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Our Shared Ongoing Battle To Not Buy A Tesla

Like you, I am pretty much resigned to the fact that I’m going to have to buy a Tesla at some point.

I can tell because I have read every last scrap of Tesla news and inadvertently memorized every last technical detail about the company and their cars and energy storage systems that has ever been printed or YouTubed. Since about 2012. When this happens to me for any product, whether it’s a new laptop or a different vehicle  or a house in a certain neighborhood, I usually end up buying it.

The purchase tends to happen when the list of justifications builds up to a tipping point where it starts to seem sensible. For the Tesla, these justifications are things like:

  • “I strongly support the company and its mission. Unlike almost any other big company on Earth, Tesla exists primarily to help out the human race. Surely worth a few of my spare bucks, right?”
  • “I can afford to buy it in cash without having to go back to work or anything extreme like that.”
  • “It’s the best car AND the best piece of technology in the world, and at least ten years ahead of the next best. Shouldn’t a lifelong tech expert like myself be taking a peek at the future?”
  • “It would be a lower-pollution way to replace some of my air travel, as the only car that can drive itself most of the time on long highway trips. PLUS, imagine the road trips I could take with my son! Mammoth Caves National Park! Lifetime Memories just like I have with my own Dad!”
  • “They are reasonably priced these days at “only” about $39k for a new Model 3 and even lower for a used Model S.”

In the past, my mind has made up similar justifications for other purchases like, “this lovely camera will help you create more engaging pictures for the blog.”, “this drywall hoist will save you a lot of time”, “you will make a profit by owning this high-end new laptop because it will encourage you to write more.”

And it’s not just me. As I’ve talked to more and more people about this, I find that most of us have some sort of Purchase Justification Machine running in the background of our minds. The PJM’s effects can range from very useful, like a carpenter buying a nailgun which will be used every day to make money, to completely disastrous, like the office worker who buys a $40,000 8-passenger Honda Pilot for his 12,000 annual miles of mostly empty driving on smooth roads, because “I need to make sure I can get to work in the winter, too.”

I like to fancy my own PJM as being at least a bit better than average, after all I have always maintained a slightly-less-ridiculous level of spending than the average middle class worker. Most of the things it has talked me into buying have indeed been things like nailguns or reasonably good quality clothing that just happens to be from Costco or the thrift shop.

Yes, there was once a brand-new $13,000* Honda VFR800 sport motorbike which destroys a lot of my credibility, but that was in 2001 long before Mr. Money Mustache was born.

But I can TELL that it is really grasping at straws when it tries to justify that Tesla. And that’s why I thankfully still don’t have a Tesla.

The PJM has done its work well, but I try to stay ahead of it by tossing in my own list of objections, like throwing gnarly stumps into a wood chipping machine to slow it down.

  • “You don’t even have anywhere to drive that Tesla, dude! If you had a mandatory 20-mile commute and absolutely could not move closer to your six-figure job, that would be one thing. But you’re retired and you bike everywhere, so a car is only for camping and hiking trips. Wait until you are further along in the child-raising project and have more free time to take off for month-long road trips.”
  • “You can’t just leave a $40,000 car out in the searing Colorado sun to bake and fade and collect birdshit, but you also don’t want to sacrifice an entire bay of your tidy workshop garage for a car. So you need to at least wait until you build that master bedroom deck which doubles as a carport, right? So you’d better get out the post-hole digger before you sign into the Tesla Design Studio.”
  • “No matter how much you use that car, it will always cost more per mile than cross country air travel even with full carbon offsets. So don’t get lured in by the nearly-free nature of electric car charging.”
  • “Make sure you try it before you buy it. Rent a Tesla from Turo or from a friend and try your first road trip. If you still crave one after that first thrill wears off, then we can talk.”

See what’s happening here? In order to keep ahead of the relentless efficiency of my Purchase Justification Machine, I just need to throw up nice, rational roadblocks to slow it down.

But the reason this is so effective is that I’m not just flat-out denying myself that Tesla. It’s pretty hard to tell yourself that NO, you can never have what you want. Instead, I’m just telling myself what things need to happen first, before clicking “buy” on the Tesla website.

