I am LOVING the Millionaire Money Mentors forums!!!
I am learning so much as well as connecting with some really great, like-minded people. Even if no one else would ever join, I’d keep it going for just me!
But people are joining and the site is now getting almost as many monthly pageviews as ESI Money. It’s pretty phenomenal.
We discuss everything there from the serious (ins and outs of real estate syndications) to the more light-hearted (like having a vision board) — the sort of topics you’d chat about if you had a bunch of friends interested in money. (Which is what the forums are — except the friends come with a TON of great experience and willingness to help.)
One of the threads I started was titled “What is an Extravagant Purchase You’ve Made or Are Contemplating?”
Here’s how it began:
We spend a lot of time taking about saving money – what about at least one thread on spending it!!!
In this thread I want to discuss ways you might be thinking of spending extravagantly.
This is one my mind today for a reason that will become clear soon.
Generally, most of our “luxury” spending is spent in one of two places:
-
- Travel – We have taken cruises, trips to Grand Cayman, a trip and a cruise to Hawaii, and a trip to Ft Myers Beach all in the last few years. On all of those we have taken some combination of my parents and our kids (sometimes both). We stay at nice places, eat at nice places, etc.
- Exercise – Much lower in total cost than travel but we do belong to a “luxury” gym at $130 a month PLUS I spend about another $100-$125 a month on private pickleball courts (inside).
- Now add a new category – updating our home.
We haven’t done much yet, but I’m thinking of re-doing my daughter’s old bedroom and bathroom into my office and letting my wife have the one downstairs by the front door.
I need some more room and privacy for my stuff (I don’t want to have to lug all the valuables upstairs every night since the current office is the least secure room in our house) and my wife would like to have her stuff in one place out of the way instead of using our kitchen table as her office. It’s a win win.
So far, so good. Except…
I have always wanted a roll top desk. A very nice one. (not a cheap version you buy at Walmart)
I found one today that’s made by an Amish craftsmen that appears like (once I add all the extras) it will cost about $10k. Not a lot in the scheme of our finances. But certainly a lot to spend on a desk and versus other spending we could do.
Anyway, we’ll think on it for some time (no rush as of now) but it just got me thinking that we all probably face similar go-no go issues when considering spending on luxury purchases.
Any you’ve decided to spend money on (or are considering)?
From there the conversation went in all sorts of directions, but there was one that stood out for me. It was about buying a Tesla, something I’ve considered on and off for a couple of years. (Not really seriously, but not flippantly either.)
Here’s how one of the mentors (Millionaire #94) started the conversation:
After buying newer, low cost cars for years (I am now 49, and have still never owned a new car) and after 6 years of driving a Honda Civic for my 110 mile daily commute, I finally broke down and bought a newer, used Tesla Model S – with Autopilot!
It was a life changing vehicle. The autopilot made my previously dreaded commute a pleasure. Although I feared buyer’s remorse would eventually kick in, it didn’t happen.
Factors that were considered when I decided to pull the trigger: paid off house no debt, close to my magic number, what felt like inflated stock prices, cash on hand, and a very good price on a nearly new car made this feel ok.
If anybody is considering a Tesla, I can confirm buying used from Tesla is a great option – great experience and about 1/2 price on a car with 11k miles on it.
Of course, I couldn’t let this pass without some questions — half price for a car with 11k miles on it?
I responded:
So…a few questions…
1. How good is the autopilot? Do you actually turn the car over to itself and read/relax (I know you’re not supposed to but just asking)?
2. Do you worry about dings, etc.? I have a 139k Highlander now and if someone opens their door into it then it’s not a big deal to me. If someone opened their door into my Tesla I would react a bit differently…
3. Do they generally have a good selection of previously owned vehicles? Where do you find these?
4. How does the vehicle do in the snow? I do live in CO after all…ha!
His response:
How good is the autopilot?
It is very good. I do turn it over to the car. You do still watch it and stay aware of what is going on, but rarely makes a mistake. You get a good feel for when it might get confused. Easy freeway driving with good striping, never a problem. Construction zones, merging traffic, poor road striping, then pay more attention and be ready to take over. It is possible to totally check out and relax, however I choose not to.
Do you worry about dings, etc.?
Sadly yes. A dent would now cause me sadness. That was the best part of my old 175k mile Honda Civic; A new dent or scratch? Who cares! Not me. There is great value in having a car you don’t care about. I do miss that.
Do they generally have a good selection of previously owned vehicles?
Yes, great selection. It helps however if you are ready to be patient and wait for the right car at a price you like.
