Can I afford a tesla?

Genentech / Eng ratsey
Feb 5 65 Comments

I’m excited about owning one but feel it may be irresponsible.

Single, no kids, no plan to change that anytime soon
Monthly take home: 4200 (after tax, HSA, 401k)
401k: maxed out
Rent/fixed expenses: ~1400 (burlingame, CA)
Savings/investment accounts: ~25k

I also have about 1.2m in stock options but who knows when/if that’ll ever turn to real money. Also, because of my unique employment situation, I get a 27k pre-tax retention bonus every 6m for the next 2 years.

Im thinking of buying an AWD model 3 (sticker price ~58500) with 5-10k down (13k tax return coming soon will finance down payment) and have estimated payments, including tax registration etc to about 800/month. Total cost of ownership, considering compounding interest and rebates, is about 60-65k. This is compared to buying a 2017 Infiniti Q60 or 2017 Audi A4 (both around 25-30k).

The idea of saving 30k over the next 5 years by driving a good, fun car is nice, but I think I’d really enjoy a model 3. What do y’all think?

TC 144

comments

Want to comment? LOG IN or SIGN UP
TOP 65 Comments
  • Citibank Qt7l
    TLDR. If you have to ask the answer is no. Rule to live by.
    Feb 5 0
  • Tesla tTfQ61
    NOOOO.... buy a nice CPO or lease something for 3 years and revisit the electric car market when Tesla gets their quality issues fixed and there are more electrics in the market to choose from. I had this same debate with myself about a month ago
    Feb 5 22
    • Bank of The West
      GSW

      Bank of The West

      PRE
      Cisco, eBay, NetApp, VMware
      GSWmore
      Doesn’t Change the fact that you were deciding for OP. Good try diverting...
      Feb 6
    • Oath / Mgmt Atinlay
      I’m not diverting at all
      Feb 6
    • Bank of The West
      GSW

      Bank of The West

      PRE
      Cisco, eBay, NetApp, VMware
      GSWmore
      As always you won’t acknowledge, nothing new. People of blind had to create a post to call you out, telling!
      Feb 6
    • Oath / Mgmt Atinlay
      I’ve never seen you acknowledge anything!
      Feb 6
    • Flagged by the community.

  • Oath / Mgmt Atinlay
    Don’t do it. Especially for the reason you gave of saving 30k in 5 years by driving. Won’t happen

    You’re better off saving your tax return and buying something more reasonable.
    Feb 5 0
  • This comment was deleted by original commenter.

    • Genentech / Eng ratsey
      OP
      I’m 24
      Feb 5
    • Citibank Qt7l
      If you were to invest that money in the s and p 500 index earning a conservative 7%, it would be worth nearly $1mm in 40 years. You won’t get any ass or attention with a model 3. Save your money and buy a real car later.
      Feb 5
    • Bank of The West
      GSW

      Bank of The West

      PRE
      Cisco, eBay, NetApp, VMware
      GSWmore
      Everyone is jumping on how expensive Tesla is one way or other and asking not to buy but OP should only look at the difference of price (between m3 and gas car) and account for m/t of gas car which increases every year no matter what brand!
      Feb 5
    • Citibank Qt7l
      Affordability is relative. Op can’t afford it.
      Feb 5
    • Bank of The West
      GSW

      Bank of The West

      PRE
      Cisco, eBay, NetApp, VMware
      GSWmore
      He can afford really? It’s part of lifestyle just like buying a home is, the key diff is that home can appreciate but car will never.
      Feb 5
  • Amazon / PR jefe_bezos
    You need to break down your budget more than that. Do your fixed expenses include food? What about car insurance for your new fancy wheels?
    Feb 5 2
    • Genentech / Eng ratsey
      OP
      No, fixed is only rent, utilities, WiFi etc. not food, fun, misc, or monthly savings
      Feb 5
    • Amazon / PR jefe_bezos
      2800 after fixed expenses
      -800 car
      -200 insurance
      -150/wk food (inc. restaurants) = -600
      -500 fun + clothes + grooming + pornhub premium
      = 700 left / mo for savings

      Realistically there are probably other expenses that aren’t accounted for. All of that to say... owning a Tesla and only being able to stash away $500 for retirement each month is absurd.
      Feb 5
  • Amazon / Eng tylium
    Personally have a model 3 and love it. Range is less than advertised. Electric savings hardly matter considering sticker price. It drives like a beast.

