I have the age old problem of hating to spend the money I saved for something…I want to save it and spend it.
Finance if we can get under 1% rate. Much better to invest that cash that we saved for car.
One time a dealer was offering some low interest rate, so we took it, but we’re so debt-averse that we paid it off early even though it was a bit irrational. Otherwise, cash.
I’ve gotten in a bit of an internet back and forth on the Tesla site about leasing and financing. My feeling is that, if you have to borrow to afford a Tesla, you can’t really afford a Tesla. If you have to borrow to buy a used car to get you to work, I understand and will cheer you on. If you have to borrow at unsubsidized rates to buy a $70-$145k car, it’s time to rethink.
A neighbor works in the environment sector of the economy.
She is into electric cars. She is leasing a BMW primarily electric car right now. She is very debt averse. She doesn’t have any except for the lease.
I asked why she is leasing. She said she is leasing because the technology is going to change fast and continue to get better and she doesn’t want to own old technlogy.
She is going to keep leasing.
There are people that like to have the latest technology and gadgetry- the early adopter types - who are willing to pay up/pay more for what ever is newest and cutting edge. Nothing wrong with it as we all make our personal choices in how to spend money and what gives us joy in our spending habits, but its not the most cost efficient way to be a consumer.
My wife and I each have an SUV. Her’s is a 2000 and mine is a 2002 (128,000+ miles on mine). They’re both obviously paid for.
Bought son a 2008 SUV last month because he needed a vehicle for an internship, during school year and this summer. Paid cash for it at CarMax.
Daughter has a 2010 SUV bought last summer. Financed it because we weren’t “cash rich” then.
@dstark and @doschicos, I understand the BMW leasee’s decision to lease (but not for a BMW over a Tesla :)) ). Battery technology changes, but for most of us won’t make a car obsolete. The big changes are in software and sensors (eg, radar, sonar, cameras); software updates are trivial to accomplish in existing vehicles, and sensors are somewhat future-proofed in that they have capabilities not yet utilized.
If her mileage and schedule for a new car is predictable, as doschicos points out, it might be suboptimal financially, but understandable.
With Teslas so relatively new, @IxnayBob, are there estimates out there for useful life? Hubby and I have talked about one but haven’t moved on it yet. We live in an area where there are still very few charging stations (closest is 30 miles away). Also, how are they on snowy winter roads?
There is a $35k Tesla anticipated in 2017.
Another always cash buyer here. But have purchased new in the past which I won’t do again. My current car is a 2007 Hyundai with 130k miles and hoping to get at least another year out of it! The more, the better.
Meanwhile my husband points out that the college tuition we are doling out is like driving a BMW off a cliff every semester. He is exaggerating. More like a loaded Honda Accord.
Re: $35k Tesla. Tesla Model 3 most likely will be available in early 2018, and most likely the first models will be “fully loaded” $60k cars. The estimated range will be slightly less than that of the S or X - about 200 miles.
@IxnayBob, @doschicos, I don’t know if what she is doing is the best economically. She didn’t buy the cheapest car.
She is pretty economical.
She keeps a record of every dollar she has spent during her adult years. She also knows her energy usage and her water usage for every month she has owned her place. It is many years.
She is very energy conscious. That’s her field. Luckily, I drive a Prius and I don’t drive much so I meet her approval.
I paid cash. I don’t know if that is best. I bought my parents’ car. I didn’t want them driving anymore. 
We are waiting for the Google self drive car to come out, hoping it will be ready when my mom can’t drive any more.
@oldfort, me too.
Plus, I don’t want to drive anymore.
And maybe my daughter can own her own self driving car. She won’t have to rely on others.
I don’t know about those self-driving cars. I read in the WSJ a few weeks back that a Google self driving car hit a bus in Silicon Valley. Think it was on a test drive or something.
I love to drive - can’t imagine using a self-driving car.
@doschicos, the battery warranty, iirc, is 8 years and infinite miles. The technology for insane and ludicrous acceleration modes (nice naming standards!) is very expensive fuses that were developed in the quest to make a million mile-capable drivetrain. A fuse that can deliver enough juice from a battery to a motor to propel a heavy car from 0-60 mph in 3.2 seconds will have no issues in more normal highway on-ramp use. Useful life (i.e. useful but not necessarily state of the art) is long, because there are so few parts and even fewer moving parts. Scheduled maintenance is once per year.
You probably have closer charging stations, but perhaps not Superchargers. IRL, you will need at least a 240V 40A outlet in your garage/driveway unless you drive very little.
Re snowy roads, my neighbor does fine with his rear wheel drive model S, and he’s an ER doc who can’t call in and say he can’t make it to work. The physics of AWD, a very low center of gravity (most of the weight is the battery on the floor of the car), and the ability to make instantaneous power distribution changes (no internal combustion lag, no transmission lag, etc) makes it great on snowy roads. Some owners in extreme climates change to snow/winter tires seasonally; I think I’ll be fine with all season tires.
I’m obviously a fanboy. This is the first car I’ve bought in many years, usually being content to take my wife’s hand me downs. I am doing penance for our Range Rovers :). I’m sure the Model 3 will be late, @Pizzagirl; Elon Musk is a genius, but he never met a schedule he couldn’t slip.
If I didn’t have a (perceived) need for an SUV, I’d buy a certified pre-owned AWD Model S, where you can find value today, rather than 2017, 2018, soon . . .
Or you can buy a Chevrolet Bolt, a 200 mile range electric car that will be for sale later this year for a price similar to the Tesla Model 3.
(Not the same as the Volt.)
We pay cash, buy new (with an eye to reliability, longevity, and friendliness to the environment), and then run them into the ground as long as the repairs don’t get too expensive. Our last two cars lasted 17 and 20 years; when the repairs became pricey we donated them to Habitat for Humanity to sell for parts, as their resale value was near $0.
We too are hoping that the self-driving cars will be reliable by our elder years, though I have to admit I’d love to get one right now for our driving-phobic son (almost 21 and still no license…)
Current cars here…
2003 Accord with 240,000 miles bought used in 2009 for $10,000
2011 Subaru Outbck with 111,000 miles bought used four months ago for $12,000
2012 Volvo with 62,000 miles. Bought off lease in 2013 for $23,000
The new Ford I posted they want me to buy twice–had to finance $10,000 to get the $750. Paid it off 3 weeks later with first payment coupon. Ford lost my title, knew it, and didn’t even bother to let me know. S has Amish neighbors. I have 100 acres of corn. Maybe a horse next time?
I do realize that there may be somewhat more to be made by taking 0% interest and investing the difference. I really, really can’t stand payments nor debt.