Dude ... make a patron! 1 video and I can already tell I like your channel and have subbed! As a poor student myself I’d be super keen to give you a few bucks a month towards those payments 👌
Between the credit union and the Tesla financing, you decided to spend an extra 2k over the life of the loan just to lower your monthly payment by less than $50. Why?
the penalty of repaying the loan in advance is the opportunity cost of investing that same money at a higher rate of return than the interest rate of the loan
$50 a month over the course of 60 months. Safest high ROI: Average AA/Bond fund interest rate: 4.3%. Loan APR: 3.8%. End cost increase: $2K Alternative $50 investment over 60 months: $4.1k Profit: ~$2K The actual sad part is he most likely will spend that extra $50 a month on junk food instead of a bond or other investment. And yes, this is also how I always consider almost every major purchase and financing option.
gasdorfic muncher there are several options out there and a Tesla out of college should never be one of them unless he's lucky enough to have well-off parents. I'm an accomplished software developer and even I'm going to cringe at that car note once I get mine, even if I'm far beyond being able to afford it
You GOTTA take risks for THAT which you WANT. Nothing has ever been written about the meak & coward . Right after College I bought a Supra LImited Edition 1997 for $50.000. ALL I had was $3,700 grand from my graduation present. I ordered the Monster with a 5 year lease $675 a month and $50 insurance . And put down my measly $3,700 (To be honest my family had been buying Toyotas from this dealer for 15 years ) and he worked it with Toyota so the $3,700 would be enough. Long story short. I paid my 5 years not missing a payment I kept the car another 3 years an in Feb 2018 I was offered $50,000 for the car. In 4 years is a classic and will fetch $60 - $75 thousand dollars and I already have a buyer with a deposit. SO...... WELL DONE . PUT your balls out for what you want. Take risks and work like Hebrew slave. Don't burn anyone and pay your bills. In 25 years you will get $125,000 for your baby.
And this 0.002% , where is this documented? *I* took a risk on something I wanted it and I had the wherewithal NOT to be a failure. People like you who believe in 0.002% chances are defeated before the battle.
I fill my truck up with 50 dollars every 3 days that’s 100 a week 400 a month that’s 4800 a year that’s 28800 in 72 months plus you get the car you always wanted
Paul Tovar exactly, we have a Toyota Tundra and a Toyota Tacoma and gas is more than we pay for our electricity. I would take a 72 month loan with no gas or oil changes for our Tacoma any day. Especially a car that is projected to last longer than my Toyota’s will.
Paul Tovar the thing is a model 3 is not a truck!! Is a totally different segment, now compare again with a 4 cylinder compact sedan and tell me what’s the saving..
When buying a new home ask extra 50k for home repairs, then use that 50k to buy cash ur Tesla. You get it to pay it off in a 25 year mortgage and low interest rate
Shhhhhh! We need people like this to buy models 3s so there is an oversupply of used model 3s in a few years... Seriously though this is a strong case for a basic personal finance classes being a requirement in public schools. As long as he learns from his mistakes though I guess.
Chris Lewis great point! oversaturate the market with most of them leasing! i've been told by a tesla employee friend of mine that the older type s has cut its value in half. comparable to new model 3 price... while getting a lifetime warranty on batteries.
Dave Ramsey also popped in my mind immediately after the first minute of watching this. I'm not going to say anything negative, but it's certainly his decision to buy the car.
Yep! Financial Peace.. although I leased my Nissan Leaf for $100/month, but no fuel cost, still way way cheaper than a regular gas powered car :) if you do the math it's literally you have a free car to use during lease term and you get 2 years free charging. I know it's not a Tesla and does not turn heads but it does 95% of our daily driving and it's practically perfect for my family (school bus, kids games, grocery getter)
So you took a loan at a higher rate for a longer term, which means you’re paying significantly more than $55k for the car. If you have to look for the lowest payment, you can’t afford it.
I'm gonna go TS on ya - why you gotta be so mean! The dude did his due-diligence for what he wanted versus what he needed. And he accomplished it. So stop.
By that logic MAJORITY of the population will never make any large purchases like vehicles, appliances, or houses ever because most people don't have several 10s or 100s of thousands in their bank account. For that matter the entire credit and financing industry will not need to exist if you adhere to your rule...Please tell me you don't use credit or financing for any of your purchase.
Full time student buying a $55k car.....this is what's wrong in America. When you are that age you buy what you can afford. Yeah that means getting a crappy used car for $5k (which he has). It will run fine and treat you well. By using that method with everything you will create wealth faster and get to REAL dream cars sooner that you can, again, write with a check. Homes and businesses are the only thing we should EVER need loans on. Period. Only your ego is at fault for wanting to live outside of your means
That is true Franco. He could've been more patient and waited for the job to be able to sustain his purchase. @flpsyde he doesnt't mean you NEED to have the money CASH, although that is what Dave Ramsey suggests, it all depends on your debt tolerance. As a recent student entering the field, I know that having the responsibility of a $1000 car payment (loan + insurance) will probably hinder his options. He may not be able to take a lower paying job because of this financial commitment even if it offers a better experience and culture compared to a higher paying, more frustrating job. I'm not saying he'll have to pick between these two and hopefully he doesn't but you're walking on VERY THIN ICE.
@@sasca854 I would disagree, some people have more available cash. I will be paying cash for a model Y, I am debt free and have generated income, so for me it isn't the worst way to make a vehicle purchase. Financing rates aren't low for everybody. I know from data I have seen, used tesla vehicles seem to be holding their value well.
@@G1TDAT Cash is nowhere near a smart way to pay for a car. Time in the market is much better. Say, at worst, your APY is 4%, well just invest into a large market fund like VTI and get a 12% return rate for the year, it will pay for the 2% plus you get to keep 10% on top of the payment. Simple economics.
he explained it himself he got into a 50K car with no job, that is a huge financial mistake just because he wants a Tesla if he doesn't get a job after school and his parents kick him out now what? the smart choice would have been to get a car with a low monthly payment, get a good job to save and save for a year or 2 then check out the Tesla.
You can't compare buying Tesla to anything else. First of all, it's important support to the greatest vision of the current world. Secondly, you can always cover this huge expense by riding for Uber more or less 5 years.
@@alexanderhamilton8585 so 90% of the other replys about this being a financial mistakes are jealous also? or maybe we make better financial choices Also he bought the base tesla 3 and that doesn't include free charging.
@Help Me Get 1000 Subscribers 55k with 0 down payment? hahahahaha isnt that sub prime lending? Your car would depreciate faster than the repayment you made to the bank.....
Why? With rates what they are, putting as little down as possible and investing the rest into even low-medium risk investments is mathematically the superior choice.
Actually $1000 per month if you include insurance. And apparently Tesla has been slashing prices in these Model 3s .... So the depreciation on it must be ridiculous.
