How I Was Able To Afford A Tesla Model 3Jun 01, 2021
How could I
afforda $62,000 Tesla Model 3? I'll show you soon, hello my fellow Tesla Joey drivers, this is my pleasure if this is your first time visiting my channel. Welcome. I share videos about my experience as a Tesla Model 3 owner to help. Current and new owners learn more about this amazing car and help future owners make an informed decision about their purchases. If you enjoy this video, please consider subscribing today. I am NOT sitting in my
model3 making a video. Instead, I'm making a video. on how can i
model3 this has been requested by many of you in my previous video when i shared how i decided to get my
teslamodel 3 how i decided to join the eevee movement i mentioned in that video that i am by no means a rich woman.
I sell sales for a living and all my previous cars I've ever owned were never more than $28,600, so this Tesla Model 3 is $62,000 including taxes and fees. A really big stretch for me and many of you are curious about how I was
ableto pull the trigger and get this car, so I'll do some modeling in a spreadsheet. I will share the exact purchase price including all fees and taxes that I paid and this is directly from my purchase agreement with Tesla and I will also share with you any financing terms that I was
ableto find and based on the current financing rate and payment what I'm making, how will this apply to the midrange 3 model and the base model so you can see what numbers you might be playing with and get an idea of how much you may need to determine what kind of monthly payments you can expect now before come in and share the numbers I want.
To point out one very basic fundamental thing, you're going to need to start saving up for a big purchase like this if you're a regular person like me. I've had quite a few young people too, maybe in their 20's or even still in college dreaming of this car and it's a great goal, but first of all you have to ask yourself if this car is feasible for me given my current financial situation prior to the proof. I left. My dream car was a Ferrari but was it sensible to not buy myself a Ferrari at all so I had to settle for cheaper cars within my budget so same with Tesla Tesla is wonderful it is great in Price wise it's still very high and I wouldn't call it an affordable car right now. is the first assessment you should do for yourself if this is something you absolutely want and can't wait for Tesla to produce a cheaper version in the future or for other automakers to catch up and start to get competitive to make a similar type of cars so you have more choice and the market will bring the price down a bit and make it much more affordable then the first thing is to start saving.
I shared again in my previous video how when Tesla first announced the Model 3 in 2016 I made the $1,000 reservation even though I canceled our reservation and then reserved it again a year from then in 2016. I decided I was going start saving for this car anyway. my sales commissions from the Commission I earned at my regular job I saved at the end of the day I was able to pay in total about half of my Tesla Model 3 in cash and then make the other half through financing my goal was to keep my monthly payment the financing portion at about $500 a month I went out and did a comparison shot on all the financing rates so tip number 2 shop around like crazy.
Tesla has its own partnership, I think it's with Chase Bank when it comes to financing because Tesla doesn't. They don't have their own financing arm right now like all the other traditional car companies so they partner with third party banks to offer these financing rates and these traditional banks the breakout rates are much higher than co-ops credit, so this is something I learned through this search process. I went out and searched the forum. You can google this. Enter the Tesla owners forum. Start asking on Google. Financing Terms for Tesla Credit Unions. I had a list of various credit unions in California and even outside of California, but if you can make a donation to a zoo there, then you qualify for membership in that kind of thing, so I actually had, I'd say probably About five or six of these credit unions that you were shopping around, you have to keep watching these interest rates because they change.
I went month to month if not week to week so you need to keep monitoring keep that list with you and as you approach your shop date comparison store so you can secure the best rate for you and then you can take that to test the lock with the check and who has the best rate locked in rate i am going to share is through a credit man i found call us e credit union based in san diego. I went to UC San Diego so this predatory nan is associated with UCSD alumni so I was able to get a membership there but I also looked up another called much financial logic another called exceed financial California Credit Union and a few others but these are all credit unions none of them were regular banks because again bank rates are too high so i was able to get a benchmark nine percent interest rate for the 60 month term none of my previous cars i financed them all none of them went past 48 month financing terms so with this trial I bought I not only had to save a lot more but also stretch my monthly term or financing term by another year versus the four years versus the five years this is something to keep in mind some financial institutions some credit unions will offer 72 months 84 months financing just so you can lower your monthly payments i personally don't recommend it because i want to pay off my car as fast as possible i guess i'm a bit old fashioned in that regard I've never leased a car and I'm not interested in leasing a car the Tesla Model 3 true no they don't offer lease terms anyway after six or seven years you're still paying for your car yeah that's going to be quite a burden frankly because you know that the labor market can change something can happen to me I can lose my job so what am I going to do to make the correct payment for this car?