And if these things are healthy, happy things (raising my son, getting other labor-intensive projects done with my own hands, and planning a great future series of camping and roadtrips), I divert my attention into living a good life right now, instead of doing the easy thing which is just buying myself another treat.

And the further I can delay this or any purchase, the longer my money can remain productively invested in stocks, and the more it prevents my PJM from locking its greedy crosshairs onto the next little lifestyle “upgrade” that it will find.

But this trick is not just for jaw-dropping electric sports cars. You can use it almost anywhere in your own life.

Kicking the Kitchen Down the Road

A friend of mine loves to cook, and has been pining for a kitchen upgrade for many years to make this activity more enjoyable. And I can’t blame him – his kitchen is indeed dated, as is the rest of the house. But he’s also in debt and not climbing out very quickly. And too busy to do the kitchen upgrade work himself, because work and kids suck up all his time. Should he allow himself to upgrade this kitchen?

Yes!

BUT only after meeting a carefully considered list of conditions:

  • Quit Cable TV, Netflix, Hulu, Facebook, Twitter, video games, and other time drains. Because getting three hours of life back each day will give you more time to address other shortages in life.
  • Make sure you’re getting in at least an hour of outdoor walking and/or cycling every day. Plus, regular weight training. The joy of a new kitchen is nothing compared to the benefits of getting your heart, muscles and mind in better shape.
  • Use another hour of each day for cleaning, organizing and optimizing the house you already have. Is every drawer in the kitchen well-organized? Could you get more space by hanging up the pots and pans? Adding one of those large but simple heavy duty rolling islands with butcherblock top from Costco? What about just a super nice faucet for 80 bucks and a couple of nice track lights?**
  • How about the rest of the house? Are  the closets well-organized with optimal shelving? Is the garage spotless? Carpets DIY steam cleaned and rooms patched and painted nicely? Gardens and lawn tidy and peaceful?
  • How about the finances? Have you checked around for lower mortgage rates, home and car insurance, mobile phone plans, and canceled any unused subscriptions? Ask your friends what rates they are paying for all these things, switch to the best option, and you cut your bills by $500 per month, which will add up to pay for a kitchen pretty quickly.

See, instead of being constantly depressed because it will be years until you can afford that kitchen, you use it as a trigger to get busy and improve your entire life right now. Which gives you the feelings of happiness and control that were making you crave that kitchen in the first place. Or that Tesla.

And on that note, I am going to get out there and start measuring the post locations for my new deck.

Epilogue!

The very day after I published this, I went down to visit a friend in Broomfield to chat and borrow some of his spare video gear (to help me delay purchasing my own, of course!)

But what should I find in his driveway, but a BRAND NEW Tesla model 3, long range all wheel drive in the same glowing red color shown above, which he had just picked up the day before.

I gave him the whole interview on why he bought it, because I know he doesn’t commute to work and has no need for a fancy car either.

They were the same reasons that I had listed above – he’s mostly curious about the future of technology, wanted to support it, and knows that Tesla is it. If it weren’t for Tesla’s existence, he would be perfectly content with a 15-year-old Honda. This company is really pulling out a unique set of buyers that no other car company could ever entice.

So we took it for a test drive. My diagnosis: very similar to the Nissan Leaf in interior size and tight, silent driving feel for standard urban driving – except much more artistic inside and out, and so fast that you literally start to lose consciousness and get dizzy under full acceleration. Kinda silly, but the very existence of cars is silly so you might as well embrace it.

Oh! And unlike the Leaf, when you fold down the rear seats and climb inside, it is plenty big and flat to sleep two people, which makes it a passable road trip mini-camper, even without a proper hatchback.


In the Comments: what is YOUR Purchase Justification Machine trying to make you buy? Have you already bought the Model 3 or are you still milking the 2010 Prius for all it’s worth? How long are you going to push your current smartphone until you allow yourself to replace it? Sharing your battles will give others the strength to keep their own procrastination game strong.


* I forked over $10,000 of my hard-earned cash as a 26-year-old kid in the year 2001, which is about $14,000 if you adjust it for inflation to 2019. But motor vehicles prices have risen slower than general inflation over recent decades, so I split the difference a bit here. But any way you slice it, this was a foolish purchase on my part!

