Why almost everyone was wrong about Tesla’s cash flow situation • Hacker News Board

Re: Why almost everyone was wrong about Tesla’s cash flow situation

#11

Post by AllegedAlec » Fri, Oct 26, 2018, 2:39 PM UTC

anoncoward111 wrote: post #3

Serious question, and I'm not a Tesla hater either: Why does anyone spend $35,000 - $50,000 on a car? It just feels like a number that is at least 5x too high. A used car from a fairly reputable source can be had for between $3,000 - $6,000, depending on mileage and cosmetic appearance. My 2005 Ford Focus sedan was $3,000 and should last me about 3 years before I need to make a decision about major repairs, so that's…

I'm not a fan of electric cars, but I could see myself putting down such a sum of money for an old Mustang if I had the spending money. For people who spend such a sum of money, it's less about having a transport and it's more about hobbying with it.

Re: Why almost everyone was wrong about Tesla’s cash flow situation

#12

Post by wbrasky » Fri, Oct 26, 2018, 2:40 PM UTC

anoncoward111 wrote: post #3

Serious question, and I'm not a Tesla hater either: Why does anyone spend $35,000 - $50,000 on a car? It just feels like a number that is at least 5x too high. A used car from a fairly reputable source can be had for between $3,000 - $6,000, depending on mileage and cosmetic appearance. My 2005 Ford Focus sedan was $3,000 and should last me about 3 years before I need to make a decision about major repairs, so that's…

I am equally baffled by people's love of throwing money at cars. When I needed a "new" car two years ago, I asked my mechanic what sort of car they would want from a reliability/value standpoint. I was told Subarus or Toyotas not later than about 2007 were very nice. I spent 3 months watching used listings and wound up with a very low mileage 2006 Rav4 (for ~$10k) and it has been wonderful.

Re: Why almost everyone was wrong about Tesla’s cash flow situation

#13

Post by supergeek133 » Fri, Oct 26, 2018, 2:40 PM UTC

anoncoward111 wrote: post #3

Serious question, and I'm not a Tesla hater either: Why does anyone spend $35,000 - $50,000 on a car? It just feels like a number that is at least 5x too high. A used car from a fairly reputable source can be had for between $3,000 - $6,000, depending on mileage and cosmetic appearance. My 2005 Ford Focus sedan was $3,000 and should last me about 3 years before I need to make a decision about major repairs, so that's…

"Want" vs "Need" problem mostly.

There might be comfort features in a more expensive car someone wants, also, new cars come with warranties. Or even certified used tend to be more recent cars with warranties. Car repair can be one of the more expensive unexpected expenses. Not to mention depending on your commute and job detrimental to your life.

Do you live in an expensive area? Seems likes spending most of your income on food and rent at that income level is high.

Re: Why almost everyone was wrong about Tesla’s cash flow situation

#14

Post by snarf21 » Fri, Oct 26, 2018, 2:40 PM UTC

anoncoward111 wrote: post #3

Serious question, and I'm not a Tesla hater either: Why does anyone spend $35,000 - $50,000 on a car? It just feels like a number that is at least 5x too high. A used car from a fairly reputable source can be had for between $3,000 - $6,000, depending on mileage and cosmetic appearance. My 2005 Ford Focus sedan was $3,000 and should last me about 3 years before I need to make a decision about major repairs, so that's…

For the same reason people spend $1200 on a new phone to replace the $800 phone they bought a year ago.

Re: Why almost everyone was wrong about Tesla’s cash flow situation

#15

Post by madeuptempacct » Fri, Oct 26, 2018, 2:40 PM UTC

anoncoward111 wrote: post #3

Serious question, and I'm not a Tesla hater either: Why does anyone spend $35,000 - $50,000 on a car? It just feels like a number that is at least 5x too high. A used car from a fairly reputable source can be had for between $3,000 - $6,000, depending on mileage and cosmetic appearance. My 2005 Ford Focus sedan was $3,000 and should last me about 3 years before I need to make a decision about major repairs, so that's…

"Why does anyone spend $35,000 - $50,000 on a car? It just feels like a number that is at least 5x too high."

If someone makes $250,000+ a year, it's not unreasonable.

