Can I splurge on a Tesla model Y?
Can I splurge on a Tesla model Y?
I am a 31 yo M that is about to graduate residency and starting my new attending job in 2 months. I’ll be making 400k with a 35k signon bonus. My wife works in tech and makes about 200k. I preorder a Tesla model Y a month ago because I need to replace my old Toyota Camry that is 12 years old and has 230k miles. We will get the Tesla in about 5-6 months from now.
As far as our finance, we have about $320k in equity investment right now, with about $200k in retirement accounts (rIRA, 401k, HSA, etc.) and the rest in various taxable accounts, a rental property worth $425k (with $183k in home equity), and cash of 25k. We also just bought a home worth $415k as our primary residency for the next few years.
We have $154k student loans debt (all from me), mortgage on our rental of $242k, and mortgage on our primary home of 400k.
We are planning to save our money to hopefully pay the car in cash when we get it. I am a little nervous as I feel like this is a big splurge for someone that just graduate residency and hasn’t been making good money yet, but we reasoned that our primary home purchase is low compared to our combined salary and that we can splurge on this Tesla and still save enough.
Let me know what you think.
As far as our finance, we have about $320k in equity investment right now, with about $200k in retirement accounts (rIRA, 401k, HSA, etc.) and the rest in various taxable accounts, a rental property worth $425k (with $183k in home equity), and cash of 25k. We also just bought a home worth $415k as our primary residency for the next few years.
We have $154k student loans debt (all from me), mortgage on our rental of $242k, and mortgage on our primary home of 400k.
We are planning to save our money to hopefully pay the car in cash when we get it. I am a little nervous as I feel like this is a big splurge for someone that just graduate residency and hasn’t been making good money yet, but we reasoned that our primary home purchase is low compared to our combined salary and that we can splurge on this Tesla and still save enough.
Let me know what you think.
Re: Can I splurge on a Tesla model Y?
Yes.
Make sure you have a charging at home.
Make sure you have a charging at home.
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Re: Can I splurge on a Tesla model Y?
Since federal student loans are still frozen, I'm not going to say to pay them off first. So sure. You already make a boatload of money and will be upping that boatload to a ship-load soon. Why not? Long range or Performance?
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Re: Can I splurge on a Tesla model Y?
I say yes also. Paying in cash is a good idea. Enjoy your new job and new car!
Re: Can I splurge on a Tesla model Y?
I wouldn’t want to be burdened with that level of student loan debt, regardless of the payment affordability.
Buy a cheaper car with part of your savings, and then pay off your student loans within the next one to two years.
If you aren’t familiar with this site, take a look: https://www.whitecoatinvestor.com/
Buy a cheaper car with part of your savings, and then pay off your student loans within the next one to two years.
If you aren’t familiar with this site, take a look: https://www.whitecoatinvestor.com/
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
Re: Can I splurge on a Tesla model Y?
I would say this about your plan:
- cash $25k - the typical suggestion is to have an emergency fund = six months of living expenses
- rental - do you have a neutral or positive cash flow?
- as the total comp of your family increases, try to avoid lifestyle creep. Live below your means, set a target for savings and stick to it
having said that, once you start your job, you should be good to go though this does represent lifestyle creep. I suggest you avoid paying for car until you start your new job just to make sure everything goes according to plan.
also, you're carrying a bunch of debt, make sure you have a good, inexpensive term life policy in place.
good luck!
- cash $25k - the typical suggestion is to have an emergency fund = six months of living expenses
- rental - do you have a neutral or positive cash flow?
- as the total comp of your family increases, try to avoid lifestyle creep. Live below your means, set a target for savings and stick to it
having said that, once you start your job, you should be good to go though this does represent lifestyle creep. I suggest you avoid paying for car until you start your new job just to make sure everything goes according to plan.
also, you're carrying a bunch of debt, make sure you have a good, inexpensive term life policy in place.
good luck!
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Re: Can I splurge on a Tesla model Y?