** I linked to those because I have been using that particular track light everywhere in recent years – headquarters, home, and other projects. Way nicer quality/style than the options at Home Depot despite lower price. These LED bulbs are great for it as well.

  • Robert T. Smith June 20, 2019, 12:43 pm

    Well on my way to FI…but after having my mom pass away after a 3 day battle with Pancreatic Cancer (thanks docs for just telling her it was a hernia!), I decided it’s not always worth waiting for things you want now (financial goals be damned). My dad had a ton of plans for him and her to do in another year when they were both retired and now those go unrealized. So I just pulled the trigger on a lightly used Camaro ZL1 1LE….not fuel efficient but will be fun as hell!

    Reply
  • Donovan Walker June 20, 2019, 3:31 pm

    I took delivery of mine not a week before you posted this article. I’d held off for what felt like a very long time, citing *exactly* your arguments above… and then I got a job that required commuting 30+ miles each way. Before that most of my getting around was by bicycle, with a small SUV for hauling things when the need arose or taking the occasional out of town trip.

    60miles/day by bicycle wasn’t going to happen, and I felt like a terrible person for getting in my gas powered car every morning.

    My decision came after several months of driving. I realized that Environmental Responsibility is more real, and more important than Financial Responsibility. My finances are such that I can afford to be more responsible (my home was already wind powered yay!). I started buying carbon credits when I fly, but buying carbon credits is a lot like using paper napkins and recyclable utensils, something you do when there are no other options. (titanium sporks and handkerchiefs are FTW!)

    An added benefit is that I have a tactile conversation starter *that people are curious about* for discussing environmentalism, and that it’s both urgent, and can be fun.

    P.S. Bicycles are still better!

    Reply
  • Jennifer June 22, 2019, 6:51 pm

    I just LOVED this thread because I have been a Tesla FANATIC for years now. My daughter lives in Austin, TX right by a Tesla dealer – I pass it every time I go to visit. I have test driven an S and I want one. So bad. But when my rational brain starts to recover I realize that – like others have mentioned – I don’t really want a vehicle that sucks tons of worry-energy out of me. Worried about dings. Worried about thieves. Worried about lousy phone-watching drivers. I drive a 2009 Hyundai Santa Fe and I will until I hit 200k at least.

    Reply
  • Dave June 25, 2019, 1:03 am

    Hey MMM,

    Totally agree that NOT buying a car is better than buying a Tesla. Also totally agree that not buying a Tesla is insanely difficult given the company’s mission and awesome tech.

    My personal compromise? Buy Tesla stock (no, I’m in no way affiliated with them or any financial company. I’m a university professor).

    Obviously this has to be a small part of the portfolio (~1% in my case), but this gives the feeling that you’re contributing to the Musk agenda.

    Reply
  • Jelle Derckx June 25, 2019, 2:10 am

    Hello all,

    Recently I have studied financial independence and have also started investing. I do have some concerns. If we continue like this (fossil mode, chemical agriculture, etc.) then the earth will warm up at a – just like now – fast pace and that will have many consequences (floods, drought, extreme weather conditions) with sky-high costs. If you are in the global index funds with this scenario, your value will fall. This will crystallize over the next 20-30 years and therefore affects our generation.

    The good news is that if we make a transition to green energy, the economy can actually flourish through more jobs (agro-ecology) and gains on these forms of green and clean energy.

    My question is: how do we proactively anticipate these developments as investors?

    Reply
    • Dansplain July 31, 2019, 9:15 am

      You would invest in some nice, low-cost total market index funds so that as those new green companies take spots on the indexes, you get to reap the rewards!

      Reply
  • David July 9, 2019, 1:47 pm

    I think a used BMW i3 is even better than the Tesla Model 3. One of those, with only 17,000 miles on it can be easily picked up at a BMW dealer for $22,000 or less. It is much more cool inside. Not as fast but still fast. Feels like The Jetsons.

    Reply
  • Jay McConnell July 17, 2019, 11:08 am

    1 year old Escalade ESV, iPhone XR, and pay contractor to remodel kitchen.

    Whoa. I think I’ll just get the NUVO tracklights, and reorganize a kitchen cabinet instead! Thank you, MMM!

    Reply
  • Wai Gor Blog August 9, 2019, 9:34 pm

    In Hong Kong, Tesla is a great brand, every driver wants it. It is hard to afford car parking fees (working place and home), so I have no idea to purchase a car.