"My 2005 Ford Focus sedan was $3,000 and should last me about 3 years before I need to make a decision about major repairs, so that's less than $100 a month in ammortized costs."

That's completely unrealistic. You have some sort of competitive advantage (REALLY know someone trustworthy), or you are delusional. $3000 cars are generally very high mileage, unreliable, in poor condition, etc. Timing belts, suspension components, drive belts, starters, ac compressors, minor electronics, etc tend to start going on these cars.

"Are there really hundreds of thousands of people who are making $5,000+ a month necessary to justify the purchase of such an expensive vehicle? I'm not far from that number and most of my money still goes to food and rent."

I believe a car should be 3 months income at most. So no, I can't justify anything past a $10,000 car.

What I can say for sure is that unless you are a decent mechanic with tools or have GOOD friends / relatives that are, you shouldn't walk around espousing 3k cars. They just cost way too much in time.

Re: Why almost everyone was wrong about Tesla’s cash flow situation

#16

Post by BitterSweets » Fri, Oct 26, 2018, 2:40 PM UTC

anoncoward111 wrote: post #3

Serious question, and I'm not a Tesla hater either: Why does anyone spend $35,000 - $50,000 on a car? It just feels like a number that is at least 5x too high. A used car from a fairly reputable source can be had for between $3,000 - $6,000, depending on mileage and cosmetic appearance. My 2005 Ford Focus sedan was $3,000 and should last me about 3 years before I need to make a decision about major repairs, so that's…

Why buy a MacBook Pro for $2k+ when you can get by with a ChromeBook for $150?

Re: Why almost everyone was wrong about Tesla’s cash flow situation

#17

Post by phikai » Fri, Oct 26, 2018, 2:40 PM UTC

anoncoward111 wrote: post #3

Serious question, and I'm not a Tesla hater either: Why does anyone spend $35,000 - $50,000 on a car? It just feels like a number that is at least 5x too high. A used car from a fairly reputable source can be had for between $3,000 - $6,000, depending on mileage and cosmetic appearance. My 2005 Ford Focus sedan was $3,000 and should last me about 3 years before I need to make a decision about major repairs, so that's…

Outward appearance, vanity, they actually have the free cash, ignorance. There's a bunch of reasons people buy expensive cars... most of which don't make sense other than that's what they choose to spend their money on vs. whatever you've chosen to spend your money on.

It's also an entirely incomplete picture on their financial situation. Maybe they have a paid for living situation so this is their only liability, maybe they don't have any money in their savings account, maybe they don't have a retirement account.

And with Tesla it's probably even more complicated because there are some "feel good" motives to buying an electric car that may outweigh any sane financial decision.

Re: Why almost everyone was wrong about Tesla’s cash flow situation

#18

Post by [deleted] » Fri, Oct 26, 2018, 2:41 PM UTC

anoncoward111 wrote: post #3

Serious question, and I'm not a Tesla hater either: Why does anyone spend $35,000 - $50,000 on a car? It just feels like a number that is at least 5x too high. A used car from a fairly reputable source can be had for between $3,000 - $6,000, depending on mileage and cosmetic appearance. My 2005 Ford Focus sedan was $3,000 and should last me about 3 years before I need to make a decision about major repairs, so that's…

[deleted]

Re: Why almost everyone was wrong about Tesla’s cash flow situation

#19

Post by AllegedAlec » Fri, Oct 26, 2018, 2:41 PM UTC

I'm not sure I'm sold on the perspective that the worst Tesla detractors were actually just misinformed or wrong about the subject, rather than being actively malevolent by trying to gain money by shortselling while funding anti-Tesla articles.

Re: Why almost everyone was wrong about Tesla’s cash flow situation

#20

Post by Gitnumb » Fri, Oct 26, 2018, 2:41 PM UTC

anoncoward111 wrote: post #3

Serious question, and I'm not a Tesla hater either: Why does anyone spend $35,000 - $50,000 on a car? It just feels like a number that is at least 5x too high. A used car from a fairly reputable source can be had for between $3,000 - $6,000, depending on mileage and cosmetic appearance. My 2005 Ford Focus sedan was $3,000 and should last me about 3 years before I need to make a decision about major repairs, so that's…

I spent more than that on a car stereo. It's all relative and what you would consider "value", your financial health, and priorities.