Break even on a car which does not use gas

[jIM_Ohio]

So life has thrown me a few curves and I am just now getting back on my feet.

I am looking for a new vehicle. I currently drive a 2007 Honda Ridgeline which has been paid for, it is also likely not going to last another 12-18 months.

I have 3 choices-
wait until problems happen then replace truck with a new or used car
pro-actively buy a cheap used car which should last
buy a Tesla, which might be last car I ever own and completely remove gas from my budget. Once car is paid off, the Tesla looks more like an "asset" than a toy.

The Tesla I test drove gets 260 miles between charges, that is about a week's worth of driving for me. No oil changes, tires replaced every 50k miles, brakes and rotors would need maintainance too. The car price has an 8 year warranty on the battery.

I'm also divorced now, so I am traveling a lot more- this year alone I have driven to Michigan 6 times (1 tank each way), New York twice (2 tanks each way), Lexington about 4 times (1/4 tank one way), St Louis once (1 tank each way), and Atlanta once (2-3 tanks each way). I still have to go to Washington DC and Buffalo a few times this year

So if my life maintains this level of travel, the car should pay for itself quickly- $80 fill ups on a vehicle which gets 19 mpg highway is getting a little old.

I would likely buy a $40,000 hybrid if I did not buy the $90,000 Tesla. Is the extra $50,000 worth not buying gas?

[feh]

I would likely buy a $40,000 hybrid if I did not buy the $90,000 Tesla. Is the extra $50,000 worth not buying gas?

I don't see how it could be. A $90K car is never going to be a good investment.

[jIM_Ohio]

I don't see how it could be. A $90K car is never going to be a good investment.

A $40,000 car (with a gas engine) lasts maybe 300,000 miles
A $90,000 car (with an electric motor) can last 1,000,000 or more miles (Batteries do not have a known shelf life, a clean motor can run forever).

Based on double milage, double the cost (and no gas price) seems to change ROI measurement to me.

[autoxer]

I have 3 choices-
wait until problems happen then replace truck with a new or used car
pro-actively buy a cheap used car which should last
buy a Tesla, which might be last car I ever own and completely remove gas from my budget.

I would likely buy a $40,000 hybrid if I did not buy the $90,000 Tesla. Is the extra $50,000 worth not buying gas?

Wait... $40k hybrid wasn't one of your 3 choices. You don't have to go from one extreme to the other. How about a cheap sedan? or if you plan to drive a lot, maybe a diesel?

Once car is paid off, the Tesla looks more like an "asset" than a toy.

It is still a depreciating asset, not an investment.

The Tesla I test drove gets 260 miles between charges, that is about a week's worth of driving for me. No oil changes, tires replaced every 50k miles, brakes and rotors would need maintainance too. The car price has an 8 year warranty on the battery.

260 miles on a charge might be fine for your daily commute, but it won't get you to most of the destinations you listed. How are you going to recharge on your way to Buffalo and Washington DC?

And the fuel cost doesn't automatically go to $0.00. You still have to pay to recharge this thing.

[bjl584]

What is your game plan for long road trips that are more than 260 miles?

What is wrong with the Ridgeline? A 2007 Honda shouldn't be failing on you already.

I don't think the Tesla could ever pay for itself. Not with a $90K price tag. What is the expected battery life and what would it cost to replace them?

I think you'd be better off just buying an economical car and keeping gas in the budget. A Dodge Dart gets 41mpg. A VW Jetta TDI gets close to 50mpg.

[jIM_Ohio]

Wait... $40k hybrid wasn't one of your 3 choices. You don't have to go from one extreme to the other. How about a cheap sedan? or if you plan to drive a lot, maybe a diesel?


It is still a depreciating asset, not an investment.

260 miles on a charge might be fine for your daily commute, but it won't get you to most of the destinations you listed. How are you going to recharge on your way to Buffalo and Washington DC?

And the fuel cost doesn't automatically go to $0.00. You still have to pay to recharge this thing.

The people I spoke to which had a Prius said their electric bill went up about $30/month, which is about a third of a tank of gas for me (and I fill up weekly).

If I bought new, it will be a hybrid or electric car
If I buy used, I am just delaying the hybrid/electric purchase

There are charging stations between most major cities, and there is an app in the car computer to find the charging stations. Part of the $90k cost is access to the charging stations (its a $2500 option). I have to stop every 150 miles because my six year olds have weak bladders. It would take about 20 minutes to recharge car to 260 miles. We already make those stops, the difference is instead of a 5 minute mens room break, it is a 20 minute take a walk break.

[LivingAlmostLarge]

Cost more to repair and insure probably. People never think that the more expensive car = more expensive tires than el cheapo cars. Ugh. I found that out and I don't drive an expensive car. Rather the car I had was super cheap!

But you can probably afford it and still go where you want to be.

