Tesla

[toothcarpenter]

So - I bought a Tesla Model X in December.

I bought it because I wanted to upgrade from my Honda from dental school and residency.  I originally was planning on something "nice" like an Audi - I feel like BMW, Mercedes, Range Rover are too flashy, but I see Audi's because "they are good in the snow" everywhere.  Also - a few of my partners mentioned gently that they'd like to see me driving something nicer as it reflects on the practice and I've been a full partner for awhile  :-)   I set some financial goals for myself to hit before I allowed myself to do it.

The first thoughts of Tesla over Audi came in my mind when I saw the Jesse from YNAB bought one!  I have been a YNABer since the spreadsheet days and listen to his podcast.  I thought "if that penny pinching miser can buy one, why not me"

Then Mister Money Mustache bought an electric car and had a little flowchart that said if your net worth was over 2 million then a Tesla was a reasonable choice! http://www.mrmoneymustache.com/2016/10/04/so-i-bought-an-electric-car/

The goal was set - 2 million net worth.

For fun I drove in a friends Tesla and I was hooked.  SO. MUCH. ACCELERATION.   It was crazy.  Seriously, if you haven't test driven one - put it on the todo list.

I bought the model x because I have kids and 5 months later - it still puts a smile on my face everytime I get it and stomp it. The autopilot is nice for long drives or stop and go traffic.

It was my first financially "poor" decision and I don't regret it yet.  I haven't been to the gas station since December.

I know that a lot of people preach to spend money on experiences and not material things - but hitting that accelerator is an "experience"!  The response has been very positive.  It's a hoot to raise the falcon wing doors when I drop the kids at school and it definitely is a status symbol, but it's seen as cool, not stuck up.  My partners are happy and I'm happy.

We still have the Yukon XL for long trips where we don't want to stop and supercharge and for the cargo and towing (the Model X can tow, but it eats up the battery pretty fast).

I think a Tesla makes alot of sense and I think the more affordable model 3 will be a huge success.  Why can't anyone make an electric car that actually looks good other than Tesla?  The leaf and volt/bolt - so boxy and small and boring.

[Complete_newbie]

Oh man where to begin...see prior Tesla thread. You'll know what I think and what many think about this.

FTR: I am in your camp.

In short: Not every one can make an iphone or have a vision like Jobs had/product detail. Similarly, not everyone is a visionary like Musk or have ideas/execution to produce a top electric car like Tesla.

 

[StarTrekDoc]

Any SBO able to write down expenses should seriously take a look at the Model X  IMHO.  If you're spending $$$ on luxury sedans/SUVs, one should take a look at Tesla.

If you're a Camry owner or 2nd hand buyer, then it's not for you; but several folk appear to like to live a little like Dr. C on PoF, and Tesla should be in that conversation.

[Noah]

StarTrekDoc wrote:

Any SBO able to write down expenses should seriously take a look at the Model X  IMHO.  If you’re spending $$$ on luxury sedans/SUVs, one should take a look at Tesla.

If you’re a Camry owner or 2nd hand buyer, then it’s not for you; but several folk appear to like to live a little like Dr. C on PoF, and Tesla should be in that conversation.

Click to expand...

Can you expand on this a bit? 5 year loan vs 3 year lease on a well optioned X or S seems to be in the $1200-1500 per month range with about 5k down. That's a lot of money. Comparable monthly expenses for an upscale midrange car like a well optioned Accord/CRV or similar are likely to be in the mid $300 to 400 a month for lease/loan with nothing down. That's a delta of $1000 a month, 12k a year extra at least. I'm not one to fight for the $100 a month in depreciation beat up old car for my motoring expenses, but this is a bit too rich for me to justify. But as a CA physician with a marginal tax rate of 44% or so deductibility could be a powerful factor.

[StarTrekDoc]

Financial adviser /  CPA probably better to talk about specifics on tax write offs, but the Model X does qualify for the accelerated depreciation.

But I think the comp of Model S/X to Accord/CRV isn't right.  Model S and X comps are performance lux sedan segment- Mercedes/Audi/Volvo XC90/inifiniti/Cayenne comparisons.  You're not going to justify a Tesla S/X compared to a Camry---maybe the Model 3 on a loaded Camry perhaps.

[hightower]

toothcarpenter wrote:

I think a Tesla makes alot of sense and I think the more affordable model 3 will be a huge success.  Why can’t anyone make an electric car that actually looks good other than Tesla?  The leaf and volt/bolt – so boxy and small and boring.

Click to expand...

I personally think the BMW i3 is a nice looking car.  Especially if you're someone that's looking for a small, city car.  It looks a lot better than a leaf or a Bolt IMO.  And they are NICE on the inside too.  They drive wonderfully as well.  Not as a fast as a tesla, but still pretty impressive acceleration.

[StarTrekDoc]

i3?  beauty is truly in the eye of the beholder.  We have both the Fiat 500e and Chevy Spark on leases (dirt cheap leases).   Bolt is a great metro car IMHO--just a bit too small trunk though and we need space for our Golden.

