Hey guys the new model 3 is now at 1.99 APR for a 3 year loan and I really want one for the tech (not cause it’s an EV or any political/environmental reason) I am 27M.
My current financials situation is I make 90k a year, net worth is 160k, no student loans, no mortgage, no credit card debt, no car deb [paid off] worth around 18k. I know car is a horrible financial decision but I don’t spend on anything. I know I could not buy one and keep saving/investing too but idk
Yes, technically you can afford to get the Tesla, but let’s take a step back and look at this from a different perspective. You mentioned that you know a car is a horrible financial decision, and you’re absolutely right. Here’s why:
A car, no matter how sleek or high-tech, is a depreciating asset. The moment you drive it off the lot, its value starts dropping faster than a lead balloon. And when you finance a car, you’re not only making payments on something that’s losing value but also paying interest for the privilege. It’s like setting your money on fire while paying someone to hand you the matches.
Now, I know the low APR is enticing, but don’t let that fool you. The real cost of that Tesla isn’t just the monthly payment – it’s the opportunity cost. Every dollar you sink into that car is a dollar you’re not investing in your future.
Think about it this way: if you took that same money and invested it in a total market index fund, you’d be setting yourself up for some serious long-term gains. The average annual return of the S&P 500 over the last 90 years is around 9.8%. That means if you invested the equivalent of your Tesla payments over the next three years, you could potentially have a nest egg worth significantly more than the car itself and which will compound for the forseeable future.
And let’s not forget, you already have a car that’s paid off and runs well. Why saddle yourself with unnecessary debt and payments when you’ve got a perfectly good ride?
I know it’s easy to get caught up in what everyone else is doing. Society tells us that success means having a shiny new car, even if it means signing away a chunk of our paycheck every month. But if you want to achieve real wealth, you need to overcome that conditioning and think differently.
The truth is, most people are stuck in the middle class because they’re too busy trying to keep up with the Joneses. They’re saddled with car payments, credit card debt, and little to no savings. But you have the chance to break free from that cycle.
By investing in your future instead of a depreciating asset, you’re setting yourself up for financial freedom down the line. And that, my friend, is worth far more than any car, no matter how cool it may be.