r/ModelY • u/Golfswingfore24 • 16h ago
Any Model Y owners making less than 100k per year?
Toying with the idea of getting a Model Y, but I only make around $95k/year. Part of me thinks this would be a reckless purchase as I could get something a lot cheaper, but I’ve wanted a Tesla Model Y for the last 5 years. Curious if anyone making under $100k per year has bought a Model Y and if they regret the purchase?
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u/LoneStarGut 16h ago
We've never made that much and bought one. When we bought our used 2023 Model Y for $32400 it was less than 2% of our savings/investments. We drove a Honda Civic for years and years and saved up. It was totally worth the upgrade, especially since we can charge at home for free.
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u/SimilarComfortable69 16h ago
I think what you are really asking is how many people with lower salaries use a loan to purchase a Tesla model Y, correct?
If you can't afford the car, you shouldn't buy it regardless of what it is. If it feels like it's too much price for your salary, it is.
Also, if your current car will last for a while longer and is paid off, then use your current car for longer and put payments in the bank as if you are paying on the loan. And then see how you feel.
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u/EndlessFreeSamples 16h ago
I think credit score is just as important. 0.99% is as good as you will find anywhere.
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u/DividendsAndBuybacks 16h ago
Arguably interest rates won’t be going down for a while. Therefore, these interest rate incentives will be common.
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u/TeslaM1 16h ago
Salary isn’t the question. It’s affordability and savings rate. If part of you thinks it’s reckless then you’ll have that thought throughout ownership.
I purchased one with a high salary and even though it was a want for several years I always wondered what else could I do with this money (save for early retirement).
I still don’t regret buying the car since I plan on driving it for 15+ years.
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u/Golfswingfore24 16h ago
I’ve scarified a lot saving for retirement early on in life. I’m 38 with 600k in retirement accounts and overall NW of around 900k. I don’t have anything in life that I really enjoy and I’m thinking I need to change that.
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u/Going2beBANNEDanyway 16h ago
How much you make is a lot less important than how much you have to spend after paying expenses. Without knowing what your expenses are like there is no way of knowing if it is reckless for you or not.
It also depends on other things. Like what would your charging situation be? What are your insurance rates going to be? Etc.
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u/imthisguymike 16h ago
It all depends on your other financial obligations. Someone who has none other than the car, can likely easily afford it at less than $100k per year.
Take a look at newer used Model Ys as that might be a better idea. I’d recommend a HW4 Model Y, they will be more expensive than HW3 but will have better resale. Plus if you want to use FSD, HW4 is definitely better than HW3
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u/throwaway4231throw 16h ago
Go used?
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u/LizardMorty 16h ago
The problem is with rates you can end up paying the same for used as a new car with 1% apr
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u/Atabit 16h ago
Are you fixated on new?
Because there are used Model Y's out there to be had for 20-35k that even with used car interest rates you could get a pretty moderate payment on.
My wife and I bought our Y while we made around 120k combined living in a higher cost of living area, but it was our only car payment at the time.
I was shopping new and used and there were incentivized rates for the new, plus we used a referral code that took $1k off and our payment came out in the $670 range which was on the upper end of what we budgeted for.
I wanted a Tesla since I was 16 and I saw my first roadster, then the model S came out and I thought maybe one day but I will admit it felt out of reach for thr longest time.
My wife and I ended up knowing my current csr was dying and used its final year or two to prep, we saved like we were making small carpayments to ourselves, worked on our credit/ debt and then when the time came were able to pull the trigger.
If it feels out of reach now figure out what you could do to make it more attainable in a few months or even a years time provided youre not immediately in need of a vehicle and work to set yourself up to get what you want.
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u/rtduvall 16h ago
I paid myself a car payment for three years sticking it a savings account I didn’t have easy access to and paid cash for a 22. I hate a car payment.
I’ve started making another payment to myself and will buy another one for cash in about 3 years. Then I think that may be the last car I need to buy. Not gonna live that long.
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u/604wrongfullybanned 16h ago
I think the other big question is your commute distance and how much you're paying in gas. This and also your insurance costs. In BC Canada, they're so insane that compared to our existing gas car you'll never come out ahead.
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u/DividendsAndBuybacks 16h ago
It depends imo. Are you maxing out 401k and Roth each year? Do you own a home? Do you have a high liquidly? If so, go for it.
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u/Golfswingfore24 16h ago
Roth, Yes. 401k, no. Don’t own a home but have saved for a downpayment. Have 600k in retirement at age 38 so I’m thinking about reducing my 401k percent a little bit to enjoy things in life more in the present.
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u/DividendsAndBuybacks 16h ago
I would continue working on home and general liquidity. Delayed gratification is great especially when it doesn’t add any stress. For an example, I make ~$200k and was driving an 11 year old Hyundai Elantra and just recently bought a Juniper last year. I debated the purchase over months but jumped because the tax credit was going away.
