Model 3 Savings thread

What is your current savings for the Model 3?

  • $0, I just started

    Votes: 18 10.8%
  • $1K-5K

    Votes: 33 19.8%
  • $6-10K

    Votes: 22 13.2%
  • $11-20K

    Votes: 30 18.0%
  • $20K +

    Votes: 64 38.3%

  • Total voters
    167

TrevP

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#21
Congratulations @MelindaV ! You'll have a very handsome downpayment for the Model 3.

I've been saving every penny I can for mine and the fund is looking better and better. I just have to stop looking at the CPOs because it's really tempting to pull the trigger ;)
 
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#23
I had a Volt lease that ended in September 2015 so I searched for a car that would be cheap enough to be paid off by the time I got my model 3. I thought about what would have the highest resale probability, decent MPG and most reliable. The decision? 2010 Honda Accord. My credit was good enough to get a 1.9% rate and they were offering a $300 rebate so that pretty much ended up giving me a free loan in the end. I JUST paid it off so I am hoping to get $6-7K for it since it's extremely clean with rims that have never touched a curb :)

Now that it's paid off, the plan is to take $400-500 a month for 2017 and have another $4k -$5k to add to the sale price of my Accord. I'd like to have $10K total to put down and have a nice $7,500 tax refund in 2018. My absolute wants for the car are biggest battery, (future value, any loss in range and small road trips) dual motors, upgraded rims, upgraded stereo and air conditioned seats (hot sun in Florida) if they are offered. My guess is that I'll be paying around $45K or $10K in upgrades?
 

kendthomp

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#24
I was paying $2000.00 a month to pay off my new Harley early and since that is now paid off, It's all going into savings for my Model 3. I hope to have $30 to $40, 000 saved by the time mine hits.
 

ricardocabesa

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#25
I just purchased a new car in August,so I'll take a beating through depreciation when I sell it as part of my down payment. I figure to finance between 25-35%. TSLA & DAL stock appreciation will help pay for my Model 3.
 

Rick59

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#26
Congratulations @MelindaV ! You'll have a very handsome downpayment for the Model 3.

I've been saving every penny I can for mine and the fund is looking better and better. I just have to stop looking at the CPOs because it's really tempting to pull the trigger ;)
Trev, no matter what you get as a CPO, it won't be as nice as a new M3. Be patient.
 

Badback

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#27
VW just came through with the buyback offer on my TDI. It took them about 4 times longer than allowed by the settlement court. More paperwork to do, the lawyers have made it as complicated as possible in hopes of delaying negative cash flow.
The good thing is that because I have been making more payments, the cash back is now about $16k. Added to the existing $10k in the ≡fund and an additional $18k coming this month from software sales and I have $44k in my ≡fund. I don't want to finance more that $12k to ease the burden an my fixed income, but I expect to get a fully loaded ≡.

Update 8/6/17

Fund is now at $53k and I expect to add another $5k this fall. I will probably be spending $60k.
 
Last edited:

Kizzy

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#28
Update on my situation:

I'm moving this month. I'm picking up a side project to work on which will allow me to pay off that debt and kick in some funds for M ≡! I also won't be commuting to or eating out at work very often, so more potential savings there. I'm hoping to save at least $10K this year.

I'm moving to a cheaper place. I was hoping to sell my current car to pay down some debt, but I'll need it for transportation.

This'll be my most expensive purchase since my current car. Living in the San Francisco Bay Area and trying to be environmentally conscious while enjoying travel is expensive. *sigh*
 

Bobby Garrity

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#29
I have $5000 in a savings account referred to as my "Tesla Fund" and about $10,000 worth of silver. I don't have any income, as I'm a college student, but I should start working soon. I'm not sure how much I will be able to save each month, but I will do what I can. I also want to have full time summer jobs- hopefully with decent pay. But besides that, I have no idea how I'm going to pay for this thing.
 

