Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

How are you paying for the Model S when you order it?

How are you paying for the Model S?

  • A. Cash, definitely. I don't even need to look under the sofa cushions.

    Votes: 21 33.9%
  • C. Could pay cash, but borrowing some of it strictly for cash flow reasons.

    Votes: 8 12.9%
  • B. Hopefully all cash; saving for it, but I might need to borrow some.

    Votes: 14 22.6%
  • D. Borrowing some is definitely in the cards.

    Votes: 14 22.6%
  • E. I'm letting the credit union loan officer sleep with my wife.

    Votes: 5 8.1%

  • Total voters
    62
This site may earn commission on affiliate links.
I would think that most people who buy new Ferrari, Jaguar, and Maserati could pay cash if they wanted. But with the Model S, (and to some extent with the Roadster), those of us with slightly less means are drawn like moths to a flame and are willing to buy much more car than we have ever bought before.

So I'm asking...
 
I would think that most people who buy new Ferrari, Jaguar, and Maserati could pay cash if they wanted. But with the Model S, (and to some extent with the Roadster), those of us with slightly less means are drawn like moths to a flame and are willing to buy much more car than we have ever bought before.

So I'm asking...

I voted C, but many who buy the cars you mentioned also lease or finance. It just isn't a smart move (unless you're completely rolling in the dough and the cost is as insignificant as a trip to the grocery store) to tie up all your liquid assets in a depreciating asset -- especially the more expensive they get.
 
I voted C, but many who buy the cars you mentioned also lease or finance. It just isn't a smart move (unless you're completely rolling in the dough and the cost is as insignificant as a trip to the grocery store) to tie up all your liquid assets in a depreciating asset -- especially the more expensive they get.

I think the all cash crowd have convinced themselves this is going to be their last car purchase or at least keep the car long term; sometimes the emotion side overrules the smart side of the brain, kind of like your first love. Paying all cash would put a big dent into my savings and if a "deal" came along the money put into purchasing the car obviously wouldn't be available. Some 30 years ago I paid all cash for a MBZ 300SD, kept it 20 years, hoping I can have a repeat with the Model S. As the saying goes, sometimes you have to seize the moment.
 
I hear ya tommy, I've been there (and probably will go there again). These days though, cars I don't plan to keep I lease, cars I plan to keep I finance part of - especially when they're expensive. I was in a situation a few years back where Audi wouldn't do financing. I bought the car outright then got a private loan against half of it. The cash on hand came in handy for home improvements and other things that you can't finance. Still have the car and don't plan to sell it.
 
Last edited:
Whatever people want to do is their business, but it bugs me to hear people saying taking a loan so they can keep cash on hand is a good financial idea. The math simply doesn't support that.

Gotta agree with you there. I'm in the camp that has always paid up front for cars and from as early as possible the same for houses; I paid off my credit card (only have one) in full at the end of every month for the last 20 years.....I have no idea how much I have saved in interest payments in my life, but I guess quite a bit.
 
I think the all cash crowd have convinced themselves this is going to be their last car purchase or at least keep the car long term; sometimes the emotion side overrules the smart side of the brain, kind of like your first love.
Unless you've got an alternate investment that's better than your auto loan rate, it's far, far better to just pay as much cash down as possible. From a msmoney.com article I found via a quick good on "cash vs loan for car":
Besides being the simplest way to pay for a car, paying cash gives you the best financing terms you will ever get--because you don't pay any. By paying cash, you avoid paying the interest payments that you must pay on a loan or lease. Depending on the price of the car and the terms of the loan, you may potentially save 20-35% in interest paying cash.

And there are other articles, most all saying the same thing, that taking a loan when you don't have to is largely a bad idea.

Anyway, said my piece. Just bugged me that the implication of paying cash was an emotional decision. It's a math decision for me, not emotion.
 
Gotta agree with you there. I'm in the camp that has always paid up front for cars and from as early as possible the same for houses; I paid off my credit card (only have one) in full at the end of every month for the last 20 years.....I have no idea how much I have saved in interest payments in my life, but I guess quite a bit.

I'm with you and ckessel on this. I don't like loans hanging over my head - I pay everything off every month. It seems to have worked out just fine for me. I've saved money on interest which translates to money in the bank, and have a large line of credit if ever needed.
 
I noticed at the October 1 factory event that the cars in the parking lot were not necessarily fancy or high end. My wife was nervous before attending because she thought her clothes were not trendy/fashionable/upper class enough. Many people at the event seemed middle class people who will have to stretch their finances to make the purchase.

