teslamotorclub: How will you pay for your new model 3? part 1

OK, so I was think how everyone will pay for the car. Cash? lease? Loan?
I was always in the frame of mind I would never buy a new car due to initial cost and depreciation. However with the model 3 things are different (for me at least) I do around 70k miles a year so the car will almost pay for its self in a year or so (fuel is around $7 dollars a gallon here in the UK) leasing is out of the question for me due to the high mileage.
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Probably sell a few Bitcoins, I dunno.
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Cash money.
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If interest rates remain where they are for car loans, under 2% I will take out a loan, otherwise cash money!
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I'll be putting down a good amount and then financing the rest. Can't hurt to have a loan for more credit
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I'm buliding a house a year from now doing a lot of work myself I will just roll the 50k in the house payment. No car payment!
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I go for lease.

In the Netherlands EV leasing is the cheapest way to ride a EV.
If i lease for my work, i don't have to pay income taxes on what i spend on the model3. so that is a ~36% (41% - 4% "bijtelling")profit. for the dutch guy under us, i have no intention to explain the complex dutch tax system .
The company itself that leases my the car get also a 36% profit trough other rules. So that is almost 49% off.
Yes the lease company makes some profit and some marges... it is equally expensive as a Renault Clio leasing what im doing right now. The way people are buying this car will very depend on the local tax rules.
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I will be getting a loan and the only money I will put down is the 1k I used to reserve and whatever additional $$$ they make you put down when you sign the purchase agreement...I'm in sales/marketing and drive 150 miles per day - 60 for commuting miles and my company reimburses me .50 a mile...I will just use my expense checks to pay for the monthly payments...savings will continue to go into my emergency fund
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Think I will do cash. It's crazy to think that my current fuel bill (around$25k) will almost pay for the base model . can wait to get it. Tick tock...
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with some Tesla stock capital gain proceeds
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Combination of cash and financing. More financing if the rates stay very low.
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Depends on a lot of things, interest rate, lease rate. If lease rates are attractive (particularly early due to tax credit), then probably lease. If lease is not attractive and interest is good, then just borrow the full amount. If interest rate is not good, then can do a combo of loan and down. I highly doubt rate will be high enough to entice me to pay cash.
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We are saving for our Model 3. Then all cash!
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Fully financed unless I chance upon some financial windfall.
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A combination of cash and financing. Depends on too many factors between now and then.

The interesting thing is I expect a lot of pre-orders to be canceled when the time comes to buy because of financing. A $40k loan (small amount down with tax) at 6 years and 4.5% interest is $635 a month. I have a feeling a lot of people will back out when they see the monthly payment. Regardless, Tesla will sell boatloads of Model 3s. I just hope this means I'll move up the line a little sooner.
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Amex
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Lots of Benjamins
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The Idea is to save up as much as I can be for production starts and then do a combo of cash and financing.
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A sizable down payment from selling a car and saving until drop date and finance the rest.
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Does anyone have a list of Banks and Credit Unions that offer a discount on rates for purchasing an EV?
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i'm shocked so many are financing. I assumed many would be leasing since battery tech is still new. I'm still undecided myself but i will drop probably close to $20,000 down. I'll get a rebate cheque for $14,000 from the Ontario gov't for getting an EV which is pretty awesome and generous.

If that credit is still around 3 years after the Model 3 is out i may opt to get a newer Model 3 or Y in that time. (hence why i may opt to lease first and then buy/finance another Model 3 or Y then.
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pmich80 said: ?

i'm shocked so many are financing. I assumed many would be leasing since battery tech is still new. I'm still undecided myself but i will drop probably close to $20,000 down. I'll get a rebate cheque for $14,000 from the Ontario gov't for getting an EV which is pretty awesome and generous.

