This is dangerous - for my wallet. Another should I thread.

[Cyclone]

(Is there a thread on financing versus purchasing outright?)

I am retired (very early) and don't have debts of any kind. If I can't afford to have something paid off in 30 days (I use credit cards for the cash-back), I don't buy it.

Right now, I'm planning to gouge a 1% earning savings account. (I know, I should have it in stock or bond funds.) It shouldn't hurt anything except my psyche and makes more sense than paying 2% interest.

I'm wondering if other ”debt-free" folks view the Tesla "investment" differently and are willing to pay for it over 3 years or so for reasons that I'm too stupid to know.

I haven't ordered my MS yet, but I look at the "value" vs. the load/no-loan question. Basically, if I could not just buy it outright, I would not buy it. But once that decision is made, that doesn't mean I will use cash. My house and current vehicle all could have been bought cash, but I choose to hold a sub 3% fixed mortgage and sub 2% fixed auto loan and have those funds properly invested to my risk profile. Thus, I separate the "how do I pay for it" question from the "can I afford it" question and do what is most valuable to my finances for the former question.

That said, I am not retired and still have human capital to work with, so that puts a different perspective on things.

 

[emir-t]

I too could "just barely" afford a Tesla with a lot of PR work to get the family on board + taking lots of loans + I probably can spend that money to an investment that would value instead of depreciate so I could build a better future for myself and the family but currently the only reason I'm not getting one is Tesla isn't in my country. Sure I could import one but what if my 12V battery dies? I get rear ended? It's like Tesla doesn't even exist, pre 2003, Model S would be the car that came from space no one built.

 

[Cyclone]

I should further elaborate that when looking at cost of the MS versus another vehicle, I would consider the ancillary costs associated with the other vehicle (gas, oil, etc.). For some people, this will really mean that the MS is pretty close in cost. For others though, it will leave a smaller "hill" to get over with emotion to get something you truly want. My current vehicle is 9 years old and could continue for another 5-10 without issue. That said, getting a MS is a statement of "when", not "if", for me.

 

[GreenPenguin]

Curious when comparing cost how do insurance rates and car registration compare?

Since those are based on the value of the car and the common argument is you front load the fuel cost but then you're paying for it in higher recurring fees (insurance and registration fees).

So is it not a wash with the fuel savings?

 

[Beryl]

After getting a hefty cash-back check last week, and putting my deposit on that credit card, I'm dreaming of the possibility of charging the entire balance for the 2% cash back.

I do have a crazy high limit that that never gets used. Don't know if Tesla will allow it though. :biggrin: That $2K will more than cover my home electrical work.

 

[Canuck]

After getting a hefty cash-back check last week, and putting my deposit on that credit card, I'm dreaming of the possibility of charging the entire balance for the 2% cash back.

I do have a crazy high limit that that never gets used. Don't know if Tesla will allow it though. :biggrin: That $2K will more than cover my home electrical work.

I like to get Airmiles whenever I can by using my credit card. But Tesla wouldn't let me put anything except the deposit on my card. The rest I had to pay by bank draft. If you are buying any accessories (HPWC, all-weather mats, tire repair kit, etc.) then you can put them on your card.

 

[JMG]

Curious when comparing cost how do insurance rates and car registration compare?

Since those are based on the value of the car and the common argument is you front load the fuel cost but then you're paying for it in higher recurring fees (insurance and registration fees).

So is it not a wash with the fuel savings?

That's actually the business I'm in. I will have to move my own insurance to a different carrier because my current carrier does not like any vehicles over $100,000 in value. However, I found another carrier for not much more (almost negligible when you factor in replacing a 2010 vehicle with a 2015).

Sales tax in Texas is 6.25%, so it will be more in sales tax (about $3k more vs a new Tahoe for me), but I'll make that up in 6 months of driving.

And......test drive is scheduled for Friday at 11:00. I'm beyond hope at this point. :wink:

 

[GreenPenguin]

You also have the annual vehicle registration to get the license plate sticker which will increase right?

