www.cnbc.com/2024/06/28/why-buying-a-brand-new-tesla-was-a-huge-mistake.html
Buyer's Remorse
Why buying a brand new Tesla was a 'huge mistake' for this millennial
OWNER EXPERIENCESuch a dumb article. Yes, buying a new car is stupid, no matter what car. They aren’t investments and you will definitely be better off if you buy a cheaper car. But if you can afford it, you do you.
Thanks for the financial advice, influencer. 🙄
Almost always stupid, unless it is a cheap car that depreciates slowly. in 2013 I bought a Honda Fit on a 0% loan and I think I was only upside down for six months or so. Bought for $16k, totaled out 6 years later for $11k.
When I got it, used prices were so high that this was a near-certain outcome and I did it with that in mind.
I got a 2004 Tacoma base base base model, bought from dealer in 2005 for 18k cash. Still driving it. Only oil changes and tires and 2 suggested maintenance trips.
That was painful to read. I know it’s advisable to write at a 4th grade level for readability but does it really need to sound like it was written by a 4th grader!?
Knock yourself out, buddy
She doesn’t pay the car off why?
Shit doesn’t make sense.
Because the loan's interest rate is likely lower than what that money earns invested in the market.
Yeah, the article is clickbait horseshit. The car is fine. She bought it before the price cuts - so did everyone who bought a car while supply chain issues drove up prices. She makes $400k. $1000 a month car payments is nothing - while ten$ of thousands makes that in the market.
When you are this rich buying it off isnt always the best move. Just invest that money and pay the interest with the return.
It would have to be a pretty darn good investment to return more than the interest rate.
My EV is financed at zero percent over six years. There's enough money in my business to buy the whole car several times over, but if I take it out in one shot it's taxed at the marginal tax rate (twice the rate of the first 50k ish I spend every year). Better to do it this way, leave the money in the business invested in stock ETFs.
It was bought in the pandemic, interest rates were great. Also, current investment returns for the last year are about 17%, so yeah.
Edit: I was off a bit .
not sure why this is downvoted. it's the answer. lease and earn the spread.
We’re all in the wrong sub for objective statements… which ironically gets us banned from the rose colored glasses subs. There is just no middle.
Current new car rate at my credit union is 5.4%
Said the lender that wants to milk the principle for as long as possible by front loading the interest.
It is always simple interest.
Few investments are going to outpace car interest unless you're insider trade.
If you buy a car, have the cash.
She makes $400,000. Wow, my heart goes out for this gal cause she’s obviously struggling to eat and house herself cause she bought a model 3. Must be so hard being the head of advertisement at a massive corporate like TikTok and make that much. /s I don’t hate people being successful but don’t cry to me about money issues unless you are gonna be with the boots doing the work that keeps the cogs of society actually rolling, not a superficial corpo that sells data of people and makes big money doing.
I feel like CNBC exclusively interviews millennials who make 6-figures and/or not even close to being universally applicable . They’re the famous “model your budget” people with that one guy who spent $800 on rent, $400 on groceries and found a way to have a house cleaner and donated some crazy sum per month (like $500) to charity.
The classic CNBC "struggling to survive on half a million a year". The budget breakdown is someething to behold.
Gotta be a soulless pos to take that job tbh. I’m a software dev and wouldn’t even entertain Facebook, TikTok and similar apps, that are toxic to the society as a whole.
don’t cry to me about money issues unless you are gonna be with the boots doing the work that keeps the cogs of society actually rolling
I'm a medical specialist in southern Europe and to be honest, some months I do have to keep a tight budget as my wife is currently not working. Still, I'd never publicly complain about my situation as I know I earn more than the vast majority of my fellow citizens.
And that’s fine. You do a meaningful job, she’s some corpo schmuck who cries about a Model 3 keeping her investments from not reaching a “potential” in a year, I believe the article said. That I don’t have pity for.
If it's any consolation, her supposed income is most likely all a sham.
I don’t doubt that she makes a crapton of money.
I also don’t doubt that she’d be dead within two weeks if the shit ever really hits the fan.
Sarcasm tags ruin all sarcasm
I agree but this is Reddit, some cannot discern sarcasm and real.
To be fair, reddit has no video nor audio. And since 2016 it seems all reason has gone out the window so you never know if someone is saying they drink their own piss as a joke, or because they truly believe it is healthy.
Now if you don't mind I'm just in time for my daily anal sungazing
That’s a ‘them’ problem.
CCPTalk
But a great opportunity to monetise playing the professional victim….
This person through their work is quite literally making the world a worse place to live. And we're supposed to have sympathy for their bad purchase decision?