    Reply
  • Lance Keckritz August 14, 2019, 5:57 pm

    I will get an electric truck someday, perhaps a Tesla if available. I have 70k miles on my 2010 Nissan Frontier, so I am not budging on anything until its done paying dividends.

    My wife and I just finished paying her student/car loans off ($97k in a little less than 3 years) to be debt free (we rent due to military move every 3 years). So, we are so excited about the future. We are going to stash about $4k/month in cash now and when I retire from the military in about 8-10 years, should be good for buying a house, our first house.

    Thank you for your help. I have been reading your work for a few years now and I know it has helped. I have shared your knowledge with others who have found it refreshing as well.

    Reply
  • Heather August 18, 2019, 2:29 pm

    My PJM has been hankering for a cargo bike (either a longtail like an Xtracycle, or a bucket bike like Madsen), for several years. I realized I mostly dream of being able to go further afield with the kids, so instead of clicking Order, I’ve been using our bike trailer for groceries and kid hauling, enjoying watching our young kids grow into bike-riding pros in their own right by age 4, and extending our adventure radius by taking our bikes on the train.

    Reply
  • David wolf August 27, 2019, 5:17 am

    I bought a salvaged model S and rebuilt. It. The result was the same. Amazing vehicle for 35% less cost than a clean title. It was a lot of work, but I enjoyed it so much I’m doing it again with a 2015 model s 75D with. 20k miles on it. For 25k all in

    Reply
    • Mr. Money Mustache August 30, 2019, 10:13 am

      Nice find, David!

      What did you have to do to restore that crashed Tesla?

      Reply
  • Daniel Winegarden August 27, 2019, 5:55 am

    Sure, you publish this a month after we purchased a used second generation Chevy Volt. The perfect EV for rural flyover country where we live with thin to non-existent EV charging infrastructure. It replaced a 2006 minivan with 240k miles at the point of expensive regards or replace. I still drive enough commuting miles that we can already see the impact on cash flow of using kWhs instead of gallons. So far feel good about our PJM. The EV was a long deferred goal, bought used, for cash, and justified as much less expensive than our ideal Tesla or Rivian. The Volt has enough driver-assistive technology to see self-driving just over the horizon.

    Reply
  • Benjamin Clark August 27, 2019, 1:48 pm

    Mr. M,
    I hope this has not already been touched on. But if you want one so bad have you considered buying a wrecked Tesla and using all your DIY knowledge and skills to fix it? I know there are lots of forums on how this can be the wrong way to go because of the nature of the car but if you found the right car that was without a damage frame and internals where still intake, maybe mostly cosmetic damage and was devalued enough that would justify you paying for parts and Tesla’s fees for software fixes. Just curious

    Reply
  • Pat OBryan August 28, 2019, 7:09 am

    If your Mammoth Cave trip comes to fruition you have a host in Ky.

    Reply
  • Ol September 3, 2019, 3:05 pm

    Yep want one of course. But it’s a stretch. After three months of delaying just bought the Withings high end scales that measures heart and health. Discounted 20% and free delivery :) ahhhh

    Reply
  • Tim November 10, 2019, 12:28 pm

    I love this post. I refer back to it anytime I start thinking about buying something. I too have so many projects I need to complete before I can justify another expense.

    Reply
  • Chris December 16, 2019, 11:47 am

    Since this is an old article, I hope you bought your Tesla!
    My 2011 Prius died with 200,000 miles on it and I needed a new car. Just picked up my Model 3 last week!
    Gas and repairs will make up the extra spent on this car. It really wasn’t a huge
    price difference from a new Prius.
    I drive at least 90 miles a day, so I needed a car that can do that in one charge.
    Love my “spaceship” so far!

    Reply
    • Mr. Money Mustache December 16, 2019, 9:01 pm

      Great choice Chris!*

      As for me, nope, I’m still holding strong because the typical week in my life doesn’t involve any driving at all. I have had a few great road trips since I published this article seven months ago – and I rented Teslas on Turo for all three of them which was LOADS of fun. You are right that they are incomparably better than any other car.

