Is buying Tesla Model 3 worth it?

Amazon BPQV25
Jun 4, 2018 41 Comments

Here is my situation.
1. I have a 5 year old Camry. Pretty decent car. I drive only on weekends.
2. Booked the Tesla model 3 when it was announced couple of years back. Now it is ready to order (delivery in 2-3weeks). The default configuration is long range battery, premium interior and rear wheel drive. Priced at $48k. With self driving capabilities and auto pilot it coming to $58k.
3. If it buy it now I get 10k in Federal tax incentives (effective saving of 3.5k given my tax bracket is ~35%).

My dilemma.
1. I don't use the car much. The Camry will last at least for 10 more years if not more.
2. I can sell the Camry and effectively pay the same monthly payments after tax savings and gas savings. But I need to pay that for another 5years.
3. Fully dependent on electric.
4. I haven't seen the car except in the YouTube reviews.
5. I can absolutely afford ("waste the money") the car.
6. Feel good factor. Status symbol, Nice car, saving the environment (have a house and planning to go solar as well. So it's really saving the environment not the electricity from burning coal).

comments

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TOP 41 Comments
  • New DuQvV7
    This post is everything that is wrong with Tesla drivers.

    Kudos.
    Jun 4, 2018 0
  • New klezvtu
    I would still drive the Camry. You don't really need a car. After 3 or 4 years, you might get cheaper EV.

    Whatever saving you gain, I would travel and experience new adventure.
    Jun 4, 2018 1
    • New Meh..
      Second this
      Jun 4, 2018
  • Salesforce Ranfkbwnbf
    TC or GTFO
    Jun 4, 2018 0
  • Amazon / Eng lolhiman
    Invest the 58k for 10 years while driving the Camry. Take the gains and buy the Tesla in 10 years.
    Jun 4, 2018 0
  • Redfin Rdfn
    Get the Tesla. Life is short.
    Jun 4, 2018 0
  • GoodRx CheapMeds
    If you're gonna spend 60k on a Tesla buy a used Model S.
    Jun 4, 2018 1
    • Amazon BPQV25
      OP
      Not getting long range or self driving or the tax incentives. It's just the lowest configuration of S.
      Jun 4, 2018
  • New weezer
    Keeping the Camry is better for the environment.
    Jun 4, 2018 0
  • Oath UJAe75
    Take the Tesla if you can totally afford it, life is short and you will enjoy the years driving the model 3 (and the upcoming updates)
    Jun 4, 2018 0
  • Microsoft mmkkjik
    I think with the less money, you can buy a Chevy volt or Lexus ct200 which are much better cars in my opinion.

    I stop being a Tesla fan after they claim their car can self drive.
    Jun 4, 2018 0
  • Visa shaolin
    Tsla autopilot=10k?
    Jun 4, 2018 2
    • Amazon BPQV25
      OP
      And as of today it doesn’t work on local roads because it cannot detect a red light. So if there is no car ahead of you, you will not stop.
      Jun 5, 2018
    • SpaceX / Eng SlaveX
      Self crash
      Jun 14, 2018
  • Amazon BPQV25
    OP
    After all the debates and discussions I thought I will wait. But last week test drove the 3 and it was great. Loved the car, wife loves the car. So ordered the 3 - AWD red with white interior , 19' wheels and auto pilot (no full self driving capabilities). I am selling my Camry, and putting that money and will be getting 10k in tax credits. Thanks for all the comments and suggestions.
    Aug 12, 2018 1
    • Tesla fremonster
      Boss move! You’ll love it!
      Aug 12, 2018
  • Nvidia Mkst
    If I had 60K I could easily part with, I'd buy it. Even though personally I think it's too expensive.
    Jun 4, 2018 0
  • Microsoft Snowflakes
    F*** Tesla
    Jun 4, 2018 0
  • Tesla fhgtee
    I don't understand your math. If you buy it now you get 7.5k from the the federal government, given that you've paid more than that in taxes, which I'm guessing you have. How did you arrive at 3.5k?
    Jun 4, 2018 3
    • Amazon BPQV25
      OP
      I might be wrong on this, but here is my understanding. I get 7.5k in federal and 2.5k from state. I need to claim these when I am filing taxes. I am assuming it would be similar to a deduction. So if my salary is 100k and I need to pay 30% taxes. Now I will be paying hat 30% on 100-10 =90k. So my effective saving would be 90 * 30%. Is that not correct?
      Jun 5, 2018
    • Amazon BPQV25
      OP
      My bad. These are tax credits and not tax deductions. So it $ for $. Wow. So the car is effectively 48k now which makes it even more tempting
      Jun 5, 2018
    • Oath UJAe75
      I think you already took the decision :), please let us know
      Jun 5, 2018
  • This comment was deleted by original commenter.

    • New DuQvV7
      🐑
      Jun 5, 2018
    • Amazon BPQV25
      OP
      Why would it matter? All I need is to pay is less 1k a month. I think I can manage that. Except that this 60k is just a capital expenditure. All I get out of it is momentary pleasure. That was the whole point.
      Jun 5, 2018
  • GoodRx CheapMeds
    Your car insurance will be significantly higher for the model 3 compared to a Camry. Repair costs are also crazy high as well. Why light money on fire for the sake of lighting money on fire. You'll also likely be able to get a Model 3 later this year once they exhaust their backlog.
    Jun 4, 2018 2
    • Amazon BPQV25
      OP
      How does it make a difference? getting now vs getting later this year? I heard that Tesla is reaching the 200k car limit and hence the federal tax break will be half i.e 3250$ for the next 100k or so cars.
      Jun 5, 2018
    • Microsoft budwis
      Massive production is how car companies cut down cost. Tesla isn’t doing a good job cutting cost when producing model 3. Do you think they even care cutting cost for parts?
      Jun 9, 2018
  • Yahoo Fhcgh
    Let me help you.. Sell this car to me I pay you 5k extra and I keep the tax break..
    Jun 4, 2018 1
    • Amazon BPQV25
      OP
      I would love that. Are you serious?
      Jun 5, 2018
  • Visa / Eng Pinnammi
    Go for it. It’ll put a smile on your face
    Jun 4, 2018 1
    • Oath UJAe75
      Thanos?
      Jun 4, 2018
  • VMware / Sales
    🤷🏽‍♂️🗣!

    VMware Sales

    PRE
    KPMG
    🤷🏽‍♂️🗣!more
    Tax credit is $ for $ not at rate
    Jun 4, 2018 1
    • LinkedIn Zeiwkf5
      This. Your savings are he full 10k. You sure it’s not just 7.5k federal? The ca credit is means tested (aka you make too much and you don’t get the credit)
      Jun 4, 2018
  • Deloitte PVaQ48
    Chevy Corvair 2.0
    Jun 13, 2018 0