Can I afford a $38k Tesla model 3 on a $77k salary?
I’ve driven the same beater Toyota for 10 years and it’s starting to die. 26 years old, no debt, $125k in Roth retirement accounts, $25k in cash, no other real assets. Leaving DC to telework from parents’ house for a few months so no rent (temporarily at least). I’d put $10-15k down and the rest would be a 0% loan from Mom & Dad

likefunny
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Always good to treat yourself once you’ve got the rest of your financials set. Heads up it might come out to a little more then $38k.

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You can price out the car on Tesla’s website and see how much it comes out to so you’ve got a better idea.

likesmart

The car will cost you around 45k factoring in the automated self driving, taxes and delivery charges etc. For a 6 year loan it works out to be aroun 650 pm. Id you can afford that, go for it. Its a great car. Very well thought out and trchnologically advanced.

You will also need to invest an additional $1500 ( it could be more depending on the city you live in) on getting a charging port installed at home to charge the car.

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https://forums.tesla.com/forum/forums/cost-electrician-240-volt-outlet-installation

Tesla owners discussing the cost. Most people reported 200 to 500. Almost everyone agreed anything over 1,000 is unreasonable or only true for highly unusual circumstances. A few hundred bucks is far more likely than anything over 1k.

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0% loan sounds good, but just get a Honda or Toyota dude and drive it to the ground. Depreciating assets are always a bad decision, esp. when they’re close to 50% of your gross salary.

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Was any of your Roth account inherited? That's an impressive sum

likesmart

Thanks, nothing inherited but I had help that freed up other expenses so I could contribute early. Parents covered cell phone bill for a long time, helped with tuition, I stayed on their health insurance until last year, that sort of thing. I wanna say I’ve maxed the IRA every year since I was 17 and the 401k since I was 23

likesmart

How do you have so much $?

likefunny

Take your PTO and get a used car. Experiences>Things

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To me, if you’re going to Parental Bank Inc. for a loan, it automatically means you can’t afford it.

To each their own, but you are taking about buying a car this is half pretax income.

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Of course a 0% loan is better.

Part of my response was projecting my personal stance on borrowing F&F money, which admittedly I shouldn’t push on so apologies for that.

As far as the other metrics, yes I read them. Yes Op can “afford” the monthly payments to parents. But let’s not pretend like it makes good financial sense to buy a $40k car when you are making $80k regardless of the interest rate.

OP has a good jump on retirement, but admittedly has very little assets outside of that. Any plans on buying a house one day? etc.

I’m not a car person, so my advice is to figure out if the intangible benefits are good enough and go for it if so. Sounds like in this case they are.

But at least recognize it’s a good portion of post tax cash that is getting poured into a depreciating asset

Buy it yourself when you are ready financially.. you need to learn basic financial management and live in your means ... Even if parents are sweet enough..

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Everyone has their style. To everyone their own..

Yes, you can afford it.

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Do it

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I would say get a cheaper car! Wait a couple of years to get the Tesla. You are very close. Any unexpected changes could happen ex) career, travel, parents etc
Better to be safe than sorry. That Tesla will be there in a couple of years I promise!

You can get a cheap car and travel more. Or get a cheaper car and put that money towards a home. I like to think long term. Not judging you even if you do get a Tesla. Best of luck OP!

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You, mom, and dad can afford a Tesla. You, however, cannot. 🙃

likefunny

If you had taken that 25k and put in TSLA stock, you probably would have enough to buy the car now ...

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If you really want it and it's not a fleeting want, I'd say get it. If there's some features and other things you'd want that you are sacrificing in the short term then I would say wait a year or 2.

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No, get a car which is atleast one year old and has low mileage. Build emergency funds and invest the rest.

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You should get like $10k-$20k car. That Tesla will eat up so much of your cash flow.

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*already maxing IRA/401k/HSA

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Lol. This is the biggest flex of this morning.

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OP - I didn’t mean to make you feel bad, and it is totally okay to ask. Don’t let my insensitive comment give you bad day. It truly wasn’t the intention. I hope you get the Tesla and also enjoy it

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Save up and buy cash. You’re almost there anyway

Doesn’t matter. No need for debt in this case so why take on debt. Be free and pay your way

470ish lb ft of torque... sounds like fun... go for it!!!

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