Since a car is a depreciating asset, it’s best to buy a certified pre-owned car (10k miles or less already cuts the price down by almost 20%! Plus the car still functions like new with same warranty benefits) When financing, always have 20% to put down which is more than the 10% most finance companies ask for when buying cars, it’ll lower your interest rate and you’ll have more room to negotiate since you’re seen as less of a risk since you’re putting down more money. As for insurance, if you’re under 25 wait before getting your own policy, if you live with parents considering them getting the insurance until you’re of age to put a policy under your name without the added age markups which don’t adjust even if you turn 25 after signing your initial policy
Uber/Lyft drivers pay more than that as an operating cost. If you are putting miles on it, then the car can pay for itself in savings. Same example can be made on a comparable Honda or whatever, but gas is not free. You still end up with 200-$300/Mo. gas expense, which can change at any time. And now that the $35k model 3 is out, financing cost of ownership will be easier, except for supercharging crowds.
Guaranteed that after 6 months of insurance payments, that low ball monthly premium payment will be at or above $400 a month.. They lure your business by low balling competitors, only to adjust it...to where it should’ve been in the first place.
Young Tesla, Dude, don't let any nay sayer's dampen your spirit. You are doing a great job. I have watched many of your videos and of course subscribed. I live in San Diego and recognize the areas you travel unless you are going Home, which is North of us. I like watching the travel videos when you show the control screen and the road, so that you can see the miles per hour change on the screen as your Tesla slows or accelerates in traffic. As soon as I get back from Hawaii in the end of January, I will be shopping for my Tesla 3. Thanks again and keep the videos coming!
The reality of the situation is, the Model 3, and even more so, your particular model 3 (at 55k) is a gross misrepresentation of affordability of the masses. It's not unusual to take out a financing deal for a car, but the amount you have to pay, over 6 years just doesn't sound like an amount an average household would be able to afford responsibly. You must either be massively over leveraging your options, have no fear of financial instability in the mid term, love cars so much you spend above 25% of your income to support paying for it, or for some reason you could only muster up 5k to pay for the car upfront but you're actually more than financially competent to afford the car than your initial deposit let's on. My comment is not meant to discourage people from purchasing things that they love, I don't have a right to tell you what to do with your money after all, and, I also really support the fact that you are going electric. But, I don't want people to get the idea that they can afford something by taking out a loan they can barely afford.
You don't know his income. He said he was in the "Healthcare field". I have a dumbshit friend of mine who recently became a Doctor. His first job offer was over $200,000. He might be able to pay this thing off in a year. We don't know shit about this guy and it's not our place to judge. We should be grateful for the fact that he let us in on his car financing numbers.
This is the very first video I watched when doing some research about whether or not I was going to buy my new model 3. Thank you for the inspiration! I’m excited to report should be getting mine any day now
I’m a college student and I want a Tesla model 3 really bad. BUT I bought a used 2011 Honda Accord for 11k. Despite me having to pay for maintenance and gas, in 6 years I think I’ll saving a lot more money than buying a new $55k car that saves on electric... Maybe your RUclips channel will blow up because of your car and you’ll make even more money!
I drove a poverty pack Mazda 3 when I was in my 20s. But me and wife saved up money to buy the largest home we can afford here in Toronto We had one built brand new on a good size lot; it can also store 4 cars easily. We paid it off in full in less than 6 years. I'm in my 30s now and I still don't drive anything fancy but I do buy my cars new and in cash only. I bought 2 Chevrolet Bolt EVs in premier trim this year for our daily driving needs and we have a full size SUV for the weekend and road trips. The returns we continuously make from our investments passively paid a good chunk of the cost for the two Bolts.
By the way, he is not stupid and dumb as your guys think. Look how many people watched and commented this video. You guys just helped him made payments. He just Really likes Tesla. I can understand that.
I purchased a used Nissan Leaf for $7,000 back in December 2016. I was 24 years old then and have plans to pay it of rewards the end of 2018. $55,000 is a lot of money, but money well spent. Enjoy your new ride!
That’s pretty expensive for insurance... I got a quote from Tesla’s insurance partner Liberty mutual for a mode S for 65$ a month. Dam your spending 2400 a year on insurance on one car.
It`s a really strange value. But let`s think about this. He`s young, probably 1st car he owns. This might explain why he went from 65$ to 200$. I dont know how car insurance works in US, but if i was ever to buy a car at his age, i`d definitely ask my parents to put their names on the papers. By doing so i`d be saving thousands.
65 per month is bare minimum coverage for a Model S. If you want to be fully insured you're going to pay 2k a year. There's a 6% increase on luxury cars no matter how old you are or where you live.
Depends how many cars you have, liability is the most, we have 5 cars 2 driver's prob 300k worth of vehicles, million umbrella runs about 2500 a year. Also most policys are much cheaper if you pay it all up front. I'm 38 this guy looks pretty young. Also his credit is stressed with the car which also raises your rate.
I own a Model 3 myself but I’m very perplexed by this. Why would any young people mortgage away their financial future for a depreciating asset like a car. Tesla Model 3 is probably one of the best cars ever but one shouldn’t be knee deep in debt to get one. Invest in a house, stocks or your career but not a car!
dude needs to speak with dave ramsey.....you're a fool for financing it. pay cash and no more than half your annual income, otherwise you can't afford it.
This guy is foolish for doing this in his financial situation, but not because he financed, but because of the amount and terms of the finance. 3-4% interest avoidance by paying cash for the full amount is unbelievably stupid. You'd get a higher than 3-4% return by just buying an index fund and holding it, roughly 7% per year compounded over an estimated 10 year period.
Cash is the most expensive way to purchase a depreciating asset. With rates what they are, it's not even close. It would actually be _hard_ to not grow 55k in excess of ~3-4% per year, which is what you'd be paying in interest on an auto loan. You could do 2-3x that without even going anywhere near high risk investments.
Purchasing a Tesla even with tax incentives aren't worth it because they're too overpriced. Once you drive the Tesla for 30k mi it depreciates even faster than luxury cars. Because the battery becomes worthless when it gets depleted. That's why you see used Tesla Model S go for 1/2 price on Tesla after just 70k mi. You are better off leasing them.
Thanks for explaining what it costs the "average" person to buy a Tesla - even a Model 3 built for the masses (which at this time is not really affordable for the average joe). I like Telsas but I have a hard time justifying to myself spending that amount of money. Thanks for letting me do it "virtually" through you. Good luck and let us know how it goes.
On a serious note, here's what I would have told my college self back then. Calculate all the shots, clubbing, drugs, going out and girl spending money and spend maybe 50% less instead (that includes your car). Save that money and wait for a down housing market. Buy property and watch it appreciate. I bought my house in 2009 and have watched it accumulate $300,000 in equity after 9 years. I was rolling around in a used M3 at the time and that car was still only $40,000. I had a buddy who had 2 cars (one of them a very expensive $80,000 European car) and he asked me what I thought of his rides. I told him I don't understand why you'd own those cars but still live with roommates in a crappy part of town. He sold the $80k car within a month and bought a house instead. Don't want to buy property? Spend maybe $200/month on your ride and invest $800/month in a simple mutual fund.
I went to my Credit Union as asked about getting a car loan and getting a TESLA. I literally showed her the exact numbers shown here: $774 x 72 months @ 3.34. She said that the credit union got another guy a loan -- for a Tesla -- at 2.25%. She also said I should go to CARMAX and get a quote, then come back and let her do a full on credit report, then she could tell me the numbers. I know that when they run your credit, it's a hit on your credit, so I bailed. I may be back. Probably not though. No balls. As usual. But I admire this guy who pulled it off.