I am guessing that a lot of us are driving an ICE until it dies while waiting for the model S to come out. For me my income can be irregular so I like to pay as much cash as possible.
 
I noticed at the October 1 factory event that the cars in the parking lot were not necessarily fancy or high end..... Many people at the event seemed middle class people who will have to stretch their finances to make the purchase....

I made the same Beta EVent car observation. There were some hot sports cars but no more of them than Pruis' (the car that most Leaf owners came from).

Though thos cars might also be a sign of "the millionaire next door". That is, people who live way within their means. They have money but don't flaunt it - save for an occasional indulgence. As we all know EVs are fiscally a good investment (esp with solar) so this might be the rule re those cars.
 
Last edited:
and I still remained eligible for the government rebate.

I am pretty sure (read it somewhere) that even if you lease you still get the Federal rebate. At a bare minimum the lease company that buys the car from Tesla gets the rebate and that lowers the purchase price accordingly.

I have not heard about leasing the battery pack itself but I think Tesla was letting Roadster owners pre-buy a replacement battery pack.
 
I am pretty sure (read it somewhere) that even if you lease you still get the Federal rebate. At a bare minimum the lease company that buys the car from Tesla gets the rebate and that lowers the purchase price accordingly.

Yes, I know of Leaf leasers getting the $7,500 taken right off the sticker price by the Nissan dealership before the lease payments are computed.
 
I am pretty sure (read it somewhere) that even if you lease you still get the Federal rebate. At a bare minimum the lease company that buys the car from Tesla gets the rebate and that lowers the purchase price accordingly.

I have not heard about leasing the battery pack itself but I think Tesla was letting Roadster owners pre-buy a replacement battery pack.

If you lease the entire car don't own it, so you are at the mercy of the leasing company regarding how much of the rebate they deem to pass on to you.

My question about rebate eligibility has to do with partial ownership where you buy the car, but lease the batteries.

I don't have any firm, current information regarding leasing batteries, but I ran across this old article.

Tesla's Model S Sedan Concept Car Unveiled: Why We Need Even More Teslas

Tesla may rent battery packs to customers for long road trips, but in general, the batteries will be available for lease.

For the Roadsters there was a program to pre-buy a replacement battery packs. I believe Bonnie took advantage of that program.

Larry
 
At the Beta event I spoke with George Blankenship and JB Straubel about the concept of selling cars and leasing batteries so that you could be on a road trip and simply swap out batteries to extend your range. Although all agreed it was an interesting idea for some future business model, they made it pretty clear that there was nothing like this in the works. Tesla's current business model is that you or a leasing company owns the car; they're making and selling them.
 
At the Beta event I spoke with George Blankenship and JB Straubel about the concept of selling cars and leasing batteries so that you could be on a road trip and simply swap out batteries to extend your range. Although all agreed it was an interesting idea for some future business model, they made it pretty clear that there was nothing like this in the works. Tesla's current business model is that you or a leasing company owns the car; they're making and selling them.

Yes, it makes more sense for a company like Better Place to handle the battery swap business. Tesla's model should indeed stay the same as a typical car manufacturer's.
 
At the Beta event I spoke with George Blankenship and JB Straubel about the concept of selling cars and leasing batteries so that you could be on a road trip and simply swap out batteries to extend your range. Although all agreed it was an interesting idea for some future business model, they made it pretty clear that there was nothing like this in the works. Tesla's current business model is that you or a leasing company owns the car; they're making and selling them.

Hi Nigel,

Thanks for the update.

Yes, I believe the subject of Tesla entertaining the possibility of renting batteries was first broached by Tesla when Elon and other Tesla executives publically discussed the subject of 5 minute battery swap outs.

Larry
 
To each their own, but large deposits and small monthly payments has worked for me. I like the security of "owning" something as much as the next person, but like the balance of being liquid more.

As I said in the other thread, some of us have enough "cash" that we can afford to buy in cash *and* keep a large, liquid emergency fund. It's not by any means a small amount of money or a trifle -- because it's a lot compared to my income -- but it's also not biting into my needed liquidity (thanks to lots of savings). From your description of your motivation for borrowing, I suspect you're not that different; would you pay cash if even after paying the cash, you were left with an amount of liquid cash you were comfortable with?

I would guess that a lot of well-to-do retirees (which is not what I am) are in essentially the same position as me, high assets low income; in that situation paying cash practically always makes sense rather than taking out a loan.