I don’t have much sympathy to give here, but when you read the article you can tell there was some psychological and development year issues that led to this.
Still, at $400k a year… I had to assume she also bought a house that she shouldn’t have, or a lot of things she didn’t need, because even in a major city $400k is a lot of money.
People will find endlessly ways to spend outside their means. It’s bizarre she’s put herself in this situation though.
there's been studies that have shown people on very high incomes as a family (300k+) can actually struggle more with budgeting than people on one third of that. My dad always told me, if you get a promotion or something that gives you a big boost in your salary, bank the difference automatically and keep living how you alredy were
True.
I just have a tiny little bit more sympathy for people who had childhood related stuff that led to poor adult behavior/choices.
She talks about how her father valued people based on their wealth and material possessions, and we know that children will go to extreme lengths to prove their worth to their parents.
She needs therapy, to curb the damage done as a kid, and if she doesn’t get any, then my sympathy is gone and it’s on her.
Very strange article
Agreed, the fact that it's a Tesla is basically irrelevant to the article, the point just seems to be that cars depreciate quickly and buying new doesn't always make good financial sense.
Also, in the last week, this writer has published three articles about this woman. Each just as AIish and low quality. I don't really know what to make of any of it, the platform it's published on or even the person who reposted it here.
It is not at all comparable to general depreciation trends over the past 3-4 years. Most vehicles bought in 2021 are worth substantially more than 40% of their MSRP on the used market right now.
This isn't new car depreciation, this is the impact of price cuts and decreased demand.
Im very confused because it’s so bizarre in its obviousness? What reader wouldn’t know that a car is a cost and not an investment? It reads like something parents would show their 17 year old kid.
I can only guess this is some paid-for attention piece but she really doesn’t come off looking great
I would never in a million years pay someone to write this article about me.
uh... you can definitely afford a $70,000 car on a $400,000 salary. The only circumstances where you wouldn't be able to are ones where you have spent beyond your means in other areas. If you can't spend $1,000 a month on that type of salary, you have bigger issues.
Takes me 10 years to earn $400000.
"That’s because, as Lee now knows, cars are a depreciating asset."
But Musk told her that a Tesla is an appreciating asset. LOL!
"a complicated relationship with money stemming from her father who often placed “value on people based on where they live or what kind of cars they drove,” she says."
She is shallow and so was her father.
She could have bought a nice Mercedes CLE450 and been done with it.
With her money she could have bought a Porsche 911 outright and suffered minimal depreciation too.
Her father could have just understood socio economic statuses and she misinterpreted it to mean she gotta fake it.
Flexing about your salary is news now?
And her divorce.
And apparently not understanding that a vehicle was a depreciating asset.
Anything for attention, though. Gross.
1) Cars are not investments 2) Hard to feel sorry for someone on $400k a year.
Her net worth would have been higher if she hadn’t spent $70k on a Tesla? Yeah it’s called spending money stupid.
Cars are not investments.
Cars never appreciate in value
Cars will always depreciate the moment you pay for it.
What is a person earning that much doing financing her car?
Investing.
getting scammed by the dealer, they love pushing financing
What’s wrong with financing, I’m not seeing it…
I just realized, you don’t know about buying from Tesla and are commenting out of ignorance.
Est. Payment $1,174 /mo $4,500 (6%) down, 6.39% APR, 72 months that's a lot of money going into tesla
Bless your heart ❤️ You’re using today’s interest rates.
You’re probably commenting from a middle class perspective. If you do want to use today’s interest rate, $1200 isn’t a whole lot on their now $30,000 a month income.
Ultimately, the debate here was on loan vs. no loan. I’m turning 19% on a target index fund, so if you want to say whether to spend my cash or someone else’s cash, I’ll take a loan and invest.
When it’s how to use money, always use someone else’s money. When it’s figuring out the cost of something, interest is an expense. They’re separate things.
Weed.
When you spend $100k+ on a vehicle to flex, then you have to spend more money on alternative transport because the Wankpanzer is back at the service centre every 6 weeks out of 7.
Lol this isn't a 100k+ vehicle
In classic reddit fashion, parent comment didn't read the article. It literally says she paid 70,000 (!) for the model 3.
Just an attention seeking article because it’s a tesla. Could have been the case for any expensive cars that people are stupid enough to finance that doubles the cost of the car.
The whole iseecars.com angle is how to use statistics to tell a convenient story. Now they’re adding testimonials.
“Look, I have normal people problems. “
This is the dumbest article. She bought a depreciating asset at the height of the market and now complains its underwater? Like 90% of homeowners in 2009? She should count herself lucky that it'd only a car and not $100k+ on a home and she has the means to still pay for. It's got nothing to do with Tesla or evs. Just a dumb purchase at the worst time.