Thankfully I learned at a young age watching my folks spend there way into debt to see the irrational side of spending on credit. I figured after college no one would hire me so I paid my way a class at a time. Thankfully I graduated without a penny of debt while my peers are paying mortgages for the same amount of schooling i went through. I think this guy is nuts for buying a car he can't really afford but he's young and he's gonna learn how to work!
So I want a Tesla as well, I am a full time student as well. I am saving as much as I can but instead of buying one now I plan to wait until around 2021 when the model 3 will have all the versions out, all the kinks out, all the aftermarket stuff out, more chargers around, and especially I am not paying $9000 for 90 more miles of range. I am taking my saved money and investing it, even day trading Tesla stock has been extremely profitable. But also diversifying it into some more long term savings as well. The absolute last thing I want to do out of college is put myself in debt!! Live within your current means, not your future planned means.
As a former Tesla Model 3 reservation holder I find the cult of Tesla to be eerily reminiscent of the cult of Apple. Culturally, the Model 3 is simply an iPhone on wheels - the new "must have" techno gadget - Elon Musk has fully inherited Steve Jobs' rock star mantle. Now, don't get me wrong, I believe in Tesla's vision and have huge respect for Elon but there is a difference between admiration and adoration. I also think I'll be able to pick-up a lightly used Tesla in the near future when the rabid Tesla fanbois, like this 22 year old, tire of paying their $1,000/mo car loans because they just had to have a Model 3. Debt peonage is all the rage in the cult of Tesla.
Mike Bouck my thoughts exactly! The used model 3 market will be oversupplied in a few years and that's when I'll pick one up! Just look at the model s market and you can easily find a good 2014 80k plus model s selling for under 40k.
Yeah, and look how that turned out for Apple. ;) Seriously, you're right. But the thing people forget with the whole "cult" argument is - neither the iPhone or Tesla cars would have any success if they weren't significantly better than what the market was offering at the time. No amount of Elon worship would convince hundreds of thousands of people to pay top dollar for a crap car. The cult doesn't sell the product - the cult forms around the person willing to say F- the market, I see a better way and then can actually deliver a superior product.
I think the Model 3 is great (and own a Model S myself) but this comes across as very irresponsible. Spending $55k on a new car, choosing clearly a pretty inferior financing option, and then including in the justification that you'll save a lot on gas and oil changes. Oil changes on an ICE car TOTAL about $600 in 100,000 miles ($30/oil change * 20 changes). That is irrelevant, only 10% of the tax credit amount, although that tax credit is mostly gone after paying for the PUP. You would really have benefited from putting all the relevant costs down in a spreadsheet to see how much you are spending/losing per year on the car. Unless you are in a very solid financial situation or plan to make some kind of extra income out of the car, this comes across as super risky. When I did that, I compared a number of potential cars including new and used Model S, a new Model 3, and a couple ICE cars including keeping the old one I had. I broke down all the costs over a 10 year period over which I thought I would own the car. That includes the vehicle cost, any tax credit, interest payments, registration, fuel/electricity, insurance, maintenance/warranty, etc. I also accounted in a discount factor because any money saved can be invested at some rate of return. As I said I ended up getting a Model S. It was just over 4 years old when I got it for $35k no tax. Sticker was just over $80k. Glad I didn't eat that first 4 years of depreciation.
I appreciate the exact APR figures and loan payments per lender, you're the first youtube personality I've seen give so much valuable information. Thank you.
My son just sent me this as part of his argument that I should help him buy one. Not only do Millennials not understand economics, but they don't understand logic, either.
Wow, the economic majors came out of the wood work. Let the man live his life. Buy what makes you happy. Not everyone wants to drive a used rusted out minivan for the rest of their life to save from a car payment
You can get a nice car for half this or less. I'm in the same position YT was, absolutely obsessed with this car, and I make $60k this year, most likely 100k next year, and I STILL really do not think I can afford this car, even with minimal living expenses. Remember, this kind of short-sighted thinking caused the 2008 crisis.
Great video. No wasting time straight to the point. Appreciate it!! Yes it's expensive all around but I treat Tesla to be like a dessert. You know you shouldn't eat it, there's salads, frozen yogurt or carrot sticks that are more cheaper, healthier. But damn that deluxe chocolate cake is sooooo delicious. So just enjoy it while you can. You aren't married with kids with other people depending on you with loads of responsibilities. And looks like you are enjoying every single minute of driving it. Bravo!
I am still a reservation holder waiting for my chance to configure . My approach was to figure out what monthly payment I would be comfortable paying and then working backwards from there to figure out how much money I would need to save to put down.
i was quoted 162/mo from progressive in CA for model 3. 15/30/5 with 250 comprehensive and 1000 collision which is nearly identical to my 2017 audi a3 policy premium in both coverage and cost
Geico offered me full coverage on the Model 3 for $71 a month. That’s state of Pennsylvania, history of 1 claim in 20 years for hail storm damage, high credit score. If it were New Jersey, it’d be 4 to 5 times the money, your state is a big factor. If you’re serious about bringing the cost down, lease an apartment in Colorado, get a CO driver’s license, take the $5,ooo state rebate at purchase. Average rent in Pueblo, CO is $6oo a month, good luck finding a job there 😆
Subscribed to you man, I've always been a fan of tesla and I hope to maybe buy a model S in the next two years. I'm graduating college in about two weeks and moving to silicon valley for an internship and hopefully a full time job!
You could have a mortgage payment for what you’re paying on your Tesla. Then sell your house in 5 years and take the money you made to buy a Tesla truck = smarter move.
Lol, there are so many haters on youtube. I'd guess 90% of Y'all are just jealous. Obviously, this "kid" shopped around for all sorts of deals between insurance and financing options. That being said, it sounds like he's got a good head on his shoulders. I wish you the best of luck bro and welcome to the Tesla family!!!