You certainly can afford it. I was in a similar situation a year ago. I bought an SUV for half the price that works just fine. If I were you I would sell the rental property, pay off my student loans with the proceeds, and focus on index fund investing and maximizing my tax advantaged space. As an MD, I don’t want to worry about the hassles of a rental property. As WCI has preached, live like a resident for a few years on an attending salary and you will set yourself up perfectly. You seem to have bought a very affordable home which is where most new attending make their first and worst financial mistake. Good luck.
Re: Can I splurge on a Tesla model Y?
Agree, put in the charger in your home and look at time of use electric plans even if you do not do solar panel. This can cost some money if you aren't able to run a 40/50A outlet off your existing electric panel although keep in mind if you only charge at night other electric usage may be less.
Re: Can I splurge on a Tesla model Y?
It’s good that you’re approaching this conservatively. You’ve got plenty of money & more on the way. Buy the car & don’t look back. You certainly can afford it, regardless of what some naysayers here think. Also, wire you garage for charging & make sure you can charge 2 vehicles at once. That just prepares you for the future.
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Re: Can I splurge on a Tesla model Y?
I didn’t do the math - what is your net worth? I stopped counting at $700k of debt.
If it’s minus 50k or more, I’d say skip the car.
What will your combined net income after taxes?
If it’s minus 50k or more, I’d say skip the car.
What will your combined net income after taxes?
Last edited by AnnetteLouisan on Sat Jun 25, 2022 8:19 pm, edited 3 times in total.
Re: Can I splurge on a Tesla model Y?
Yes you can.
And given the prices of other new cars these days, seems like less of a splurge.
And given the prices of other new cars these days, seems like less of a splurge.
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Re: Can I splurge on a Tesla model Y?
You are about to earn $600k per year.
A Model Y conservatively costs $5k per year. And over the last few years it has been free to own.
This isn’t even a question.
A Model Y conservatively costs $5k per year. And over the last few years it has been free to own.
This isn’t even a question.
Re: Can I splurge on a Tesla model Y?
I would say yes. Given your income (combined) and debt service it seems very doable. Speciality?
Re: Can I splurge on a Tesla model Y?
Pay that student debt off first.
Re: Can I splurge on a Tesla model Y?
Thank you everyone for the reply.
My net worth is around 400k right now. 1.1 mil in asset - 700k debt.
The car is model Y long range. The good thing is if I feel like I am not in a financial position to get the car when the time comes, I can always put myself back in line and wait some more.
Also the rental property will net me around $200/month (estimating conservatively). I already signed a tenant for the upcoming year so I can't sell it now. Will consider selling it next year.
My net worth is around 400k right now. 1.1 mil in asset - 700k debt.
The car is model Y long range. The good thing is if I feel like I am not in a financial position to get the car when the time comes, I can always put myself back in line and wait some more.
Also the rental property will net me around $200/month (estimating conservatively). I already signed a tenant for the upcoming year so I can't sell it now. Will consider selling it next year.
Re: Can I splurge on a Tesla model Y?
Very risk averse advice on this thread. People advocating for paying off the mortgage on a rental property are out of touch and probably would not be very good at managing a business. The student loan debt is $154K on a $600K income and they own a $415K home.
They are to be congratulated for the $415K home purchase and not buying a $2.4M home instead which a lender would have given them money to buy.
They can certainly buy the Tesla Y if they want to, and they can pay off the student loan debt quickly as at the same time. No need for binary thinking of only doing one thing at a time.
They are to be congratulated for the $415K home purchase and not buying a $2.4M home instead which a lender would have given them money to buy.
They can certainly buy the Tesla Y if they want to, and they can pay off the student loan debt quickly as at the same time. No need for binary thinking of only doing one thing at a time.
Re: Can I splurge on a Tesla model Y?
Yes. Just don't buy two, or go other lifestyle creep crazy. It's fine (unless you're pursuing FIRE or some other unique goals) and not too out of line considering crazy car costs right now.
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Re: Can I splurge on a Tesla model Y?
What is your total debt number, including interest? I assume the $700 is just an aggregate *principal* amount and therefore that your total obligation is understated. I see people make calculations based on principal amount and then somehow the compound interest surprises them with its burdensomeness. For example, a $500k house can be an $850k obligation, depending on the term ad interest rate.
