How I Was Able To Afford A Tesla Model 3

How could I

afford

a $62,000 Tesla Model 3? I'll show them to you below. Hello fellow Tesla drivers Joey, this is a joy 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 incredible car and help future owners make an informed decision about their purchases. If you enjoy this video, consider subscribing today. I am NOT sitting on my

model

3 making a video. Instead, I'm making a video. on how can I pay for my Tesla Model 3, this was requested by many of you in my previous video when I shared how I decided to get my Tesla Model 3, how I decided to join the Eevee movement that I mentioned in that video.

I am by no means a rich woman. I'm in sales and all my previous cars I've owned have never been over $28,600, so this Tesla Model 3 is $62,000 with taxes and fees included. It's a big effort for me and many of you are curious how I was

able

to pull the trigger and get this car, so I'll make a

model

in a spreadsheet. I will share the exact purchase price, including all fees and taxes I paid. This is directly from my purchase agreement with Tesla and I will also share with you the financing terms I was

able

to find and, based on the current financing rate and the monthly payment I am making, how this will apply on the mid-range model. 3 and the base model so you can see what numbers you might be playing with and get an idea of ​​how much you might need to determine what kind of monthly payments you can expect now before I jump in and share the numbers I want.

To point out a very basic fundamental thing, you will have to start saving for a large purchase like this if you are like a regular person like me. I have also had quite a few young people, maybe in their 20s or even still in college I dreamed of this car and it is a great goal, but first of all you have to ask yourself if this car is feasible for me given my current financial situation before it came out the proof. My dream car was a Ferrari, but did it make sense for me? I didn't buy a Ferrari at all, so I had to settle for cheaper cars within my budget.

Same with the Tesla. Tesla is wonderful, great price, still very high and I wouldn't call it an

afford

able car right now. is the first assessment you should make for yourself if this is something you absolutely want and you can't wait for Tesla to produce a cheaper version in the future or for other automakers to catch up and start being competitive in making a type similar of cars so that you have more options and the market will reduce the price a little 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 booked it again a year later, from that time in 2016. I decided I was going to start saving for this car anyway. I went on a spree saving most of the time. I saved the sales commissions I earned at my regular job at the end of the day. I was able to pay in total for about half of my Tesla Model 3 in cash and then do the other half through financing. My goal was to keep my monthly payment the financing portion at around $500 per month I went out and did a comparison of all the financing rates so tip number 2 compare like crazy Tesla has its own partnership I think it's with Chase Bank when it comes to financing because Tesla doesn't Right now I don't have their own financing arm like all the other traditional auto companies do, so they partner with third party banks to offer these financing rates and these traditional banks, the rates they are going away are much higher than the credit unions, so this is something I learned through this search process I went out and searched the forum, you can search on Google, go to the Tesla owners forum, start ask Google about financing terms for Tesla credit unions, what kind of rates people are finding out.

I had a list of unfortunate ideas, take that list, but 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, you qualify for membership that kind of thing, so actually I would say probably around five. or six of these credit unions that I was shopping around, you have to keep an eye on these interest rates because they do change. I was month to month, if not week to week, so you have to keep monitoring, keep that list with you and as you approach your purchase date comparison store so you can lock in the best rate for you and then you can take it to try the lock with the check and you have the best rate locked in the rate I'm 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 predator nan is associated with UCSD alumni so I was able to get a membership there but I also looked at another one called many financial logics another called exceed financial California Credit Union and a few others but all of these They are credit unions, none of them were regular banks because, again, bank rates are too high, so I was able to get a benchmark of nine percent. interest rate with a term of 60 months, none of my previous cars I financed all of them, none of them had more than 48 months of financing term, so with this test that I bought, I not only had to save much more but also stretch my monthly payment term or financing term for one more year versus four years versus five years this is something to keep in mind some financial institutions some credit unions will offer 72 months 84 months of financing just so you can reduce your monthly payments Me personally No I recommend it because I want to pay off my car as quickly as possible.

I guess I'm a little old-fashioned that way. I've never leased a car and I'm not interested in leasing a car, the Tesla Model 3. right, no, it doesn't offer lease terms anyway, after six or seven years you're still paying off your car, yeah, frankly, that will be a pretty big burden because you know that the job market can change, something can happen to me, I can lose my job. So what am I going to do to make this car payment right? So, personally, I would keep it between 48 and 60 months of debt. That's my preference and my suggestions, but you do what you're comfortable with.

