Can I justify buying myself a Tesla Model S?

Breathometer / Eng 28savage
Jul 1 31 Comments

So I have this belief that just because you can pay for something it doesn’t actually mean you can afford it.

I’m a very frugal person and I have been all my life. I had a very humbling upbringing and I do not come from a lot of money.

However, I’ve really grown to like Tesla and I really want to get a Model S. I currently drive a Mazda 3 that my parents and brother bought for me in July 4th 2011 and the car has done so much for me. It has about 115k miles and I feel like it can last for another 50k miles at least. So I don’t really need a new car but I want the Tesla Model S so bad.

So question is, can I afford to buy a new Tesla Model S in the fall of this year? I’ve built one on Tesla online and it comes out to be about 100k after taxes. So here is my full money story:

I am 28 years old, turning 29 in about 4 months. I am married and I bought a house 2 years ago for 1.3 mill. We have no debt except for the house, about 780k loan.

My salary is 205k. My TC is about 365k. My wife’s TC is about 105k.

My mortgage is about 5k per month counting property tax.

I have liquid cash and small investments about 300k in the bank/vanguard.

Oh I also have a baby coming at the end of December.

So question is, can I afford a Tesla Model S? What do I do?!?

Some other ways I have been trying to justify the purchase is that I have solar panels at home and I would save a ton on gas money. But really only like 2k a year...

Anyways, what do I do?!?

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TOP 31 Comments
  • Palo Alto Networks vomit
    Please explain how you bought a house for 1.3m at 26 while coming from humble upbringings, and have already paid off almost half of it.
    Jul 1 3
    • Palo Alto Networks vomit
      (Also, of course buy the Tesla. Or if you’re feeling frugal, get a couple year old Tesla for a huge discount)
      Jul 1
    • Breathometer / Eng 28savage
      OP
      Correction I bought it at 27. I’m turning 29 soon. Like I said, I saved a lot. I had a high salary coming straight out of college. I had a few good bonuses from hitting critical milestones. I had some smart investments. One of the companies I worked for also got purchased. Little by little things added up. And my wife also had 100k in savings from working 6 years. Just somehow made it happen.
      Jul 1
    • Palo Alto Networks vomit
      Fair enough - good for you. Buy the Tesla. They’re awesome machines.
      Jul 1
  • Microsoft
    BoomSauce

    Microsoft

    BIO
    Dropping knowledge and turds in equal measure
    BoomSaucemore
    I wouldn't if I were you.

    I like the Model S too. Would love one in fact. But I'd like to retire soon, preferably in my 40s. So I drive a $30K car and only have a mortgage to pay off. No kids, no wife, so not spending money there either. After this year, TC is likely $500K+.

    My suggestion would be to hold off and focus on your family and building up wealth. Buying a $100K car won't help you with that.
    Jul 1 5
    • 2U / Mgmt KzPL00
      This would be me too. The OP can likely afford it but it depends on long term goals. I don’t think it can be justified in any form of frugality, but if it’s something important to the OP then it’s clearly not out of reach. For me, I’d probably be thinking about a nanny for the baby and a college fund before I spent that much money on a car.
      Jul 1
    • Hulu a-list
      @BoomSauce: do you intend to stay single until retirement? If yes, you might retire sooner than mid 40s

      Also, out of curiosity, was not marrying and no kids a conscious choice?
      Jul 1
    • Microsoft
      BoomSauce

      Microsoft

      BIO
      Dropping knowledge and turds in equal measure
      BoomSaucemore
      @a-list I have no plans to get legally married but I am fine with commitment. I could retire today if I really wanted to, but would have to be pretty frugal. Personally, I'd like to cross the $5M net worth threshold but not quite there yet.

      To answer the last question, yes those are conscious choices.
      Jul 1
    • VMware timlaklak
      So you don’t want to spend 3-4 months of your income on a car you love because you want to retire 10 years later?
      Jul 1
    • Microsoft
      BoomSauce

      Microsoft

      BIO
      Dropping knowledge and turds in equal measure
      BoomSaucemore
      I don't want to spend money on any depreciating asset if I can help it. And retirement is in ~5, I hope.
      Jul 2
  • Salesforce Salesforc
    Buy it. You won’t regret.