Alternatively, what is your monthly debt service compared to your projected future income?
Since you haven’t started the new job yet and you aren’t integrated yet, I don’t blame you for not wanting to get out too far over your skis. Is there a probationary period?
Alternatively, what is your monthly debt service compared to your projected future income?
Since you haven’t started the new job yet and you aren’t integrated yet, I don’t blame you for not wanting to get out too far over your skis. Is there a probationary period?
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Re: Can I splurge on a Tesla model Y?
Yes, but I bet the new car smell will fade quickly. I would personally go with a car that's half the price and isn't an EV.
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Re: Can I splurge on a Tesla model Y?
Physician Practice Administrator here … married to a physician … and the owner-operator of a late 2021 Tesla Model Y Long Range.
I assume you are finishing a medical residency. If you are going to be employed by a non-profit, enroll in the Public Service Loan Forgiveness (PSLF) to discharge your student loan debt.
Tesla Model Y is a great car. I was lucky to get mine for $59k before all the price increases. Not sure I would pay $70k+ for the same car. If you are wanting purely electric, I think I would go with either the Nissan Leaf or Chevy Bolt EUV until some of your debt is resolved and splurge on a Tesla later. My second choice was the redesigned Toyota Venza Limited (great hybrid option).
I assume you are finishing a medical residency. If you are going to be employed by a non-profit, enroll in the Public Service Loan Forgiveness (PSLF) to discharge your student loan debt.
Tesla Model Y is a great car. I was lucky to get mine for $59k before all the price increases. Not sure I would pay $70k+ for the same car. If you are wanting purely electric, I think I would go with either the Nissan Leaf or Chevy Bolt EUV until some of your debt is resolved and splurge on a Tesla later. My second choice was the redesigned Toyota Venza Limited (great hybrid option).
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Re: Can I splurge on a Tesla model Y?
If you want to save a few bucks I would go for the Kia EV6. What I'm more impressed is how did you get 230K miles in 12 years... did you drive cross country a few times??
Re: Can I splurge on a Tesla model Y?
My student loan is currently at 0% interest and I have paid off a good chunk already in my residency (original amount is $215k) so the interest is already paid off, so I just have my principal amount. My rental mortgage is 3.125% and I have about $241k left on it and my primary home mortgage is 3.75% and it is currently around $399k. My rental income will pay for the rental mortgage, so I only have my student loan and my primary home mortgage to pay. Mortgage will be about $2.6k per month and I am planning to pay off my student loan in 1-1.5 year, so about $10k/month, though this might be really aggressive. Our take home once I start my job is 50k/month pretax (I also will live in a no state income tax). Say we take home 25k (after tax, 401k)- 10k- 2.6k = 12.4k/month left over to spend/invest more.
The only reason why I am starting my job in 1.5 months instead of next week is because I want time off for my board exam study and we are doing an international trip.
I have also considered PSLF for my student loan, but our income/student loan ratio is high enough where this would not benefit me.
The only reason why I am starting my job in 1.5 months instead of next week is because I want time off for my board exam study and we are doing an international trip.
I have also considered PSLF for my student loan, but our income/student loan ratio is high enough where this would not benefit me.
Last edited by scx123 on Sun Jun 26, 2022 8:33 am, edited 1 time in total.
Re: Can I splurge on a Tesla model Y?
I did drive it cross country when we moved for residency (from Texas to California) and did a lot of commuting on that car. In fact, I want to drive that car back to Texas so I can keep driving it and not get the Tesla, but my wife insisted that I sell the car and get a new car. I sold it recently for 4k
Re: Can I splurge on a Tesla model Y?
Here's a suggestion: Get an Ioniq 5 or EV6 instead. You'll get better build quality, much better ride quality (the Model Y is pretty harsh), and much faster charging (to 80% in 18 minutes on the highest-power chargers, which are becoming more common). You'll save about $20K or more after the federal tax credit, and IMHO you'll get a better EV.
Re: Can I splurge on a Tesla model Y?
yes, you can easily afford it. But to echo the others, EV's are great when you can charge at home, and/or work. Otherwise, I'd wait. (Your time is far too valuable to be sitting at a SuperCharger a couple of times per week.)
full disclosure: we have a his and hers Model 3's and love them.
full disclosure: we have a his and hers Model 3's and love them.