Okay, speaking, let's look at the numbers here. I have the real for of my rare long range all wheel drive model three with premium interior included with upgraded autopilot with the now discontinued metallic silver paint so here you will see the subtotal for this car with all options included is $ 55,000 and then you will have to pay another thousand dollars for documentation 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 twelve hundred dollars now last time I checked I could be wrong , but I hope you have additional fees coming from Tesla and then you add sales tax, so California sales taxes, like ten percent, are very expensive, so this part may vary depending on the form where he lives, but you know, I guess it's a good thing he lives in California. with this high tax rate so you can see the highest possible price so here's the ten percent California tax and that brings the price of the car to sixty one thousand dollars and six hundred dollars and on top of that you have the tariffs license fee for your vehicle, registration fees, and title fees, and that's another six hundred dollars and seven hundred and six hundred dollars, $617 on top of that, so the total of this total number that you have to pay Tesla in total is the initial price of sixty two thousand two hundred and seventeen dollars so yes 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 warehouse 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 dollars you can go ahead and order with that $2,500 and then I also traded in my old car now Tesla they are not like all the other traditional car companies and again they are revolutionizing not only the car companies in technology and Evie Weiss, but also their business model because there is no negotiation in the purchase of their cars, as if you walk into the dealership and then say it's $30,000.

I know I'm only going to offer $22,000. and you start haggling like that, not with Tesla, everything is ready, so this is actually another interruption of the description in them in the market, even the way they sell these vehicles, and there is another interruption, oh, that It's across their entire supply chain, you know. they control everything well, that's a completely different topic but the business side is really flexible so I mentioned that I had a 2008 BMW 328i and this is where comparison shops also come into play and I highly recommend it and told my coworker who does the same thing too, so bring your car to Car Max and get a free appraisal.

You're there for half an hour and 45 minutes, that's what I did, so I took my car to Car Max and they looked at it and said, "I'm going to offer you $3,000 for your car and they gave me seven days to agree to accept my car or not." car so I did this right before my Tesla's delivery date so I recommend you do this and then but 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. the uploads with titles and registration histories and all that, so actually Tesla came back with 30 five hundred dollars, so obviously I'm going to go for a higher one write a little bit of hacking I guess what's happening here now what my partner did. job was that neither Tesla nor Carmack offered him the price he really liked, so he listed it privately on a website and was actually able to get probably five hundred to a thousand dollars more than what the value would have been. commercial, so you have all these different options, but the point is to compare prices even on the trade-in, so now with all these right credits that I have for Tesla, that works out to seventy-two. one hundred dollars and that brings my delivery total down to fifty five thousand and 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 and a wire transfer It was twenty-five thousand and seventeen dollars, this is the largest cash transfer I've ever made in my life so far, so yeah, with cash financing and the exchange is here, you see, this is how it all adds up to sixty-two thousand. two. one hundred and seventeen dollars in total, so I had to save in total twenty-eight thousand five hundred and seventeen dollars, but I guess it was good that they took pieces little by little, so with $1,000 and $2,500 and then the big part I didn't feel like I actually paid $28,000, but now I'm looking at it, yes, I paid out of pocket twenty-seven thousand five hundred and seventeen dollars in cash, now let's talk about the rebates and incentives that I was able to get.

I think the Tesla Evy incentives, the Federal Credit will start to face on January 1, 2019 where it will start to be reduced by half or a quarter and then another half and then it will disappear, so I feel bad for the people who are resist. for the base model because you were counting on this but it didn't happen. Yes, I feel bad for you and I am really sorry that Tesla played us like that because I was hoping that the $35,000 based model would also be another one. conversation, but looking at the rebates that 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 received approval. two days ago and my check should be here in another 90 days so it's a long road but I'll get a $2,500 refund and then in 2018 when I file for Texas for 2018 I'll get that full $7,500 federal credit and Then I also found out that my utility company Southern California Edison actually gave you a four hundred and fifty dollar incentive just for watching TV, so also look and ask your utility company if they offer any kind of incentive just for having a television, so I was able to recover another $450 that I already received, so my total cost reduction is ten thousand four hundred and fifty dollars and that reduces the actual cost of my Model 3 to fifty-one thousand seven hundred and sixty-seven dollars, so it's a little bit better than the sixty two thousand, but it's still twice as much as any other car I've bought before, so now I look at the terms offinancing that I mentioned earlier, the sixty-month interest rate at two hundred twenty-nine percent and my monthly payment.