I myself am suffering through the pain of wanting to buy a Tesla SO bad. I've been running numbers all week and am looking at $730 a month. About to do some serious budgeting! I'm also a student so I'm feeling what you went through
Hey Young Tesla, Just wanted to say that's an awesome vehicle. I'm looking at starting off my EV journey with Tesla as well. They are awesome vehicles. I've been wanting an EV for a while but none of them had the range or even looked good enough for me to see myself in one until Tesla came along. Truly a work of art. I know the people on here have been kind of rough on you and although I can't totally disagree with them, I think some of them are a little harsh. Let me give you some words of encouragement. Although I don't think this is the best decision right now financially, I do see the appeal that Tesla has. Out of all the EV's that are out there, to me they are the best. To be honest I don't know your financial situation (frankly it's none of my business anyway), but I will say this, "acquire multiple streams of income". That's the best way for you to pay off the Model 3 quickly. MULTIPLE STREAMS OF INCOME. I know you say by the time you get out of college you should be able to find a job and you should be good. I say, "don't rely on just that income, have others as well". So start now. Since you've made a commitment to have this vehicle for 72 months make it into a money making opportunity to pay it off before the loan period is up. Uber is one. Turo is another and like Daniel Halnan said Patreon and continue to make RUclips videos to drive more traffic. Also, there are people who work a business from home and make insane income, some of them very quickly. As a matter of fact I've seen people who got out of college making 5 figures a month and never have to work another day in their life, of course not everyone does that(I want to be realistic here). Investments is another. People have made some insane money in that as well. Now it may take longer than working from home but who's to say you can't have that going for you while working from home and your job. Now, I know it sounds like a lot, I get it but this is where a plan of action needs to be made to get this going. Time it out and pace yourself and make it happen. You will have to be ambitious and I know you are, otherwise you wouldn't have made such an ambitious purchase. Time management is going to have to play a big part. I don't want you to get the wrong idea about me. I'm no expert I just know what I've observed and what I'm working on as well. The key is not to overwhelm yourself needlessly and have a realistic plan of action where you can get to the lifestyle where you can get the things you need (that's the 1st thing) and the things you want without hurting yourself. Well, that's it Young Tesla. I hope this helps a little bit. Enjoy your car but in the future make sure to have your finances in place so you won't be out in this situation again. By the way watch Dave Ramsey on the subject about Jay Z spending over $91,000 in one night. I was a little shocked by his response but it confirmed some things for me.
What was the process? How did you get approved? What was your income and down payment? Did you have a co signer. Trying to figure out because I graduate in may and have some student loans and good credit?
Yay! Hope you do! I personally recommend the 3 cause of the newer tech. If you have any questions, DM on social media. Then use my code for 1000 miles of FREE supercharging :)
Amazing video. Haven't seen any other Tesla RUclipsr talk about financing the way you just did. They're all giving general info but no specifics to really help all of us waiting for our model 3 a realistic idea of finances.
It's an amazing car, but saving money on gas and maintenance will not pay off. Not even close. I bought a used Prius for $11,000 and spend ~$35 and get ~400 miles, oil changes are very rare and come out to less than $10 a month. Toyotas last forever and the hybrid engine lasts longer than an ICE. No debt, little expenses, car will last more than 10 years if I chose so. I will use this actual savings to buy myself an electric car in 2-3 years, no debt either.
Bought my Prius 15 years ago and hands down it's the most reliable car I ever owned. I've never even needed the brake pads replaced. Love it! I wouldn't mind getting a Tesla though --they are sweet!
Dude thank you so much. This is the most relatable channel. Every other video is vague and doesn’t show true numbers. I’m waiting till I’m able to configure my model 3. Btw what was the insurance company you chose. 200 a month for a model 3 insurance sounds great.
John Picazo The best I found is between Geico and Farmers. Thank you for your comment. You could get it lower with other factors hopefully, but those were the best for me!
Young Tesla ingrate on your new car. I hope your enjoying it. I am on a waiting list my self, wow that 35 went up to 55. Did you ball out, please let me know what you upgraded and cost per. I will be faced w these choices as well. 35 sounds so much better lol
Dude ... make a patron! 1 video and I can already tell I like your channel and have subbed! As a poor student myself I’d be super keen to give you a few bucks a month towards those payments 👌
Thank you for your support! I’ve never thought of that! That’s a great idea! I’m looking into it now. Thanks!
I am now Young Tesla on Patreon!
Young Tesla sweet as! I'll get on that! Make sure you add a link in your descriptions and at the end of videos 🙏👍
Obviously not poor enough if you're handing out cash to people with Model 3s.
Daniel would you mind sending me money to help pay for the Mercedes that I drive?
and this ladies and gentlemen is how you properly do the YOLO
Fuck it lol
Between the credit union and the Tesla financing, you decided to spend an extra 2k over the life of the loan just to lower your monthly payment by less than $50. Why?
he can always pay it off with no penalty?
the penalty of repaying the loan in advance is the opportunity cost of investing that same money at a higher rate of return than the interest rate of the loan
Because he can't afford the car to begin with. I'm sure if they could have give him an 84 month loan he would have gone for that, too.
Because he can't do math also that car is way upside-down
$50 a month over the course of 60 months. Safest high ROI: Average AA/Bond fund interest rate: 4.3%. Loan APR: 3.8%.
End cost increase: $2K
Alternative $50 investment over 60 months: $4.1k
Profit: ~$2K
The actual sad part is he most likely will spend that extra $50 a month on junk food instead of a bond or other investment.
And yes, this is also how I always consider almost every major purchase and financing option.
oh man... $1k a month on a car and you just graduated? i'm not your dad, but holy shit that is not the best idea ever
tesla is the most expensive electric car to repair..if he wanted to save money he should bought used electric like a leaf
gasdorfic muncher there are several options out there and a Tesla out of college should never be one of them unless he's lucky enough to have well-off parents. I'm an accomplished software developer and even I'm going to cringe at that car note once I get mine, even if I'm far beyond being able to afford it
You GOTTA take risks for THAT which you WANT. Nothing has ever been written about the meak & coward . Right after College I bought a Supra LImited Edition 1997 for $50.000. ALL I had was $3,700 grand from my graduation present. I ordered the Monster with a 5 year lease $675 a month and $50 insurance . And put down my measly $3,700 (To be honest my family had been buying Toyotas from this dealer for 15 years ) and he worked it with Toyota so the $3,700 would be enough. Long story short. I paid my 5 years not missing a payment I kept the car another 3 years an in Feb 2018 I was offered $50,000 for the car. In 4 years is a classic and will fetch $60 - $75 thousand dollars and I already have a buyer with a deposit. SO...... WELL DONE . PUT your balls out for what you want. Take risks and work like Hebrew slave. Don't burn anyone and pay your bills. In 25 years you will get $125,000 for your baby.
you were also nuts, but you got extremely lucky. the possibility of that happening to every new graduate is probably 0.002%
And this 0.002% , where is this documented? *I* took a risk on something I wanted it and I had the wherewithal NOT to be a failure. People like you who believe in 0.002% chances are defeated before the battle.
You bought a 55k car with a 72 month loan and say that you won’t have to buy 3$/gallon gas, really messed up economic principles.
I fill my truck up with 50 dollars every 3 days that’s 100 a week 400 a month that’s 4800 a year that’s 28800 in 72 months plus you get the car you always wanted
Paul Tovar exactly, we have a Toyota Tundra and a Toyota Tacoma and gas is more than we pay for our electricity. I would take a 72 month loan with no gas or oil changes for our Tacoma any day. Especially a car that is projected to last longer than my Toyota’s will.
Paul Tovar the thing is a model 3 is not a truck!! Is a totally different segment, now compare again with a 4 cylinder compact sedan and tell me what’s the saving..
@@toniro8428 why did you buy a truck? Everyone knows they have bad gas mileage. Buy a 20 thousand dollar car and invest rhe other 50
When buying a new home ask extra 50k for home repairs, then use that 50k to buy cash ur Tesla. You get it to pay it off in a 25 year mortgage and low interest rate
Debt is bad. Cash is king. He needs to save up.
@@jjayguy23 Well debit and cash are quite literally the same thing. Also, debt, what you attempted to say, is not bad if planned correctly.
But then he's lying.