This is a long story. I will DM you on how I did it, there are some tricks that can likely save you around $10k.
If you think it is of interest we can share more widely. I vaguely remember an ESI article on car buying.
Tesla sells used cars online through their website. When they first appear for sale on Tesla’s website they’re priced quite high, way above what they will actually sell for, then every day the car is still for sale on the Tesla website the price drops around $500 to $1,000 per day. Eventually the price drops low enough that somebody buys it and it vanishes from the Tesla site. Sort of a reverse auction.
What I found was most cars usually sold just a few thousand above the price I considered “a good deal”. A third party website to track all the Tesla inventory and trends is key (as Tesla doesn’t tell you how long it has been for sale or what others like it sold for). Found my car using this site and then purchased directly from Tesla via their website with a warranty.
How does the vehicle do in the snow?
SoCal guy here so barely any snow driving except when we go up to the mountains on occasion. Drives great in snow as it is 4 wheel drive, but the range does suffer in very cold weather. Not a problem for me, as I rarely drive in snow.
I am cheap, I never like spending a lot of money, but my Tesla was one purchase I don’t regret. It is a really a great car. It does more than your average car, better and more efficiently. Amazing vehicle. And yes – I own Tesla stock. Wish I bought more of it a long time ago!
As promised, he did DM me some additional details (repeating a bit of the above as well):
Here is the Telsa buying saga.
Tesla sells all their used cars on their website, these are lease returns and trade ins. This site is how I found mine.
After you buy, Tesla will ship the car to the nearest Tesla place (for me was Burbank). My main motivation for buying used was that I am cheap and if you buy one from out of state (that has never been issued CA HOV stickers) it’s still eligible for the brand new purple carpool stickers.
This site above allows you to search Tesla’s inventory and see past sales prices and other data that Tesla does not provide to you on their website.
Works on a phone only sort of, but best viewed on a computer screen.
I am nuts and watched for a few months before I bought trying to get best possible deal.
The site is really good if you are looking to buy. Absolutely you must pay the $10 month subscription for all the good subscriber only data from this site. It really helps you make an informed purchase decision and also find just the right car.
The $10 subscription probably saved me $10k on my purchase price. With the subscription you can see all the prices that similar cars sold in the past went for, how long they were the on the market, what price they started at and what price they sold for. You see all the same pricing data and trends on cars currently for sale on Tesla’s website.
This site has some way better filters than Tesla’s website on very specific options, if you are after something in particular this site helps you filter the list more finely than Tesla’s website does.
Tesla sells used cars through their website. As you may have seen, when they first appear on Tesla’s website they’re priced quite high, way above what they will actually sell for, then every day the car is still for sale on the Tesla site the price drops around $500 to $1,000 per day. Eventually the price drops low enough that somebody buys it and it vanishes from the Tesla site. Sort of a reverse auction.
However Tesla provides no data on past price drops – this is where you need the site mentioned above to help you out. What I found was most cars usually sold just a few thousand above the price I considered “a good deal”. My car was $132k new in 2015, it was a 3 year lease for the previous owner, I paid $66.6k for it with 13k miles.
There is some other weirdness Tesla does, occasionally they raise the price back up after a long period of dropping it. The only pattern I could figure out was it appeared that once other cars sell and one particular car becomes the only one like it in a particular market, they may jack the price back up higher. I am sure this is something Elon Musk has some algorithm for figuring out. For all cars you can look at the pricing trends and seen what has happened in the past.
This site above will send you notifications when a car you are tracking had a price change, typically they drop the price daily on a car. It will also email you when cars meeting your desired specs initially come up for sale and appear on Tesla’s site. Saves a bunch of time browsing Tesla’s site and helps you be sure you are not over paying. Once you find a car you like, you click on the tesla site for more info, they will send you a link to a Google drive or drop box folder with photos of the actual car wherever it is located, they do a pretty good job of taking detailed photos of the car and zooming in on any damage, scratches, flaws.
In my case I had a few I was tracking and had a price in mind for each…when it eventually hit my price I clicked buy. Many sold before the price dropped to where I wanted it. I was an unusually patient buy as I didn’t really “need” the car. Bought it just a few days before xmas which also probably help price drop a bit lower than normal. Who would be dumb enough to buy an expensive used car days before Christmas?
The Tesla site does not provide any data on the price that it started out or how much it has dropped or how long it has been for sale, this site above however does do that for you. For $10 bucks a month you get all the data on every Tesla sold in the USA including the starting price and the final sale price. This way you can track and see if you’re getting a good deal or not.