 

[JMG]

No, not to my knowledge. Title is $33. Sales tax is 6.25%. Inspection is probably around $40-50. Registration is about $50, regardless of value. We don't have stickers for our plates. Just a registration sticker (that just changed in Texas this month in fact). We used to have an inspection sticker and a separate registration sticker. Now you just have to prove you had your car inspected in order to get the registration sticker.

 

[TexasEV]

No, not to my knowledge. Title is $33. Sales tax is 6.25%. Inspection is probably around $40-50. Registration is about $50, regardless of value. We don't have stickers for our plates. Just a registration sticker (that just changed in Texas this month in fact). We used to have an inspection sticker and a separate registration sticker. Now you just have to prove you had your car inspected in order to get the registration sticker.

Inspection is only $14.50 per year as there is no emissions testing.

 

[purplewalt]

I haven't even seen the Model S let alone test driving the vehicle. And I'm buying one. I don't have the money to do this .. it's a crunch. I'll be eating beans and rice.
I'll be retired soon. And yes I'm taking out a loan to get the S in the $100k range. I don't think you can really buy one for less unless you cut yourself off at the legs.
But I have a commitment to the future and I want the electrified transportation system to happen. You can talk the talk or walk the walk as it were.

There are some Options to purchasing a brand new Models S.

A. You can buy a Loaner car, typically less than 7,000 miles, and still qualify for the $7,500 federal income tax rebate.
Or
B. You can have your pick from a lot of Model S from folks who are trading up to get a S85D or P85D.

Or
C. You can just go ahead and order one.
But, then you will have a couple months wait while Tesla builds and then delivers your car...

 

[Beryl]

Inspection is only $14.50 per year as there is no emissions testing.

Whoo hoo! Savings! :tongue:

Guess there is zero chance of Texas wising up and offering EV incentives.

 

[Rheazombi]

Whoo hoo! Savings! :tongue:

Guess there is zero chance of Texas wising up and offering EV incentives.

I'd say there's a less than zero chance. As in, I'm amazed they don't penalize you for doing so

 

[JMG]

Actually we do have a $2500 rebate available, for vehicles purchased "in Texas" only though. So no Tesla.

 

[vvanders]

There are some Options to purchasing a brand new Models S.

A. You can buy a Loaner car, typically less than 7,000 miles, and still qualify for the $7,500 federal income tax rebate.
Or
B. You can have your pick from a lot of Model S from folks who are trading up to get a S85D or P85D.

Or
C. You can just go ahead and order one.
But, then you will have a couple months wait while Tesla builds and then delivers your car...

It only a couple months now? We're 6 months end-to-end on the 85D we're picking up tomorrow.

 

[Beryl]

Actually we do have a $2500 rebate available, for vehicles purchased "in Texas" only though. So no Tesla.

Keep reminding myself -- no state tax.

Moved my MS test to drive out a week to avoid rain. I hope I can resist and stick with my MX reservation but I might just lease a MS for a couple of years.

Has Tesla ever offered < 2 year lease agreement for those waiting for a Tesla delivery?

 

[neroden]

I know, this is not smart. Coming to a Tesla enthusiast forum to ask this question. Like walking into a Star Wars fan rally and asking around if I should watch the movie or not....(although it doesn't cost $100k to watch Star Wars, so maybe that's a bad analogy). And in the end, I know these types of questions can only truly be answered by me, because only I know my situation. But its still fun to get independent and unbiased (right? :wink opinions. So here it goes anyways.

So right now, here are my current worries:

Don't worry about those things. Worry about service.

If you're too far from a service center, the charges for hauling the car to the service center if it breaks have a decent chance of eating you alive. Tesla *used* to have an unlimited ranger service option, but they don't any more.

In our small rural communities

Yeah, you're probably too far from a service center.

In your position, don't buy a Tesla.... yet. (Wait until there's a service center near you.)