Re: Can I splurge on a Tesla model Y?
A couple of things to keep in mind.
1) In your planning be sure to budget for your wife to have a similar splurge even if it is on something other than a car.
2) "Can I splurge on a Tesla model Y?" is the wrong question. You should identify what car you would buy if you do not buy the Tesla and ask yourself which is the better choice.
3) Keep telling yourself, "It is just a car". After you have had it for six months the novelty of a new car wears off you will get used to it(hedonic adaptation) and might not really enjoy it all that much more than your alternative choice.
4) At least it is not a BMW. If you have posted that you would get all sorts of posts with horror stories and love hate relationships with the potentially high maintenance costs.
1) In your planning be sure to budget for your wife to have a similar splurge even if it is on something other than a car.
2) "Can I splurge on a Tesla model Y?" is the wrong question. You should identify what car you would buy if you do not buy the Tesla and ask yourself which is the better choice.
3) Keep telling yourself, "It is just a car". After you have had it for six months the novelty of a new car wears off you will get used to it(hedonic adaptation) and might not really enjoy it all that much more than your alternative choice.
4) At least it is not a BMW. If you have posted that you would get all sorts of posts with horror stories and love hate relationships with the potentially high maintenance costs.
Re: Can I splurge on a Tesla model Y?
It's your money to use however you like. Don't use a low house purchase price to justify splurging on something else. Treat every purchase as the individual choice it is.scx123 wrote: ↑Sat Jun 25, 2022 6:38 pmI preorder a Tesla model Y a month ago because I need to replace my old Toyota Camry that is 12 years old and has 230k miles. We will get the Tesla in about 5-6 months from now.
We have $154k student loans debt (all from me), mortgage on our rental of $242k, and mortgage on our primary home of 400k.
We are planning to save our money to hopefully pay the car in cash when we get it. I am a little nervous as I feel like this is a big splurge for someone that just graduate residency and hasn’t been making good money yet, but we reasoned that our primary home purchase is low compared to our combined salary and that we can splurge on this Tesla and still save enough.
"Save enough" is something only you and your wife can decide, based on your own long term financial goals.
Sounds like you have 5-6 months to figure out if this is really where you want your money to go.
Last edited by JoeRetire on Sun Jun 26, 2022 10:14 am, edited 1 time in total.
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Re: Can I splurge on a Tesla model Y?
Geez, $600k combined salary with a mortgages totaling $642k - yes, I'd say you can afford a $70-$80k Model Y
Re: Can I splurge on a Tesla model Y?
While I would buy an Ioniq 5 myself if I were in the market, I would not if it were going to be my only car. Long-term reliability of the Hyundai/Kia is yet to be seen. Their track record to date is not good here, although masked by very long warranties. More importantly however, a non-Tesla EV is still simply not practical to own if you need to rely on the public charging infrastructure. The chance of finding the highest power charger they can accept is slim. There is a reasonable chance that the charger will be occupied (likely by a vehicle that can't take advantage of the fast charge), ICE'D, out of order, etc. If you read the experiences of people who own these cars and road trip in them, they ALWAYS have a back up plan (which means planning your trips to be able to reach one of two different stations at every interval) because the non-Tesla charging system is so unreliable at the moment.02nz wrote: ↑Sat Jun 25, 2022 10:40 pm Here's a suggestion: Get an Ioniq 5 or EV6 instead. You'll get better build quality, much better ride quality (the Model Y is pretty harsh), and much faster charging (to 80% in 18 minutes on the highest-power chargers, which are becoming more common). You'll save about $20K or more after the federal tax credit, and IMHO you'll get a better EV.
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Re: Can I splurge on a Tesla model Y?