Mine is a 2015 that came from Minnesota with 13k miles on it. Like new, 1/2 price. Still eligible for the brand new CA HOV stickers and also has the lifetime free supercharging from Tesla that is not available on the newer cars. Any car that has already been issued older California HOV stickers is not eligible for the new ones, thus getting one out of state is key. It was pretty much flawless, I really had to look hard to find any scratches on it, and it was nearly half price, which for a cheap shit like me was key.
Most of older Teslas also come with free supercharging for life. You can charge up at any Tesla supercharger for free which is awesome. We recently drove to Yosemite and back, using only superchargers FREE. It was nice. Charging at home is still cheap. Using plug at home, it costs me around $5 per 100 miles to charge it. Way cheaper than gas.
I resisted getting one for years due to the high cost and my own cheapness. Even though I am normally a master of buyer’s remorse I have had none with this purchase. Really like it and don’t regret it. Should have bought one earlier.
Tesla warranty and service has been great. Two years in now. Only a few minor issues, they fixed them all for free and provided me a Tesla loaner each time.
PS – I originally typed this entire message while my car drove me on autopilot down the 405 to Irvine. Autopilot is life changing.
My, oh my, oh my.
This makes me want to go out and buy one now. Kinda. It is still pretty pricey.
But I’ve got room to spend more. My 10xing has changed from travel (since with COVID who knows when travel will be back to normal) to being centered more around convenience.
For example, I am setting up my new office (not getting the $10k rolltop, but a $2k one) EXACTLY how I want it — built for performance, convenience, and comfort. I will be spending more to do this, but I’m also spending way less on travel, will spend a HUGE amount of time in my office, and have a few business ideas that I can develop there that will more than pay for the remodel.
Plus, since it’s only for business use, it’s tax deductible. 🙂
Anyway, the content on buying a Tesla was so great that I had to share it (I asked MI 94 in advance for his ok) in case anyone else was thinking of buying one.
Do you own a Tesla or want to get one? Want to share your story with us?
Or maybe you’re thinking of making a “splurge” purchase soon? What is it and why are you considering?
Steveark says
My son’s wife has a model S she bought used. It was a kick to drive but those are useless in Arkansas for me. They just don’t have the range and there are so few charging stations that planning a cross state trip would be next to impossible.
Xrayvsn says
I own a Tesla and it was my most expensive non real estate purchase. I bought it new at end of Dec 2015 (sticker was $110k) and I paid for it in cash.
Even after all these years (and putting over 120k miles on it) it still brings a smile to my face. I love the way it looks. I absolutely love the way it drives (the acceleration even in my non performance model is outstanding with 0-60 in 4.2 sec).
I got the original autopilot as it was the only one that was put at the time and the largest offered battery then (model s 90d).
Since then they have improved autopilot substantially (mine has 1 camera and will never be full self driving, current models have I believe 8 cameras). Even my autopilot is pretty impressive. I use it on my work commute daily and as mentioned in post it is pretty good in most driving situations. Makes the commute far more relaxing. And with over the air updates it actually is better than the day I bought it.
The biggest benefit not really stressed is that you can charge from home and wake up with a full ‘tank’ every day. So you up longer have to plan gas station fill ups (prior car needed it 1-2x wk). And avoid filling up when it is cold outside or raining.
The car is also incredibly quiet so you can really be in a Zen like cabin with mainly wind and tire noise at highway speeds.
I used to worry about dings and parked at the far end of the parking lots when shopping. As it ages I am less worried but it still looks almost brand new (I paid $5k right after delivery and put a full body protective film on it).
The model s had a recent price drop on new ones. I expect it would drop prices on used inventory as well. I definitely want another one with full self driving but will wait until my daughter leaves for college so it doesn’t get abused like it sometimes does now.
carl says
Damn, I can’t wait to get mine! My wife and I have 2 cars now and in the age of COVID, barely need 1. When one of them dies though, “Hello Tesla!”
Steve says
I have a 2014 pre-auto pilot Model S that we purchased new to save my wife an hour a day on her commute (via carpool sticker). I agree with Xrayvsn that the best part of ownership is not having to stop at gas stations. I never realized how frustrating gas stations really are until I didn’t have to stop at one 1X/week. It really was a weight lifted from my shoulders.
M-124 says
I don’t get it.
MI-94 says
Suggestion – Go test drive one. Its free, and they apply zero pressure on you. Very fun experience. Even if you are not a car person, they are amazing. One test drive convinced me eventually I wanted to own one.
carl says
Totally agree. I test drove one and it was an epiphany. Super quiet and super fast. I love the fact that there is almost no maintenance with an electric car too.