I wouldn't worry about any of the other things. It's very easy to make the case to your neighbors that the Tesla is saving money because electricity is so much cheaper than gas (and the car will last more than 10 years). And this "sedan" has the hauling capacity of a small truck. Also, you can definitely keep the price under $100K.

...unfortunately, the next question you'll be asked is "where do you get that serviced"? And if you're too far from a service center, the added service costs (or time spent!) pretty much eat up the fuel cost savings. And as you admit this, they will laugh at you.

I would assume that most of you bought this vehicle because you wanted it, and not for the practicality of it (even taking into account the "full tank every morning" and "no more fill ups in freezing weather" etc.)?

I really, really, really hated buying gasoline. Especially in freezing weather, which we get a lot of in upstate NY. So for me, I really do consider it to have been all about practicality.

Otherwise I could just go buy a Volt :-(

For me, the electric range of the Volt was too short for fairly routine (once-a-month) trips. If the Volt's range works for you, by all means, get a Volt. Or a Leaf.


Oh. One last thing: If I'm wrong about your location, and you're actually within 60 miles of the Dallas SC, go ahead and get the Tesla. You won't regret it.

 

[JMG]

Don't worry about those things. Worry about service.

If you're too far from a service center, the charges for hauling the car to the service center if it breaks have a decent chance of eating you alive. Tesla *used* to have an unlimited ranger service option, but they don't any more.


Yeah, you're probably too far from a service center.

In your position, don't buy a Tesla.... yet. (Wait until there's a service center near you.)

I wouldn't worry about any of the other things. It's very easy to make the case to your neighbors that the Tesla is saving money because electricity is so much cheaper than gas (and the car will last more than 10 years). And this "sedan" has the hauling capacity of a small truck. Also, you can definitely keep the price under $100K.

...unfortunately, the next question you'll be asked is "where do you get that serviced"? And if you're too far from a service center, the added service costs (or time spent!) pretty much eat up the fuel cost savings. And as you admit this, they will laugh at you.


I really, really, really hated buying gasoline. Especially in freezing weather, which we get a lot of in upstate NY. So for me, I really do consider it to have been all about practicality.


For me, the electric range of the Volt was too short for fairly routine (once-a-month) trips. If the Volt's range works for you, by all means, get a Volt. Or a Leaf.


Oh. One last thing: If I'm wrong about your location, and you're actually within 60 miles of the Dallas SC, go ahead and get the Tesla. You won't regret it.

That's interesting for sure! My first "don't do it" reply!

I'm technically 108 miles from the SC. That is a scary proposition. If I have some sort of problem that requires warranty service, I might be about several hundred dollars to get it towed 100 miles?

I should note that I highly doubt there will ever be a SC any closer than 100 miles. So I hope this isn't the deal breaker! Any others care to chime in about service/warranty work? Is everyone just conveniently close to a SC?

 

[donv]

I would call the service center and ask them how they handle cars which are 100 miles away. Given the reliability of my Model S, I wouldn't let that be an issue-- it's not like you have to take it in to them all the time. And there are plenty of people on this site who live a long way from a service center-- heck, there's a contingent in Alaska, who are around 1,000 miles from a service center!

That's interesting for sure! My first "don't do it" reply!

I'm technically 108 miles from the SC. That is a scary proposition. If I have some sort of problem that requires warranty service, I might be about several hundred dollars to get it towed 100 miles?

I should note that I highly doubt there will ever be a SC any closer than 100 miles. So I hope this isn't the deal breaker! Any others care to chime in about service/warranty work? Is everyone just conveniently close to a SC?

 

[Rheazombi]

I would call the service center and ask them how they handle cars which are 100 miles away. Given the reliability of my Model S, I wouldn't let that be an issue-- it's not like you have to take it in to them all the time. And there are plenty of people on this site who live a long way from a service center-- heck, there's a contingent in Alaska, who are around 1,000 miles from a service center!

yeah, OP. Start building a relationship with the guys at your nearest SC. They're always very helpful and accommodating and I'm sure they'll take care of you