@@BlocknerdProductions I meant to say Debt not Debit. Debt is bad, cash is king. I know debit = cash.
You need some Dave Ramsey.
lol. you read my mind. dave would be flippin out regarding this right about now
Shhhhhh! We need people like this to buy models 3s so there is an oversupply of used model 3s in a few years... Seriously though this is a strong case for a basic personal finance classes being a requirement in public schools. As long as he learns from his mistakes though I guess.
Chris Lewis great point! oversaturate the market with most of them leasing! i've been told by a tesla employee friend of mine that the older type s has cut its value in half. comparable to new model 3 price... while getting a lifetime warranty on batteries.
Dave Ramsey also popped in my mind immediately after the first minute of watching this. I'm not going to say anything negative, but it's certainly his decision to buy the car.
Yep! Financial Peace.. although I leased my Nissan Leaf for $100/month, but no fuel cost, still way way cheaper than a regular gas powered car :) if you do the math it's literally you have a free car to use during lease term and you get 2 years free charging. I know it's not a Tesla and does not turn heads but it does 95% of our daily driving and it's practically perfect for my family (school bus, kids games, grocery getter)
If you are paying $974.00 per month you could (not should have) have come up with a bigger down payment.
Wasn’t able to get financing from Tesla despite high credit score and lots of $. Idk how a full time student got $50k car loan.
So you took a loan at a higher rate for a longer term, which means you’re paying significantly more than $55k for the car. If you have to look for the lowest payment, you can’t afford it.
I'm gonna go TS on ya - why you gotta be so mean! The dude did his due-diligence for what he wanted versus what he needed. And he accomplished it. So stop.
Like dave Ramsey says if you can’t write a check for a car and not have it hurt you financially then you can’t afford a car
By that logic MAJORITY of the population will never make any large purchases like vehicles, appliances, or houses ever because most people don't have several 10s or 100s of thousands in their bank account. For that matter the entire credit and financing industry will not need to exist if you adhere to your rule...Please tell me you don't use credit or financing for any of your purchase.
Full time student buying a $55k car.....this is what's wrong in America. When you are that age you buy what you can afford. Yeah that means getting a crappy used car for $5k (which he has). It will run fine and treat you well. By using that method with everything you will create wealth faster and get to REAL dream cars sooner that you can, again, write with a check. Homes and businesses are the only thing we should EVER need loans on. Period. Only your ego is at fault for wanting to live outside of your means
That is true Franco. He could've been more patient and waited for the job to be able to sustain his purchase. @flpsyde he doesnt't mean you NEED to have the money CASH, although that is what Dave Ramsey suggests, it all depends on your debt tolerance. As a recent student entering the field, I know that having the responsibility of a $1000 car payment (loan + insurance) will probably hinder his options. He may not be able to take a lower paying job because of this financial commitment even if it offers a better experience and culture compared to a higher paying, more frustrating job. I'm not saying he'll have to pick between these two and hopefully he doesn't but you're walking on VERY THIN ICE.
I'm subbing just so I can see how this lunacy pans out in the long run.
Add in student loans
Im waiting to see the video when he puts his tesla on craigslist.
Hahhahaha
I'm saving up to buy one cash. ... Also, please don't encourage people to go into debt.
Lemme borrow 3k
Cash is the absolute worst way to purchase a depreciating asset, especially with financing rates as low as they are.
@@sasca854 I would disagree, some people have more available cash. I will be paying cash for a model Y, I am debt free and have generated income, so for me it isn't the worst way to make a vehicle purchase. Financing rates aren't low for everybody. I know from data I have seen, used tesla vehicles seem to be holding their value well.
Brett the Behemoth | Tesla’s hole their value really well
@@G1TDAT Cash is nowhere near a smart way to pay for a car. Time in the market is much better. Say, at worst, your APY is 4%, well just invest into a large market fund like VTI and get a 12% return rate for the year, it will pay for the 2% plus you get to keep 10% on top of the payment. Simple economics.
Thank you for getting straight to the point and giving actual numbers.
Great vids. Very helpful to see through the eyes of an early Model 3 adopter. Will be very useful for us late reservation holders!
This is a really idiotic financial decision....
Explain why please
he explained it himself he got into a 50K car with no job, that is a huge financial mistake just because he wants a Tesla if he doesn't get a job after school and his parents kick him out now what? the smart choice would have been to get a car with a low monthly payment, get a good job to save and save for a year or 2 then check out the Tesla.
Maybe he's living at home, and he has no house payment? You don't know his situation. I think you're just jealous.
You can't compare buying Tesla to anything else. First of all, it's important support to the greatest vision of the current world. Secondly, you can always cover this huge expense by riding for Uber more or less 5 years.
@@alexanderhamilton8585 so 90% of the other replys about this being a financial mistakes are jealous also? or maybe we make better financial choices
Also he bought the base tesla 3 and that doesn't include free charging.
If you're buying a $55k car and are only comfortable putting down $5k, then you should not be buying a $55k car....
This is why everything is overpriced now a days.
@Help Me Get 1000 Subscribers 55k with 0 down payment? hahahahaha isnt that sub prime lending? Your car would depreciate faster than the repayment you made to the bank.....
put down $12,000+
I pooped a little when you said you only put $5k-$6k down towards a $55K car
Why? With rates what they are, putting as little down as possible and investing the rest into even low-medium risk investments is mathematically the superior choice.
Ah yes. Spending $700/mo to save $50 every 3 months on oil changes. WINNING :D
._.
Actually $1000 per month if you include insurance. And apparently Tesla has been slashing prices in these Model 3s .... So the depreciation on it must be ridiculous.
Daddy was definitely a co-signer. There is no way a college student with no job, only giving a 10% down on a 55k car would get 2-3% APRs.
Who said I didn’t have a job??? No co sign.
Young Tesla You said you were a full time student.
Byron Moreira had credit from working two years before. Took full time classes and still worked
Since a car is a depreciating asset, it’s best to buy a certified pre-owned car (10k miles or less already cuts the price down by almost 20%! Plus the car still functions like new with same warranty benefits) When financing, always have 20% to put down which is more than the 10% most finance companies ask for when buying cars, it’ll lower your interest rate and you’ll have more room to negotiate since you’re seen as less of a risk since you’re putting down more money. As for insurance, if you’re under 25 wait before getting your own policy, if you live with parents considering them getting the insurance until you’re of age to put a policy under your name without the added age markups which don’t adjust even if you turn 25 after signing your initial policy
Uber/Lyft drivers pay more than that as an operating cost. If you are putting miles on it, then the car can pay for itself in savings. Same example can be made on a comparable Honda or whatever, but gas is not free. You still end up with 200-$300/Mo. gas expense, which can change at any time.
And now that the $35k model 3 is out, financing cost of ownership will be easier, except for supercharging crowds.
0:29 the most affordable electric Tesla I thought all Teslas were electric LOL 😂😂😂
a year after owning this car, you will look back and realize how much you learned between now and then... the journey is fun man... keep it up!
Your videos are straight to the point, I love it. Thank you.
Thank you!
Guaranteed that after 6 months of insurance payments, that low ball monthly premium payment will be at or above $400 a month..