Paulz says
I had chest pain when I bought a $33k van for my wife. As cool as the Tesla is, the thought that the used price is the same as some people’s annual salary is a mental block I can’t get past. Maybe things will change when I get older and realize I won’t be able to spend my savings…….
Middle Aged Investor says
Good article about a subject that is only starting to emerge. Thank you.
Making an EV decision is more about personal choice at this point IMHO.
Depending on your personal driving habits, and where you live in the U.S. can impact the decision quite a bit. I live in the great mid-west and I have two vehicles that were economical to acquire at a used age of 3 years old each. Both of the them are flex fuel capable (read they can use E85) and I run that less expensive fuel in them most of the time. E85 is available in multiple locations in my area and costs anywhere from 15 – 40 cents less per gallon than regular unleaded fuel.
Both of them had depreciated 40 plus percent at the time that I had acquired them.
The jury is still out on the economics of EV battery replacement when that time comes. Ask anyone who has had to go through that exercise with an older Toyota Prius….which I know is not the same as a Tesla, but there are similar economic lessons that can and should be considered.
As battery capacity and thus range improves, along with viable competing economics vs. those of conventional internal combustion vehicles, there is no doubt that EVs will take over a considerable chunk of the market. However, I think we are a good 10 years away from that happening. Like I said earlier, at this point I think it is more about personal choice of desire vs. economics.
Erik says
I bought a used 2015 S85D last April. I too waited and watched the sites to find the car with all of the features that I wanted. It is a great car with many positives. Free supercharging for life, 4 year comprehensive warranty (which I think they just discontinued), Autopilot, All Wheel Drive, etc, etc. A few minor services have been done in my driveway by a mobile technician. Our Upper Midwest cold weather does limit the range, but it just needs a bit of planning if on a trip.
Compared to my previous 12 year old Mercedes, the Tesla is like a spaceship. Also, I am thrilled to be done with the ridiculous maintenance and repair costs of my old car. Our current gas cars are a 2011 Honda and a 2011 Toyota, which are much better in that regard.
Insurance and registration both cost more, which offset some of the gas savings, but I can charge for free at my workplace.
I would do it all again, even though $40k invested in TSLA in April 2019 would have been a pretty decent idea…
I consider myself an enthusiast, and am happy to answer any questions from my experience.
carl says
“Insurance and registration both cost more…”
Tesla is coming out with insurance. I think it’s only in California now, but Tesla has promised to roll it out to more states soon. If you’re a good driver, it’s supposedly much cheaper than a conventional insurance company because Tesla has all of hte data on your driving habits.
MI-94 says
I own a Model S in CA. I was surprised to find that Tesla offered insurance about a year ago. They don’t really advertise it. I found out from another owner who tipped me off. I very pleasantly surprised to find it was cheaper than all other quotes from other mainstream insurance providers. As with all things Tesla you buy it via their website. As they have your car’s VIN and your personal info on file from the purchase of the car, the quote is available instantly. I just clicked “buy” online. They bill me monthly via credit card. Couldn’t be easier. Switched the Tesla over to Tesla insurance immediately once I saw the price difference, same coverages. The other cars remain with the old traditional policy. Have not had a claim yet, but I am enjoying the lower premiums. Have had the Tesla for 2 years now, other than tires and car washes, have not had a single expense for it. Started at 13k miles when I bought it, at 53k miles now.
George says
We bought a new Model 3 this year. It was an indulgence, but we live pretty frugally and my wife works hard so I thought she should treat herself (she is, by a very large margin, the breadwinner and has wanted an EV for many years). We sold her 2012 Civic for 6500 and paid cash for the long range model 3 with autopilot. The best part of the story is a few months ago I sold some Tesla stock that I had bought dirt cheap and the profit paid for the car (not including cap gains taxes)!
It is a lot of fun although due to COVID we haven’t taken it on a trip. We do have a small trip coming up but we’ll take our gas car- we’re going to a rural area and I know from experience it’s not unusual to drive 100 mi+ when we get to this area and the only chargers are owned by hotels. However our next trip to go see her sister in a neighboring city we’re definitely taking the Tesla.
My wife is pretty scared of the autopilot. I have told her to at least use it in traffic so she doesn’t have to do the stop and go, but I don’t think she is. I have used it once on the freeway and it was pretty great. I didn’t allow myself to get too distracted though so I’m not 100% comfortable with it either.
The features are quite the treat- the phone app, the touchscreen, the security cameras… I haven’t driven it much recently but when I do I remember how nice it is and get a little jealous. Still, it would take a lot to convince me to have both cars be EVs. I like having the gas backup.