      *if you live a life that requires a lot of driving and you can’t possibly reconfigure it any other way. But I hope you can get out of that eventually because two hours in a car every day is hell on the human body from a health perspective. I hope you are able to recharge from that with at least an equal quantity of walking.

      Reply
      • Chris January 7, 2020, 5:45 am

        My commute time is my “me time”! lol
        My kids keep me running!
        I am jealous that you don’t have to drive at all. Someday….retirement!

        Reply
  • El Rafa January 6, 2020, 12:53 pm

    My current purchase procrastination project is a Eurorack Modular Synthesizer (1000 – 3000 EUR). My PJM tells me I need it for my bass guitar practice since it could give me chords, rythms and meolodies to jam with. And I could run my bass directly into it and applying filters and all that kind of stuff. Sounds super fun!
    I’ve been spending hundreds of hours on YouTube last year just looking at other people playing with it. Of course my PJM jumps on that, telling me I’m going to spend less time on youtube and more time with the synth once I purchased it. Tough call!
    PS: I’m a student so even 1k is a lot of money for me (I have ~19k in my bank, no debt)

    Reply
  • James Whitmore January 13, 2020, 11:20 pm

    HAHAHA – I’m not sure how you knew I had a 2010 Prius, but there it is. I plan on giving it about another 10 years. I told my 5-year-old that he should be nice to it, because it will likely one day be his. He said, “I don’t want it. I want a big black truck.” *sigh* Better start saving, kid.

    Thanks for indulging the Tesla dream. As a former engineer (yes, also retired – but more of a “backwards retirement”), I love beautiful machinery and fancy & smart technology. I’ve been dreaming of a Tesla for years. But first things first – children, home, business, student loan (pretty much in that order) – and I only drive 4-5k per year anyhow in my small mountain town of Bend, Oregon. It sure is nice to have a car that’s paid for, even if it’s not a Tesla. I guess I know what happens in my not-so-distant midlife crisis…

    Thanks for the blog, the humorous writing, and your courage to live your life simply and full. I like your style, Dude.
    James Whitmore

    Reply
  • Alexandra January 24, 2020, 10:24 am

    My husband and I want a Tesla someday for many of the same reasons, but I have a 2008 Prius with 150k miles that’s never given me any trouble except for the touchscreen’s touch function dying (I have since learned to do almost everything with the actual buttons). The PJM I’m experiencing has been coming from my husband and mother, who are convinced that with our second kid on the way, we NEED a bigger car. Yesterday I looked up used RAV4 hybrids, made the case to my husband that that’s what I’d go for and there are good deals to be had, and then made the case that we actually don’t need it until my Prius gives up on us. But cargo space! (get a car topper, travel with less junk) But the car seats vs. your back! (OK, they might have a point, so I need to strengthen my back). He is now on board with keeping the long ago paid for Prius that gets 45+ mpg! Meanwhile I also found a potential refinance deal that would save us nearly a (used) car payment each month on our mortgage, so we’ll pursue that well before we ever need to buy another car. I feel like we saved so much money yesterday even though all I did was eff around on the internet for a bit.

    Reply
    • Mr. Money Mustache January 24, 2020, 12:03 pm

      Wow Alexandra, I am super impressed with your restraint! And I agree – a Prius is a millionare-maker of a car, and very roomy too – more than enough for a family of four. Then the Rav4 hybrid will be a fun upgrade whenever you get around to it. A friend of mine has done extensive roadtripping in his, and usually gets over 40MPG. So it’s still a reasonable vehicle despite the added interior room.

      Reply
  • Jared January 28, 2020, 6:09 pm

    Broomfield! MMM I grew up there . I’d definitely would love to meet for beer, I’m buying.

    As for my PJM I feel like I had mine under control until I read….. “ I like to fancy my own PJM as being at least a bit better than average, after all I have always maintained a slightly-less-ridiculous level of spending than the average middle class worker. ” Most of the time I say no to purchases but every so often I have this exact thought to justify a purchase. Damn you MMM! Oh well I’m human after all with all of these complicated emotions.

    Nice read MMM, i enjoyed it, now let’s go get a beer!

    Reply
  • Mike Laursen March 7, 2020, 12:52 pm

    My PJM wants me to buy a Fender Telecaster. I’m fighting it off by telling myself I can buy it if I learn to play the guitar I already have better.