Also. It's not a loss until you sell it. Why does she need a new car? As long as she's happy driving it, she got what she paid for and there is no loss. She's obviously got enought fuckyou-money to afford a new car every year so just buyone. It's people's obsession with new car every year that drives these dumb articles like "my ev lost 50% value" who cares. Drive it for 10 years and the 2 year depreciation won't matter!
Let me guess. No money left over for avocado toasts?
Nah just cant afford a luxury bag, just stuck with a premium one
Stock market averages 8% most loans aren't higher than that
Article should be.. buying any new car at the height of the pandemic over msrp was a huge mistake
tldr: makes 400k can't afford a 1000 loan a month
Wait she makes $400,000 a year?? hahahaha
A person with that kind of money can't be a millennial. Next she'll claim she could afford to not live at home with her parents til age 30+.
These articles are always so dumb.
Yeah she'll be fine. I'm surprised she only makes 400K working as a marketing head for CCPTalk.
But yeah Elon did kind of screw her.
I have had friends that bought Model 3's and Y's at the price peak and are all now very much underwater on their loans.
And some of them bought Tesla stock near all time highs.
Warren Buffet always said get greedy when others are worried (buy when the market is in a downturn) and get worried when others get greedy (when things are at all time highs).
Why buying a brand new Tesla car was a 'huge mistake' for this millennial.
FTFY
Its a huge mistake for anyone.
Is there a /nofuckingshit sub? I should look...
She earns $400K but only has $800K in assets at 34. That iis some seriously bad budgeting.
generational wealth brat buys expensive car and complains for attention
This is a dumb article
Bought a Model 3 thinking I was making a wise decision. Price had just dropped, and hardware was better so why not?
Almost every month after purchasing, they gave better price and incentives. Model Y price was eventually the same as Model 3, and I was kicking myself for not waiting a few months.
But then I realized I needed the car badly. The Day I made the decision to buy it wasn't taken lightly. I rejected multiple vehicles to pick this.
I think about that and that makes me appreciate my purchase more. Because few months later it may seem like that you don't need it, but it's because it helped you during the times you did need it. If you never appreciate that, you will forever be pessimistic in life.
The car itself is crap, but had an amazing charging network. Having said that, we love our BMW iX.
Stop buying avocado toast and she’ll be just fine. Stupid article
Reads like a Business Insider article - Foolish high income woman buys high priced EV and regrets it. Yeah, I'd regret paying $70K to drive around a cookie cutter car too...
Duh, new cars are not a money making investment. Also, kind of weak to blame her deceased father for her decision.
400k is a mind numbing. Even after taxes in a high tax state youre taking home 240k. 20k per month is like hookers and blow every weekend type money, and you'd still have a few k left over
Who is meant to feel bad for her 850k worth could have been slightly higher if she bought a cheaper car story
This person works at TikTok, that is all you need to know about their decision making capabilities
Buying any car that isn't the cheapest on the market is a bad financial decision. Every Audi, BMW, Mercedes and so on make no sense when there are cheaper options with better value. But cars rarely are pure financial decisions. Emotions are a big part of cars and that has a price. So, either you need something to only drive from A to B (but then you won't buy a BMW) or you buy a car that makes you happy.
Same as Rolex etc. Bad financial decision when there are Casios with more functions and more exact. You have to live your life.
Makes $400k a year ($33k ish per month) and is still making $1k loan payments on the car?
Just pay it off you donut!
This is an stupid article.
1) No car is an investment.
2) Yes 2021 was the worst time to buy a Tesla as far as inflated prices.
3) Buying now doesn't result in the same sort of devaluation as it did then.
4) how bad am I supposed to feel about someone being upside down in a loan when they make nearly enough money every month to pay it off in full.
Tesla Model 3 for just over $70,000
Uh, how? The Model 3 was never that price in 2021.
Influencer?
More like Under the Influence.
What a nut.
As well as I despiece Teslas resale value. No pity for her, car is a depreciating asset and why the hell she is not paying off the car with that salary. I think she is an influencer. This was a low-key showoff video.
"It was a huge mistake because I only make $400k and can't afford to use 10% of that to pay off the rest of my car loan."
Making $400k a year and worries about a car payment?
And here I am hearing about how every bloke earns at least 20% more than every woman. Guess I’m doing it wrong or my memo didn’t get through seeing as I earn substantially less while doing what I’m sure is a hell of a lot more difficult job.
This is such a non-story holy shit
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This person is a "business" influencer whose friend writes articles about her for attention. Linkedin lunatic going above and beyond.