MI-94 says
Don’t fear the autopilot. I have done about 40k miles on autopilot now. Still alive to type about it. It is very good.
ol1970 says
Okay I’m going to get roasted here, but I’ll chime in. First off I love Tesla and their automobiles, they have truly changed the automotive landscape, I’d really like one of the new model S with Plaid mode, that may find a way into the garage one day. That being said here is a contrarian point of view (more of a fatfire than fire way of looking at things). So Autopilot by Tesla is great, but the best autonomous driving option available for purchase is Cadillac’s Super Cruise technology. Head to head it comes in a distant second on any independent review (Just read Consumer Reports comparison that just came out). Granted not as cool as a Tesla nor is it an EV, but while we are talking about how to purchase a luxury vehicle for cheap there is another alternative. If you have 1099 income from a side gig, like a lot of us early retirees, and you purchase a vehicle over 6,000 pounds it qualifies for 100% bonus depreciation if use for business purposes, a Tesla is $18K the first year I believe. So a person can purchase a new Escalade(gasp
the horror of a giant SUV discussed on fire website!) with a $100k sticker and depending on their tax bracket and state they live in, it’s significantly cheaper than a 5 year old used Tesla. In my case it would save me $45,000 in taxes, and I’m getting a brand new vehicle with superior technology, next level interior craftsmanship, a warranty, and massaging front seats for $10k less than a used car. Admittedly you have to accept the stigma though of driving a gigantic gas guzzler. If Tesla had a vehicle available that qualified, I’d probably give that a shot.
Then if I do the math on the extra cost for gas at 12,000 miles/year we drive, but at $1.85 a gallon there is almost no savings when compared to charging rates, but even if we said it was 75% cheaper it will cost $900/year extra. Plus I can pull our boat, drive on Autopilot without fear of crashing into a bridge abutment, go on a 2,000 mile road trip without consideration of charging stations, drive in the snow through the mountains while running the heater, plus take the $10,000 additional dollars that are in my pocket now vs. buying a use 5 year old car and take a 3 week vacation to French Polynesia.
The Tesla definitely wins on the coolness and gaining of fire community street-cred, but there are other options out there as well I thought I’d share for those interested in how to drive luxury vehicles cost effectively if you have 1099 income. The EV options available are going to start coming on the market much quicker over the next couple years, if Tesla truly figures out full self driving autonomy first and the laws are changed to actually allow it, I’m the first in line!
MI140 says
Are you aware the Tesla Model X (the suv) is over 6000 lbs and does qualify for Section 179 (the 100% first year depreciation you refer to)? I bought one last year from Tesla through their certified pre owned system. It was an absolute horrible nightmare. It would take 30 paragraphs to explain the whole story, but it was a $90,000, 13,000 mile car that had been in a wreck and should never have been sold, much less sold as “certified.” I will never buy a used Tesla from Tesla’s CPO program ever again, and I suggest that if you do, have if FULLY inspected before purchase. They just changed the warranty from 4 years to 1 year. They are not looking out for your best interests.
ol1970 says
Thanks for the heads up, it is a sweet vehicle overall, I didn’t realize it tipped the scales that heavy. I was hoping the new truck was going to be a little more subdued design wise when it was announced. It’s off the list though due to lack of towing capability and overall quality when comparing it to other options in that price range. The new Rivian SUV/Trucks look pretty sweet, but no autopilot. The new Hummer with Super Cruise looks like it would be fun too, first world problems indeed! When the redesign of the Model S comes out I might take the plunge (with Plaid mode of course!) 0-60 in less than 2 seconds is absurd!
MI140 says
Yeah, after having the X for a couple years, I’d go back to the S again for my next one. I might buy the plaid one when it comes out in a year, or wait a little longer and get the Roadster. After my bad experience, I was hesitant to ever buy another Tesla based on the service and build quality I experienced. But you have to admit as far as the overall design of the car, anything else you buy is a downgrade from a Tesla. So I’ll give them another chance, but only with something brand new.
MI-94 says
Wow – That is a bummer to hear you had such a bad experience. Disappointing actually as I am big fan of Tesla. That is the first story I have heard like that. I hope in the end they made you whole.
Dr. Jeff Anzalone says
How much does the cypertruck weigh? You could also use it to tow your boat.
I preordered one in the Spring but looks like 2022 until I get it…..
ol1970 says
Cybertruck would definitely work. Problem is like you said, it will still be 2 years before you can get your hands on one. I really like the new Hummer as well. Fun times if you like cars!
