Official Tesla Model S thread

[palmermd]

If you get laid off, then you sell it to pay the loan, at that point... Or borrow money from your house to cover it.

why not just borrow from the home in the first place in that situation and then write off the interest from the payments?

 

[mitch672]

If you get laid off, then you sell it to pay the loan, at that point... Or borrow money from your house to cover it.

why not just borrow from the home in the first place in that situation and then write off the interest from the payments?

Because I currently have no loan on the house(s), and I'd like to keep it that way
The home mortgage deduction is the next thing to go anyway, I wouldn't count on THAT for long, both sides would love to find a way to reduce or eliminate that deduction..
If I stay at my job, then the payments come out of your paycheck for a 401K loan, up to $50K

In 7 years I can start 401K withdrawals without penalties as well (age 59 1/2), so it's probably too close to pay penalties to get to the money.

 

[wwhitney]

why not just borrow from the home in the first place in that situation and then write off the interest from the payments?

FYI, mortgage interest on loans for purposes other than buying or improving a house is only tax deductible for the first $100,000 of principal.

Cheers, Wayne

 

[LTLFTcomposite]

Funny how these topics wander, of course I'm guiltier than most there.

Submitted for your consideration though, for now Tesla ownership is an experience best left to the financially well-heeled. In addition to being a very expensive car, which people are ill-advised to even be thinking of if they have to borrowing against their homes or retirement funding to finance in the first place, you should also consider the risks. As enthusiastic as folks here are, think about where you would be in some worst case scenarios like the car has chronic problems, Tesla fails, you're stuck with a car you paid upwards of $75k for that you can't get parts or service on and has a very low resale value. People who buy exotics face this sort of thing all the time but they don't care because they have so much money it doesn't matter.

Don't get me wrong I really hope Tesla is the next Apple, but I wouldn't try to compete with the rich folks to get one. The fact they called you back when you clicked add to cart but didn't proceed to checkout could be telling... maybe the backlog isn't never ending.

That said, it is only money. Suzie Orman would say you're nuts, but I recently heard a financial adviser say running out of money shouldn't be on overriding fear in life. You never know when you're going to get that call they want to talk to you about something that showed up on your last physical.

 

[cdub]

Submitted for your consideration though, for now Tesla ownership is an experience best left to the financially well-heeled. In addition to being a very expensive car, which people are ill-advised to even be thinking of if they have to borrowing against their homes or retirement funding to finance in the first place, you should also consider the risks.

Amen brother. My next car WILL be a Tesla... in 10 years when I've driven the heck out of my Leaf AND I can afford to pay cash for one.

 

[smkettner]

why not just borrow from the home in the first place in that situation and then write off the interest from the payments?

FYI, mortgage interest on loans for purposes other than buying or improving a house is only tax deductible for the first $100,000 of principal.

Cheers, Wayne

No such limit on the rental property. I would let the tenant pay for the Tesla long before taking early 401k distribution.

 

[Zythryn]

...and was just informed that because she isn't ordering the top-of-the-line configuration (300-mile range, $100k+ pricetag), she will be waiting an extra six months (early 2013)....

I'm very surprised she just found out. It has been widely publicized that they will be building and selling the cars from the most expensive orders first (signature performance, signature, performance, then standard 85 kWh, standard 60 kWh, standard 40 kWh). Somebody who places an order today for a performance car will be put in line ahead of a standard 60kWh that has had an order for a year or more.

Almost, but not quite. Signature first (all of which are 85kwh), then 85kwh, 60kwh and the 40kwh.
It is based on the battery pack size, not the overall cost.

And as you were, I am also surprised Eric's friend just found out, I thought this was announce last winter.

 

[mitch672]

why not just borrow from the home in the first place in that situation and then write off the interest from the payments?

FYI, mortgage interest on loans for purposes other than buying or improving a house is only tax deductible for the first $100,000 of principal.

Cheers, Wayne

No such limit on the rental property. I would let the tenant pay for the Tesla long before taking early 401k distribution.

That's my intention, but the lease for the rental is only for 24 months, and runs out March of 2014.
with that said, these are great tenants, and I'm sure they would be glad to stay and renew for more time, but I was thinking of moving into that house (which is about 1400 sq feet), and selling the Primary residence (which is too large for me at 4100 sq ft), that will throw off enough cash to cover any outstanding loans, thats for sure. I just need to get rid of a lot of my STUFF (don't get me started on a George Carlin rant now)

anyway, I would rather run out of money than life, as was said above, you never know when your time is up.

 

[palmermd]

Almost, but not quite. Signature first (all of which are 85kwh), then 85kwh, 60kwh and the 40kwh.
It is based on the battery pack size, not the overall cost.

