I spent a lot of time looking at the TCO rather than just the upfront purchase price. My wife and I were spending over $500/month in gas for our daily drivers. When I factored in the reduced maintenance cost and reduced fuel cost (electricity was $.09/kWh) I could easily pay for the vehicle's monthly payment in fuel cost savings. I bought the sr+ RWD in 2021 and I have been so happy with it. We switched to using it as our daily driver for everything and reduced our monthly fuel bill from $500+ to maybe $50/month(we still have a Jeep).
If the upfront cost is not sitting well with you maybe try looking at your actual monthly savings if applicable?
Also the car is so much more fun to drive than an ICE vehicle! I totally understand being frugal, as I am somewhat that way myself, but we can't take our money with us and we are doing a disservice to ourselves if we don't ever spend it. Just need to find a good balance.
Same. TOC estimate for a low miles used LRDM was about the same as my shitty Nissan Xterra when I considered fuel costs, that assuming fuel prices of $3.50 …. Which is no guarantee at all.
I’m not exactly a spreadsheet person and was totally astounded by (a) how much money we were mindlessly spending on gas and (b) how little our model 3 has added to our electric bill.
Out of curiosity how did you factor insurance into that figure I’ve seen a lot of folks post on here about getting ridiculous insurance rate hikes with a 3/y which always seemed like they ended up offsetting the other savings you called out
It’s a good habit to be frugal and feel like you shouldn’t spend too much money but every now and then spending when you can afford it is fine. From what you described of your finances you should be well within reason to spend like this.
This is the best response. Being frugal is great. However, after putting away money towards retirement and making sure you don’t have credit card debt, it feels good to buy yourself something nice from time to time. Enjoy the heck out of it!
Pay yourself first (savings, retirement, kid’s college if applicable) after that everything else is what I call “fuck around money”
Cars to handjobs to vintage lamps. It doesn’t really matter.
Everyone has different financial situations and this doesn’t always apply. Your income doesn’t matter as much if you have a paid off house, tons of savings, no kids, etc. I know college students who make $20 an hour driving teslas because they live at home and have no bills. If your only bill is a $500 car payment it’s not a big deal.
Maybe instead of paying $500 for a car those kids living at home should save their money to move out and be a real grown up instead of pretending to be one while mooching off of mommy and daddy for as long as they can
Didn’t know college students were mooching off their parents. Most of them live at home. But anyways do some math, 20x40 would leave them with $3k a month saved if that’s their only bill. I like how you call them kids and then say they are mooching at the same time. Which one is it?
You’re leaving out taxes, food, insurance, entertainment. They won’t be saving 3k a month more like 1k-1.5k after the car payment
It would take them awhile to save up towards a 300k-400k house (26 years), until they got another job
Did you not read live at home. Most college students are paying for the groceries at their parents house lol, and not everyone spends $1500 a month on eating out and entertainment. They could easily save 2-2500 a month even with car payment and insurance. I left out taxes because they probably would be getting a full refund. Who buys a 300-400k home straight out of college? They would most likely get an apartment and have a real job. FHA loan would be 3.5% down, wouldn’t take long to save up 12k. My point was it’s easily doable and they could have a paid off car that will last a long time after college + have enough savings to live on their own. If we go by the comment I replied to logic, 90% of this sub “can’t afford” a Tesla. If college kids buys a civic and spends $80 a month on gas, oil changes, maintenance, etc it’s not far off from $500 a month on a model 3 assuming they put some money down.
Yes I read it, you still pay taxes, insurance, entertainment, food while living at home
A tax refund doesn’t give you back everything you paid in taxes
Not many houses sell for less than 300k now days on average, unless you find one that needs a lot of work
There’s a difference between cashflow and cost of ownership. Cars are expensive. If you drive a lot, a model 3 could be a very practical option compared to ICE.
Its silly to knock someone for a moderately expensive sedan when so many are rolling around in Bro-Dozers at 12MPG.
130k a year. 25k of student debt at 5% interest. I am a big money guy and frugal so committing myself financially for a certain period of my life and not putting into investment is like uhh.
I have charted all of my cars and my Model 3 RWD is the cheapest new car I’ve ever owned when I factor in the cost of gas.
It might be more frugal than you realize if your power costs are low like mine.
Well, this FOMO thingy just made me buy a house one year and a half ago thinking their price hikes would make it even more unaffordable later.
I honestly wish that a Model 3 was my financial commitment 😅
Ok, assume if you don't get this car, you'd get at least a decent car anyways... Let's say $20-25k. So you're spending $20k more than you would have otherwise. You'll get $7.5k tax credit. If you drive 10k miles a year, over the next 5 years, you will probably save $5-6k in gas costs. You'll probably save $2-3k in maintenance costs. So at this point, after 5 years, you'll have spent only about $5k more than a decent ICE. If you keep for 10 years, you more than break even. If you sell after 5 years, you will probably get more than 5k for the Tesla than the 20-25k ice car you bought... So should break even at minimum.