They lure your business by low balling competitors, only to adjust it...to where it should’ve been in the first place.
Young Tesla, Dude, don't let any nay sayer's dampen your spirit. You are doing a great job. I have watched many of your videos and of course subscribed. I live in San Diego and recognize the areas you travel unless you are going Home, which is North of us. I like watching the travel videos when you show the control screen and the road, so that you can see the miles per hour change on the screen as your Tesla slows or accelerates in traffic. As soon as I get back from Hawaii in the end of January, I will be shopping for my Tesla 3. Thanks again and keep the videos coming!
Thank you for the kind remarks! I truly appreciate it. Comments like these make me keep going:) Have a great time in Hawaii!
The reality of the situation is, the Model 3, and even more so, your particular model 3 (at 55k) is a gross misrepresentation of affordability of the masses. It's not unusual to take out a financing deal for a car, but the amount you have to pay, over 6 years just doesn't sound like an amount an average household would be able to afford responsibly. You must either be massively over leveraging your options, have no fear of financial instability in the mid term, love cars so much you spend above 25% of your income to support paying for it, or for some reason you could only muster up 5k to pay for the car upfront but you're actually more than financially competent to afford the car than your initial deposit let's on.
My comment is not meant to discourage people from purchasing things that they love, I don't have a right to tell you what to do with your money after all, and, I also really support the fact that you are going electric. But, I don't want people to get the idea that they can afford something by taking out a loan they can barely afford.
Elmer Lin dude shouldve at least gone for the base model instead of getting the most expencive one for the longest possible amount of time
if he drives a lot, gas savings would allow him to buy more expensive car
You don't know his income. He said he was in the "Healthcare field". I have a dumbshit friend of mine who recently became a Doctor. His first job offer was over $200,000. He might be able to pay this thing off in a year. We don't know shit about this guy and it's not our place to judge. We should be grateful for the fact that he let us in on his car financing numbers.
Alexander Hamilton did you forget about student loans, housing, food, and utilities?
I live in Asia and I really love how you american people just go "AAAAAAALLLLLLLLLLLLL OOOOOOOOUUUUUUUUUUUUTTTTTTTTT"
You answered my two questions. Thanks and Congrats for the 1k.
Anv my boy is growing 😂
I subscribed when he was at 5 subscribers. So proud. I wish him all the best
Thank you guys for all the support!
Thank you guys for all the support!
Thank you guys for all the support!
This is the very first video I watched when doing some research about whether or not I was going to buy my new model 3. Thank you for the inspiration! I’m excited to report should be getting mine any day now
This is a good video. Straight up and no BS.
I’m a college student and I want a Tesla model 3 really bad. BUT I bought a used 2011 Honda Accord for 11k. Despite me having to pay for maintenance and gas, in 6 years I think I’ll saving a lot more money than buying a new $55k car that saves on electric... Maybe your RUclips channel will blow up because of your car and you’ll make even more money!
if you don´t have the cash don´t buy it. If you owe money, you are a slave to your debts
We're ALL slaves to our debts.
xalau so with no cash for a house he should rent his entire life??
I drove a poverty pack Mazda 3 when I was in my 20s. But me and wife saved up money to buy the largest home we can afford here in Toronto We had one built brand new on a good size lot; it can also store 4 cars easily. We paid it off in full in less than 6 years. I'm in my 30s now and I still don't drive anything fancy but I do buy my cars new and in cash only. I bought 2 Chevrolet Bolt EVs in premier trim this year for our daily driving needs and we have a full size SUV for the weekend and road trips. The returns we continuously make from our investments passively paid a good chunk of the cost for the two Bolts.
By the way, he is not stupid and dumb as your guys think. Look how many people watched and commented this video. You guys just helped him made payments. He just Really likes Tesla. I can understand that.
Configured mine as well. Secured 2.89 with SDCCU all over email and about 100/month with Mercury. Now waiting for the car :)
I purchased a used Nissan Leaf for $7,000 back in December 2016. I was 24 years old then and have plans to pay it of rewards the end of 2018. $55,000 is a lot of money, but money well spent. Enjoy your new ride!
That’s pretty expensive for insurance... I got a quote from Tesla’s insurance partner Liberty mutual for a mode S for 65$ a month. Dam your spending 2400 a year on insurance on one car.
KenPenguin how old are you? And how old is he?
It`s a really strange value.
But let`s think about this. He`s young, probably 1st car he owns. This might explain why he went from 65$ to 200$.
I dont know how car insurance works in US, but if i was ever to buy a car at his age, i`d definitely ask my parents to put their names on the papers. By doing so i`d be saving thousands.
65 per month is bare minimum coverage for a Model S. If you want to be fully insured you're going to pay 2k a year. There's a 6% increase on luxury cars no matter how old you are or where you live.
Depends how many cars you have, liability is the most, we have 5 cars 2 driver's prob 300k worth of vehicles, million umbrella runs about 2500 a year. Also most policys are much cheaper if you pay it all up front. I'm 38 this guy looks pretty young. Also his credit is stressed with the car which also raises your rate.
Robert Blackford dude could have just leased a Nissan for 300 a month and prob $1000 a year in insurance.
I own a Model 3 myself but I’m very perplexed by this. Why would any young people mortgage away their financial future for a depreciating asset like a car. Tesla Model 3 is probably one of the best cars ever but one shouldn’t be knee deep in debt to get one. Invest in a house, stocks or your career but not a car!
gcklo this is insanely confusing to me as well. Either this kids an idiot or he’s got rich parents, because somethings not adding up.
Hes a RUclipsr with 5k subscribers. He probably makes a decent chunk of money from youtube to cover part of the payments.
Brent Mifsud 5k ain’t shit you kidding me?
@@Xaxxus 5k ain't shit😂
dude needs to speak with dave ramsey.....you're a fool for financing it. pay cash and no more than half your annual income, otherwise you can't afford it.
You don't know SHIT about his situation. Even if you do, it's not your place to judge. You should be grateful for the information he's provided us.
He's Stupid!!!!!! ( Dave Ramsey)
This guy is foolish for doing this in his financial situation, but not because he financed, but because of the amount and terms of the finance. 3-4% interest avoidance by paying cash for the full amount is unbelievably stupid. You'd get a higher than 3-4% return by just buying an index fund and holding it, roughly 7% per year compounded over an estimated 10 year period.
Cash is the most expensive way to purchase a depreciating asset. With rates what they are, it's not even close. It would actually be _hard_ to not grow 55k in excess of ~3-4% per year, which is what you'd be paying in interest on an auto loan. You could do 2-3x that without even going anywhere near high risk investments.
@@sasca854 You are high.
Thanks for the hard examples, the numbers really help!
Lots of us were a little foolish with are money when we were young, life lessons.
Purchasing a Tesla even with tax incentives aren't worth it because they're too overpriced. Once you drive the Tesla for 30k mi it depreciates even faster than luxury cars. Because the battery becomes worthless when it gets depleted. That's why you see used Tesla Model S go for 1/2 price on Tesla after just 70k mi. You are better off leasing them.