If that credit is still around 3 years after the Model 3 is out i may opt to get a newer Model 3 or Y in that time. (hence why i may opt to lease first and then buy/finance another Model 3 or Y then.
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ditto

im definitely leasing and then purchasing a newer tesla once my lease is over.
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Just placed my reservation today, now I'm gonna save as large of a down payment as I can and finance the rest. There's certainly gonna be lots of down time before I take delivery
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angelarm1110 said: ?

Just placed my reservation today, now I'm gonna save as large of a down payment as I can and finance the rest. There's certainly gonna be lots of down time before I take delivery
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Don't forget we get a $14,000 tax rebate for the car
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I will be leasing. I have a Model S now that I lease. The reason for the lease is not business but technology. The technology is changing so fast in three years more hardware might be required for software updates. I am concerned that the hardware could not be retrofitted. So for me this is why I will lease
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pmich80 said: ?

i'm shocked so many are financing. I assumed many would be leasing since battery tech is still new. I'm still undecided myself but i will drop probably close to $20,000 down. I'll get a rebate cheque for $14,000 from the Ontario gov't for getting an EV which is pretty awesome and generous.

If that credit is still around 3 years after the Model 3 is out i may opt to get a newer Model 3 or Y in that time. (hence why i may opt to lease first and then buy/finance another Model 3 or Y then.
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Lithium ion tech is pretty new, and specifically how Tesla uses lithium ion batteries has been well-proven from the Model S.

I don't think a single EV has battery issues, outside of Leafs having capacity loss issues due to no liquid temperature cooling system. It's certainly more reliable than ICEs.

Me personally, I'll be financing. I'm sure the tech will improve substantially in three years, but I want to own a piece of history. Only thing that may make me reconsider is if the autopilot tech won't be up to Elon's promises and may require an additional refresh for full autonomy in the future.
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I expect that if the Base is reasonable, I'll purchase:
Base: I'm not intending to buy extra range. If I feel that it needs it, I'll look at long-range alternatives anyway.
+ Subzero: it gets cold here
+ Enable Supercharging: because I want to be able to use it
+ Enable Autopilot: the last is a "toy" that will come from my "pocket money", rather than my car money.
The exception would be if the base is $35k, but spending more would be paid for by the tax credit, and not spending more would miss out on the tax credit.

(We've lived without AWD so far. Snow tires should be good enough.)
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Lease. Tesla is updating their vehicle too fast for us to consider buying, at this point.
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Anyone here selling their Model S to fund their Model 3? I have a "classic" 2013 60kWh that I plan to sell before delivery of the Model 3, hopefully the Performance version with the biggest battery pack.
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pmich80 said: ?

Don't forget we get a $14,000 tax rebate for the car
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That figure sounds pretty awesome, but would you mind sourcing it?
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angelarm1110 said: ?

That figure sounds pretty awesome, but would you mind sourcing it?
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Here you go:
Electric vehicles incentive program
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Tony_YYZ said: ?

Here you go:
Electric vehicles incentive program
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Well shut my mouth... I think I just became a Kathleen Wynne supporter, and isn't that a concerning thought lol. Seriously though that's wonderful news!! It's great to see a real push being made for the adoption of sustainable transport and renewable energy
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Putting it on my Marriott Rewards Chase Card. Buying a Model 3 will easily get me at least two free nights, yo.
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Financing it all unless interest rates go through the roof between now and then. Also, I drive about 20k miles a year, so unless I lease to buy, the additional mileage penalty on a lease would eat me alive in fees.
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Chrisuk83 said: ?

OK, so I was think how everyone will pay for the car. Cash? lease? Loan?
I was always in the frame of mind I would never buy a new car due to initial cost and depreciation. However with the model 3 things are different (for me at least) I do around 70k miles a year so the car will almost pay for its self in a year or so (fuel is around $7 dollars a gallon here in the UK) leasing is out of the question for me due to the high mileage.
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Cash
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StudMuffin said: ?

I'm buliding a house a year from now doing a lot of work myself I will just roll the 50k in the house payment. No car payment!
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Speaking only from experiance in Canada, that wouldn't fly up here.
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angelarm1110 said: ?