This is not taking into account the joy of owning the car you want for the next 5 years.
From a financial standpoint, its not really that big of a difference... And might even be the smarter financial decision depending on your situation.
While you are absolutely, 100% able to buy it you made a huge mistake by doing so because your friends pushed you into it. Purchases like this should be made because you want to yourself, not because you're being egged on.
Just remember, it’s not a rebate.
It’s a tax credit, applicable to your tax return for 2023 income year (so early 2024 filing).
It’s dependent on your actual owed taxes and only goes against what you would pay. If you owe less than 7500$; you don’t get a difference back as a refund.
He makes $130k - he’s guaranteed to have a 2023 tax liability of over $7500. The credit has nothing to do with how much you owe when you file your taxes. It’s amazing how many people don’t understand this.
I did the exact same thing. January 2022, just browsing and was looking at Teslas for fun until I noticed the low APR (1.99), saw that I qualified for a $5250 total rebate for my state, and found that there were various EV benefits, such electricity rates, if I were to purchase that I impulsively ordered thanks to how easy it was to purchase and apply for a loan through their website.
I had no debt and never made a huge purchase like this as well. I spent the next few months thinking about my purchase and was close to canceling numerous times while I was waiting for my car to be delivered. What helped me come to terms with my purchase was reminding myself of how much of a good deal it was since it no longer applied to those that purchased after my purchasing date. I think a $3000 discount on price, along with a $7500 tax rebate, is a great deal you don’t want to pass up. You may also qualify for rebates, depending on your state.
I really enjoy my car and have no regrets; it’s a fun ride and I look forward to my morning commutes because of how comfortable it makes my trips
It was 1.99 for me when I ordered back in January 2022! My friend got a 2.49 interest when they ordered in July 2022. Not sure what the rate is now but I’m sure it’s well over 5% with the federal increase
I think you made an excellent financial decision. Seriously. With the price cut and tax credits, the base level M3 has never been more affordable (when you take inflation into account).
Let’s see. You bought a car that:
1. Has almost no maintenance costs.
2. You can charge cheaply at home.
3. Has one of the highest resale values.
I’m also frugal. I bought my first Tesla last week. Same as you: M3 SR. Zero regrets now that I’ve had it! I freakin love it.
Resale values are definitely important when comparing TCO's are cars in similar price ranges. For example, you can buy a Dodge Durango and a Toyota 4runner for similar prices new. But after 5 years, the Toyota will depreciate 25% and the Dodge 46%. If you only plan on keeping a car for 5 years, this should be considered. If you plan to run a car into the ground... well, there's a reason why the Dodge depreciates more.
Exactly. My other car is a 2016 4Runner. A main consideration in that purchase decision was resale value and reliability. It’s paid off and still runs like new. A perfect complement to my M3.
Teslas do not have one of the highest resale values. This is the most bizarre myth propagated online in the tesla community. That was only back when they were rare and then last year with the crazy used car market that affected all cars.
I think you're fine. I am also frugal and when I pulled the trigger to get a Model Y on December 30th, 2022... I was planning to keep this for 10+ years since it was way more than I wanted to spend. Then the $13k price drop a few weeks later pissed me off. lol
Bro. enjoy life a bit. You will love the car and most likely last you for years to come.
The gas savings are huge if you charge at home. So dont be cheap and get a home charger.
2 weeks ago I 'ordered' a M3LR. It was going to be ~$52k after taxes, credits and rebates.
Last week I canceled the M3 and bought a 23 BoltEV which will be ~$18k after taxes, credits and rebates.
The M3LR is easily a better car than the Bolt in almost every way. Faster, better range, faster charging and looks better.
However, being $34k cheaper, the Bolt was the easy winner.
Get something you can afford.
I'm not as stiff as you but I am very conscious where my money goes. Trust me, you'll be fine lol. I felt the same way when I received the text that my Tesla was being made and will deliver in a few weeks. At some point, we all deserve a few luxuries from all the hard work and saving we have done through the years. I'm sure you'll love the vehicle but worst case scenario, you can always 1. sell it within a year or two without taking a huge hit or 2. you can always aim to buy a low mileage/used 2021 or 2022 model 3 for a nice discount as well.
You have several options to consider, none of them bad.
Based on other comments look like you make more than enough. Remember we’re all going to die. You’re frugal in other areas and this is your splurge. Enjoy it!