    But my PJM also wanted me to buy a dedicated computer for the music room, even though all I have to do is carry the laptop I already have in my office to another room. I’m afraid it was subconscious PJM that led me to “accidentally” drop my wife’s laptop, breaking the screen just enough that it isn’t usable for her, but will work in the music room. She got a new laptop, and — oh, look at this — I get a computer for the music room.

    Reply
  • jon p August 4, 2020, 4:37 pm

    I read this story last year and but wanted to share my 2 cents since buying a Tesla. I decided to sell my 12 year old Hyundai Elantra and buy a standard range model 3 spring of 2019. It was a hard decision (being very frugal myself) but we were at a point where I could have a nice car after driving a cheap car for all those years. Being frugal(ish) I only bought the base $35k model with zero upgraded features. Last month, one of my neighbors sold their Tesla model 3 though an online dealer and out of curiosity I checked the value of my model 3 It was a complete surprise that my model 3 was actually worth slightly more than what I paid for it and when you factored in the tax credits (less sales/registration tax) I actually made a profit while driving a pure EV around for a year and a half. While I loved the car I ended up making a pure financial decision and sold my model 3 and our family downsized to one car (which is easy during Covid-19) I think the moral of the story is Tesla are currently very popular on the used market and keep very high resale values unlike other ICE cars or the Nissan Leaf. Will this continue is anyone’s guess but I am planning on buying another Tesla Model 3 as I live n a state that still has good EV incentives.

    Reply
  • Edward Witzleben September 27, 2020, 1:30 pm

    I BOUGHT a 2010 Prius! In 2020! I love it and it’s absolutely everything I could rationally want in a car, or will be with a few inexpensive upgrades I can do myself.

    Except that its sole source of energy is fossil fuels.

    I drive 100mi/day for my delivery job (off the clock, I barely drive except for Costco runs, bad weather, and longer trips to hike or visit friends and family). Every day, I burn 1.7 gal of gas and put 33lb of carbon dioxide into the air. Every time I fill up, I send a consumer message to oil companies encouraging them to produce more oil.

    My PJM desperately wants an electric car. Not a Tesla, because quite apart from the price, Tesla is the Apple of cars and 70% of why I own a car in the first place is independence. If I buy a car, I want to OWN it. I want to install all sorts of aftermarket accessories – a tow hitch, stiffer and taller suspension borrowed from other cars, a battery heater and heat pump for the winter, software modifications to increase logical functionality if I were any kind of a programmer (which I’m not) – without Daddy Elon peeking over my shoulder and telling me I cheated. But Chevy Bolts are hitting the used market right now, the new Hyundai Kona and Kia Niro EVs have been on the road for a couple years, and the new Soul EV, VW ID.4, and Mustang Mach-E are about to follow.

    I’m currently thwarting my PJM with a similar strategy to MMM’s, listing what baseline conditions I need in my life to make an EV worth it.

    First, I want to pay up front for it. Quite apart from interest payments, I don’t want a monthly payment in case I move, go to grad school, and/or fall on hard times. The only >200-mile-range EV that’s been around long enough to be “cheap” used is the Chevy Bolt. Between the (not really cheap) upfront cost and the declining used value as EVs advance, I’d want to keep it past 300K miles, and I don’t know if I can expect that from a Chevy, with an “average” reliability rating on Consumer Reports. Hyundai and Kia are much more trustworthy brands, and Konas, Niros, and (if we’re lucky) Souls will hit the used market in a couple years.

    I live in an apartment and don’t have a Level 2 charger on the property. Public DC fast charging probably burns dinosaurs depending on where you live, and if done frequently it’s a good way to degrade your battery. So I need to move to a place where I can install a Level 2 charger and buy 100% renewable energy, or, better yet, OWN a house and install solar panels on it.

    And once I have all that going for me, odds are I won’t be driving delivery anymore (or will at least be driving company vehicles) and will be using my car far less in the first place.

    Reply
  • Alexander December 7, 2020, 6:26 am

    I also want a Tesla, but in Germany the charging structure is not so good yet. Felt, we are 10 years too slow than all other countries. The gasoline costs are quite expensive in our country.
    Nevertheless I decided to buy an electric car, a Renault Zoe. But my second car will definitely be a Tesla.

