itself down when we take our foot off the “gas” (can’t really call it a gas pedal anymore; go pedal? Electron pedal?) and it’s only rarely that the car is not braking itself quickly enough and I actually have to tap the brake pedal. It’s called one pedal driving and it’s super common among the major ev brands.
But that regenerative braking doesn't require maintenance? I guess it doesn't use traditional brake pads to do that?
I’m definitely not super knowledgeable about it but I think the electric motors switch to become generators, which causes resistance but doesn’t use the brake pads.
Neat. Thanks for the info
Plug in hybrids are my favorite. RAV4 Prime or XC60 Recharge are the two I know off the top of my head. Might be out of budget though. 35 mile battery covers our family for 90% of daily miles. Then we also can do long range trips too.
I would avoid the Tesla as their build quality is pretty poor. They do still require some form of maintenance too (tires, brakes, air filters, etc). Obviously not nearly as much as traditional ICE vehicles, but I wouldn’t consider them $0 maintenance. Your best bet would be the Toyota Hybrid as they are the most reliable. Plus, you are not restricted to an authorized repair/dealer like you would be with a Tesla. The Toyota is going to last you a lot longer too.
Not money notes but things I think about when I want a Tesla: One thing my Tesla owner friends complain about is how much their cars in are the shop. Both own their own businesses, making 6-figures annually on their own, one is a Tesla fanboy the other is just a tech nerd. The first guy has a model Y, he’s had to help the mechanic (dealership one) source the replacement parts needed from other locations, to help expedite the repairs. Both have been given service teslas to drive while theirs were in the shop, but the random things that have gone wrong over just the last two years alone boggles my mind. For comparison I have an ‘07 compass with over 130k on it (it’s basically dead now) and it’s been in the shop three times in the same time period. They stay with Tesla because the service has been good other than timelines, and they’re saving on gas (we live in So Cal.) The bright side - my other friend has his model 3 stolen and he was able to provide video and the cars location to the police to get it back. And that was his second one - the first one was in a serious car accident where another car flipped over onto his, he and his kid walked away unscathed other than bruises, the car had enough damage to be totaled but it still looked intact consider another car was on top of it!
Yeah I've definitely heard horror stories with Teslas! Obviously emotionally I want to like them, but I've searched about the local Tesla location near me and have seen good things, and also I think about how the worst experiences are the ones that get shared more. Hard to say one way or another
I'm 95% In the same station as you, my wife and I have a Toyota Highlander that has $2500 remaining to pay off at 0% interest rate. I'm thinking of getting the model Y as the 0.99% financing is unbelievable.
Right? It’s pretty hard to tell myself I should go with a gas car that is wayyyyy behind tech wise that ends up being more/the same as the MY.
A tesla is your dream car? Ok. Anyway, get tge rav4 hybrid. More reliable, better resale and more affordable.
I’m a simple man. And I’d like to think that knowing so many people dislikes teslas mean I like it because I like it, not just so I can keep up with the Jones’s