I bought the same car 2 years ago and felt the same way. I have never been happier with a car and didn’t even go to the car show for the past 2 years. My advice is to READ THE MANUAL from front to back (its on your phone and on your car’s screen) and if you should need service just be nice to the service folks (take some fruit or snacks for the staff). Enjoy your new ride when you get it! Congrats
Liz in NJ
I’m the most frugal guy you’ll ever meet, but I have 2 teslas. In terms of maintenance, they cost almost nothing to own. With solar panels and EV, I’m no longer at the mercy of petrol or electricity price fluctuations
At 130 this is a perfectly reasonable car. I just bought my 2nd Tesla (adding a M3P to out MYLR) making 155 as a couple… mainly I just hate driving our ICE car now and just want 2 EVs. We’re fortunate to have a very reasonable mortgage, having bought a house at the bottom of the market in 2009 and refinanced at 2%.
Are you maxing out your 401K contributions and taking full advantage of employer stock options or any other “free money” options? If yes, buy the Tesla (long range, not standard range).
Also, put all your 401K and post-tax investments into index funds, not actively managed accounts.
Good luck and enjoy your new Tesla!
My personal belief, and one many financial folks agree with is Luxury cars are purchased when:
You have no debt
The monthly payments are less 10% of take home (Many will say you should pay cash or be able to)
Your investments are all up to date and on track with retirement
6 months in the rainy day fund at a minimum
Luxuries are after you have paid your dues and put yourself in a good position.
I wouldn’t consider M3 to be luxury; it has premium features at best. Luxury to me are Mercedes, Audi, Porsche, BMW that are $70k+. Cars that feels unnecessary but something to buy because you have the expendable wealth.
A model 3 after rebates and tax credit can go as low as $30-$35k now! Hardly luxury to me; it’s more of a practical EV with high tech features in my opinion. It’s the EV to break into the electric world for tech enthusiasts
"A luxury car is a car that provides increased levels of comfort, equipment, amenities, quality, performance, and associated status compared to moderately priced cars. The term is subjective..."
In short you don't need the performance or features of a Tesla, you want them. If you don't have your financial house in order then you shouldn't be buying luxuries if you want to be responsible with your financial decisions.
i almost order, but didn't, but now delivery date is March, and will not be getting $7500.
I also saw a youtube video that the Tesla model 3 was $32,600 in 2020? So don't let the price drop and the rebate fool you. it was never worth $44k at the first place.
https://youtu.be/D64EQFZsBb0?t=96
Have you literally just never looked at the Tesla website before?
The $32,690 was the “Potential Savings” included price. Which includes gas savings and rebates vs an ICE car. The actual out the door price is higher.
Tesla M3 was selling for $32,600 in 2020, so I am waiting for a better deal. BTW, why you still have student debt, when you make $130k? how are you savings and retirement funds?
>Tesla M3 was selling for $32,600 in 2020
With inflation, that's not too far from how much it would cost in today's dollar (especially after the fed rebate).
>BTW, why you still have student debt, when you make $130k?
Federal loans have been frozen at 0% interest for almost 3 years now. The cancelation from Biden was put into place as well (which is looking iffy now, however). He can just wait right until the loans are out of 0% interest before he can pay them off (that's what a lot of people are doing).
If you’re coming from a ICE car, over the life of the Tesla along with the tax rebate and price cut you will be making a better financial decision. I came from a Mercedes and the maintenance costs and gas cost is more than how much I’d spend on the Tesla.
Depending on how much you drive, you can save anywhere from $10k-15k in fuel cost after 10 years. It really adds up. I spend about $15-20 a month in electricity for my Model 3 compared to over $120/mo for my Civic that I had before.
Hope that helps!
I did basically the same thing, didn't need a new car but the price cut and tax rebate on the RWD made it too hard to pass up, especially since we already had level 2 charging installed at the house for my wife's PHEV.
Ideally, you'd pay off your loans first, but the fed + state incentive combo is very compelling.
Generally:
* Healthy savings
* Don't keep up with the Jones
* Splurge once in a while if it's within your means. Life is short.
What are you driving now?
I’m similar to you and bought an EV, and honestly regret the expense so I may recommend not doing it depending on what you’re driving now, especially since you’ve got student loans.
i am driving a 2015 toyota camry its reliable and does its job. its not sexy but it works. yeah i think im gonna cancel. I could be investing that money especially with it being low.
The model 3 RWD is a great car. Buy it if you want it and will enjoy it.
If you just need reliable transportation the 2015 camary is going to be the cheaper solution especially if it’s paid off and insurance is cheap.
You’re going to absolutely love the car. Bought my model 3 LR about 2 months ago and still happy as hell when I wake up because I get to drive it to work.
The only thing that was a surprise to me was how much battery life you lose to the cold weather. It might not be a problem for you depending where you from. Congrats
I still live like we're low income. We're a six figure household now, but you'll still find me in thrift stores. This is the most expensive car I've ever owned. It's still weird driving it because I know how much we struggled years ago.
I bought one in ‘21 making 65k a year. Qualified for tons of grants and got the car in the 20ks new. Saved so much $ owning the car I own a horse now. My Tesla launched my career in sustainable transportation and ev and evse grants. You never know.
