Can You Afford A Tesla?
There has been some research that indicates 40% of Tesla buyers have never before purchased a new car for more than $60,000.
I am a perfect example of these buyers. I have never purchased a new car for more than $42,000 before I purchased my Tesla Model S.
At least 40% of Tesla buyers stretch to afford to purchase a Tesla.
Some people believe that only wealthy exotic car buyer would purchase a Tesla.
Data does not support this myth.
Most people who purchase a Tesla would NEVER purchase any other car for more than $60,000.
They would only stretch to specifically purchase a Tesla and no other expensive car over $60,000.
That is definitely true of myself!
At the time I purchased my newest 2015 Tesla Model S P85D, financing could be obtained for just 2.5% interest.
My 2015 Tesla Model S P85D was fully loaded with just about every option available except for the Sun Roof and the 2 rear jump seats for
children. Other than that, we configured it with just about every option available, even the Executive Rear Seats.
Monthly payments would be just a bit under $2,000 per month.
A rule of thumb says that your monthly dept payments should be no more than 30% of your monthly income.
Thus, to qualify for a $2,000 monthly loan you should have at least $6,000 per month income.
That would be an annual income of less than $100,000 per year.
For high tech areas like Silicon Valley, Los Angeles, New York City, Washington-DC, Chicago, Boston, etc., that is pretty easy to achieve.
Any professional or manager in any of these cities, and many other cities, earns more than $100,000 per year and would qualify for a
car loan for a $100,000 Tesla. Rent, mortgage, and other debt payments would require that a person have a higher income level to qualify
for a $100,000 car loan. But in any high tech or high cost of living city where professional salaries just begin at $100,000 per year,
there is going to be a huge population that can afford to finance a $100,000 car even after other debt payments.
The base of people who can afford a car loan on a $100,000 Tesla is pretty huge, much bigger than the number of people who have already
purchased a Tesla. Anyone who earns at least $100,000 per year ($8,333 per month) can afford a monthly $2,000 car loan payment, and among
all the high tech and managerial jobs in this nation there are a huge number of people who earn at least $100,000 per year. That does not
make one wealthy and one does not have to be wealthy to afford a Tesla. One might have to stretch and allocate more of their budget than
they normally would to afford the car, but it is doable. And after 5 years, your loan is paid off and you own the car out right.
And in this analysis, we haven't even begun to consider the savings on fuel and maintenance, and so far the tremendous preservation of
resale value of the Tesla. Personally I was shocked at how much my insurance payments dropped on my new 2015 Tesla Model P85D. I guess
it is so full of safety and collision avoidance features that my insurance company figures it is a really low risk. There have been some
calculations that if you buy a Tesla and keep it for ten years, you will pay a lot less overall than if you had purchased a $50,000 car
and had to pay for fuel, maintenance, insurance, and then get a lower resale value.
So, stretch today to afford a $100,000 Tesla vehicle and in the long run, end up paying less than if you had paid $50,000 for some
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