I have a car question. I want to get a Tesla Model 3, but I don't have a ton of money laying around anymore at this juncture after all of my other life expenses. I also don't particularly need this car, and it'll likely have to wait. Goal is to get this done by 2024 at the latest, and maybe as soon as next year if I can work something out.
What's the smartest way to go about achieving such a thing? Like, save up and make a big downpayment, then a monthly payment like any other car? I feel like the interest on a $40k car would kill me. I've had interest on $20k cars before and that already felt like $200 a month down the toilet.
What about getting a used one? Would that be a smart thing to do? I'd rather go new, unless the price difference is just that massive.
Right now I've got a 2018 Mazda 3 with very low mileage (50k or so). It's fantastic and in perfect condition. I'm thinking what I'll do is try to keep the Mazda 3's mileage on the low end and sell it whenever I'm ready to make the switch. It's going to take me a bit longer to pay it off, though, which is the main obstacle in this whole thing. I still owe about $10k there.
I'm sure I could get $10k for selling it easily, maybe a little more, especially if I sold it this year rather than say 2024. However that would merely pay it off and leave me with nothing and no car.
Instead I'll start a "car fund" and throw some USD in that whenever I've got some extra. Whenever crypto has a spike I can take some off the top from there and throw it into the car fund as well. Currently the majority of my extra money goes to crypto investments as it is, so I'll need to stop adding funds to those accounts for a while and put new deposits towards the car fund. I'll also keep making payments on the car and keep it in good condition.
Once the car fund has $10k in it and the car itself is mostly (or fully?) paid off, I can sell the car and then go drop a $20k down-payment on the Tesla, which would leave me owing around another $20k which I'll then go on a payment plan with and so on. If I slash the price in half right from the get-go I don't think interest will be that much of an issue.
TL;DR: I'll probably be spending like $800 a month on car stuff for the foreseeable future to both pay off my existing car and beef up my new car fund enough for a downpayment.
I'll take any advice on making this crazy plan work
Never overextend yourself financially to buy a car. Also, look at total cost of ownership, NOT monthly payment.
In terms of used..Tesla 3's used bring a premium price...best to buy new. Also, you DO NOT WANT to be holding a Tesla out of warranty. Repair prices are huge and wait times for parts can be lengthy. Warranty on a Tesla 3 is 4 years/50k.
I did the math on a Corolla L (base model) vs Model 3 (base model). I assumed excellent credit, 15k miles a year driven...and the Tesla 3's total cost of ownership after 48 months was $4.5k LESS than a Corolla. This assumes the resale value of a Tesla 3 holds to current values 4 years from now...there's no way to accurately project that. I also added the cost of a Tesla home charger into the mix. This also assumes people even buy used Tesla 3's at all. I know exactly nothing about the used Tesla market other than the fact the prices are high.
Your car is worth $14k now. It is a good time to sell, because you will have $4k in your pocket vs nothing later on.
On paper, ASSUMING resale value is the same 4 years from now, a Tesla 3 isn't a bad buy at all. Of course, if the used prices on them shit the bed, you are fucked.
I don't speculate on crypto at all, but if I had..say...$16k tied up in it, I'd cash it out now and sign up for a Tesla 3. With crypto, you could fuck yourself selling it, or you could fuck yourself keeping it.
You'd need wheels in the interim. The local Craigslist here is full of usable cars from $1-2k. Lead times on Tesla 3 is long. Buy a clunker, drive it until your 3 comes in, then sell it for what you paid for it.
Depending on how much you drive and your proximity to a Supercharger, you can save a decent chunk of cash every month with a Tesla vs gas.