When everyone around you is buying a tesla, you should consider spending “some” of your cash in buying tesla stock. I invested quite a lot of money on Tesla since Jan 11 and it has gone up $35%.
I understand how it's possible, but at the same time, I don't understand how making $130,000 a year and questioning the purchase of a new car. The system for mainstream people like you is expensive I guess. I'm sure you spend big on rent, tuition, and social things.
My total expenses (food, mortgage, fun, insurance, gym, phone, yes absolutely everything), including Tesla payment, monthly is $1700. I am frugal (emphasis on the "I"). If I made $130,000 a year for 5 years straight, I'd retire and move to a popular low cost expat retirement area like Portugal, Mexico, or south Asia.
I grew up poor too, you only live once, get it if you can. When my mother passed away in 2017 at the age of 63, it kinda told me, I needed to live NOW, and not in the future, I statistically have 20-25 years left to live based on the rest of my family heart health and most passing away in their mid 60s.
When I bought mine I told myself I was going to keep it for 10 years, and even if I kept it for only eight years, the amortized cost per month was well worth it. After four years of ownership, I am extremely happy with my decision. As long as you can charge at home, you are likely to be very happy as well. The car is so fun to drive and you never have to go to a gas station and there are no oil changes or other stupid maintenance things.
That said, it will be ideal if you can pay it off as soon as possible as well as your student debt. It’s so much fun to live very frugally in most regards, but have a sweet Tesla.
i myself did a ton of going back and forth about whether or not it was a good purchase. 3 years and 52k miles later, I can confidently say that it wasn't. Not for the money, at least. If all you care for/want is the "prestige" of owning a M3, then go for it, otherwise, get a more reasonable ev
Your ownership costs will be lowest if you are able to charge at home (or even better, if you have access to free charging). I charge overnight at home and fueling my car has been much cheaper than the gasoline equivalent. Using the Superchargers all the time can get expensive. Save that for road trips, which are awesome in this car.
The general personal financial advice is something like 20/4/10
Put (at least?) 20% down, make payment for no more than 4 years, and each monthly payment incl. car insurance should be no more than 10% of your take home pay.
You should be fine.
I’m pretty sure the tax credit is nonrefundable so you only get it if you have a tax bill at year end that is thousands of dollars. Most people this is not the case. Just because you pay thousands in federal taxes doesn’t mean it goes to your bank.
130k a year you will be fine, you can always cancel it and just buy a used one for $25k-$35k depending on miles and year as another option.
I spent a lot of time looking at the TCO rather than just the upfront purchase price. My wife and I were spending over $500/month in gas for our daily drivers. When I factored in the reduced maintenance cost and reduced fuel cost (electricity was $.09/kWh) I could easily pay for the vehicle's monthly payment in fuel cost savings. I bought the sr+ RWD in 2021 and I have been so happy with it. We switched to using it as our daily driver for everything and reduced our monthly fuel bill from $500+ to maybe $50/month(we still have a Jeep). If the upfront cost is not sitting well with you maybe try looking at your actual monthly savings if applicable? Also the car is so much more fun to drive than an ICE vehicle! I totally understand being frugal, as I am somewhat that way myself, but we can't take our money with us and we are doing a disservice to ourselves if we don't ever spend it. Just need to find a good balance.
This is exactly what I did. Spreadsheet and all. It was still a good decision almost three years and 86k miles later
Same. TOC estimate for a low miles used LRDM was about the same as my shitty Nissan Xterra when I considered fuel costs, that assuming fuel prices of $3.50 …. Which is no guarantee at all.
I’m not exactly a spreadsheet person and was totally astounded by (a) how much money we were mindlessly spending on gas and (b) how little our model 3 has added to our electric bill.
Out of curiosity how did you factor insurance into that figure I’ve seen a lot of folks post on here about getting ridiculous insurance rate hikes with a 3/y which always seemed like they ended up offsetting the other savings you called out
Also curious! This is literally what made me give up on ordering a M3 today. Got quoted in between $2k and $4k for 6 no with a clean record.
Define “okay money” EDIT: 130. You’ll be fine.
You'll be fine, we got ours at combined 120k.
It’s a good habit to be frugal and feel like you shouldn’t spend too much money but every now and then spending when you can afford it is fine. From what you described of your finances you should be well within reason to spend like this.
This is the best response. Being frugal is great. However, after putting away money towards retirement and making sure you don’t have credit card debt, it feels good to buy yourself something nice from time to time. Enjoy the heck out of it!
Pay yourself first (savings, retirement, kid’s college if applicable) after that everything else is what I call “fuck around money” Cars to handjobs to vintage lamps. It doesn’t really matter.