How To Increase Your Debt Like A Fool 101
Thanks for explaining what it costs the "average" person to buy a Tesla - even a Model 3 built for the masses (which at this time is not really affordable for the average joe). I like Telsas but I have a hard time justifying to myself spending that amount of money. Thanks for letting me do it "virtually" through you. Good luck and let us know how it goes.
On a serious note, here's what I would have told my college self back then. Calculate all the shots, clubbing, drugs, going out and girl spending money and spend maybe 50% less instead (that includes your car). Save that money and wait for a down housing market. Buy property and watch it appreciate. I bought my house in 2009 and have watched it accumulate $300,000 in equity after 9 years. I was rolling around in a used M3 at the time and that car was still only $40,000. I had a buddy who had 2 cars (one of them a very expensive $80,000 European car) and he asked me what I thought of his rides. I told him I don't understand why you'd own those cars but still live with roommates in a crappy part of town. He sold the $80k car within a month and bought a house instead. Don't want to buy property? Spend maybe $200/month on your ride and invest $800/month in a simple mutual fund.
Yolo man, best decision you made
I went to my Credit Union as asked about getting a car loan and getting a TESLA. I literally showed her the exact numbers shown here: $774 x 72 months @ 3.34. She said that the credit union got another guy a loan -- for a Tesla -- at 2.25%. She also said I should go to CARMAX and get a quote, then come back and let her do a full on credit report, then she could tell me the numbers. I know that when they run your credit, it's a hit on your credit, so I bailed. I may be back. Probably not though. No balls. As usual. But I admire this guy who pulled it off.
Thankfully I learned at a young age watching my folks spend there way into debt to see the irrational side of spending on credit. I figured after college no one would hire me so I paid my way a class at a time. Thankfully I graduated without a penny of debt while my peers are paying mortgages for the same amount of schooling i went through. I think this guy is nuts for buying a car he can't really afford but he's young and he's gonna learn how to work!
So I want a Tesla as well, I am a full time student as well. I am saving as much as I can but instead of buying one now I plan to wait until around 2021 when the model 3 will have all the versions out, all the kinks out, all the aftermarket stuff out, more chargers around, and especially I am not paying $9000 for 90 more miles of range. I am taking my saved money and investing it, even day trading Tesla stock has been extremely profitable. But also diversifying it into some more long term savings as well.
The absolute last thing I want to do out of college is put myself in debt!! Live within your current means, not your future planned means.
Eric Fling don’t worry! I’m on track to pay off early in 2 years!
Young Tesla Good for you man!
As a former Tesla Model 3 reservation holder I find the cult of Tesla to be eerily reminiscent of the cult of Apple. Culturally, the Model 3 is simply an iPhone on wheels - the new "must have" techno gadget - Elon Musk has fully inherited Steve Jobs' rock star mantle. Now, don't get me wrong, I believe in Tesla's vision and have huge respect for Elon but there is a difference between admiration and adoration. I also think I'll be able to pick-up a lightly used Tesla in the near future when the rabid Tesla fanbois, like this 22 year old, tire of paying their $1,000/mo car loans because they just had to have a Model 3. Debt peonage is all the rage in the cult of Tesla.
Mike Bouck my thoughts exactly! The used model 3 market will be oversupplied in a few years and that's when I'll pick one up! Just look at the model s market and you can easily find a good 2014 80k plus model s selling for under 40k.
Yeah, and look how that turned out for Apple. ;) Seriously, you're right. But the thing people forget with the whole "cult" argument is - neither the iPhone or Tesla cars would have any success if they weren't significantly better than what the market was offering at the time. No amount of Elon worship would convince hundreds of thousands of people to pay top dollar for a crap car. The cult doesn't sell the product - the cult forms around the person willing to say F- the market, I see a better way and then can actually deliver a superior product.
Seriously well put. Same sentiments as you.
I think the Model 3 is great (and own a Model S myself) but this comes across as very irresponsible. Spending $55k on a new car, choosing clearly a pretty inferior financing option, and then including in the justification that you'll save a lot on gas and oil changes. Oil changes on an ICE car TOTAL about $600 in 100,000 miles ($30/oil change * 20 changes). That is irrelevant, only 10% of the tax credit amount, although that tax credit is mostly gone after paying for the PUP.
You would really have benefited from putting all the relevant costs down in a spreadsheet to see how much you are spending/losing per year on the car. Unless you are in a very solid financial situation or plan to make some kind of extra income out of the car, this comes across as super risky.
When I did that, I compared a number of potential cars including new and used Model S, a new Model 3, and a couple ICE cars including keeping the old one I had. I broke down all the costs over a 10 year period over which I thought I would own the car. That includes the vehicle cost, any tax credit, interest payments, registration, fuel/electricity, insurance, maintenance/warranty, etc. I also accounted in a discount factor because any money saved can be invested at some rate of return.
As I said I ended up getting a Model S. It was just over 4 years old when I got it for $35k no tax. Sticker was just over $80k. Glad I didn't eat that first 4 years of depreciation.
Where did you purchase your used model s?
Through the TMC forums.
Funny thing is this guy doesn't even make enough money to leverage the Federal EV credit, so he won't even get the $7500 come tax time.
Wow finally someone who actually talked numbers. I would've figured insurance be cheaper with this much safety equipment in a single car.
I appreciate the exact APR figures and loan payments per lender, you're the first youtube personality I've seen give so much valuable information. Thank you.
My son just sent me this as part of his argument that I should help him buy one. Not only do Millennials not understand economics, but they don't understand logic, either.
Great video with great information. Thank you!
Now i witness why lot of people with high debts call dave Ramsey show, this dude has no financial management in life
thanks dude
I am dreaming of Tesla too....
What insurance companies did you go to?? More importantly which were the last two that provided around $200
Wow, the economic majors came out of the wood work. Let the man live his life. Buy what makes you happy. Not everyone wants to drive a used rusted out minivan for the rest of their life to save from a car payment
You can get a nice car for half this or less. I'm in the same position YT was, absolutely obsessed with this car, and I make $60k this year, most likely 100k next year, and I STILL really do not think I can afford this car, even with minimal living expenses.
Remember, this kind of short-sighted thinking caused the 2008 crisis.
Great video, thanks for posting this! It really helped me out! Keep up the good work!
This is great, I like that you shared this info, I appreciate it!!!!!!!
Very useful video. Thanks so much for sharing your experiences!
Great video. No wasting time straight to the point. Appreciate it!!
Yes it's expensive all around but I treat Tesla to be like a dessert. You know you shouldn't eat it, there's salads, frozen yogurt or carrot sticks that are more cheaper, healthier. But damn that deluxe chocolate cake is sooooo delicious.
So just enjoy it while you can. You aren't married with kids with other people depending on you with loads of responsibilities.
And looks like you are enjoying every single minute of driving it.
Bravo!
Great Video, an important subject that is rarely discussed 👍🏽
I am still a reservation holder waiting for my chance to configure . My approach was to figure out what monthly payment I would be comfortable paying and then working backwards from there to figure out how much money I would need to save to put down.
i was quoted 162/mo from progressive in CA for model 3. 15/30/5 with 250 comprehensive and 1000 collision which is nearly identical to my 2017 audi a3 policy premium in both coverage and cost
Thanks man! Helpful for sure!