Jonathan says
Just a quick comment on the Consumer Reports self-driving review that just came out…While it did rate Super Cruise #1 over Tesla #2, it did so because Super Cruise has a more effective “nanny” system to make sure the driver still pays attention (eye tracking vs. Tesla’s “torque on the steering wheel”). It actually found Tesla’s autopilot technology worked better than Cadillac’s, it just felt it was overall less safe because it didn’t force drivers to watch the road.
ol1970 says
Yes, but if you dig deeper into the facts, Super Cruise has all of the same abilities that Tesla’s system has, GM chooses to not implement them on a consumer vehicle because that know it’s not 100% safe. Tesla’s system is sweet and they are pushing the envelope, but it’s at a cost.
Think about it this way, people in the FIRE community spend years debating endless about safe withdrawal rates from 5% down to 2%, with almost everyone choosing a failsafe number with 100% probability of success. Super Cruise is taking the 1% withdrawal rate route, and Tesla is swinging for the fences at 5.5%. There is a reason why every single independent review says Super Cruise is superior. Eventually all of these systems will be on par with one another, and I can’t wait until I can own a level 5 autonomous vehicle regardless of manufacturer.
gofi says
Tesla, really? You guys have game – I’m still dreaming of a Honda CRV.
MI-94 says
Work on E, then S, then I and don’t waver and it can eventually happen. This site has a lot of wisdom, formula is pretty simple actually. Never thought I would have a car this nice. I drove so many junky cars over the years, never owned a nice one. For long time out of necessity, then in later years by choice/frugality…many years it still really feels like the Tesla in my driveway should be somebody else’s.
Jonathan says
Warning…This post will be long as I love my Tesla!
I leased (I’ll explain below) a Tesla Model 3 in February (just 3 weeks before lockdowns) and I absolutely agree it was life-changing. Not in any important way, mind you, but it makes me jump at the chance to run an errand or drive someone to the airport. Every moment behind the wheel is a joy. Mine has been in the body shop the last month because it got rear-ended while waiting at a red light, and having to drive our other gas car is depressing. Yes, a Tesla will ruin you for driving other cars.
I chose to lease the base Model 3 – no AWD, no long-range, no Full Self-Driving. There were a variety of factors that led to this decision, which was obviously not the most frugal choice.
– As my first dip into the EV pool, I didn’t want to be locked into a long-term relationship with a car that may not serve my long-term needs. I have young kids – will I need a larger car in a few years? Will I wish I’d gotten the long-range version? The performance version?
– My lease is $460 a month all in (my down payment was around $6,500 and I sold my previous car for $7,000). A purchase with a 6-year loan would have been close to $700 per month. I could have purchased outright, but see my considerations above and below.
– MY MAIN CONSIDERATION: This technology is rapidly advancing. How would you have liked to buy a 2nd-generation iPhone in 2008 to be your phone for 5 or more years? By year 3 you would be salivating over the speed and features available on the iPhone 4. While by no means do I think that current Tesla technology will be obsolete in 3 years, I do expect there will be a more advanced option available, possibly for less money, in 3 years because that’s what Tesla does. In fact, just last week they announced a number of hardware upgrades, including a heat pump (good for cold weather range) and double-pane windows (noise reduction).
All in all, I remain very happy with my decision to lease, as in 2 1/2 years I will be able to make a well-informed decision on a new Tesla (and the decision may even be to lease again!).
For those who are more closely considering the financial aspects of a Tesla, I have closely tracked all expenses related to my last three gas cars and here are some things I have found.
– My 2007 Honda Civic, which I bought new and had for almost 10 years, I drove 160,000 miles, averaging 32 mpg and 10.6 cents per mile in gas (in California – average price per gallon was $3.37 over that period). Add in maintenance and service and my cost per mile was 13.6 cents.
– My 2011 BMW 328i, bought used and had for 4 years, I drove 40,000 miles, averaged 21 mpg and 16.3 cents per mile in gas (average $3.49/gallon for premium in that time). With maintenance and service included, I averaged 23 cents per mile.
– Our 2014 Hyundai Santa Fe Limited (6 passenger), bought new, has 61,000 miles at 20 mpg. Average gas cost of 15.7 cents per mile ($3.18 per gallon), including service has been 17 cents per mile so far (haven’t even needed new tires yet).
My Tesla has gone 3,600 miles (less driving during pandemic), all charged at home so far using approximately 950 kWh of off-peak electricity at about 13 cents per kWh, which comes out to about 3.4 cents per mile. There has been no maintenance yet, and frankly I don’t really expect much of any in my lease period – possibly new tires, since I have my fun in the car. By the way, my insurance premium went up about $200 per 6-months with the Tesla compared to the older BMW.