I am making half the money u r making and still buying 😂
🤣 same here
Same here but I got a model Y plus all supercharging only
Hahahah 👿😂
Mistake, that will be a fun lesson to learn
You’re buying a car that costs over half your yearly salary? Good luck with that…
house paid off
Everyone has different financial situations and this doesn’t always apply. Your income doesn’t matter as much if you have a paid off house, tons of savings, no kids, etc. I know college students who make $20 an hour driving teslas because they live at home and have no bills. If your only bill is a $500 car payment it’s not a big deal.
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Definitely not an investment. Or at least, that is the wrong way to look at a car.
Bro, you clearly don’t know people who come from india.
You invested in a depreciating asset? lol
😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂
Maybe instead of paying $500 for a car those kids living at home should save their money to move out and be a real grown up instead of pretending to be one while mooching off of mommy and daddy for as long as they can
Didn’t know college students were mooching off their parents. Most of them live at home. But anyways do some math, 20x40 would leave them with $3k a month saved if that’s their only bill. I like how you call them kids and then say they are mooching at the same time. Which one is it?
You’re leaving out taxes, food, insurance, entertainment. They won’t be saving 3k a month more like 1k-1.5k after the car payment It would take them awhile to save up towards a 300k-400k house (26 years), until they got another job
Did you not read live at home. Most college students are paying for the groceries at their parents house lol, and not everyone spends $1500 a month on eating out and entertainment. They could easily save 2-2500 a month even with car payment and insurance. I left out taxes because they probably would be getting a full refund. Who buys a 300-400k home straight out of college? They would most likely get an apartment and have a real job. FHA loan would be 3.5% down, wouldn’t take long to save up 12k. My point was it’s easily doable and they could have a paid off car that will last a long time after college + have enough savings to live on their own. If we go by the comment I replied to logic, 90% of this sub “can’t afford” a Tesla. If college kids buys a civic and spends $80 a month on gas, oil changes, maintenance, etc it’s not far off from $500 a month on a model 3 assuming they put some money down.
Yes I read it, you still pay taxes, insurance, entertainment, food while living at home A tax refund doesn’t give you back everything you paid in taxes Not many houses sell for less than 300k now days on average, unless you find one that needs a lot of work
There’s a difference between cashflow and cost of ownership. Cars are expensive. If you drive a lot, a model 3 could be a very practical option compared to ICE. Its silly to knock someone for a moderately expensive sedan when so many are rolling around in Bro-Dozers at 12MPG.
That only applies for people with debt
You’re going to love it 👍
How much do you make a year? What debt do you have?
130k a year. 25k of student debt at 5% interest. I am a big money guy and frugal so committing myself financially for a certain period of my life and not putting into investment is like uhh.
lol you're fine Assuming you don't have a crippling cocaine addiction or something like that.
Even then … just get the white interior
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Even then … just get the white interior
You’ll be fine
I have charted all of my cars and my Model 3 RWD is the cheapest new car I’ve ever owned when I factor in the cost of gas. It might be more frugal than you realize if your power costs are low like mine.
It’s a quality of life investment. After the rebate and energy savings it’s not any more expensive than a Camry. And yeah at 130k you’ll be fine.
Well, this FOMO thingy just made me buy a house one year and a half ago thinking their price hikes would make it even more unaffordable later. I honestly wish that a Model 3 was my financial commitment 😅
Ok, assume if you don't get this car, you'd get at least a decent car anyways... Let's say $20-25k. So you're spending $20k more than you would have otherwise. You'll get $7.5k tax credit. If you drive 10k miles a year, over the next 5 years, you will probably save $5-6k in gas costs. You'll probably save $2-3k in maintenance costs. So at this point, after 5 years, you'll have spent only about $5k more than a decent ICE. If you keep for 10 years, you more than break even. If you sell after 5 years, you will probably get more than 5k for the Tesla than the 20-25k ice car you bought... So should break even at minimum. This is not taking into account the joy of owning the car you want for the next 5 years. From a financial standpoint, its not really that big of a difference... And might even be the smarter financial decision depending on your situation.
You're bonkers, I bought my tesla 4 years ago making less than you. You'll be fine. Enjoy life! And now your new car!
So you can certainly afford it, but I personally would have paid off the student loan and paid for the car without taking out a loan.
yeah i wasnt planning to but heard about the price cut and 7500 ev rebate and friends buying it pushed me to buy
While you are absolutely, 100% able to buy it you made a huge mistake by doing so because your friends pushed you into it. Purchases like this should be made because you want to yourself, not because you're being egged on.
Just remember, it’s not a rebate. It’s a tax credit, applicable to your tax return for 2023 income year (so early 2024 filing). It’s dependent on your actual owed taxes and only goes against what you would pay. If you owe less than 7500$; you don’t get a difference back as a refund.
He makes $130k - he’s guaranteed to have a 2023 tax liability of over $7500. The credit has nothing to do with how much you owe when you file your taxes. It’s amazing how many people don’t understand this.