    Dm me for a referral.
    Jul 1 0
  • eBay eyxitsjtj
    Frugal people don’t spend more than 10% of TC on a depreciating asset like car. However, it is your money and you have to decide what is best for you and your family depending on your life goals.
    Jul 1 0
  • QuinStreet QSCurry
    Never spend so much money on car, financially does not make sense
    Jul 1 0
  • New galo
    Buy a model 3 if you want to be frugal
    Jul 1 4
    • Breathometer / Eng 28savage
      OP
      At that point I might as well just get a normal car.
      Jul 1
    • New galo
      Have you driven it?
      Jul 1
    • Breathometer / Eng 28savage
      OP
      Yes, but it doesn’t look the same. Way too many people jumping on the 3. It’s like the Prius if you know what I mean.
      Jul 1
    • New galo
      Sounds like you already made a decision! Enjoy the model S!
      Jul 1
  • New / Strategy
    Porsche996

    New Strategy

    BIO
    MIT BS MechE, Stanford GSB
    Porsche996more
    Get a pre owned 70D and get yourself an upgrade after four years. The market is just cropping up for EVs.
    Jul 1 0
  • Facebook / Eng QGhE38
    If you really like it, why not buy a used instead? I don’t see too much difference if you like the car itself.
    Jul 1 1
    • Symantec
      gwkfv

      Symantec

      BIO
      !
      gwkfvmore
      I've been told used Model S is better deal than new Model 3. Would recommend to research before buying
      Jul 1
  • eBay wtftc
    Humblebraggard..
    Jul 1 0
  • Slack / Eng
    namelessyo

    Slack Eng

    BIO
    Looking women Chinese speakers for lunch in SF
    namelessyomore
    Model 3 is really cheap now comparing to S. About 400+ for lease. Comparing to my old car, it is like iphone vs old Nokia
    Jul 1 0
  • Apple / Eng Marijuana
    They're expected to refresh the S this year, I thought. May want to hold off until then.
    Jul 1 0
  • F5 Networks KNcx43
    Just do it! Don’t over think / analyze
    Jul 1 0
  • Amazon 🦂scorpion
    Pretty much a no brainer, buy it and don’t think about it.
    Jul 1 0
  • Amazon spacedick
    If you really want it - just buy it. You can afford it. Yes, if you invest the same money, over 30 years you could get substantial dividends... given you alive, healthy and full of energy. You never now.

    I’m very frugal person on my own, and spend as little money as possible usually. Don’t even own a car (lol). But when I travel I spend like crazy without counting money because I love to travel and want to enjoy it. No regrets so far. On a contrary every dime spent was worth it.
    Jul 5 0
  • Tableau / Eng TacW56
    This is the easiest question ever, since you’re able to financially afford the car. You need to simply answer this question: do you want to enjoy life now when you’re working, or do you want to be one of those pathetic individuals that feel like they should only enjoy life if/when they retire?
    Drink the nice wine, go on that amazing vacation, eat at that new restaurant, buy that lovely tech-widget you’ve had your eye on for a year — but do so while saving adequately for your future. They’re not mutually exclusive. Enjoy your life today, because no one is promised tomorrow.
    Some of the saddest individuals I’ve ever met are those with substantial retirement accounts. Live life, this isn’t a trial run. There is no prize for dying with a ton of money in your bank account.
    Jul 4 0
  • New / Other
    DuQvV7y

    New Other

    BIO
    Did stuff. Hustled hard. Retired
    DuQvV7ymore
    Nope.

    My rule is don’t spend on luxury in a year anything that exceed 10% of networth (excluding residence).

    Get a used one (like someone said earlier) bump up to a new one when you hit a milestone like 1.1m
    Jul 2 0
  • Yelp overmind
    Get a used s
    Jul 1 0
  • Symantec
    gwkfv

    Symantec

    BIO
    !
    gwkfvmore
    Treat yourself!

    Model S is a good car. Model 3 would work just fine. Both look great.
    Jul 1 0

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