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?!?
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.
(Also, of course buy the Tesla. Or if you’re feeling frugal, get a couple year old Tesla for a huge discount)
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.
Pretty much a no brainer, buy it and don’t think about it.
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.
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.
@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?
Never spend so much money on car, financially does not make sense
Just do it! Don’t over think / analyze
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.
Buy a model 3 if you want to be frugal
At that point I might as well just get a normal car.
Have you driven it?
They're expected to refresh the S this year, I thought. May want to hold off until then.
Treat yourself! Model S is a good car. Model 3 would work just fine. Both look great.
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Buy it. You won’t regret. Dm me for a referral.