Well shut my mouth... I think I just became a Kathleen Wynne supporter, and isn't that a concerning thought lol. Seriously though that's wonderful news!! It's great to see a real push being made for the adoption of sustainable transport and renewable energy
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ahaha I'm so glad we made your day. Now you can even highly option your car. Aim for the sky .
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the current rate is 1.99% for auto loan at my local credit union. 35k is a lot of $ to go all in.
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January 19, 2018 TSLA $250 call options.

RT
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It will all depend on what the banks are offering when I "build" my car and have to make the decision. I like the idea of leasing with the thought of upgrading in 3 years. However, my 8 year old daughter is already trying to convince to buy it because she wants me to give it to her when she turns 16...
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Imagine having your 1st vehicle being a Tesla???
What a great time to be growing up in!
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pmich80 said: ?

i'm shocked so many are financing. I assumed many would be leasing since battery tech is still new. I'm still undecided myself but i will drop probably close to $20,000 down. I'll get a rebate cheque for $14,000 from the Ontario gov't for getting an EV which is pretty awesome and generous.

If that credit is still around 3 years after the Model 3 is out i may opt to get a newer Model 3 or Y in that time. (hence why i may opt to lease first and then buy/finance another Model 3 or Y then.
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I drive too many miles too lease
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I think I just write a cheque
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nd4spd569 said: ?

I drive too many miles too lease
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me too
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Proceeds from sale of short-term TSLA put and call options over the next two years.
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At first, I didn't see the relevance of this post. But then I thought about it from a different viewpoint. I'll be paying cash, but then I thought - How? My credit card has a limit which is below the purchase price, so how have people gotten their payments into the hands of the good folks in Palo Alto - Mail fat envelopes of bills? Bank Drafts? Pay Pal? How does the physical transfer of funds work?
Just curious,
Wildm011
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A combo of borrowing against the 401K and credit union financing. Since I had a Leaf and I drive 10-12 K per year, a purchase makes the most sense. This is a typical 10-15 year purchase, like every car our family has owned (excepting the Leaf lease and my first car, a Triumph TR-4. I had that one for only 8 years through high school and after college).
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wildm011 said: ?

At first, I didn't see the relevance of this post. But then I thought about it from a different viewpoint. I'll be paying cash, but then I thought - How? My credit card has a limit which is below the purchase price, so how have people gotten their payments into the hands of the good folks in Palo Alto - Mail fat envelopes of bills? Bank Drafts? Pay Pal? How does the physical transfer of funds work?
Just curious,
Wildm011
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Ever heard of these things called checks? (Pieces of paper that you write out the payee and amounts on... )

You can also go with a cashier's check, or do a ACH bank transfer. They don't take credit cards for anything but the reservation and deposit.
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Write a check.... If interest rates are very low I might finance part. Cheap money is always good.
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MP3Mike said: ?

Ever heard of these things called checks? (Pieces of paper that you write out the payee and amounts on... )

You can also go with a cashier's check, or do a ACH bank transfer. They don't take credit cards for anything but the reservation and deposit.
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Ahhh - I HAVE heard of those things! I am just so used to (online) businesses not taking them, I hadn't considered that Tesla would accept them. However, since it's paid in a advance prior to production or shipment, I suppose their risk for NSF cheques would be low. Thanks for the reminder
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Quite easy - robbing some banks. That�s all ...

Regards from Germany

Josh
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MP3Mike said: ?

Ever heard of these things called checks? (Pieces of paper that you write out the payee and amounts on... )

You can also go with a cashier's check, or do a ACH bank transfer. They don't take credit cards for anything but the reservation and deposit.
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Funny, in the UK that's are called cheques. Thats English for you
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500 shares of SCTY, as soon as it gets to $100. Soooo, about 2025?
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I have a jar of quarters, that should do it.
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I would be financing a large portion of my model 3... Just like I've always done with most of the cars I've ever owned.