Right now it's at five hundred and thirty dollars, which isn't that bad. Okay, 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'm comfortable with this $530 monthly payment, what if I got the mid-range model? So here I am, you know, again, making assumptions right now, the mid-range Model 3 starts at $46,000, let's say I keep everything basic. 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 now you're looking at $46,000, even if you don't have all those options, it's still an awesome car. have just to drive, maybe you still have the safety features, you get that instant torque fun, so don't think that you have to have all the options to be able to enjoy a Tesla because now you will assume that the destination and the documentation, the taxes and the License fees are all the same and if you add it all up for the mid range you are looking at fifty two thousand. three hundred and seventeen dollars and now, if you make an order deposit of two thousand five hundred dollars and then let's say I still keep my models, not the models for me, my BMW 320, I sell it for so much $3,700, then the total credit would come out to sixty two hundred dollars. and that means that when I go to pick up my mid-range I will have to give them forty-six thousand one hundred and seventeen dollars now let's say that I keep the financing at thirty thousand dollars with the same monthly career payment then the cash I give it is sixteen thousand one hundred and seventeen dollars Now if you look at the big picture, thirty thousand total cash funds you'll have to come up with is $18,617 and then you have your car trade-in, which is still quite a lot for most. people to save that eighteen thousand dollars, but maybe you can ask around, maybe younger people for your parents, maybe they can help you.

I know my coworker did that and now she is paying her mom. You know there are other ways to do it. get money that way or just start saving really 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. well because I'm losing weight and I'm saving money and I can afford this car so I'm on a Tesla diet. Now let's look at the reduction of incentives and rebates, assuming we are still getting in California $2,500 and then your federal tax credit will start to be addressed directly in January you will receive half of the $7,500 and I still get my evie incentive credit from utilities from Southern California Edison, then the total reduction is sixty seven hundred dollars and that means that the actual cost of the model 3 is forty-five thousand six hundred and seventeen dollars, that's actually not that 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 make a little more sense and a little more affordable for people so something to consider and finally let's take a look at a look at the base model, so let's say the base model costs $35,000 with no other options again, you don't need all the other fancy stuff to enjoy Tesla. an amazing car just get the base model and enjoy all the other benefits and with destination fees, doc fees, taxes, license and registration you are looking at the base model being forty thousand two hundred and seventeen dollars total again the price Rates may fluctuate. but this is based on what I paid, so to get an idea now let's say you make a deposit of two thousand five hundred dollars to order that car and configure your car and then you make another transaction again based on my BMW 328i transaction.

At seventy thirty seven hundred dollars, the total credit is still sixty two hundred dollars, the same as the mid-range, so now that means that when I go to pick up my car at Tesla I would need to come up with thirty-four thousand and seventeen dollars to pick up my car and again assuming I'm okay with maintaining my sixty month financing term of five hundred and thirty dollars monthly payment at the current rate again, that rate may fluctuate depending on when that rate locks in, but let's say I'll keep this as the same, so the cash delivery is four thousand dollars, now that's a more achievable goal, I would say even for younger people, so if you really stick with it, maybe you know how to take a second job and we can, and all that, do a test.

I had that four thousand dollars is doable, but if you look at the big picture with financial trading, the cash you have to come up with is sixty five hundred dollars in total, so it might be achievable now, considering the rebase we assumed. The California two and a half thousand rebate is still in effect and then the federal tax credit has been phased out so you don't get anything right and you still get some of the incentives from the utility companies, your total cost reduction is around of three thousand dollars, so that gives you The actual cost of your model three at thirty-seven thousand two hundred and sixty-seven thirty-seven thousand two hundred and sixty-seven dollars again, that's actually not that bad again, it's comparable to a Nissan Fully loaded Maxima, maybe I would say, or a you know, bass. ends BMW's entry level so this is starting to go down and looks like it could reach more people so there's the comparison between the rare all wheel drive standard model three that I have with mid range and also With a base model, the type 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 you can keep paying for this car if you really want it. I've seen people posting on YouTube. sharing that they are actually super drivers in their model three to earn supplemental income, you can do that there are people who list some of their Teslas in Rho T u ro so that people can rent them by the day, you can do that, there are other ways to help . to complement the purchase and reduce the cost and help you make the monthly payments so these are some of the ideas that maybe you can consider one last thing I want to mention is that you will not have to worry about the maintenance that I do not take out any possible changes oil, timing belt change, brake pad change or any of the possible breakdowns in my calculation because you don't have to worry about any of that, you can also take it into account and put it on the scale and weigh them. and see if it will make sense for you to take the plunge right now and bite the bullet and get model three once again.

Thank you very much for stopping by my channel and watching this video. If you like this video, what I have to share, please go. Go ahead, subscribe now and hit the bell so you get notified when I share new videos make a comment like this video share it with your friends. I love interacting with all of you and getting new ideas for future videos until next time. blessed week to all