Good for you, man. Enjoy it!
Very good info. Thanks! I put in my reservation today!
Dave Ramsay needs you give you a stern talk about this.
I don't know who is more foolish: this guy getting into so much debt and monthly payments as a college student, or the bank that financed him.
The bank has already factored in their risk in the financing cost. I'm sure if they have to unload a Tesla they won't have many problems.
bank that financed him is ecstatic at all the payments plus repo they will collect
Um, his mommy and daddy did. I know this as fact.
No cosigner!!!
Geico offered me full coverage on the Model 3 for $71 a month. That’s state of Pennsylvania, history of 1 claim in 20 years for hail storm damage, high credit score. If it were New Jersey, it’d be 4 to 5 times the money, your state is a big factor. If you’re serious about bringing the cost down, lease an apartment in Colorado, get a CO driver’s license, take the $5,ooo state rebate at purchase. Average rent in Pueblo, CO is $6oo a month, good luck finding a job there 😆
Great video. Thanks for posting.
This video is inspirational because I'm going to do the same thing next year, except my 50k will be for a used model S with FSD
When "wants" are most important priority than "Needs"!
The interest on this finance deal is eye watering.
Now that you don't have to pay for oil changes and gas. How much will it cost to charge it?
Subscribed to you man, I've always been a fan of tesla and I hope to maybe buy a model S in the next two years. I'm graduating college in about two weeks and moving to silicon valley for an internship and hopefully a full time job!
one year after the Model 3 isn't as expensive when it first came out, now is the best time to buy as it won't cause an arm and leg
You could have a mortgage payment for what you’re paying on your Tesla. Then sell your house in 5 years and take the money you made to buy a Tesla truck = smarter move.
You're always better off re-investing. What's your point?
Lol, there are so many haters on youtube. I'd guess 90% of Y'all are just jealous. Obviously, this "kid" shopped around for all sorts of deals between insurance and financing options. That being said, it sounds like he's got a good head on his shoulders. I wish you the best of luck bro and welcome to the Tesla family!!!
Anthony Reeves thank you man! I appreciate that!:) it’ll be all paid off in 2 years!:)
I bought a 2000 Honda Coupe for $2600 and pay $50/month on gas.
For $55k you couldve bought a used Skyline GTR or low-Mileage BMW/MERC.
Yo!! Thanks for doing this video. Helps with questions when it comes to financing a possible new Tesla for me.
Dude! Thank you!!!!!
Nice video good job and congrats on your tesla again I’ll get mine soon
Yay congrats! And welcome! If you have ordered yet, you can get 1000 miles of free supercharging using my code!
True numbers! Great video!
Thanks for explaining
Informative video (no fluff)... thanks!!
I myself am suffering through the pain of wanting to buy a Tesla SO bad. I've been running numbers all week and am looking at $730 a month. About to do some serious budgeting! I'm also a student so I'm feeling what you went through
Thanx for a quick and informatal video :)
Hey Young Tesla,
Just wanted to say that's an awesome vehicle. I'm looking at starting off my EV journey with Tesla as well. They are awesome vehicles. I've been wanting an EV for a while but none of them had the range or even looked good enough for me to see myself in one until Tesla came along. Truly a work of art.
I know the people on here have been kind of rough on you and although I can't totally disagree with them, I think some of them are a little harsh. Let me give you some words of encouragement. Although I don't think this is the best decision right now financially, I do see the appeal that Tesla has. Out of all the EV's that are out there, to me they are the best.
To be honest I don't know your financial situation (frankly it's none of my business anyway), but I will say this, "acquire multiple streams of income". That's the best way for you to pay off the Model 3 quickly. MULTIPLE STREAMS OF INCOME.
I know you say by the time you get out of college you should be able to find a job and you should be good. I say, "don't rely on just that income, have others as well".
So start now. Since you've made a commitment to have this vehicle for 72 months make it into a money making opportunity to pay it off before the loan period is up. Uber is one. Turo is another and like Daniel Halnan said Patreon and continue to make RUclips videos to drive more traffic. Also, there are people who work a business from home and make insane income, some of them very quickly. As a matter of fact I've seen people who got out of college making 5 figures a month and never have to work another day in their life, of course not everyone does that(I want to be realistic here). Investments is another. People have made some insane money in that as well. Now it may take longer than working from home but who's to say you can't have that going for you while working from home and your job.
Now, I know it sounds like a lot, I get it but this is where a plan of action needs to be made to get this going. Time it out and pace yourself and make it happen. You will have to be ambitious and I know you are, otherwise you wouldn't have made such an ambitious purchase. Time management is going to have to play a big part.
I don't want you to get the wrong idea about me. I'm no expert I just know what I've observed and what I'm working on as well. The key is not to overwhelm yourself needlessly and have a realistic plan of action where you can get to the lifestyle where you can get the things you need (that's the 1st thing) and the things you want without hurting yourself.
Well, that's it Young Tesla. I hope this helps a little bit. Enjoy your car but in the future make sure to have your finances in place so you won't be out in this situation again. By the way watch Dave Ramsey on the subject about Jay Z spending over $91,000 in one night. I was a little shocked by his response but it confirmed some things for me.
Thanks
What was the process? How did you get approved? What was your income and down payment? Did you have a co signer. Trying to figure out because I graduate in may and have some student loans and good credit?
appreciate your honesty : )
Thanks for making this vid my brotha. Im looking into getting a used model S but if I can get a model 3 I definitely will. 👌
Yay! Hope you do! I personally recommend the 3 cause of the newer tech. If you have any questions, DM on social media. Then use my code for 1000 miles of FREE supercharging :)
Amazing video. Haven't seen any other Tesla RUclipsr talk about financing the way you just did. They're all giving general info but no specifics to really help all of us waiting for our model 3 a realistic idea of finances.
Yep. This info is GOLD. And I wish I was him.
It's an amazing car, but saving money on gas and maintenance will not pay off. Not even close. I bought a used Prius for $11,000 and spend ~$35 and get ~400 miles, oil changes are very rare and come out to less than $10 a month. Toyotas last forever and the hybrid engine lasts longer than an ICE.
No debt, little expenses, car will last more than 10 years if I chose so. I will use this actual savings to buy myself an electric car in 2-3 years, no debt either.
Fuck debt. He gets to drive around in a TESLA.
Bought my Prius 15 years ago and hands down it's the most reliable car I ever owned. I've never even needed the brake pads replaced. Love it! I wouldn't mind getting a Tesla though --they are sweet!
Dude thank you so much. This is the most relatable channel. Every other video is vague and doesn’t show true numbers. I’m waiting till I’m able to configure my model 3. Btw what was the insurance company you chose. 200 a month for a model 3 insurance sounds great.
John Picazo The best I found is between Geico and Farmers. Thank you for your comment. You could get it lower with other factors hopefully, but those were the best for me!
Young Tesla ingrate on your new car. I hope your enjoying it. I am on a waiting list my self, wow that 35 went up to 55. Did you ball out, please let me know what you upgraded and cost per. I will be faced w these choices as well. 35 sounds so much better lol
Dumb auto type I meant congrats on your new car