How much of a financial commitment is the Model S for you?

pete8314 · Oct 18, 2012

There's been a few polls about whether people will finance part or most of the Model S purchase, but, depending on your point of view, money is cheap to borrow these days, so that might not be a true indicator of the relative wealth of the individual buying the Model S, or, more specifically from my perspective, how significant is the purchase relative to an individual's situation. This poll still doesn't cover all aspects (for those retired, or with large savings perhaps), but I think it might be an interesting indicator, and as it's just %'s (and anonymous), doesn't reveal any personal information about salary.

So, this poll is asking what % of your annual gross income (salary, dividends, bonuses etc) does your Model S purchase represent?

To try to keep it simple, I think if this will be your only car in the household, then the income should be the household income. If it's your own car, and your other half has their own, then it should be based on just your income. The cost of the car should be the total at the bottom of the invoice, including any relevant sales taxes, excluding any tax rebates (since they do not benefit you immediately)

Does this make sense? Is it logical?? I hope so !?

For example, if your annual gross income is $100k, and you are buying a 60Kw with a few options at $75k (incl sales tax, exlc. any tax rebates), then the answer would be 71-85%.

If your income is $250k and you're buying a fully-loaded P85 at $105k, then the answer is 41-55% (100/250 *100).

NigelM · Oct 18, 2012

Not sure who this poll is of interest to?

In any case, you can see the household income poll here: Model-S-Buyers-What-s-Your-Income. Average price is very easy to calculate and you'll get more or less rough percentages of income.

Other relevant polls:

Are-you-financing-to-get-the-Model-S?
Will-Model-S-be-the-most-expensive-car-you-have-ever-owned?
What-was-your-age-annual-income-and-what-battery-pack-are-you-getting?
With-no-7-500-credit-could-you-still-afford-to-buy?
What-percentage-of-your-liquid-assets-is-being-used-to-fund-your-Model-S-purchase?
What-is-your-maximum-price?

pete8314 · Oct 18, 2012

NigelM said:
Average price is very easy to calculate and you'll get more or less rough percentages of income.

Not really, since it's anonymous, and there's no indication if it's a $50k Model S or $110k Signature. I think it'll be interesting to those in my position who may be struggling with the concept of such a large purchase, and the financing that might be involved, particularly if you're considering a 60Kw vs. a P85, and the impact that would have.

v12 to 12v · Oct 18, 2012

pete8314 said:
Not really, since it's anonymous, and there's no indication if it's a $50k Model S or $110k Signature. I think it'll be interesting to those in my position who may be struggling with the concept of such a large purchase, and the financing that might be involved, particularly if you're considering a 60Kw vs. a P85, and the impact that would have.

How can someone tell if its anonymous? Other polls have gotten out with identification attached.
Where do we check the settings?

Zextraterrestrial · Oct 18, 2012

When I put my deposit down almost years ago I didn't plan on there being a Super Sick S option. I studied to get my engineering license and the extra $ that comes with it. That was taken care of ~ 1 year ago but I am sending >$30k more than I 'planned', which is also about $80k more than I would justifiably spend on any other car - ever!
I haven't actually made sure that I can 'afford' it but I will make it work. (everything always works out perfectly some how)

But life is short and Tesla kicks some A & I plan on keeping this car 20 years?

gg_got_a_tesla · Oct 18, 2012

v12 to 12v said:
How can someone tell if its anonymous? Other polls have gotten out with identification attached.
Where do we check the settings?

When you view the poll results (you can click on the button without having to vote), if you see user handles next to each of the options, then, it's not an anonymous poll.

ElSupreme · Oct 19, 2012

v12 to 12v said:
How can someone tell if its anonymous? Other polls have gotten out with identification attached.
Where do we check the settings?

I am fairly certain a splash screen shows up on 'public polls' also and asks if you want to still vote.

pete8314 · Oct 19, 2012

Yeah, it's a pretty clear option when you set the poll up, the default is anonymous.

I think he results are interesting, or maybe just reassuring, that quite a few of us are committing a relatively significant chunk of money into the Model S, and, dispelling some of the media myths that the Model S is a toy for the rich.

mknox · Oct 19, 2012

pete8314 said:
I think he results are interesting, or maybe just reassuring, that quite a few of us are committing a relatively significant chunk of money into the Model S, and, dispelling some of the media myths that the Model S is a toy for the rich.

I think for some, after this purchase it'll be a toy for the poor

ckessel · Oct 19, 2012

pete8314 said:
I think he results are interesting, or maybe just reassuring, that quite a few of us are committing a relatively significant chunk of money into the Model S, and, dispelling some of the media myths that the Model S is a toy for the rich.

Rich is somewhat relative. The most common values are in the 50-70% range which implies something like incomes in the 100-200k range. 100k+ is the top 20% of the US and $150k+ is the top 8% (source: http://www.census.gov/compendia/statab/2012/tables/12s0690.pdf).

Trnsl8r · Oct 19, 2012

v12 to 12v said:
How can someone tell if its anonymous? Other polls have gotten out with identification attached.
Where do we check the settings?

Non-anonymous polls have a warning text alerting you of the fact.

ElSupreme · Oct 19, 2012

ckessel said:
Rich is somewhat relative. The most common values are in the 50-70% range which implies something like incomes in the 100-200k range. 100k+ is the top 20% of the US and $150k+ is the top 8% (source: http://www.census.gov/compendia/statab/2012/tables/12s0690.pdf).

I thought the media/politicians standardized on the mostly arbitrary levels of $250k* = Rich, and $1M* = Super Rich based on the tax code.

Last year "the 1%" was about $350,000* if using individual income metric, and a little over $500,000* if using a per household metric.

* All dollar amounts are for per year of income.

ckessel · Oct 19, 2012

ElSupreme said:
I thought the media/politicians standardized on the mostly arbitrary levels of $250k* = Rich, and $1M* = Super Rich based on the tax code.

Last year "the 1%" was about $350,000* if using individual income metric, and a little over $500,000* if using a per household metric.

It's certainly hyperbole to say the Model S is for the 1%, but you do have to be in the higher end of the income distribution. Things get a little muddy for the outliers, folks with little income and a high net worth.

jerry33 · Oct 19, 2012

It also depends on whether you are talking about take home income or gross income. I'm not rich enough for them to be equal.

ckessel · Oct 19, 2012

jerry33 said:
It also depends on whether you are talking about take home income or gross income. I'm not rich enough for them to be equal.

In this case the OP asked about gross which matches the sources I referenced.

Sousaphil · Oct 21, 2012

Also "rich" vs "poor" will vary greatly based on where you live, holding income constant, with the biggest variables being housing cost and tax structure.
$120K annual income in parts of California likely means you have less money to spend on a car than if you made that same income in most parts of Wisconsin (picked because that's where I grew up).

Frankly, I consider myself lucky to have a very reasonable monthly home mortgage. That's the big reason why I feel comfortable "buying up" to a car like the Model S.

How much of a financial commitment is the Model S for you?

How much of a financial commitment is the Model S for you?

<10%

11-25%

26-40%

41-55%

56-70%

71-85%

85-100%

100%+

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