    Greetings from Germany

    Reply
  • Sujan January 19, 2021, 11:36 am

    I LOVE that you’ve given a name – PJM – to something I always do. It usually takes me an embarrassingly long time to make a purchase. Now only if I can get my wife to think this way. Below is a case where the PJM had a glitch :)

    My 15 year old Honda Civic crapped out in 2019. It was just under 200K miles, but I was hoping to at least get 300K :(. So I used my dad’s car for a few months because they were out of the country. Like you, I was reading up on Teslas for quite some time, but my PJM first said go test drive a new Accord Hybrid. I came away impressed, but couldn’t close the deal on my terms so walked away. My thoughts immediately drifted back to the Tesla. After doing a back of the napkin “total cost of ownership” over 10 years, I decided the Tesla M3 actually wasn’t a bad deal, and it was time to test drive one. I live near a Tesla service center, which was a criterion. The next decision was do I test drive a standard range (SR) rear wheel drive (RWD), or a long range (LR) all wheel drive (AWD). I chose to test drive the LR AWD, and the rest is history. The test drive was the 2nd most exhilarating experience of my life (first watching our daughter being born).

    My PJM should have done more analysis:
    – Did I really need a brand new car? NO. I should have bought a used car.
    – Did I really need the AWD LR? NO. Winters can get “bad” here, but my Civic usually did okay, so AWD wasn’t a must-have. I drive < 40 miles a day, and we also have a Subaru Forester in case I needed a long trip.
    – Did I really need the premium sound system, fog lights, and extra LED interior lighting? NO. From what others tell me, the standard sound system is really good too.

    Why did I buy the M3 LR AWD, when the SR RWD would have been fine, and I would have saved some serious coin. Why did I buy a brand new car when a used Subaru or Honda would have been a smarter purchase, and I would have saved even more?

    Because I told myself I deserve it, my fancy director title requires it, and the societal / peer pressure to NOT buy the BASE model of something is real. Yes, in hindsight, I'm a SUKKA. However, I'm hoping the Tesla M3 is the last car I ever own. I'm 40, and I hope by 70 I no longer have to ever sit behind the wheel.

    Reply
  • bizziel May 24, 2021, 11:12 am

    I wonder if hydrogen cars are the future. can’t say I know much about them but many buses in London have been hydrogen for ages. saves on the toxic batteries for landfill one day.

    Reply
  • Reade June 2, 2021, 11:04 am

    Hey MMM,

    Love the blog, and your perspective on most things. Well I understand your fascination with Tesla from a technology and engineering perspective, you’ve said many times this is also an environmental blog. To me, the first thing we need to do is reduce the dependence on cars altogether. This fits into your stated beliefs around city design and the use of bicycles, and generally avoiding cars as much as possible. Instead of promoting new cars, wouldn’t it be more environmentally efficient, to promote the conversion of existing cars and potentially the use of personal electric transport vehicles (scooters, e-bikes etc.), instead of getting massive subsidies for people to buy Tesla’s etc.

    Reply
  • Ryan NaturesPrez July 19, 2021, 1:04 pm

    My PJM just bought me a Rad Power RadCity 4 eBike. $2093 on credit from Affirm. $200/mo for 1 year 28% APR. I plan to replace my daily commuter and grocerymobile, a 2002 Honda Civic. Did I F up? I used the cell phone advice from here and Coverage Critic, swapped Verizon for Mint Mobile; got my internet bill back down to $80 from $110, and joined pay-as-you-drive MetroMile car insurance. My PJM included wanting to build my credit, get exercise and reduce VMTs.

    Reply
  • Lori July 12, 2022, 9:15 pm

    I am technologically impaired, so it is probably no surprise that I had my last cell phone for 12 years and only parted with it when forced to by AT&T because they no longer were going to service 3G. I cry every time I get a new phone because so much information is lost in the transfer. At least I was fortunate to be inadvertently frugal, as AT&T gave me a new iPhone because they were forcing me to abandon mine.