Ok it sounds like in five years you’ll have make a lot of progress on your debt. Be nice to get that debt ratio down heading into a recession and a stressful career plus being a landlord. Congrats on getting your degree and starting residency!scx123 wrote: ↑Sat Jun 25, 2022 10:02 pm My student loan is currently at 0% interest and I have paid off a good chunk already in my residency (original amount is $215k) so the interest is already paid off, just principal amount. My rental mortgage is 3.125% and I have about $241k left on it and my primary home mortgage is 3.75% and it is currently around $399k. My rental income will pay for the rental mortgage, so I only have my student loan and my primary home mortgage to pay. Mortgage will be about $2.6k per month and I am planning to pay it off in 1-1.5 year, so about $10k/month, though this might be really aggressive. Our take home once I start my job is 50k/month pretax (I also will live in a no state income tax). Say we take home 25k- 10k- 2.6k = 12.4k/month left over.
The only reason why I am starting my job in 1.5 months instead of next week is because I want time off for my board exam study and we are doing an international trip.
I have also considered PSLF for my student loan, but our income/student loan ratio is high enough where this would not benefit me.
Last edited by AnnetteLouisan on Sun Jun 26, 2022 7:38 am, edited 2 times in total.
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Re: Can I splurge on a Tesla model Y?
Yes, I believe it is a good move for you and your family.
Re: Can I splurge on a Tesla model Y?
Love our MY; however, the ride is pretty harsh. If you drive on nicely paved suburban roads, it's great. In the city or bumpy terrain, not so much. If you are looking for a more polished ride, there are better options.
Also, make sure you have the infrastructure for a EV (parking, charger, wifi). Otherwise, it can be a pain.
Also, make sure you have the infrastructure for a EV (parking, charger, wifi). Otherwise, it can be a pain.
Re: Can I splurge on a Tesla model Y?
It doesn't sound like a splurge but entry into what promises to be a very stable and high level financial future if you make simple, efficient decisions regarding investing.
Tim
Tim
Re: Can I splurge on a Tesla model Y?
Sure you can afford it. But I caution to allow this to be your splurge and then avoid a massive lifestyle creep. If you can live on half your salary you can be debt free and have a fabulous lifestyle debt free and huge investments and real freedom within a year or two while living as if your household income was "only" 300k instead of 600k. Should be easy to live within your ample means .
Re: Can I splurge on a Tesla model Y?
As far as reliability, the Ioniq 5 and EV6 obviously haven't been on the market long enough for data, but Hyundai-Kia's highest-volume EV to date, the Kia Niro EV (of which I own a 2020 model) has been very reliable, with the highest rating for predicted reliability from Consumer Reports. Actual reliability has been "much better than average" for all model years with CR data. The Niro EV has not been recalled a single time. The Model Y gets the lowest rating for predicted reliability and has been "worse than average" or "much worse than average" in every model year, and in MY21 alone it had 12 NHTSA recalls, in MY22 7 (admittedly most are minor, but the number alone tells you something).onourway wrote: ↑Sun Jun 26, 2022 7:30 amWhile I would buy an Ioniq 5 myself if I were in the market, I would not if it were going to be my only car. Long-term reliability of the Hyundai/Kia is yet to be seen. Their track record to date is not good here, although masked by very long warranties. More importantly however, a non-Tesla EV is still simply not practical to own if you need to rely on the public charging infrastructure. The chance of finding the highest power charger they can accept is slim. There is a reasonable chance that the charger will be occupied (likely by a vehicle that can't take advantage of the fast charge), ICE'D, out of order, etc. If you read the experiences of people who own these cars and road trip in them, they ALWAYS have a back up plan (which means planning your trips to be able to reach one of two different stations at every interval) because the non-Tesla charging system is so unreliable at the moment.02nz wrote: ↑Sat Jun 25, 2022 10:40 pm Here's a suggestion: Get an Ioniq 5 or EV6 instead. You'll get better build quality, much better ride quality (the Model Y is pretty harsh), and much faster charging (to 80% in 18 minutes on the highest-power chargers, which are becoming more common). You'll save about $20K or more after the federal tax credit, and IMHO you'll get a better EV.