As for Autopilot, all new Teslas come with Autopilot standard. It’s only Full Self Driving that you have to pay more for. Standard autopilot is essentially adaptive cruise control combined with lane keeping, and it does both very well. I find the car so fun to drive that I don’t use the Autopilot that much, but I have found both the cruise control and the autosteer to work very well. As your forum quotes say, in highway driving it’s pretty dead-on reliable, though I always pay enough attention to take over if needed. On longer drives (which unfortunately I haven’t had much opportunity to take yet, other than one blissful weekend trip to San Diego) the autopilot makes for a very relaxing experience.
If you haven’t driven a Tesla, here are my three favorite things:
1. Ultra-smooth acceleration and deceleration
2. Amazingly quick, even with the cheapest model, and NO LAG when you push the accelerator. It’s what driving should be, and frankly I believe it makes driving much safer as there is a much more direct link between your foot and the car’s performance.
3. One-pedal driving. I believe that older Model S’s and X’s don’t allow one-pedal driving, but in the Model 3 the regenerative braking will take the car all the way to a stop. You quickly learn to “coast to a stop” by gently lifting off the accelerator, rather than gently pressing the brakes, and timing it for a perfectly smooth stop right at the limit line is very satisfying. When you stop at a light, the car just sits there – no need to put your foot on the brake (ever) – it goes again when you hit the accelerator again.
Outside of driving the car, I love the minimalist interior and the huge screen. In my opinion the controls and the display are well laid out and easy to use, the huge map is great, and my kids love being able to watch Netflix or play video games when stopped, like if my wife needs to run into a store while we wait in the parking lot (yes, I keep two xBox controllers in the center console for this purpose). The cabin stays perfectly comfortable without having to run an engine to keep the AC on. The car locks itself when i walk away and unlocks itself when I walk up. On cold or hot days I can turn on the climate control using my phone a few minutes before I get in the car. I can monitor the car’s location and speed from anywhere, in real time, using my phone. I can remotely lock, unlock, and even turn on the car (i.e. if a friend needed to drive it) using my phone. With over-the-air updates, every few weeks the car gets new or upgraded features. There is tons of storage space, including in the center console, in the frunk (great for hot pizza boxes!) and in the trunk, including a large, cooler-sized space under the trunk floor.
Moreso than any of the above, I had to talk my wife into letting me get this car, and now she loves it too and loves driving it. It’s in the shop right now (it does take a long time to get body work done, and costs a lot! though it’s all covered by the other guy’s insurance of course) and we are so anxious to get it back!
Steve says
Technology improvements are a PITA. When Tesla released first-gen auto-pilot, my S’s value dropped by almost half as my S can’t be retrofitted with the sensors. I don’t mind too much, as I’ll likely keep the car until the battery range becomes crap, but still annoying.
MI-94 says
Check and see if Tesla offers insurance in your state yet. They started in CA about a year ago. Not sure where else they do it. I was very happily surprised to find they were cheaper than all other companies. Switched insurance immediately just for this one vehicle to Tesla. As with the car buying experience, it was all online and super easy. As they had all my car info on the website, it was literally just a few clicks.
Jonathan says
I checked, it was actually way more than GEICO (actually every other company I checked was way more than GEICO).
Mi-77 says
great comments jonathan, we share a lot of thoughts on model 3. I brought mine new december 2019 and i love it so far! base model, white, 250 miles, with FSD, the only thing i would do differently is save $5000 and not buy the FSD since it’s pretty useless. Personally, I hate driving, so the autopilot is a god sent! It take me about 40 minutes to drive to my investment properties, and with tesla, I get to do all the texting and work when autopilot is on… i had go back and forth on the decision to spend 46000 on a new car since I had always buy used cars and never spend more than 20k on a car, but it’s money well spend! per my cpa advice, i also had it with a 3 year lease, with technology kept changing, I think that’s a good idea.. i pay about 550 plus 150 on insurance a month, total $700/month on this car, overall, it’s not that bad…i wish i knew about the website esi mentioned where I can get them used, that would prb save me at least 10k off the sticker price, oh well, at least i had fun with my model 3 in the past year… to the readers that are thinking about paying 50k for a car, it’s well worth it!!! i wish i had brought it 3 years ago when it first came out! good luck!
https://esimoney.com/millionaire-interview-77/
MI-94 says
I am slightly biased, but I like this post : )
Shaun says
I have a 2018 Tesla Model S P100D with full self driving autopilot that I bought new about 25 months ago now. It’s amazing. One thing to be wary of those – the owner above mentions that some Teslas come with free supercharging. I have free supercharging as well, but was told it does not transfer to a new owner. They may have changed the program by the time I bought mine, so be sure to check if that is a major requirement for you.