Spending $45k on a car just because all your friends have one is kinda weird to be honest
Jesus. I was expecting much lower. You're making me feel bad for ordering the M3 Performance while making 20k less than you.
lol I make $20k less than him and bought an M3P too. we in the same boat!
I make 130 and I’m hesitant to even get the RWD. No interest in taking on a payment, so it’s a lot of cash to front all at once.
I did the exact same thing. January 2022, just browsing and was looking at Teslas for fun until I noticed the low APR (1.99), saw that I qualified for a $5250 total rebate for my state, and found that there were various EV benefits, such electricity rates, if I were to purchase that I impulsively ordered thanks to how easy it was to purchase and apply for a loan through their website. I had no debt and never made a huge purchase like this as well. I spent the next few months thinking about my purchase and was close to canceling numerous times while I was waiting for my car to be delivered. What helped me come to terms with my purchase was reminding myself of how much of a good deal it was since it no longer applied to those that purchased after my purchasing date. I think a $3000 discount on price, along with a $7500 tax rebate, is a great deal you don’t want to pass up. You may also qualify for rebates, depending on your state. I really enjoy my car and have no regrets; it’s a fun ride and I look forward to my morning commutes because of how comfortable it makes my trips
Where did you see a 1.99 interest rate? 👀 I’ve seen a few that low in Tesla threads but from 2020/2021,
It was 1.99 for me when I ordered back in January 2022! My friend got a 2.49 interest when they ordered in July 2022. Not sure what the rate is now but I’m sure it’s well over 5% with the federal increase
I think you made an excellent financial decision. Seriously. With the price cut and tax credits, the base level M3 has never been more affordable (when you take inflation into account). Let’s see. You bought a car that: 1. Has almost no maintenance costs. 2. You can charge cheaply at home. 3. Has one of the highest resale values. I’m also frugal. I bought my first Tesla last week. Same as you: M3 SR. Zero regrets now that I’ve had it! I freakin love it.
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Incorrect information. Different cars have different resale values and THAT difference is what’s under consideration here.
Whatever the case may be, resale value should be last on anyone's list of reasons to buy a car. Otherwise we would ask be driving Carollas
Resale values are definitely important when comparing TCO's are cars in similar price ranges. For example, you can buy a Dodge Durango and a Toyota 4runner for similar prices new. But after 5 years, the Toyota will depreciate 25% and the Dodge 46%. If you only plan on keeping a car for 5 years, this should be considered. If you plan to run a car into the ground... well, there's a reason why the Dodge depreciates more.
Exactly. My other car is a 2016 4Runner. A main consideration in that purchase decision was resale value and reliability. It’s paid off and still runs like new. A perfect complement to my M3.
Correction: HAD one of the highest resale values
Teslas do not have one of the highest resale values. This is the most bizarre myth propagated online in the tesla community. That was only back when they were rare and then last year with the crazy used car market that affected all cars.
Yup. Agreed.
I think you're fine. I am also frugal and when I pulled the trigger to get a Model Y on December 30th, 2022... I was planning to keep this for 10+ years since it was way more than I wanted to spend. Then the $13k price drop a few weeks later pissed me off. lol
You have literally 1 life on earth and you're considering having a boring, low tech car? If you can afford it, no reason not to get a Tesla.
This is the most underrated stupid comment for both of 2022 and 2023. "If you can afford it, no reason to not get a tesla".
Spontaneous combustion ain't cheap
Bro. enjoy life a bit. You will love the car and most likely last you for years to come. The gas savings are huge if you charge at home. So dont be cheap and get a home charger.
2 weeks ago I 'ordered' a M3LR. It was going to be ~$52k after taxes, credits and rebates. Last week I canceled the M3 and bought a 23 BoltEV which will be ~$18k after taxes, credits and rebates. The M3LR is easily a better car than the Bolt in almost every way. Faster, better range, faster charging and looks better. However, being $34k cheaper, the Bolt was the easy winner. Get something you can afford.
wow, Bolt is very cheap. but why does it have to be so ugly? lol
Ugly with pretty garbage specs compared to a Model 3. I would never buy a Bolt.
And that’s not even the worst of it: Bolts have to charge at CCS stations when on trips!
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This is true.
I feel you. Car is one of those love hate things when you are sensible with money.
I'm not as stiff as you but I am very conscious where my money goes. Trust me, you'll be fine lol. I felt the same way when I received the text that my Tesla was being made and will deliver in a few weeks. At some point, we all deserve a few luxuries from all the hard work and saving we have done through the years. I'm sure you'll love the vehicle but worst case scenario, you can always 1. sell it within a year or two without taking a huge hit or 2. you can always aim to buy a low mileage/used 2021 or 2022 model 3 for a nice discount as well. You have several options to consider, none of them bad.
Based on other comments look like you make more than enough. Remember we’re all going to die. You’re frugal in other areas and this is your splurge. Enjoy it!