As for charging infrastructure: the Tesla network is unquestionably more comprehensive, and if one is relying only on DCFC, then that's the obvious choice, but with home charging (which the OP will have) and using DCFC for road-trips, a non-Tesla vehicle is absolutely doable. Yes it's sometimes a bit less convenient (e.g., managing multiple charging networks' accounts - although having Electrify America is good enough), but it's getting better and more reliable, as I found on a recent 1000-mile road trip. As for "slim chance" of finding a highest-power charger, it has nothing to do with chance, you simply filter by KW on Plugshare or the charging network's own app.
As an aside: it's interesting to me how much FUD there is on owning an EV that's not Tesla, it's almost like the FUD out there about EVs in general. Reading your post, people would think that non-Tesla EVs constantly break down and are stuck with no charge. It just doesn't correspond with reality.
Last edited by 02nz on Sun Jun 26, 2022 11:58 am, edited 1 time in total.
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Re: Can I splurge on a Tesla model Y?
I see this comment a lot and for me it’s not true. I’ve had my Tesla almost 3 years and love it. It’s the same experience every day since the first time I drove it. It’s a blast to drive. The newness hasn’t worn off. I hear this from other Tesla owners as well.
As others have said live below your means. 50% is a good goal. Pay off all debt and make yourself rich instead of the bank. From there decide what you can afford.
Re: Can I splurge on a Tesla model Y?
Wow thank you for all the recommendations on other EVs. I will look into it with my wife. We both like saving money and getting the best deal when we can. The good thing about preordering the Tesla last month is that we locked in the price and the price for Tesla now has gone up. I am sure by the time we can get it in December, the price will have gone up some more.
Re: Can I splurge on a Tesla model Y?
Yes you can afford it. Reward yourself. Don't look at other EV's. Tesla is 6-8 years ahead in its technology and charging infrastructure. I had my Model Y since last March and love it.
This is not legal or certified financial advice but you know that already.
Re: Can I splurge on a Tesla model Y?
Good job on your success in life thus far.scx123 wrote: ↑Sat Jun 25, 2022 6:38 pm I am a 31 yo M that is about to graduate residency and starting my new attending job in 2 months. I’ll be making 400k with a 35k signon bonus. My wife works in tech and makes about 200k. I preorder a Tesla model Y a month ago because I need to replace my old Toyota Camry that is 12 years old and has 230k miles. We will get the Tesla in about 5-6 months from now.
As far as our finance, we have about $320k in equity investment right now, with about $200k in retirement accounts (rIRA, 401k, HSA, etc.) and the rest in various taxable accounts, a rental property worth $425k (with $183k in home equity), and cash of 25k. We also just bought a home worth $415k as our primary residency for the next few years.
We have $154k student loans debt (all from me), mortgage on our rental of $242k, and mortgage on our primary home of 400k.
We are planning to save our money to hopefully pay the car in cash when we get it. I am a little nervous as I feel like this is a big splurge for someone that just graduate residency and hasn’t been making good money yet, but we reasoned that our primary home purchase is low compared to our combined salary and that we can splurge on this Tesla and still save enough.
Let me know what you think.
Clearly, yes, you can afford any car.
Like most things, I would say it comes down to your own goals, desires, values, plans. Have you mapped out what the coming years of your life will be like? Where do you want to be in 20 years? Financial goals? Do you want an OK retirement or a 20-30M nest egg?
I used to work where I could look out over the physician parking lot. It was interesting to see who got out of what. One of the flashiest came from a streetwise kid that grew up broke, had to be tough. Kind of flaunts money now, broke, I hear stories of creditors calling at work. Another drove a beater Tercel for a long time. Others drove very ordinary vehicles- many of whom I later learned had vacation homes, boats, several with airplanes. Others young in career bought the latest greatest. Comes down to priorities.
Finance or cash, all the same to me. You can pay it off quickly if needed.
We were not MDs, never had your earning power, on our 2nd tesla, current is a Y. We would like to never get another ICE. We put off nice things way too long in life but did not know better.
Pale Blue Dot
Re: Can I splurge on a Tesla model Y?
Suggest you read some of the posts at www.whitecoatinvestor.com including this one https://www.whitecoatinvestor.com/how-t ... -5000-car/
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Re: Can I splurge on a Tesla model Y?
This is the correct way to approach the answer to your question, OP.AnnetteLouisan wrote: ↑Sat Jun 25, 2022 9:28 pm.