The new Niro EV is going to be a winner IMHO since the Outlander hasn't made its way over from Europe in years.  and that'll replace the Spark+Honda CRV backup.

We have a reservation for Model 3 and probably replace the Infiniti G37 if it works out.

[hightower]

StarTrekDoc, yeah, I know, I think the i3 looks nice.  Especially the all black one.  I think the 2 toned paint job on the other colors is what turns a lot of people away.  Its a weird looking car to most, I'll give you that.  But, I like it.  I also like the engineering that went into it too, so looks aren't everything to me.

I like the Model 3 as well.  Its on my list as a possibility in a few years.

[uptoolate]

I don't mind the looks of the i8 but the i3? Not so much.  I'm going to wait for the Model 3.

[Noah]

At least i3 can be leased for $250-300. Not bad for a 50k car.

[Zaphod]

Agree with @uptoolate, i8 big yes, i3...interesting choice. Its not ugly, and it has a cool scheme but not traditionally a hot car.

[Craigy]

Noah wrote:

StarTrekDoc wrote:

Any SBO able to write down expenses should seriously take a look at the Model X  IMHO.  If you’re spending $$$ on luxury sedans/SUVs, one should take a look at Tesla.

If you’re a Camry owner or 2nd hand buyer, then it’s not for you; but several folk appear to like to live a little like Dr. C on PoF, and Tesla should be in that conversation.

Click to expand…

Can you expand on this a bit? 5 year loan vs 3 year lease on a well optioned X or S seems to be in the $1200-1500 per month range with about 5k down. That’s a lot of money. Comparable monthly expenses for an upscale midrange car like a well optioned Accord/CRV or similar are likely to be in the mid $300 to 400 a month for lease/loan with nothing down. That’s a delta of $1000 a month, 12k a year extra at least. I’m not one to fight for the $100 a month in depreciation beat up old car for my motoring expenses, but this is a bit too rich for me to justify. But as a CA physician with a marginal tax rate of 44% or so deductibility could be a powerful factor.

Click to expand...

As Startrekdoc said, Accord/CRV is not really upscale or midrange.  They're not exactly Suzuki Swifts but they're decidedly entry-level.  You can definitely blow $35k on a loaded Accord but it's not going to look much different than one you buy for $20k.  Midrange upscale would be more like an Acura or Infiniti, base spec BMW or C-class Benz, or domestic like Buick or Cadillac, all of which can be had in that $300-$400/mo range.

If you're already in the market for a high-end luxury, and willing to spend $800/mo, $1,000/mo, then Tesla enters the conversation since you're at that price point.

IMO Tesla still isn't very compelling when you compare what you're actually buying for how much it costs.  If the electric aspect means nothing to you, then you could buy another luxury-brand car just as nice or nicer for half price.  And then if it just means saving money on gas, you can buy something far cheaper like said Accord and save thousands.  Tesla only makes sense if you enjoy the novelty of it, think you're saving the world, never want to visit a gas station or your government basically forces you to like Norway.

[StarTrekDoc]

Self professed Lorax and believer in the the boy's beach full of starfish metaphor , so I'm obviously biased.

IF you have a PV Solar system of size,  Any EV makes sense -- pure and simple economics.

If you like driving luxury sedans -- you should check out Tesla as it really competes nicely and has decimated the competition.

If you live in the Central Valley in Cali -- EV can be essentially FREE to drive for three years.

----So different EVs for different minds and reasons---

Since this is a financial forum:

Economics --

For SBO or folk with way to deduct lease/car expenses --  Telsa X gives an unique opportunity over the likes of XC90 and Cayenne.

--Take a test drive of an EV;  you very well maybe surprised on the ride -- along with the economics of them too.

[RadMD]

I'm a proud Tesla owner (both the actual car and Tesla stock in my play/extra account).  Agree with WCI, its a socially acceptable status symbol.  But I love my Tesla because I've always been a "car guy" and its the most well rounded car out there (supercar fast, SUV storage, efficient), plus its not killing our environment.  Not having to ever goto the gas station is a huge bonus.  I don't even know what the price of gas is nowadays

 

Agree with a poster above, my Tesla puts a smile on my face every single time I drive it--the instant acceleration is hard to explain.  This definitely fits into the category of spending money on "experiences", except this is a daily one.  Just go for a test drive and see for yourself (but get your financials in order first, because you WILL want to buy one!).

[Zaphod]

RadMD wrote:

I’m a proud Tesla owner (both the actual car and Tesla stock in my play/extra account).  Agree with WCI, its a socially acceptable status symbol.  But I love my Tesla because I’ve always been a “car guy” and its the most well rounded car out there (supercar fast, SUV storage, efficient), plus its not killing our environment.  Not having to ever goto the gas station is a huge bonus.  I don’t even know what the price of gas is nowadays

Click to expand...

Its super cheap.