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

arstechnica.com

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

#31

Post by jartelt »

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…

A lot of new cars these days start out at $20-25k. I imagine a lot of people are interested in the $35k Model 3 because it will have lower ownership costs than a gasoline car, is more fun to drive, and is neat. When you take that into account, the difference between a $25k gasoline sedan and $35k Model 3 is not THAT big.

I used to do the whole used car thing, but at this point in my life I spend more to feel safer and to be more comfortable. I still have never spent more than $25k on a car, but I definitely want to drive something that I am confident will not break down.

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

#33

Post by rootusrootus »

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…

There are as many reasons as there are people, I don't know if you could really generalize an answer. I spent $40K on my current car because I'm an enthusiast and it puts a smile on my face every time I drive it that a 15 year old Focus definitely would not. To each their own. And in the grand scheme of things, the monthly payment (on a 1.9% loan) is about 3% of my income. As long as I meet my goals for savings, I don't really feel guilty about spending some money on stuff I enjoy.

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

#34

Post by b1r6 »

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…

Yeah I'm too frugal to spend like that on a car. At some point I'll buy a used Model 3...once it costs 30% of that.

For now I love my 40mpg and low maintenance and insurance costs of a 10 year old hybrid Civic.

But you have to think about all the people who buy cars for other reasons...supposed signaling, the impression it gives others, devout brand loyalty, good old consumerism... There's just so many reasons that are "misguided" from a financial perspective, but logical from the personal perspective.

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

#35

Post by zeptomu »

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…

It is true that at the moment a conventional (non-electric) vehicle is cheaper. However some people do want to own a car that has a lower negative impact on the environment and are willing to pay more money for that (which is a good thing).

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

#36

Post by ansible »

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 recently bought a new car that was less than that, but still in the $20s.

I had previously been driving old cars, which was OK, but I had never bought a new car before, so it was nice from that perspective.

It also had some features that I wanted and do appreciate. Like Bluetooth, USB audio storage, and various safety features. Excellent fuel economy too.

I plan on keeping it 15 years and/or 200K miles, or more, so the amortized cost isn't bad. Given my age, it is likely the only and last new car I'll ever purchase, because I'm sure the driving landscape will be substantially different than it is today.

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

#37

Post by [deleted] »

madeuptempacct wrote: post #15
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 advantag…

[deleted]

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

#38

Post by coding123 »

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 guessing you're not married?

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

#39

Post by simonebrunozzi »

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…

It's a good question. Three things:

1) Your TCO (Total Cost of Ownership) for a cheap used car can't be $100/month. If you look at Kelley Blue Book or similar websites, they'll tell you that even super cheap cars like that 2005 Ford Focus will still cost you $300-400/month, all included.

2) I almost died in a car accident two years ago, and a result, I value car security way more than before, which means I wouldn't mind paying $35,000 for a very safe car (assuming I'll be able to afford it).

3) Salaries and wealth are not evenly distributed. Something that looks expensive to you, doesn't for someone else.

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

#40

Post by matwood »

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…

Some people like cars. If that's their thing, then cool. I dislike driving and everything having to do with it, so I have typically go your route within reason. Buy a used brand that is known for reliability.
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