Steve C

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#30
I have $5000 in a savings account referred to as my "Tesla Fund" and about $10,000 worth of silver. I don't have any income, as I'm a college student, but I should start working soon. I'm not sure how much I will be able to save each month, but I will do what I can. I also want to have full time summer jobs- hopefully with decent pay. But besides that, I have no idea how I'm going to pay for this thing.
I think your bigger issue is those 4 kids of yours. :p
 

Uricasha

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#31
29k - Savings (+600/month)
1k - SolarCity Bond Maturity March 2017
3k - Solarcity Bond Maturity February 2018
2k - Solarcity Bond Maturity March 2020 (Hopefully this won't mature before I get a Model 3.....)
8k - TSLA stock (Don't know when or if I should sell this?? I don't wanna bet against Elon or the growth of Solar, Electric Cars, or Energy Storage)

I'm in the Mountain Time Zone and I expect to upgrade battery to next level, metal roof, leather, towing package, autopilot, and have 2-wheel drive. I also reserved on April 2nd so who knows when my turn in line is up but I'm shooting for May 2018???... which puts me at $42k cash without selling the Tesla stock.

However, I'm hoping for a stock market crash before my purchase so I can put all my cash in the stock market then fully finance the Model 3 :)
 
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#32
I had always assumed I would buy outright, but a work colleague said why not lease? Go for a low-frills version (which moves me up the queue, bearing in mind I live in Oz), drive it for a couple of years or so, then order and buy one to keep that might by then be a facelifted version - if such a thing happens - and with all the early-production bugs ironed out. Who knows, the Y might be available to order by then, which could be tempting. Any thoughts?
 

garsh

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#33
I had always assumed I would buy outright, but a work colleague said why not lease? Go for a low-frills version (which moves me up the queue, bearing in mind I live in Oz), drive it for a couple of years or so, then order and buy one to keep that might by then be a facelifted version - if such a thing happens - and with all the early-production bugs ironed out. Who knows, the Y might be available to order by then, which could be tempting. Any thoughts?
What if the facelifted version isn't yet available when your lease is up? What if you find out the Y will be availalble in 4 years instead of 3? Why not buy it instead? That gives you more flexibility with timing. When a new vehicle is ready, you can either sell it or trade it in. I think it's a more flexible option than leasing.
 
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#34
Good points, so many variables. At the end of a lease, you have paid out over time of course but then have to hand the car back; when you trade in the vehicle you've bought outright, you also lose heavily when it comes time to sell. Leaving aside possible upgrades or changes to another model, there must be an economic advantage to going one way or the other. I haven't investigated this myself yet, so who out there has done the math?
 

BigBri

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#35
Good points, so many variables. At the end of a lease, you have paid out over time of course but then have to hand the car back; when you trade in the vehicle you've bought outright, you also lose heavily when it comes time to sell. Leaving aside possible upgrades or changes to another model, there must be an economic advantage to going one way or the other. I haven't investigated this myself yet, so who out there has done the math?
Tesla resale value tends to be among the best in the market. Hard to know with the 3 as it could end up saturating the market if demand slows down but if it remains a few months to get a customized car then resale will look pretty good.
 

garsh

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#36
...there must be an economic advantage to going one way or the other. I haven't investigated this myself yet, so who out there has done the math?
It generally works out like this:

When you lease a car, you have a lower monthly payment then you would if you buy a car. At the end of three years, with a lease, you have nothing. With a 3-year car payment, you still own a car.

I see two types of people getting car leases. First, there are the people who just like having new cars all the time. So they get a lease, and they're happy to trade it in after 3 years and get a different new car. Second, there are the people who can't afford a new car payment. They get a lease because it costs less. This is a mistake that puts them further into debt. Instead, they should be buying older, used vehicles. Then they could hang onto the vehicle, and build up their savings instead of going further into debt.

Ideally, you should save up money ahead of time, and pay cash for your vehicles (no monthly payment). Then if something does go very wrong (like you lose your job), you don't have to worry about missing a payment and having the bank repossess your car. You'll still have a vehicle that you can use. But it takes time and willpower to save up the money.
 