Six months after buying mine, we bought a Model 3 for my wife. They are truly amazing cars.
JP says
I bought a Tesla Model Y during the pandemic (of all times!). Had my eye on a Tesla for about 3-4 years and started saving back then. My original thought was a used Model S but the price difference between used and a new Y were not great, plus the tech is much better in the Y.
Having driven it for a couple months now, I don’t ever seeing going back to an ICE car.
I don’t have the FSD but Autopilot does pretty much everything I need anyway. But the kick factor is setting in everytime I see the FSD price increase…
Jason MI1 says
did you drive a 3 and compare it to the Y? I am between a 3 and Y to replace my 10 year old A4 with 130K miles. I drove 3 performance, and am just too lazy to drive the Y…lol
JP says
I did. Drove the Model 3 Performance which was amazing but had my eye on the Y. Replaced my 2007 MDX (160,000 miles) so wanted a similar sized car.
The SC didn’t have the Y at the time but then they got a demo in within a couple of days. Love the model Y and all of the storage it has. I held out on the FSD and have now seen 2 price increases since. Oh well…
MikeFI says
I’m so glad I’m not a car guy. I’m quite happy rolling around in my 12 year old Honda Element with close to 200k miles on it. Of course, the bike I’ve usually got inside it is worth considerably more than the car itself. 😉
MI-94 says
That is a blessing. : )
Annie says
But why though?
Seeing a Tesla used to be more rare, now its super ordinary (in SoCal). Also scares me to think how many people are trusting the autopilot.
Jonathan says
As MI-94 suggested above to the other comment asking “why?” – a test drive would answer the question. They are pure pleasure to drive. Yes they’re getting to be quite common in SoCal – for good reason!
carl says
Yep, California Camrys!
Yes, it must be driven to be appreciated. Sooooo gooood!!
MI-94 says
Don’t be scared. Stats indicate the accident rates go down when autopilot is engaged. The autopilot never gets distracted, it never gets tired and if it sees any hazards ahead, it beeps at the human driver like crazy to take action.
Some amazing stats that came out recently on this topic
US average:
1 accident every 479,000 miles
Tesla stats:
1 accident every 4.53 million miles when Autopilot engaged.
1 accident every 2.27 million miles when Autopilot not engaged but active safety features active
1 accident every 1.56 million miles without Autopilot and without active safety features
Source:
https://cleantechnica.com/2020/08/01/tesla-autopilot-accidents-1-out-of-4530000-miles-us-average-1-out-of-479000-miles/
betsy sussman says
This post inspired me to buy a little bit of tesla stock!
The Millennial Money Woman says
Fantastic post!
I actually drove one of my friends’ Tesla’s and loved it. To be honest – I knew they were electric and that they could accelerate fast, but when I stepped on the throttle of my friend’s Tesla, I literally felt my head get pushed back into the driver’s seat. It was incredible.
I’ve never driven on auto pilot – I am a little worried about auto pilot malfunctioning, but then again, I did read through the auto pilot stats and see that auto pilot is actually safer than when a human driver takes over the wheel!
Thank you for sharing!
MI-94 says
Summer 2021 update on my Tesla – As noted above, I bought it with 13k miles on it, it now has 60k on it. Other than new tires, I have had zero maintenance expenses. I did put new wipers and a new cabin air filter in it last week, but other than that no expenses. Been a few repairs by Tesla (door handles and a funny noise from the steering box), but all covered under warranty. Still liking it.
Made my 50 mile commute today almost entirely on autopilot, as I do most days to the office.
MI-94 says
Summer 2022 update on my Tesla – Bought it with 13k miles on it, it now has 78k on it. Main expenses have been tires and wipers. I finally had a to pay for a non-warranty repair. The driver’s door handle stopped working. $350 to fix. Tesla’s mobile service came to my house and fixed it in my driveway in less than an hour. Still no major issues to date. Enjoying the rapid growth of the supercharger network. Have done many long trips to AZ, NV and NorCal in it, all on superchargers. Still happy with it.
Brian Ketchum says
Is the website listed in this article still recommended for trying to buy a tesla at a good price?
ESI says
I am not sure. Have you checked it out?
Brian says
I have checked it out but haven’t paid the fee yet. I will probably pay the fee for one month see how it works and report back.