That is what I wrote, but broke it down further.

 

[Boomer23]

The magazine reviews are compelling and welcome after such a long wait for the roll out of the Model S. Keep in mind that the test mags have yet to get much more than 10 minutes behind the wheel, and we'll learn much more about the way the S works as a daily driver when they get their hands on production models for a week. Read down the Autoweek review to the missing interior bits such as door pockets, rear cup holders, etc. I also wonder how that big touch screen will be to live with compared with dedicated and ergonomically placed switches and buttons.

My early take is that though it would be a thrill to own one, the S is a larger car than I want, need and can currently afford. My midrange plan leans toward a lease of a BMW i3 in 2014, and then hopefully Tesla's smaller, cheaper gen III sedan, codenamed Bluestar, in 2016 or 2017.

I get to ride along on a Model S test drive this weekend. Perhaps I'll be so blown away that I'll need y'all's advice to not go nuts and tap my IRA. :shock:

 

[DaveEV]

My early take is that though it would be a thrill to own one, the S is a larger car than I want, need and can currently afford. My midrange plan leans toward a lease of a BMW i3 in 2014, and then hopefully Tesla's smaller, cheaper gen III sedan, codenamed Bluestar, in 2016 or 2017.

I get to ride along on a Model S test drive this weekend. Perhaps I'll be so blown away that I'll need y'all's advice to not go nuts and tap my IRA. :shock:

My thoughts just about exactly. What day/time are you heading up to Space-X? I'll be there Saturday on a ride-along as well and hoping that there's time for guests to sneak a drive in, too, but that's probably got a snowball's chance in hell of happening.

 

[TomT]

The opening of Tesla's latest store:

"During our Grand Opening weekend, Tesla 3rd Street Promenade will showcase both our Model S Beta Prototype and Model X Design Prototype. Tours and technical demonstrations will be provided throughout the event."

Where: Tesla 3rd Street Promenade
1229 3rd Street Promenade
Santa Monica, CA 90401

When: Grand Opening Weekend Hours
Friday, June 29th, 10am-9pm
Saturday, June 30th, 10am-9pm
Sunday, July 1st, 11am-7pm

 

[Boomer23]

My early take is that though it would be a thrill to own one, the S is a larger car than I want, need and can currently afford. My midrange plan leans toward a lease of a BMW i3 in 2014, and then hopefully Tesla's smaller, cheaper gen III sedan, codenamed Bluestar, in 2016 or 2017.

I get to ride along on a Model S test drive this weekend. Perhaps I'll be so blown away that I'll need y'all's advice to not go nuts and tap my IRA. :shock:

My thoughts just about exactly. What day/time are you heading up to Space-X? I'll be there Saturday on a ride-along as well and hoping that there's time for guests to sneak a drive in, too, but that's probably got a snowball's chance in hell of happening.

I have a Sunday 1 pm invitation. Mine was very clear that only one test drive per reservation holder would be allowed. But we'll get to hear the entire pre-drive introduction and the in-car explanation from the Tesla driver. I'll be squeezed in the back seat between two other guys, so it'll be tight. I hope they provide Tesla-logo upchuck bags...

 

[Train]

Thinking of borrowing against your 401K for a car...wow. I need to get my virtual rubber chicken and start wacking some noggins. There's a whole host of reasons I can think of for not doing this, including, oh by the way, Tesla going bankrupt and insolvent. If the latest greatest Ipod/Iphone doesn't work well, you're out a few hundred bucks.

This is just a car, folks. A $57,000-$90,000 car whose company may not be in business to support it in a couple years. Whose batteries may have issues like a certain hatchback is having currently. A car that's going to take a serious depreciation hit after the love affair.

Unless you have that kind of money in cash that you could lose at Vegas right now and could aford to lose, don't do it.

Look, I agree it's a nice car. But some here are taking a leave of their senses. The euphoria that you get from taking that test drive will turn to some serious buyer's remorse once you sign any loan papers.

If you're even thinking of borrowing 60% or more for this car, walk around the block, take a few days off from MNL and Tesla forums, mix in some cold showers and if you are still thinking about financing a model S, strike yourself with a tack hammer.

This isn't even close. This isn't a third generation family business you're trying to save. It's a car. Don't finance a loan using your 401K balance. You'll regret it. Most sincerely.

 

[mitch672]

It's not a car, it's a cult. I think each person is more than capable of making their own decisions, regarding what they buy and how they choose to pay for it. In my case, perhaps you missed the part where I said I owned 2 houses outright (that means no mortgages)... Many of us are wealthy on paper, and are high net worth individuals, but perhaps not in cash. For some, borrowing your OWN money from your 401K makes more sense than getting a bank loan on a paid off house, and paying BANKERS interest. Also, putting down a $5K deposit which is fully refundable, on a car that is 12-18 months away from delivery is not that big a risk. By then, the Model S will be well proven (or not).

