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
Let’s reframe this as a business decision—because, whether you realize it or not, your personal finances are a business. And the way you allocate capital today will determine your future financial flexibility.
The Opportunity Cost of a New Car
You’re looking at a 1.99% APR loan for three years. That sounds like cheap money, but let’s break it down:
- A new Model 3 costs ~$45,000 (depending on the trim). Even with a decent down payment, you’ll be financing a depreciating asset that will be worth significantly less by the time you’ve paid it off.
- Meanwhile, if you invested that same money, even at a modest 7% annual return, you’d have significantly more in three years.
- The opportunity cost isn’t just the sticker price—it’s what that money could have been doing for you elsewhere.
This is where wealth-building gets simple but not easy—most people don’t feel the effects of opportunity cost in the short term. You won’t wake up tomorrow feeling poorer because you financed a car. But over the next 10, 20, 30 years? The compounding difference between spending $600/month on a car vs. investing $600/month is the difference between financial security and financial freedom.
The Problem with Paying Interest on a Depreciating Asset
You’re paying interest on something that’s losing value every single day. That’s the opposite of what wealthy people do. Wealthy people finance assets that generate income, not ones that lose value the second they leave the dealership.
You already have a fully paid-off, reliable car worth $18,000. The smartest financial move isn’t replacing it with a more expensive, depreciating alternative—it’s maximizing the gap between what you earn and what you spend, and putting the difference to work.
How This Decision Affects Future You
Right now, you have $160K net worth at 27 years old. If you keep playing the long game, you’re on track to be a millionaire well before 40. If you take the same aggressive savings and investing mindset into your 30s, you could reach financial independence much earlier than most people ever will.
A new car feels good today, but how much better would it feel to be in your 30s with total financial freedom, where you can buy whatever car you want with cash and still have a million-dollar portfolio working for you?
The hard part of wealth-building isn’t knowing what to do—it’s having the discipline to do it when everyone else is spending money they don’t need to.
A Better Way to Scratch the Itch
If you really want to experience the tech, you could:
- Rent a Tesla for a weekend and get it out of your system.
- Wait for used prices to drop further (which they likely will, given the market).
- Allocate a percentage of your income for splurges, but keep big financial moves aligned with your long-term goals.
Bottom Line
Buying the Model 3 isn’t a bad decision—it’s just not a wealth-building decision. If your goal is long-term financial security and optionality, the better play is to keep driving your current car, invest the difference, and let your future self thank you.