    Buy a used luxury car. Wait for model 3s to be used and depreciated by 3 years. Honestly I fucked up buying a new car. I look at the loan and it kills me. I can pay it off in full, but I can also invest that money. Dont repeat my mistake.
    Feb 5 0
  • Twitter / Eng topk
    1.2m stock options? In which stock?
    Feb 5 3
    • Genentech / Eng ratsey
      OP
      JUUL
      Feb 5
    • Twitter / Eng topk
      Yes please buy two teslas because you can afford them :)
      Feb 5
    • Slack / Eng
      namelessyo

      Slack Eng

      BIO
      Looking women Chinese speakers for lunch in SF
      namelessyomore
      I would buy it because your stock will worth even more in the future
      Feb 6
  • Athenahealth tcismylife
    Why not. Your monthly emi and insurance will not be more than 2000
    Feb 5 0
  • Don't buy a nice car until you have a house. I say this as a p3d owner. If you had kids and had to stare them in the face every day and tell them you were doing something about global warming then yes buy a Tesla.
    Feb 5 2
    • Oath / Mgmt Atinlay
      You know electricity comes from somewhere, right?
      Feb 6
    • Intel superrr
      And Lithium batteries have to be disposed eventually. I feel these electric cars are for those ppl who pretend they are saving the Earth by closing their eyes and not looking at what's happening
      Feb 6
  • Square AXjA38
    Has anyone looked into what happens if your Tesla is involved in an accident? Ie scarce Tesla body shops, warranties being voided etc
    Feb 7 1
    • Microsoft FBisEvil
      True story. Tesla can’t afford to both make barely make cars profitably with their massive subsidies and high prices. It’s a sinking ship and new layoffs are forthcoming.
      Feb 14
  • Salesforce NGCx18
    I have a model 3, my advice is NO. Mileage is less than advertised. Buy a used luxury car. The price of electric vehicles will go down dramatically in the next 2 years
    Feb 5 0
  • Intuitive Surgical clementine
    Trust me you will know when the time is right, and right now that you are asking us is not the right time 👍
    Feb 5 0
  • Facebook public2
    You can but if you are going to get a car get a cool or fun one, not a tesla.
    Feb 5 2
    • Citibank Qt7l
      What do you consider cool or fun in that price range?
      Feb 5
    • Fiat Chrysler xcleet
      Buy a Dodge Challenger SCAT PACK with manual transmission. You'll definitely have fun.
      I personally would prefer a Golf R, or an Audi S4 with manual transmission. Try finding these as CPO and you'll meet the budget.
      Feb 5
  • Bank of The West
    GSW

    Bank of The West

    PRE
    Cisco, eBay, NetApp, VMware
    GSWmore
    Buy if you can pay the loan faster else lease and play around till you decide to buy or return. Car isn’t an investment but an expense. You will definitely enjoy the car and long term it will be worth the $$$.
    Feb 5 2
    • Google AynRand
      You cant lease a Tesla 🤦🏿‍♀️
      Feb 7
    • Bank of The West
      GSW

      Bank of The West

      PRE
      Cisco, eBay, NetApp, VMware
      GSWmore
      You are right, can’t lease model 3 but can do S and X
      Feb 7
  • New DuQvV7x
    Based on your disclosures, can you afford it: Yes.

    Should you buy one? That’s entirely up to you.
    Feb 6 0
  • Cisco hkkbfedvh
    You can afford it, but would you rather have the savings....? I’d get it or invest in Tesla stock and let the future gains pay for it
    Feb 6 0
  • Google RealThKu
    Why not buy a used Tesla s? Also,how many miles is your commute and how much do you expect to drive a year? Does your workplace have free charging?
    Feb 5 0
  • eBay Tkm1767
    Just budget your monthly expenses and how much you save a year with the car payments. Make sure you're on track for retirement. What's the point of making money if you don't use it. You will find out later though that material objects don't mean much, but I rather you experience it for yourself. My TC was 200k living in Texas and I bought a model S. 74k ish. I have a home around 650k and if I don't put anything in my 401k anymore I'll have 2mm when I retire. I'm 29 and married. TC now since I quit my contract job is around 150. Money is just a construct. I would recommend buying a used Model S.
    Feb 5 0
  • New pawpaw
    Why not try it out a few weekends on apps like getaround and maven where u can rent for the day. That way u can enjoy it for a few weekends but do not have to own it. If u still feel u absolutely want one for the next few months then u can take over someone’s lease there are sites that let u do that. these are all less capital extensive options
    Feb 5 0
  • Allytics / Mktg
    MsMjolnir

    Allytics Mktg

    PRE
    Microsoft
    MsMjolnirmore
    We paid cash for ours. If you can't do that, don't. The hefty car payments will feel like a burden after only a few months.
    Feb 5 0