Of course I wish I started saving years ago when I knew I'd be getting one of these once they became available someday..
And Of course I didn't save for it since it wasn't ever "someday" then this darn thing called life happens and here I am....years later and holding an early reservation and asking myself this exact question.... but not really how are you going to be paying for it? Because I'm financing the thing ......but more how are you going to UPGRADE to get the Model 3 you've always wanted (bigger battery, AWD, performance)

So I took the first step to saving for my eventual upgrades just today. I traded in my 2014 Mustang for a 2003 Volvo and will use the monthly savings for my upgrade fund. Here's to not needing those savings for whatever life brings between now and the glorious day I can take delivery.
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Chrisuk83 said: ?

OK, so I was think how everyone will pay for the car. Cash? lease? Loan?
I was always in the frame of mind I would never buy a new car due to initial cost and depreciation. However with the model 3 things are different (for me at least) I do around 70k miles a year so the car will almost pay for its self in a year or so (fuel is around $7 dollars a gallon here in the UK) leasing is out of the question for me due to the high mileage.
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Savings, then any additional from my investment account.
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I will most likely take out a loan for the model 3 then sell my jeep and put it towards the principle then pay off the rest in increments.
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tvuolo said: ?

Does anyone have a list of Banks and Credit Unions that offer a discount on rates for purchasing an EV?
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I used Energy Federal Credit Union, .5 off for EVs, 1.11% a year ago (.61% a few months before I got mine), I don't know what their rate is now (Home :: Energy Federal Credit Union).
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So Tesla takes checks but not cards? I had actually not considered this. I'll probably put down a decent downpayment and finance the rest.
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With so much debt juggling (mortgage, PV system, heat pump, and unsecured credit card debt), I have no leverage for savings. May have to grab one of those 84-month loans when I'm invited to order. ;0 This will make it a de facto 10-year car for me (battery, don't fail me now!).
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Haven't financed a car yet out side of a couple months on the LOC, while the old one sells. Never felt the need to purchase a car I couldn't afford. So cash it is.

Leasing is consumerism at its finest and doesn't every really make financial prudence sense. 99% of the time.

Chrisuk83 said: ?

Funny, in the UK that's are called cheques. Thats English for you
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Canada too
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tvuolo said: ?

Does anyone have a list of Banks and Credit Unions that offer a discount on rates for purchasing an EV?
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Digital Credit Union offers 1.74% on auto loans for up to 65 months. EV's get an additional 0.25% discount (click on the details tab for info on "energy efficient auto loans".

Assuming interest rates stay that low, I don't see how it makes sense to pay cash vs borrow. I'll keep my cash invested (not hard to beat 1.5%).

wildm011 said: ?

Ahhh - I HAVE heard of those things! I am just so used to (online) businesses not taking them, I hadn't considered that Tesla would accept them. However, since it's paid in a advance prior to production or shipment, I suppose their risk for NSF cheques would be low. Thanks for the reminder
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Actually, they don't seem to be to worried about checks bouncing - several people have reported paying the balance due on their S's at delivery with a personal check.

Chrisuk83 said: ?

Funny, in the UK that's are called cheques. Thats English for you
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You guys over there like to mis-spell a bunch of words (color, etc)!
(just kidding, most of my ancestors are from the British Isles, including my grandmother who was a naturalized US citizen)
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I've plan to put down 15% or so on a low option 3 and finance the rest. Of course, if buying a higher option version would secure the full $7500 fed tax credit, I'll upgrade my purchase. Then, I'll take out some 401k funds to help on the down payment and at the same time drive up my Fed tax liability so I could claim the full credit.

I suppose, only good advice from a trusted tax adviser will tell what I buy and how I pay for it. If hard times hit between now and then, a used Leaf may be the consolation prize.
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Mark C said: ?

I've plan to put down 15% or so on a low option 3 and finance the rest. Of course, if buying a higher option version would secure the full $7500 fed tax credit, I'll upgrade my purchase. Then, I'll take out some 401k funds to help on the down payment and at the same time drive up my Fed tax liability so I could claim the full credit.

