Break even on a car which does not use gas

[JoeP]

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.

This is how we operate as well. By the time we're done with the vehicle, its worth is measured in hundreds and swings $50 in either direction based on how much gas is in the tank; we don't expect any significant residual value.

Here is an interesting article on the costs of ownership. I'm curious how the newer electric cars fit in since the article was written.

[disneysteve]

So if my life maintains this level of travel, the car should pay for itself quickly- $80 fill ups

How do you figure it will pay for itself "quickly"?

If a fill up costs you $80, the $90,000 Tesla is 1,125 tanks of gas. If you fill up twice a week, that's 11 years worth of gas to buy the car.

I'd be looking at a moderately used car with good gas mileage to replace the gas guzzler truck.

[feh]

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.

My intuition says you're trying to justify the purchase of something you want.

If you want it and can afford it, I'm not gonna try to talk you out of it. But I think it's unwise to view such a purchase as a sound financial move.

[JoeP]

How do you figure it will pay for itself "quickly"?

If a fill up costs you $80, the $90,000 Tesla is 1,125 tanks of gas. If you fill up twice a week, that's 11 years worth of gas to buy the car.

I'd be looking at a moderately used car with good gas mileage to replace the gas guzzler truck.

Looking at gas. Also consider the costs of owning a Tesla versus a gasoline car for 11 years.

[disneysteve]

A $90,000 car (with an electric motor) can last 1,000,000 or more miles

Where does this "fact" come from? I highly doubt any vehicle is going to last 1,000,000 miles. Components are going to wear out. We've had interiors wear out - seats, steering wheels, etc. Airbags are only good for a finite amount of time and then should really be replaced. By the time you keep a car for a million miles, if that's even possible, you will likely have rebuilt the car piece by piece over the years.

[creditcardfree]

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.

The Ridgeline has only been around since 2005, I'm sure putting over 20K miles per year on those trucks is a bit rare, thus just because the service people have not seen them doesn't mean the vehicle cannot last that long. I'd keep driving it, or replace it with a similar value vehicle with better gas mileage. I'd skip the Tesla. There is a lot more you could be doing with that extra $60K...college savings and retirement would be better ideas.

[HappySaver]

I stopped reading at "Tesla".

Listen to everyone on this thread.

And by the way, comparing the electric bill of a Prius owner with a Tesla owner is not what I would call adequate research. Different cars, different technologies, most likely totally different electricity usage.

Why not just buy a used Prius (not the plug-in, just the standard hybrid)? They easily go past 200,000 miles, as you said even past 300,000 miles, and have the track record to prove it:

http://priuschat.com/threads/200-000-mile-club.57091/

We sold ours for under $10,000 with 100,000 miles on it. That person got a hell of a good value and will be able to drive it for a very very long time.

[bjl584]

http://www.teslamotors.com/models/design

That car is pretty sweet. Not sure I'd drop $90K on one, but I would have to think that you are able to afford it or you wouldn't have started this thread. You've been on the forums for years and are pretty savvy with money. I'd like to think that you wouldn't be considering buying one of these if you couldn't afford it. Hopefully this isn't a mid life crisis sort of thing.

[rennigade]

I stopped reading when I saw car and asset in the same sentence...not to mention a $90k one at that...sigh.

Sounds more like a life crisis on your hands. Good luck with that.

[Bal.Leona]

Run the numbers. At 260 miles a week, even if you find a regular gas car at, say, 30mpg and conservatively taking gas at $5/gallon, that's about $2250/year on gas. (If you assumed 20k miles/year, it's about $3350).

Do you have 3-6 months of expenses covered in an emergency fund? Enough saved for retirement? Don't delude yourself that you'll never have to buy another car for the rest of your life or that a Tesla would be anything more than a very expensive "want".

How common are these charging stations outside of major cities, really? 20 minutes for a recharge seems ridiculously short.

If you're just getting back on your feet, you should probably consider a gently-used reliable car like a Civic or a Corolla until you've got yourself back on solid ground.

[snafu]

jIM, if you want to buy a TESLA, forget about justification, buy it and enjoy explaining it to one and all. I'd be more concerned about insurance, parts and general maintenance availability.