 

[LTLFTcomposite]

Thinking of borrowing against your 401K for a car...wow. I need to get my virtual rubber chicken and start wacking some noggins. There's a whole host of reasons I can think of for not doing this, including, oh by the way, Tesla going bankrupt and insolvent. If the latest greatest Ipod/Iphone doesn't work well, you're out a few hundred bucks.

This is just a car, folks. A $57,000-$90,000 car whose company may not be in business to support it in a couple years. Whose batteries may have issues like a certain hatchback is having currently. A car that's going to take a serious depreciation hit after the love affair.

Unless you have that kind of money in cash that you could lose at Vegas right now and could aford to lose, don't do it.

Look, I agree it's a nice car. But some here are taking a leave of their senses. The euphoria that you get from taking that test drive will turn to some serious buyer's remorse once you sign any loan papers.

If you're even thinking of borrowing 60% or more for this car, walk around the block, take a few days off from MNL and Tesla forums, mix in some cold showers and if you are still thinking about financing a model S, strike yourself with a tack hammer.

This isn't even close. This isn't a third generation family business you're trying to save. It's a car. Don't finance a loan using your 401K balance. You'll regret it. Most sincerely.

One size fits all financial advice can be flawed. Maybe you have a terminal illness and owning a Tesla is on your bucket list. Maybe owning a Tesla would bring you more happiness than anything else you could ever do with that money.

That's what used to be great about America. People made their own decisions and reaped the rewards or suffered the consequences. But it's good to talk about, gives people considering such a move things to think about.

 

[DaveinOlyWA]

It's not a car, it's a cult. I think each person is more than capable of making their own decisions, regarding what they buy and how they choose to pay for it. In my case, perhaps you missed the part where I said I owned 2 houses outright (that means no mortgages)... Many of us are wealthy on paper, and are high net worth individuals, but perhaps not in cash. For some, borrowing your OWN money from your 401K makes more sense than getting a bank loan on a paid off house, and paying BANKERS interest. Also, putting down a $5K deposit which is fully refundable, on a car that is 12-18 months away from delivery is not that big a risk. By then, the Model S will be well proven (or not).

+1 on this. ANY car purchase is a risk. why do you think GAP is so popular? because as soon as you buy the car, it is no longer worth what you paid for it..."most" of the time.

the S i am predicting will be a completely different story. there is some pent up demand that people might be willing to pay for. also, i believe that Tesla has proven itself to be accommodating to the various tech ills their cars have experienced as long as the owner follows basic common sense and the warranty which is pretty easy to do.

sure there is the case of the guy who destroyed his battery pack thru extreme negligence and although i am unaware of the ultimate outcome, imm, he had nothing coming. but have also heard about others who had issues where Tesla sent a tech to their house and Tesla bent over backwards to make it right.

unfortunately the bad generates the most buzz.

now, i have never borrowed more than $10,000 from my 401K and always do the one year payback plan but if you need some quick cash, i still say the 401K is a no-brainer.

now, both of the last 2 times i did it, my stock went down right after i took the money, so i did come out a bit ahead because in the year it took me to pay it back, neither time did it get back to where it was

 

[LTLFTcomposite]

ANY car purchase is a risk.

Actually it's pretty much a sure thing that any car will depreciate. Buy a Tesla, or a Leaf, or just about anything with the idea it will hold its value and you have a 99.9999999% probability of being disappointed. The Model S you own will never be as desirable as the new ones coming out of the factory.

 

[mkjayakumar]

Except that used Roadsters are selling at 150% the original price...but Roadsters are a different story.

There is one guy who apparently has two reserrvations and asking for $150K for a performance red Model S on the lower numbered one. Given that reservations are not transferable, it can only be sold as a used one.

 

[LTLFTcomposite]

Except that used Roadsters are selling at 150% the original price...but Roadsters are a different story.

There is one guy who apparently has two reserrvations and asking for $150K for a performance red Model S on the lower numbered one. Given that reservations are not transferable, it can only be sold as a used one.

It's not impossible you could make money on such a scheme, and if all you have at risk is the reservation the downside is limited. But if they really do start cranking out 100 cars a day, or even half that, would you really expect that price premium to hold up? At some point supply overtakes demand and there are plenty of cars to satisfy the demands of those who "just have to have one". A used one that is still a brand new car that just happens to have been titled is quite different from a two year old car with 20k miles on it that someone is expecting to sell for a premium on the premise of a supply shortage that no longer exists.