I suppose, only good advice from a trusted tax adviser will tell what I buy and how I pay for it. If hard times hit between now and then, a used Leaf may be the consolation prize.
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What does the tax liability have to be to claim the full credit?
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SolarUnderwood said: ?

What does the tax liability have to be to claim the full credit?
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if you don't owe IRS $7500, you don't get the whole $7500 credit.
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whataboutbob said: ?

if you don't owe IRS $7500, you don't get the whole $7500 credit.
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A point I think a lot of people miss. I expect there will be much complaining from those that 'need' the credit the most to make the car affordable to them once 2017-2018 rolls around.

My plan is to have about ?+ in cash and finance the rest.
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EcoHeliGuy said: ?

Leasing is consumerism at its finest and doesn't every really make financial prudence sense. 99% of the time.
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Except with regard to BEVs and PHEVs...if you plan to keep them for less than 5 years.
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gigglehertz said: ?

500 shares of SCTY, as soon as it gets to $100. Soooo, about 2025?
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10,000 shares of SUNE (costs less than 1/4 that of 500 shares of SCTY today) and could be worth more than 500 shares of SCTY by the time M3 releases. Of course, it could also be worth 0, but my bet today is that it will recover and pay for my M3. Otherwise, Finance.
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I have no idea. I plan on figuring this out once final pricing and options are set.
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With bottle caps and the rest with empty milk cartons;-)
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Haven't financed a car yet out side of a couple months on the LOC, while the old one sells. Never felt the need to purchase a car I couldn't afford. So cash it is.

Leasing is consumerism at its finest and doesn't every really make financial prudence sense. 99% of the time.

Chrisuk83 said: ?

Funny, in the UK that's are called cheques. Thats English for you
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Canada too

JohnSnowNW said: ?

Except with regard to BEVs and PHEVs...if you plan to keep them for less than 5 years.
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I'm confused which way you are arguing here?
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I'm currently setting aside dollar for dollar my monthly expenditure on gas which is around $300. I have a 160 mile daily commute. Can't wait to never have to stop at a gas station.
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Subhuman said: ?

I'm currently setting aside dollar for dollar my monthly expenditure on gas which is around $300. I have a 160 mile daily commute. Can't wait to never have to stop at a gas station.
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If the Model S has a range of 215 miles, that would be the range on a VERY good day with ideal conditions assuming that you live in a region with a climate favorable to EV's. The reality will be that most people will get far less than that depending on the accessories you are running such as climate, butt heaters, etc... as well as wind resistance from strong headwinds. Chances are that while not stopping at a gas station, you will likely need to stop and get at least a partial charge to complete the round trip. Now if your work offers onsite charging, that would decrease the range anxiety.

I myself will need to see what the options list are. AWD and a larger battery are a must for me as I spend a tremendous time on the road. I am only willing to pay about $45k at most. If that does not happen, I will probably buy something else along the lines of a Ford Edge Sport, Fusion Energi, or Colorado diesel.
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HanSolo said: ?

If the Model S has a range of 215 miles, that would be the range on a VERY good day with ideal conditions assuming that you live in a region with a climate favorable to EV's. The reality will be that most people will get far less than that depending on the accessories you are running such as climate, butt heaters, etc... as well as wind resistance from strong headwinds. Chances are that while not stopping at a gas station, you will likely need to stop and get at least a partial charge to complete the round trip. Now if your work offers onsite charging, that would decrease the range anxiety.

I myself will need to see what the options list are. AWD and a larger battery are a must for me as I spend a tremendous time on the road. I am only willing to pay about $45k at most. If that does not happen, I will probably buy something else along the lines of a Ford Edge Sport, Fusion Energi, or Colorado diesel.
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Believe me I understand this. This is why I resisted buying a model S because I had to buy the 85 or 90 at minimum but could not bring myself to spending that much money on car. I also live in a winter region. As I have told others, could buy a half loaded Model S or a fully load Model 3. I'm choosing the fully load Model 3!
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The purchase will be financed 100% by TSLA gains. For both cars.
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EVnut said: ?