    Similarly, I have been driving my Subaru Forester since 2014 (I know, I know, it’s big) but I like a bigger car since my last Subaru, an Outback, was totaled in an accident. The only injury I suffered was a bruise on my chest. So I feel safer in a car that is up off the road. O.k., there’s my Subaru plug, do you think I can get compensated for advertising? Luckily, I now have a job that is 5 minutes away, so put little mileage on it and am hoping to motivate myself to walk in good weather (lugging a heavy laptop and with arthritic feet).

    Well, I’m off to read your article on cutting your own hair, which I happily did during the worst of the pandemic. I miss my local beauty school, which closed due to the pandemic, and at which I got my hair cut on $2.00 Tuesdays or, in a pinch, for $8.00 the rest of the week. As you might guess, my parents raised me to be frugal. I appreciate your site.

    Reply
  • Vinay January 16, 2023, 8:43 am

    Any refresh on this topic as we enter 2023. The 19% price reduction and federal credit till March is top of my JPM. Need help, please rescue me from clicking MMM 🤪 or May be you bless it now.

    Reply
    • Mr. Money Mustache January 20, 2023, 10:50 pm

      Yeah, I have felt the same way! It was EASY to not buy a Tesla throughout 2022, when they had jacked up the prices by $16k or so because the demand was so much higher than supply. Today with the prices back down, they are tempting again.

      As long as you have at least $2M of investments safely stashed away funding your financial independence, AND you have plenty of time for cross-country road trips and a genuine desire to take them regularly (and people you want to take along for the ride), you have my blessing.

      If not, just grab a 2023 Bolt for about $20k after tax credits – just as good or better for commuting and errands, still has 260 miles of range, and you’ll probably be happier overall because you won’t be worrying about it getting scratched or sun baked all the time.

      Reply
  • Unlimited Solar February 2, 2023, 7:22 am

    I paid cash for a used 2014 Tesla Model S P85 with 150k miles. Teslas from 2012-2019 have 8 yrs/unlimited miles warranty on battery and motors. 2020 and newer have 8 yrs/150k miles.
    Also, Teslas from 2012-2017 have free unlimited supercharging.
    My Model S motor quit at 180k, and battery quit at 240k. The warranty was honored each time, and both were replaced for free with improved models. The battery is now 90 kWh instead
    of 85, and the motor is a much improved and more reliable design.
    The early motor had a poor cable design leading to HV insulation loss, the motor itself still fine. The battery was similar: the poor design of the early BMS caused it to shut down, but the
    actual battery cells still fine. Even after gradual capacity loss (my 85 battery with 240k had lost only 4.3% of factory capacity), the batteries can be used forever for shorter trips or off-grid/solar power. This car now has 250k miles and drives BETTER
    than new, worth every penny.

    What I really want to point out is, thanks to the efforts of Rich Rebuilds on YouTube, Tesla has now opened all service manuals and electrical diagrams for free on service.tesla.com also at
    epc.tesla.com is the Electronic Parts Catalog where you can order any individual piece on a car and see where it goes and how it fits. Combined with the fact that almost all Model S and X
    parts are reused from traditional car manufacturers, means that any mechanic can work on almost ANYthing in a Tesla. Rich Rebuilds’ huge video collection show how to fix every Tesla
    part, anyone could do it at their own house. I’m convinced I can keep this car going forever, with endless supplies of OEM parts from crashed Teslas available cheaply on eBay.

    Economics? I pay an average $0.05/kWh for home electricity, so that would be $4.50 to fill my 296-mile battery from empty to full. Yet I don’t even pay that, because there are 12 public
    Level 2 chargers around me, all FREE, in a 4 mile radius. I park and plug in and bike home for some good exercise, then bike back a few hours later to pick it up. This car has HUGE cargo
    space and can swallow several bikes at once!

    Are people really finding insurance more expensive for a Tesla? I have Progressive and switched from a Prius years ago, and the cost still has never increased. Liability only of course, no
    reason to pay for full coverage when my own repairs are much cheaper than full coverage premiums.

    One huge Tesla caveat, and the reason I’m glad MMM hasn’t bought one is, due to all the mobile app capabilities, Teslas consume noticeable power while parked. Even with no app usage,
    a sleeping car consumes 1(model 3/Y) to 3(older model S/X) miles of battery per day to run computers and top up the 12v battery. I have eliminated this “vampire drain” by installing a
    quick-disconnect on the 12v battery cable overnight.

    Reply

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