So personally I'd keep it between 48-60 months debt that's my preference and suggestions but do what you're comfortable with well enough speaking let's look at the numbers here I have the actual of my model three long range drive on the rare wheels with premium interior included with upgraded autopilot with the now discontinued silver metallic paint so here you see the subtotal for this car with all options included is $55,000 and then you have to pay another thousand dollars for paperwork and fees charged by Tesla nine hundred and twenty five dollars for destination fee seventy five dollars for documentation fee I think the fee went up to one thousand two hundred dollars now that last time I checked I might be wrong but I hope to have those additional fees coming from Tesla and then tag the sales tax so california sales tax like ten percent is very expensive so this part can vary depending on where you live but i guess its a good thing that you are living in california with this high tax rate so you can see the highest possible price so here is ten percent California tax and that brings the price of the car up to sixty one thousand dollars and six hundred dollars and on top of that you have your vehicle license fees, registration fees, and title fees, and that's another six hundred dollars and seven hundred six hundred dollars $617 on top of that, so your total, the total number you have to pay per tesla in total, the starting price is sixty two thousand two hundred and seventeen dollars so yeah very expensive now i made the reservation in april 2017 so they already took a thousand dollars from me and then when they opened the deposit for the actual order and started designing my car in June they required a lot of $2,500 so now you don't need to pay that thousand bucks you can go ahead and order with that $2,500 and then I also traded in my old car now Tesla is they are not like all the other traditional car companies and they are again revolutionizing not only the car companies in technology and Evie Weiss, but also their business model because there's no bargaining on your car purchases like you know you walk into the dealership and then say you know it's $30,000.
I know I'm only going to offer $22,000 and you start haggling that way not Tesla it's all set up so this is actually another description of the disruption in them in the market even the way they're selling these vehicles and there's another disruption oh so that's in its entirety you know the supply chain so they control everything well that's another topic but the business part is really flexible so I mentioned I had a BMW 2008 model 328i and this is where the comparison shop would also come in and I highly recommend it and told my coworker to do the same too so take your car to Car Max and get a free evaluation it will be there for Half an hour and 45 minutes, that's what I did, so I took my car to Car Max, they looked at it and said us.
I'm going to offer you $3,000 for your car and they gave me seven days to agree to take my car or not so I did this right before my Tesla delivery date so I recommend you do this and then but at At the same time I also told Tesla that I would like to trade in my car and they ask you to take pictures and upload them with titles and registration histories and whatnot so actually Tesla came back with 30 five hundred dollars so obviously I'm going with a higher one. writes some hacking i guess its going on here now what my coworker did was neither tesla nor carmack offered him the price he really liked so he got privately listed on a website and on reality you were able to get probably like five hundred dollars to a thousand dollars more than what the trade value would have been so you have all these different options but the point is to compare stores even on the exchange so now with all these right credits i have for Tesla, that works out to be seventy-two. one hundred dollars and that brings my total down to fifty five thousand seventeen dollars and I went ahead and financed thirty thousand dollars through the credit union so the total cash I had to pay I did an ACH transfer, one wire transfer was twenty five thousand and seventeen dollars this is the biggest cash transfer I've ever done in my life so yeah so with the financing with the cash and exchange is here you'll see that's how it all add that sixty two thousand two total price of one hundred and seventeen so I had to save total twenty eight thousand five hundred and seventeen dollars but I guess it was okay that they took parts little by little oh so with $1,000 and $2,500 and then the much of it i didn't feel like i actually paid $28,000 but now i'm looking at it yeah i paid out of pocket twenty seven thousand five hundred and seventeen dollars in cash now let's talk about the rebates and incentives i was able to get i think the tesla evy incentives that federal credit will start to go face january 1, 2019 where they will start to halve or quarter and then another halve and then go away so i feel bad for the people who hold on. for the base model because you expected this, but it didn't happen. conversation but looking at the rebates I think I can get in California in all the other states you guys probably have other programs and you can look into how in California they offer this $2,500 clean vehicle rebate I just got approved like two days ago and my check I should be here in another 90 days so it's a long way but I'll get $2,500 back and then in 2018 when I apply for Texas for 2018 I'll get that full $7,500 federal credit and then I also found out that my utility, Southern California Edison they actually gave you a four hundred and fifty dollar incentive just for watching tv so also look around and ask your utility company if they offer any type of incentive just for having a tv so I was able to get back another $450 that I already have so my total cost reduction is ten thousand four hundred and fifty dollars and that brings the actual cost of my Model 3 down to fifty one thousand seven hundred and sixty seven dollars so it's a bit of a little better than sixty two thousand but still twice as much as any car i have ever bought before so now i look at the financing terms i mentioned earlier sixty month interest rate at two hundred and twenty nine percent and my payment month at the moment is at five hundred and thirty dollars, which is notit's so bad alright now let's look at the mid range so let's say I want to keep my financing term the same because you know I have this rate locked in and I am comfortable with this monthly payment of $530 what if I got the mid-range model?