The purchase will be financed 100% by TSLA gains. For both cars.
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I'm only up to a base model with my TSLA gains right now so some will be coming out of my pocket. Who knows were it will be in two years might get lucky. Still not sure if I would want to sell then though.
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Subhuman said: ?

I'm only up to a base model with my TSLA gains right now so some will be coming out of my pocket. Who knows were it will be in two years might get lucky. Still not sure if I would want to sell then though.
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OK, good point. IF I buy two units, then they'll have to be base model. And that's not gonna happen. So I only get one loaded one for free, or two base models for free. But that's right now. In two years... I might be able to also buy an S for fun.
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EcoHeliGuy said: ?

I'm confused which way you are arguing here?
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That it makes more financial sense to lease a PHEV or BEV if you plan to keep it less than 5 years...
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JamesL said: ?

10,000 shares of SUNE (costs less than 1/4 that of 500 shares of SCTY today) and could be worth more than 500 shares of SCTY by the time M3 releases. Of course, it could also be worth 0, but my bet today is that it will recover and pay for my M3. Otherwise, Finance.
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I would advise against buying SUNE if you have any hopes of paying cash for a M3. I believe they are declaring bankruptcy soon. You would be better off buying VRX which I also wouldn't recommend because of its situation either. There are much better choices out there.

Reminds me of a phone call I had with a friend who manages one IRA I have in January. He was talking up SUNE when it was $3.00 and change having dropped from $30.00. The gist was SUNE was a value stock and will pop back when its problems are behind it.

I told him to absolutely not buy any shares in my IRA because it's a penny stock with lots of issues. He listened which was good considering it's trading at 0.37 today. I told him to buy GDX which has almost doubled in the same time frame. I tried to get him to buy NUGT previously and he couldn't do that because of rules his company has- so GDX was next best idea I had at the time. I did buy NUGT and that's why he doesn't have all my money- that sucker has gone up 200% since that conversation. This all makes me wonder why I have him managing an IRA? I guess it's for diversification.
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My wife suggested I look into prostitution as an alternate way to make fast money.
Given the good looks of the Model 3, I'm heavily considering this.
Otherwise a blend of cash and financing.
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JohnSnowNW said: ?

That it makes more financial sense to lease a PHEV or BEV if you plan to keep it less than 5 years...
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Which is exactly what I ment by "consumerism at its finest.
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Chrisuk83 said: ?

OK, so I was think how everyone will pay for the car. Cash? lease? Loan?
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Thanks to Tesla Inc, My M3 is paid for from the performance of TSLA, so, I sort of look at the M3 as a "dividend" for trusting Mr. Musk's vision.
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SOLARUSA said: ?

Thanks to Tesla Inc, My M3 is paid for from the performance of TSLA, so, I sort of look at the M3 as a "dividend" for trusting Mr. Musk's vision.
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Personally I would be reinvesting that dividend

It's the give a man to fish or teach a man to fish kind of thing.
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EcoHeliGuy said: ?

Personally I would be reinvesting that dividend.
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You are right, and for the most part I am, but I'm also allowing myself this indulgence. Also into SCTY, and will definitely get in on SpaceX on day1 - when that opportunity presents. Elon has, in the past, suggested he may step down from Tesla after the launch of the "mass market car" for other projects. If so, I'll definitely chase him around for opportunities: Electric Jets, Hyperloops, ????; Elon is a "walking opportunity".
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EcoHeliGuy said: ?

Which is exactly what I ment by "consumerism at its finest.
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Maybe, but your disliking my previous comment made it seem like it was the fault of consumers. rather than a reaction to the market from consumers.
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teslamotorclub

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How will you pay for your new model 3? part 1

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