BigBri

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#37
It generally works out like this:

When you lease a car, you have a lower monthly payment then you would if you buy a car. At the end of three years, with a lease, you have nothing. With a 3-year car payment, you still own a car.

I see two types of people getting car leases. First, there are the people who just like having new cars all the time. So they get a lease, and they're happy to trade it in after 3 years and get a different new car. Second, there are the people who can't afford a new car payment. They get a lease because it costs less. This is a mistake that puts them further into debt. Instead, they should be buying older, used vehicles. Then they could hang onto the vehicle, and build up their savings instead of going further into debt.

Ideally, you should save up money ahead of time, and pay cash for your vehicles (no monthly payment). Then if something does go very wrong (like you lose your job), you don't have to worry about missing a payment and having the bank repossess your car. You'll still have a vehicle that you can use. But it takes time and willpower to save up the money.
Sound advice. I suggest to friends and family all the time to just buy what they can afford. I had one particular friend that bought a car at a 20% interest rate as his credit was terrible. He then bought another car a few years later to refinance the loan and get a 10% rate but of course he needed a more expensive car so the remaining loan could be folded over. Next thing he's got a 40k loan on a basic Mitsubishi.

I think leasing makes sense depending on the price of the car. Most luxury cars are leased as the owner (should) be able to afford the payments no issue and they'd usually rather just pay the depreciation then shell out 100k+ for a car that'll rapidly lose value. Plus most end up 'company cars'.
 

Badback

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#38
Leasing is typically a model for business. The entire lease payment can be deducted as an expense by a business. Leasing does not provide any equity for a private party, so you have no residual or trade in value at the end of a lease. You have lost the total of the lease payments. This would be fine if people saved the difference between the lease payment and a regular loan payment, but who does that?

I'm going to pay cash for my Model 3, then if I decide to upgrade to a later model, my only loss is depreciation.
 

MelindaV

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#39
To add to @garsh's comments, I've always heard leasing works out better for businesses for tax purposes (expense that you have no asset to show for it)

IMO, there are a lot of people thinking the only way to have a car for just 3 years is to lease, and they don't seem to think you can sell a 3 year old car.

So based on the Model S at $68,000USD, a 36 month (15k mile/year) lease with $6532 down and a $837 monthly payment will cost $36,664
The same Model S on a 72 month 1.49% loan with $11,350 down for the same $837 monthly payment will cost $41,482 at the 36 month point. A difference of $4818. (Sales tax would be additional - so for simplicity assuming we are all in Oregon or other tax free states ;) ) So for an extra $4818 up front, you keep the car. depreciation value* on a 3 year old car is 89%, so you still have an asset worth $60,520, that you owe $30,132 on, so have $30,388 of equity (plus having cashed in on the tax credit(s) )

Or in other words, you could return a leased car at 36 months and have paid $36,664 or you could sell a loaned car 36 months into it and it would cost you $11,094 (assuming you are still paying the 1.49% on the early payment).
So the leased car averaged to $1018/month to use and the purchased then sold at 36 months averaged $308 to use/month.

If you turn this the other way and base it on the 72 month loan timeline, the purchased car by loan would cost $71,614 and would own a depreciated 6 year old car. depreciation value* 65% for the value on a 6 year old car. So you have an asset worth $44200, or have paid $27,414 for using the car for the 6 years.
Assuming you have two back to back 36month leases on cars $68,000 you would be $73,328 for the 72 months, or $1714 more than the payments on a loan and $45,914 over the cost of driving a car on loan over the same 6 years.

I don't see any way a lease sounds like it makes sense to 'save' money.

*used this depreciation value chart WA uses for calculating excise tax


ETA - I was doing my math while @Badback posted - so what he said ;)
 

SoFlaModel3

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#40
I plan to top out in the high $40s, put down ~$5k and finance the rest.

Interest rates are so low and the market has been kind to me. I'm making substantially higher returns than the 2% interest I'll pay to finance the car!