So here I am, just, you know, making assumptions right now, the mid-range Model 3 starts at $46,000. Let's say I stick with all the basics. no autopilot no you know white seats no fancy paint I don't understand why they charge for paint two three no wheel upgrades so you're looking at $46,000 now even if you don't get all those options , still an awesome car just to drive maybe still have the safety features get that fun instant torque so don't think you have to have all the options to be able to enjoy a Tesla because now you will assume that a destination tax and documentation and license fees are all the same and if you add it all up for the midrange you're looking at fifty two thousand three hundred and seventeen dollars and now if you make an order deposit of twenty five hundred dollars and then let's say I still have my models, no models for me my BMW 320 I traded in for so many $3,700 so the total credit would come out to sixty two hundred dollars and that means when I go to pick up my mid range I will have to give them forty six thousand one hundred seventeen dollars now lets say I keep the financing at thirty thousand dollars with the same race monthly so the cash I make delivery is sixteen thousand one hundred and seventeen dollars now if you're looking at the big picture thirty thousand total cash financing you'll have to get is $18,617 and then you have the change of his car which is still enough for most people to save that eighteen grand but maybe you can ask for younger people for your parents maybe they can help you I know my coworker did that and now he's paying him to his mother, you know there are other ways to do it. get money that way or just start saving really just start saving and I tell people I'm on a trial diet now so no I just go to Trader Joe's once or twice a week and buy their 399 499 salads for lunch is ok because I'm losing weight and I'm saving money and I can afford this car so go on a Tesla diet ok now let's look at reducing incentives and rebates assuming we still get California $2,500 and so your federal tax credit is starting to show directly in january you get half of the $7,500 and i still get my edison southern california utility incentive credit so the total reduction is sixty seven hundred dollars and that means the actual cost of model 3 is forty five thousand six hundred and seventeen dollars that's actually not too bad I would say if you're looking at a luxury brand like BMW Mercedes od that's really comparable so I think this is starting to have a little more sense and a little more affordable for people so something to consider and finally let's take a look at the base model let's say the base model is $35,000 with no other options again you don't need all the other fancy stuff to enjoy Tesla is an amazing car just get the base model and enjoy all the other benefits and with destination fees, documentation fees, taxes, license and registration you are looking at the base model is forty thousand two hundred seventeen dollars total again the price the rates can fluctuate but this is based on what I paid so just to get an idea now lets say you put down a twenty five hundred dollar deposit to order that car and get your car set up and then you get another one done trade-in based on my trade-in of BMW 328i at $737, the total credit is still $62, like in the mid-range, so that now means that when I go to pick up my car at Tesla, I'll need $34,000. seventeen dollars to pick up my car and again assuming I'm okay keeping my sixty month financing term of five hundred and thirty dollar monthly payment at the going rate again that rate can fluctuate depending on when I lock in that rate but let's say I'll keep this the same as cash down four grand now that's a more achievable goal i'd say even for the youngest people so if you really put up with it save up maybe you know to take a second job and we can and other things go to a test thought I had that four thousand dollars is doable but if you look at the big picture with the financing trade the cash you have to get is sixty five hundred dollars total so it might be accessible now looking at the rebase, assuming the California twenty five hundred rebate is still in effect and then the federal tax credit was phased out, so you don't get any of that right and you still get some of the incentives from the utility companies. the actual cost of your model from three to thirty seven thousand two hundred and sixty seven thirty seven thousand two hundred and sixty seven dollars again which is actually not that bad again is comparable to like a fully loaded Nissan Maxima I would say, or you know low-end entry level BMW so this is starting to wind down and looks like it could reach more people so there you have it the comparison between the rare standard three wheel drive model that i have with the mid range and also with a base model the kind of cash you will need to get and the monthly payments you can expect to have now there are a couple of ideas i guess continue to pay for this car if you really really want to i have seen people posting on youtube share that they are actually uber drivers in their model three for supplemental income you can have people list their Tesla some in Rho T u ro so people can rent them by the day you can have there are other ways to help complement the purchase and reduce the cost and help you make monthly payments, these are some of the ideas that you may want to consider.
One last thing I want to mention is that you won't have to worry about maintenance. Please put any possible oil change, timing belt change, brake pad change or any of the possible breakdowns off in my calculation because you don't have to worry about any of that, you can also factor that in and put it on the scale and weigh them and see if it would be sensible for you to jump right now and bite the bullet and get the model three one more time, thank you very much for visiting my channel and watching this video. go ahead and subscribe now and bring that bell to get notified when i share new videos comment like this video share it with your friends i love interacting with all of you and getting new ideas for upcoming videos until next time have a blessed week everyone
If you have any copyright issue, please Contact