Alternatively, what is your monthly debt service compared to your projected future income?
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Re: Can I splurge on a Tesla model Y?
If you’re comfortable buying Elon Musk, go ahead, you have the money. Frankly I wouldn’t and didn’t. Bought a Mach-E.
Re: Can I splurge on a Tesla model Y?
Interesting that a Tesla driver is advising not to check out the competition - what are you afraid of? Tesla got the charging infrastructure right, but technology? Porsche and Hyundai have 800V technology that can charge to 80% in 18 minutes. Tesla doesn't. If there are other ways in which you think Tesla is 6-8 years ahead, please point them out. (No, "Autopilot" that doesn't auto-pilot and "Full Self Driving" that doesn't drive itself are not it, and neither is this unannounced convertible model).
Last edited by 02nz on Sun Jun 26, 2022 12:00 pm, edited 1 time in total.
Re: Can I splurge on a Tesla model Y?
I've never had more fun driving a car than I drive a Tesla, I'm 6'4" and have plenty of head room ----- and going from 0-40 MPH is a thrill EVERY time. That novelty will never wear-off. If I didn't buy a Tesla I'd look at the Mustang EV. It's looks fun.
Re: Can I splurge on a Tesla model Y?
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Last edited by mary1492 on Thu Sep 29, 2022 2:30 pm, edited 1 time in total.
Re: Can I splurge on a Tesla model Y?
yes you can afford it
your mortgage and student loans aren't that big
it's good the car is ordered but not coming until after you've had a few months to make sure the new job is a good fit and to let you save up the cash to buy it, or to put down a serious portion at least
it is worth a little caution to not inflate your lifestyle too much, and to ask yourself if you get one nice car, does your spouse need one too, and do you "need" a bigger garage or other types of toys. it may be smart to choose a more modest car for a few years, something new but less expensive, just to keep that lifestyle inflation in check.
i don't think you should bother keeping a rental that barely breaks even. it is a stress and a liability, and even if it was profitable you would hardly notice the money. in fact, if profitable, you would be paying a serious percent as income tax. what's the point? if this was your prior residence i suggest selling it the next time the lease runs out, so that you are still within the 2-of-5 years for capital gains.
your mortgage and student loans aren't that big
it's good the car is ordered but not coming until after you've had a few months to make sure the new job is a good fit and to let you save up the cash to buy it, or to put down a serious portion at least
it is worth a little caution to not inflate your lifestyle too much, and to ask yourself if you get one nice car, does your spouse need one too, and do you "need" a bigger garage or other types of toys. it may be smart to choose a more modest car for a few years, something new but less expensive, just to keep that lifestyle inflation in check.
i don't think you should bother keeping a rental that barely breaks even. it is a stress and a liability, and even if it was profitable you would hardly notice the money. in fact, if profitable, you would be paying a serious percent as income tax. what's the point? if this was your prior residence i suggest selling it the next time the lease runs out, so that you are still within the 2-of-5 years for capital gains.
60-20-20 us-intl-bond
Re: Can I splurge on a Tesla model Y?
As a Tesla owner, I agree that people should look at everything available in the marketplace and buy what makes the most sense for them.02nz wrote: ↑Sun Jun 26, 2022 11:54 amInteresting that a Tesla driver is advising not to check out the competition - what are you afraid of? Tesla got the charging infrastructure right, but technology? Porsche and Hyundai have 800V technology that can charge to 80% in 18 minutes. Tesla doesn't. If there are other ways in which you think Tesla is 6-8 years ahead, please point them out. (No, "Autopilot" that doesn't auto-pilot and "Full Self Driving" that doesn't drive itself are not it, and neither is this unannounced convertible model).
As for Porsche though, one area where they really lack is OTA software updates. Or rather, in a lot of cases customers have to return to the dealership to get software updates. https://electrek.co/2021/07/02/porsche- ... wer-issue/
After 3 years of Tesla ownership, mine has been without fault, and it has never been back to the service center.
And of course, the OP was specifically asking about a Tesla. And clearly, I say they can afford it. (But I’d also recommend they check out competition as well).