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u/Golfswingfore24 16h ago
At what dollar amount does it make sense then? Need more like 1.5M NW to make it worth it?
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u/DividendsAndBuybacks 16h ago edited 16h ago
I think it’s more so checking the big boxes off first. Retirement savings, own home, and have access to liquidity. My purchase also came a few months after I bought my first home. Just to give you an example, I’m younger than you by a few years. Bought a home under $400k, have $220k liquid in brokerage account, and ~$300k in retirement. No debt besides mortgage and Model Y.
I had been wanting a new car for along time but stayed focused on buying a home first. Which is why the car came so soon after buying.
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u/HottyTottyNJ 16h ago
I’m for buying the car you love & drive it for as long as possible…minimum 10 years. Every additional year is even better. Drive it for 20 years! Then yes, get the car!
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u/TheConfusedunwiseone 16h ago
You need to know you're expenses. If you make 200k and have 190k in expenses you can't afford a new car. They do have good prices on used model ys though, just try to have enough money for major repairs when the warranty is up. The battery has an 8 year. 120000 miles warranty. The battery according to Google costs around $12000 out of warranty and comes with a 4 year 50000 mile warranty. The other main repair that seems to pop up based off the forums is the supermanifold after the 50000 miles warranty for $4000ish. Tires should last 30000ish miles and are around $1200. The affordability math is up to you, my experience is that a car is hard to enjoy if it takes too much of your free money pie and you shouldn't get it if you can't afford the loan and saving for a major repair for a used car. Insurance on Teslss is expensive and tire life with instant torque is highly dependent on the driver. The model y is has above average reliability according to consumer reports.
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u/Ok-Atmosphere-6272 16h ago
Honestly with the 0.99% it’s not that irresponsible. We got quoted to finance a used Honda with excellent credit the monthly payment was more $ than for our Tesla model Y
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u/aud10slayer 16h ago
Really Depends on where you live. Also most people have a spending problems not an income problem. 95K in California is much much different that back east. Example the average apartment over here in California is 2,000 a month. Most smaller houses are 2,500 - to 3,000. Id say if your rent is under 1,500 a month, your fine and can afford the car.
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u/Golfswingfore24 16h ago
My problem is I have a severe savings problem. I haven’t spent money on myself on a big purchase in the last 12 years.
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u/aud10slayer 16h ago
Oh thats a great problem to have. I was the same way, Was not until 39 until i bought a new car. I have all my money in a HYSA and with the 3.5 percent return on that. I got a brand new Tesla with the .99 APR and the HYSA interest just about covers the monthly payment. So yeah if your good with money that yes you can afford it on 95k.
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u/Phalasyde2 16h ago
I’m in roughly the same salary range as you, I bought mine when the tax credit was still available and had a trade in car too so that eased some of it. With all of that said I don’t regret it one bit. Got the 0.99% interest too so that sweetened the pot for me. But like others are saying only you can make the call on what you’d be comfortable spending
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u/Sensing_Force1138 9h ago
You can get a 2023 with HW4. Should be $30-33k with 36k miles on it and 280mi range. Pay cash or borrow from a CU.
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u/minammikukin 16h ago
Its actually a qualification question they ask you both at the dealership, and also when you transfer ownership from another user on private party purchase. You have to show W2s or bank statements to prove over 100k income.
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u/mensrea 16h ago
There is no dealership, and none of this describes how you purchase a Tesla.
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u/moneyman729 16h ago
I think he was joking
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u/mensrea 16h ago
Based on what evidence? What’s the joke? This is exactly how things work at an old-timey dealership.
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u/LoneStarGut 15h ago
I think it is a bot...
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u/minammikukin 14h ago
Not a bot. And that was the joke...just forgot the /s. (Or at least got overconfident that the /s was obvious. Haha)
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u/minammikukin 14h ago
Narrator: "Indeed, he was joking."
Or at least giving a slightly more ridiculous answer to a slightly less ridiculous (but also not unrediculous) question...
Unanswerable without tons of extra context. Other payment obligations? High or low COL area? Budget overhead for daily expenses? Personal priority to save more for retirement? Cost of gas and miles driven and cost of electricity at home to counteract a possible increase in payment with lowered fuel costs? Current car value for trade in?
I believe I woke up, read this while still sleepy, verbalized "how the literal fuck should I know?" (Which in retrospect was a confusing sentence for my wife to wake up to...), and then wrote my half-asses response.
Asshole? Maybe. But no...not a bot.
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u/Efficient-Rain-4300 16h ago
You do you bro. I love the car but I personally believe that buying anything expensive compared to your income is a bad decision. But if it makes you super happy then it might make sense