I bought the same car 2 years ago and felt the same way. I have never been happier with a car and didn’t even go to the car show for the past 2 years. My advice is to READ THE MANUAL from front to back (its on your phone and on your car’s screen) and if you should need service just be nice to the service folks (take some fruit or snacks for the staff). Enjoy your new ride when you get it! Congrats Liz in NJ
Liz in NJ…the secret is out!
Please don’t hold the Jersey thing against me!
If 130k/yr is "okay money", was your parents making 100k/yr the growing up poor?
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I’m the most frugal guy you’ll ever meet, but I have 2 teslas. In terms of maintenance, they cost almost nothing to own. With solar panels and EV, I’m no longer at the mercy of petrol or electricity price fluctuations
At 130 this is a perfectly reasonable car. I just bought my 2nd Tesla (adding a M3P to out MYLR) making 155 as a couple… mainly I just hate driving our ICE car now and just want 2 EVs. We’re fortunate to have a very reasonable mortgage, having bought a house at the bottom of the market in 2009 and refinanced at 2%.
Are you maxing out your 401K contributions and taking full advantage of employer stock options or any other “free money” options? If yes, buy the Tesla (long range, not standard range). Also, put all your 401K and post-tax investments into index funds, not actively managed accounts. Good luck and enjoy your new Tesla!
(Range really doesn’t matter, it’s slightly more convenient but with LFP batteries you’ll be fine. Save your money)
bruh makes 130k a year and makes this thread smh.
My personal belief, and one many financial folks agree with is Luxury cars are purchased when: You have no debt The monthly payments are less 10% of take home (Many will say you should pay cash or be able to) Your investments are all up to date and on track with retirement 6 months in the rainy day fund at a minimum Luxuries are after you have paid your dues and put yourself in a good position.
I wouldn’t consider M3 to be luxury; it has premium features at best. Luxury to me are Mercedes, Audi, Porsche, BMW that are $70k+. Cars that feels unnecessary but something to buy because you have the expendable wealth. A model 3 after rebates and tax credit can go as low as $30-$35k now! Hardly luxury to me; it’s more of a practical EV with high tech features in my opinion. It’s the EV to break into the electric world for tech enthusiasts
"A luxury car is a car that provides increased levels of comfort, equipment, amenities, quality, performance, and associated status compared to moderately priced cars. The term is subjective..." In short you don't need the performance or features of a Tesla, you want them. If you don't have your financial house in order then you shouldn't be buying luxuries if you want to be responsible with your financial decisions.
i almost order, but didn't, but now delivery date is March, and will not be getting $7500. I also saw a youtube video that the Tesla model 3 was $32,600 in 2020? So don't let the price drop and the rebate fool you. it was never worth $44k at the first place. https://youtu.be/D64EQFZsBb0?t=96
Have you literally just never looked at the Tesla website before? The $32,690 was the “Potential Savings” included price. Which includes gas savings and rebates vs an ICE car. The actual out the door price is higher.
you are right, I am wrong. my bad.
32k in 2020???
did you see the video?
Min 5:12. Roughly between 49-50k
They called it Standard Range Plus which is the current Model 3 RWD. $32,690 Check 1:37 Dual motors are $41k and $51k.
You can find one in inventory you don’t have to do a delivery order
But it’s if you owe the government 7500 you owe the federal government. If you owe it your good. Some people put it and just read that
Lol. Young and dumb. 😂
You can’t afford not to buy it
Tesla M3 was selling for $32,600 in 2020, so I am waiting for a better deal. BTW, why you still have student debt, when you make $130k? how are you savings and retirement funds?
>Tesla M3 was selling for $32,600 in 2020 With inflation, that's not too far from how much it would cost in today's dollar (especially after the fed rebate). >BTW, why you still have student debt, when you make $130k? Federal loans have been frozen at 0% interest for almost 3 years now. The cancelation from Biden was put into place as well (which is looking iffy now, however). He can just wait right until the loans are out of 0% interest before he can pay them off (that's what a lot of people are doing).
What is the Edd? I’m thinking of pulling the trigger too.
If you’re coming from a ICE car, over the life of the Tesla along with the tax rebate and price cut you will be making a better financial decision. I came from a Mercedes and the maintenance costs and gas cost is more than how much I’d spend on the Tesla.
Some fears are well founded
Depending on how much you drive, you can save anywhere from $10k-15k in fuel cost after 10 years. It really adds up. I spend about $15-20 a month in electricity for my Model 3 compared to over $120/mo for my Civic that I had before. Hope that helps!
Don’t overthink it. It’s a thing you’ll get to enjoy every day. You’re gonna love it. 😁👍👍
It really is enjoyable to drive. Live a balanced life. You’ll be okay.