Re: Can I splurge on a Tesla model Y?
While OTA software updates are good in theory, I do wonder about their actual utility in terms of truly useful improvements, as opposed to more fart noises, or just a way to roll out bug fixes to beta testers owners. While I admire Tesla and Musk for what they've done to popularize EVs, I get the distinct impression their approach is "get this out the door now and fix it later," as evidenced by the 12 NHTSA recalls on the Model Y in model year 2021 alone. And the hype and over-promising - e.g., true, road-ready self-driving is perpetually 18 months away - is off-putting, to say the least.Normchad wrote: ↑Sun Jun 26, 2022 12:37 pmAs a Tesla owner, I agree that people should look at everything available in the marketplace and buy what makes the most sense for them.02nz wrote: ↑Sun Jun 26, 2022 11:54 amInteresting that a Tesla driver is advising not to check out the competition - what are you afraid of? Tesla got the charging infrastructure right, but technology? Porsche and Hyundai have 800V technology that can charge to 80% in 18 minutes. Tesla doesn't. If there are other ways in which you think Tesla is 6-8 years ahead, please point them out. (No, "Autopilot" that doesn't auto-pilot and "Full Self Driving" that doesn't drive itself are not it, and neither is this unannounced convertible model).
As for Porsche though, one area where they really lack is OTA software updates. Or rather, in a lot of cases customers have to return to the dealership to get software updates. https://electrek.co/2021/07/02/porsche- ... wer-issue/
After 3 years of Tesla ownership, mine has been without fault, and it has never been back to the service center.
And of course, the OP was specifically asking about a Tesla. And clearly, I say they can afford it. (But I’d also recommend they check out competition as well).
Re: Can I splurge on a Tesla model Y?
The first law of personal finance is "Nobody can afford everything they can afford." Economists rephrase this in terms of opportunity cost. The proper question is usually not "Can I afford X?" but "Am I willing to give up something else in order to buy X?"
Re: Can I splurge on a Tesla model Y?
Those are totally fair questions and valid concerns.02nz wrote: ↑Sun Jun 26, 2022 12:50 pmWhile OTA software updates are good in theory, I do wonder about their actual utility in terms of truly useful improvements, as opposed to more fart noises, or just a way to roll out bug fixes to beta testers owners. While I admire Tesla and Musk for what they've done to popularize EVs, I get the distinct impression their approach is "get this out the door now and fix it later," as evidenced by the 12 NHTSA recalls on the Model Y in model year 2021 alone.Normchad wrote: ↑Sun Jun 26, 2022 12:37 pmAs a Tesla owner, I agree that people should look at everything available in the marketplace and buy what makes the most sense for them.02nz wrote: ↑Sun Jun 26, 2022 11:54 amInteresting that a Tesla driver is advising not to check out the competition - what are you afraid of? Tesla got the charging infrastructure right, but technology? Porsche and Hyundai have 800V technology that can charge to 80% in 18 minutes. Tesla doesn't. If there are other ways in which you think Tesla is 6-8 years ahead, please point them out. (No, "Autopilot" that doesn't auto-pilot and "Full Self Driving" that doesn't drive itself are not it, and neither is this unannounced convertible model).
As for Porsche though, one area where they really lack is OTA software updates. Or rather, in a lot of cases customers have to return to the dealership to get software updates. https://electrek.co/2021/07/02/porsche- ... wer-issue/
After 3 years of Tesla ownership, mine has been without fault, and it has never been back to the service center.
And of course, the OP was specifically asking about a Tesla. And clearly, I say they can afford it. (But I’d also recommend they check out competition as well).
My experience with the OTA updates is, they been great. They have improved my car and my happiness level. None of them were bad, or buggy, or seemed half-assed to me. Some big ones that I can think of:
1) One pedal driving was added via OTA
2) side camera blind spot addition
3) addition of Spotify and Netflix. Seems silly, but during the pandemic I ate restaurant meals in my car more than once….
I believe Sentry Mode was added via OTA, but I can’t remember for sure.
So the utility of OTA, for me, has been outstanding. I especially love the one pedal driving.
I really hope this kind of update ability becomes universal to all makers and brands.