Affordability

[Jhodgesatmb]

Watched a podcast recently and one of the guests mentioned how he thinks people buying a Cybertruck are probably overspending on what they can afford. Or CT buyers are thinking they can make money from making YouTube videos or renting their cars on Turo to justify the costs.

What percentage of people are going above their budget just to afford the FS CT?

My budget, or what I planned on spending, for the tri-motor w/500 miles, was what was originally stated by Elon/Tesla. Initially I couldn’t even afford that, but many years later and some lucky saving and investing and I can afford the dual-motor with 340 mile range (and even the FS version). Am I happy about the changes? Of course not. Will I buy the Cybertruck still? Yes. That is, if I get an invite before something equally functional and perhaps more cost effective comes along. I am guessing Tesla has about a year before I have to make that decision because for me the Cybertruck is still better all around than the R1T or Lightning but other trucks may be available in 2025.

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[Jhodgesatmb]

What we do know, is only a small % of US consumers can "afford" a Cybertruck Foundation Series.

Even when the price comes down to $79K, it will still be a small # of buyers who will / want to spend that much on a vehicle.

Enough that I haven’t gotten an invitation yet :-(

 

[DumpsterFire]

you should think about medical insurance. I was going to use some of my tesla stock to buy a CT but it is in the tank now, seems to be a trend.

Burning though $100k over 4 years on acute medical care is not terribly difficult in the US even with decent medical insurance. Lots of deductibles and out of pocket costs associated with it.

 

[SentinelOne]

Car buyers should spend no more than 10% of their take-home pay on a car loan payment and no more than 20% for total car expenses

That takes all the fun out of it! Hell, even putting 60k down it's still $11k interest and $13xx per month - not overly affordable if getting a loan!

My Wife's current car cost about the same, but rates were better (3.x%). I typically put 50% down and make double or triple payments until I realize I don't like interest and then just pay it off.

 

[Tony Roe]

Yup ! A question I have had since joining this Club. I’m a retired “Regular” guy on a fixed income. Fortunately no bills. I’m driving a 2013 GMC with 45k on the clock. I want to get a new truck but not another GMC, I didn’t want to give them $70k for a new vehicle. But when the CT came onto the scene at 60k And it’s Electric, I said let’s Go For It !!
I’ve been saving my coin & filling the piggy bank but when they hit the market at $80k it was a Gut Punch. So I picked up some Tesla stock to help pay for the CT and now that crashed. I probably got a two year wait 1144 RN, so I’ll have to reevaluate the big picture when I get an invite. I’m gambling on the Tesla, Space X & all under the Musk umbrella to save my butt.
Maybe Elon will be on Mars by the time I get my CT !!

T

 

[CyberT]

What percentage of people are going above their budget just to afford the FS CT?

This was my sole reason for passing up the FS email and waiting for the Regular All-Wheel Drive. I could probably make the extra $20k fit into my budget, but it would be too close. I am much more comfortable @ the $80k price point.

 

[TheLastStarfighter]

Yup ! A question I have had since joining this Club. I’m a retired “Regular” guy on a fixed income. Fortunately no bills. I’m driving a 2013 GMC with 45k on the clock. I want to get a new truck but not another GMC, I didn’t want to give them $70k for a new vehicle. But when the CT came onto the scene at 60k And it’s Electric, I said let’s Go For It !!
I’ve been saving my coin & filling the piggy bank but when they hit the market at $80k it was a Gut Punch. So I picked up some Tesla stock to help pay for the CT and now that crashed. I probably got a two year wait 1144 RN, so I’ll have to reevaluate the big picture when I get an invite. I’m gambling on the Tesla, Space X & all under the Musk umbrella to save my butt.
Maybe Elon will be on Mars by the time I get my CT !!

T

The price of the Plaid dropped 40k after 2 years. I wouldn't be surprised to see a price drop with the truck at some point.

 

[SolarWizard]

I’ve definitely had my fill of half ass attempts at utube click milling around here.