[jIM_Ohio]

What is your game plan for long road trips that are more than 260 miles?

What is wrong with the Ridgeline? A 2007 Honda shouldn't be failing on you already.

I don't think the Tesla could ever pay for itself. Not with a $90K price tag. What is the expected battery life and what would it cost to replace them?

I think you'd be better off just buying an economical car and keeping gas in the budget. A Dodge Dart gets 41mpg. A VW Jetta TDI gets close to 50mpg.

2007 Ridgeline with 160k+ miles, and the service people tell me they don't see Ridgelines with 200k miles, so its likely only another year before I hit 190k miles.

The battery life on any electric car is unknown. Until someone proves they last 20 years, no one knows for sure.

[autoxer]

The people I spoke to which had a Prius said their electric bill went up about $30/month, which is about a third of a tank of gas for me (and I fill up weekly).

There's no doubt you should get rid of your gas guzzling truck, but going to the opposite extreme isn't going to be the most financially savvy decision. If you are trying to decide between a tesla, mercedes, cadillac, or bmw, then by all means choose the tesla. If your goal is to save money, then there are much better options.

There are charging stations between most major cities, and there is an app in the car computer to find the charging stations. Part of the $90k cost is access to the charging stations (its a $2500 option).

Yeah, and you have to stop and wait a couple hours while it is recharging. If you have to stop twice, that will turn into a really long trip. I love the idea of an all electric vehicle for a commute, but not so much for a road trip.

[JoeP]

With an expensive car, everything is more expensive: insurance, parts, service, collision. I think you need to ask yourself if you're ready to lay down $90k (more than my first house!) on a device to carry you from point A to point B.

[bjl584]

There are charging stations between most major cities, and there is an app in the car computer to find the charging stations. Part of the $90k cost is access to the charging stations (its a $2500 option). I have to stop every 150 miles because my six year olds have weak bladders. It would take about 20 minutes to recharge car to 260 miles. We already make those stops, the difference is instead of a 5 minute mens room break, it is a 20 minute take a walk break.

Will it really charge 100% in 20 minutes? I'd think it would take an hour or two. But, for $90,000 I'd want it to charge quick too.

[Spiffster]

I own a Volt and my wife drives a RAV4 EV. IMO if you are trying to save money, the only way to go would be a used car that gets decent gas milage, like a Corolla or something like that. The TCO on a 90K car will always be high, unless you can actually squeeze something insane like 1M miles out of it, which may be possible with the motor, but certainly not the batteries or the rest of the cars components.

We live in Colorado and between manufacturer's incentives and tax breaks (both state and federal) we net about 28K for each of our EVs. Thats with taxes, plates, etc for the first year. 0% financing on both, so we did quite well IMO considering a (New) gas car with the same amenities would cost around the same price.

If you look hard enough, you can find some smoking deals on a used or even new EV, but certainly not a Tesla. You may want to wait for the Model E, or whatever they are gonna call their 35k-ish EV, slated for 2016.

As for charging time and infrastructure, that doesnt matter at all to us... but thats just us. If we can plug in when we get home and have a full battery by the next day, thats all we need. Long range trips can be handled by our Volt. For the Tesla, the supercharger network is pretty slick and will get you coast to coast just fine.

If you can swing the Tesla then heck, by all means. You only live once! But I would never consider it an asset, or any other car for that matter. The higher price will likely never be offset by fuel or maintenance savings when compared to even a 40k hybrid.

[greenskeeper]

Keep driving the honda until the repairs really pile up. In the meantime start setting aside the anticipated car payment so that you'll have a nice chunk to put down on your next vehicle.

Personally i am in the mindset of paying cash (under $10k) for a vehicle and then driving it until the wheels fall off. To each his own.

[bigdaddybus]

Getting back on your feet, saving, and $90,000 car are three statements that shouldn't be shared in the same breath.

Buy a new Civic 4 door for $16,500 is a much more affordable route than a 90K car. When you factor in repairs, cost of electricity, insurance, and the opportunity cost of the extra $73,500 spent on the Tesla. The expensive Tesla would likley need a couple million miles to beat a base civic in value. (assuming it still runs that long)

If you need a midlife crisis car and you can afford it, just get the Tesla. If you ever tell people you bought a $90K car to save money they will honestly think one of two things. 1. You were dropped on your head. or 2. Your a JackA## just trying to show off.

[ua_guy]

Getting back on your feet, saving, and $90,000 car are three statements that shouldn't be shared in the same breath.

This.

Furthermore, a $90k Tesla is a toy. Saving fuel at that cost is done for philosophical reasons, bragging rights, or other reasons, all of which have absolutely nothing to do with actually saving money.

I'd also never outright buy an electric car in this developing market. Lease, maybe. The evolving nature of battery technology and EV range-extending is going to soon leave a lot of hybrid and electric car owners with the equivalent of a very large paper weight in their garages.