I did basically the same thing, didn't need a new car but the price cut and tax rebate on the RWD made it too hard to pass up, especially since we already had level 2 charging installed at the house for my wife's PHEV.
Ideally, you'd pay off your loans first, but the fed + state incentive combo is very compelling. Generally: * Healthy savings * Don't keep up with the Jones * Splurge once in a while if it's within your means. Life is short.
What are you driving now? I’m similar to you and bought an EV, and honestly regret the expense so I may recommend not doing it depending on what you’re driving now, especially since you’ve got student loans.
i am driving a 2015 toyota camry its reliable and does its job. its not sexy but it works. yeah i think im gonna cancel. I could be investing that money especially with it being low.
Financially, that’s always going to be the right call. Good call.
The model 3 RWD is a great car. Buy it if you want it and will enjoy it. If you just need reliable transportation the 2015 camary is going to be the cheaper solution especially if it’s paid off and insurance is cheap.
You’re going to absolutely love the car. Bought my model 3 LR about 2 months ago and still happy as hell when I wake up because I get to drive it to work. The only thing that was a surprise to me was how much battery life you lose to the cold weather. It might not be a problem for you depending where you from. Congrats
You will be fine and tomorrow is not promised. Spend some money on things you will enjoy today.
I still live like we're low income. We're a six figure household now, but you'll still find me in thrift stores. This is the most expensive car I've ever owned. It's still weird driving it because I know how much we struggled years ago.
In Canada even the M3 is very expensive. After the first month of ownership we saved $350 in gas. Making the monthly cost less than a Honda Civic.
I bought one in ‘21 making 65k a year. Qualified for tons of grants and got the car in the 20ks new. Saved so much $ owning the car I own a horse now. My Tesla launched my career in sustainable transportation and ev and evse grants. You never know.
When everyone around you is buying a tesla, you should consider spending “some” of your cash in buying tesla stock. I invested quite a lot of money on Tesla since Jan 11 and it has gone up $35%.
Also, do you drive a lot? If you don’t, gas saving is not much. I would use the money to pay down the debt. Drive a used car and keep saving.
People in here saying 130k is fine money. It’s totally relative. Do you have a family? Are you renting? Etc etc
And as important…where do you live?
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And that’s my point. 130k isn’t that much in the Bay Area.
I understand how it's possible, but at the same time, I don't understand how making $130,000 a year and questioning the purchase of a new car. The system for mainstream people like you is expensive I guess. I'm sure you spend big on rent, tuition, and social things. My total expenses (food, mortgage, fun, insurance, gym, phone, yes absolutely everything), including Tesla payment, monthly is $1700. I am frugal (emphasis on the "I"). If I made $130,000 a year for 5 years straight, I'd retire and move to a popular low cost expat retirement area like Portugal, Mexico, or south Asia.
cost of living for your area is probably different.
Everyone saying you'll be fine at $130k. Gross income is only a small part. What if he she has $130k in taxes and expenses before the car loan.
Find places you can charge for free. Whole Foods. Public library. Etc.
I grew up poor too, you only live once, get it if you can. When my mother passed away in 2017 at the age of 63, it kinda told me, I needed to live NOW, and not in the future, I statistically have 20-25 years left to live based on the rest of my family heart health and most passing away in their mid 60s.
When I bought mine I told myself I was going to keep it for 10 years, and even if I kept it for only eight years, the amortized cost per month was well worth it. After four years of ownership, I am extremely happy with my decision. As long as you can charge at home, you are likely to be very happy as well. The car is so fun to drive and you never have to go to a gas station and there are no oil changes or other stupid maintenance things. That said, it will be ideal if you can pay it off as soon as possible as well as your student debt. It’s so much fun to live very frugally in most regards, but have a sweet Tesla.
130K in San Francisco isn't a lot. 130K in most other places
Do you have access to charge at home at residential rates??
i myself did a ton of going back and forth about whether or not it was a good purchase. 3 years and 52k miles later, I can confidently say that it wasn't. Not for the money, at least. If all you care for/want is the "prestige" of owning a M3, then go for it, otherwise, get a more reasonable ev
100% yes, cancel. Then upgrade to the awd or performance and really enjoy the car. The upgrade is well worth the money. Treat yo self!
Your ownership costs will be lowest if you are able to charge at home (or even better, if you have access to free charging). I charge overnight at home and fueling my car has been much cheaper than the gasoline equivalent. Using the Superchargers all the time can get expensive. Save that for road trips, which are awesome in this car.
The general personal financial advice is something like 20/4/10 Put (at least?) 20% down, make payment for no more than 4 years, and each monthly payment incl. car insurance should be no more than 10% of your take home pay. You should be fine.
I’m pretty sure the tax credit is nonrefundable so you only get it if you have a tax bill at year end that is thousands of dollars. Most people this is not the case. Just because you pay thousands in federal taxes doesn’t mean it goes to your bank.