I don’t know what percentage exactly, but it’s a theme I def sense

a couple of key examples from around here


Reminds me of some advice I once got from an old timer in the vintage watch space:

“before you buy a piece, imagine you couldn’t show or tell anyone about it - not on the forums, not at a meet-up, not even peeking out under your shirt cuff. If you’d still buy it then, *maybe* it’s worth buying.”

 

[CyberGus]

Suze Orman would pass out if she saw my checkbook

 

[davelloydbrown]

Burning though $100k over 4 years on acute medical care is not terribly difficult in the US even with decent medical insurance. Lots of deductibles and out of pocket costs associated with it.

Despite all the complaints about our healthcare system, guess I am happy to live in Canada.

Three months ago I thought I was going to lose my right eye as it was struck by a bungee cord and ruptured the globe. Three surgeries later and countless visits to two ophthalmologists, one a retinal specialist and my vision has been restored with 20:25 vision.

It hasn't cost me a cent.

Throw away all your bungee cords.

 

[Jhodgesatmb]

Yup ! A question I have had since joining this Club. I’m a retired “Regular” guy on a fixed income. Fortunately no bills. I’m driving a 2013 GMC with 45k on the clock. I want to get a new truck but not another GMC, I didn’t want to give them $70k for a new vehicle. But when the CT came onto the scene at 60k And it’s Electric, I said let’s Go For It !!
I’ve been saving my coin & filling the piggy bank but when they hit the market at $80k it was a Gut Punch. So I picked up some Tesla stock to help pay for the CT and now that crashed. I probably got a two year wait 1144 RN, so I’ll have to reevaluate the big picture when I get an invite. I’m gambling on the Tesla, Space X & all under the Musk umbrella to save my butt.
Maybe Elon will be on Mars by the time I get my CT !!

T

Good luck to all of us in that boat!

 

[BayouCityBob]

The "affordability" question is deeply subjective.

• Grumpy Frugal Dad view: If you have to borrow money to buy a depreciating asset you cannot afford to buy anything more than the minimum required to deliver the functionality you need.
• Dave Ramsey View: total value of all your vehicles shouldn’t exceed half of your yearly income
• Prudent Banker View (noting this advice comes from people who make money loaning you money): Loan payment no more than 10% of take-home pay
• Typical Buyer View: Payments small enough that I can still pay my rent and bills and put a little money in savings at least so long as I do not get laid off, do not get sick, nothing in the house breaks, and I do not mind putting off retirement another year or two.
• Car Enthusiast View: Payments small enough that they will be no problem after I get that big promotion or win the lottery and in the mean time will rent it on Turo and set the heat at65 degrees and borrow against the 401K. It'll be fine.

I confess that the older I get the more I am moving into the grump frugal dad view. LOL

 

[Jhodgesatmb]

Despite all the complaints about our healthcare system, guess I am happy to live in Canada.

Three months ago I thought I was going to lose my right eye as it was struck by a bungee cord and ruptured the globe. Three surgeries later and countless visits to two ophthalmologists, one a retinal specialist and my vision has been restored with 20:25 vision.

It hasn't cost me a cent.

Throw away all your bungee cords.

Thank you for that advice and I am glad that you still have use of your right eye. Scary! What should we use in place of bungee cords?

 

[Jhodgesatmb]

The "affordability" question is deeply subjective.

• Grumpy Frugal Dad view: If you have to borrow money to buy a depreciating asset you cannot afford to buy anything more than the minimum required to deliver the functionality you require.
• Dave Ramsey View: total value of all your vehicles shouldn’t exceed half of your yearly income
• Prudent Banker View (noting this advice comes from people who make money loaning you money): Loan payment no more than 10% of take-home pay
• Typical Buyer View: Payments small enough that I can still pay my rent and bills and put a little money in savings at least so long as I do not get laid off, do not get sick, nothing in the house breaks, and I do not mind putting off retirement another year or two.
• Car Enthusiast View: Payments small enough that they will be no problem after I get that big promotion or win the lottery and in the mean time will rent it on Turo and set the heat at65 degrees and borrow against the 401K. It'll be fine.

I confess that the older I get the more I am moving into the grump frugal dad view. LOL

Deeply subjective for sure!

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