Rapid depreciation

[Cactusrick]

sooo, not the point I made. I’ve asked Tesla to buy the truck back per the ban on selling it within 12 months and they are silent. No number has come back yet. And it’s great that you have plenty of equity, I don’t. And now the truck is depreciating at a rate far faster than it was before. No one could have anticipated what is going on with Tesla re its stock price nor the resell market. And let’s not pretend than non Tesla related actions are having a substantial impact on both.

The way people don't think is amazing....

Sponsored

 

[Cactusrick]

Here's how I framed my decision prior to purchasing the FS CT.

The extra $20k for FS, while it comes with some things like FSD, is essentially paying for advanced depreciation with an understanding that the release of nonFS models will directly affect it's resale value. Unless there is a way to offset and/or justify the extra $20k, I'd be more financially responsible to wait for the nonFS CTs. BTW, the same goes for the new Model Y Launch Edition.

Unlike equities, vehicles are not investments. Vehicles are a liabilities. The up-swing in vehicle resale values was an anomaly during the pandemic in the history of all vehicle sales. I will not depend or rely on the resale value of a CT as part of my purchasing decision. There are other collector types of vehicles that can be treated as an investment but the CT isn't one of them at this moment.

Anyways, just my two cents, not financial advice.

exactly- ................................some bought to flip and -

 

[Bruisershockey]

fortunately my tesla stock paid for my CT. I'm a grateful early investor just like i was an early reservation for the truck. I've really never once considered the current value of the truck because i don't plan on ever getting rid of it. if it ends up being a no longer in production DeLorean, fine. if they end up being all over the road for 50k, fine. i guess my mind doesn't consider "how can i sue someone to make me whole again on decisions i regret" under any circumstance. i own my decisions regardless of outcome. i also couldn't be happier with the truck. with the FSD, with my stock, with Elon and his decisions to buy twitter and get involved in politics because i agree with him on all fronts. i also didn't care when he was a Dem. in the end you like the truck/car or you don't. if you made yourself car poor and the payments are hard, and the depreciation gives you no out, I'm sorry. that sucks. Not wishing ill towards anyone. but it was your choice to buy and there was never a guarantee on what the truck would be worth in a year, two years, ever. i don't think anyone should have bought it as an investment though. that would indicate that you aren't aware of how poor the decision to buy a new car is from a financial standpoint.

 

[BillSirloin]

It’s a vehicle so I expect it to depreciate. Every car I’ve owned has and never expected to make money on the resale.

 

[PungoteagueDave]

The way people don't think is amazing....

Anyone who finances a vehicle purpose is a uninformed chump. Same for leasing, with the rare exception of certain business leases. And even there, it’s usually a close call that depends on implied income tax rates and residual assumptions. Do you really want to bet against the lessor’s actuary?

Financing anything except a residence is to become a serf - agreeing to pay the man for life, and coming out with less in the end. Whether folks believe it or not, it isn’t about a monthly payment and instant gratification. ONE 48-60 month wait, driving your old beater, and you can pay cash. Get on that merry-go-round and you will win life’s finances. Fail to do so, and run any credit card balances, ever, produces a financial loser and limits ann ability to retire in comfort.

Discipline, discipline. None of my family will ever have a car loan, car lease, or rolling credit card balances. It isn’t necessary to be wealthy to live well and be financially prudent. I cringe every time I see a Tesla owner talk about their loan or lease deal.

 

[TheWholeBrevityThing]

Anyone who finances a vehicle purpose is a uninformed chump. Same for leasing, with the rare exception of certain business leases. And even there, it’s usually a close call that depends on implied income tax rates and residual assumptions. Do you really want to bet against the lessor’s actuary?

Financing anything except a residence is to become a serf - agreeing to pay the man for life, and coming out with less in the end. Whether folks believe it or not, it isn’t about a monthly payment and instant gratification. ONE 48-60 month wait, driving your old beater, and you can pay cash. Get on that merry-go-round and you will win life’s finances. Fail to do so, and run any credit card balances, ever, produces a financial loser and limits ann ability to retire in comfort.

Discipline, discipline. None of my family will ever have a car loan, car lease, or rolling credit card balances. It isn’t necessary to be wealthy to live well and be financially prudent. I cringe every time I see a Tesla owner talk about their loan or lease deal.

I'm thinking the guy that owns a Cybertruck, Model Y, and a Porsche while touting that he doesn't use loans/leases because he is isn't an "uninformed chump" is drastically disconnected with the general population. I'm happy for you and your wealth that you have the luxury of making such important ethical decisions, but your post came across as wildly condescending and pious for no good reason.

You might have valid points, but they're hidden under your holier-than-thou rant and there are responsible people on here with loans and leases that are happily and responsibly making payments while enjoying their vehicles.

We aren't all in the same financial situations, and to school everyone on how yours is the best is super gross, Dave.

 

[mongo]

Anyone who finances a vehicle purpose is a uninformed chump. Same for leasing, with the rare exception of certain business leases. And even there, it’s usually a close call that depends on implied income tax rates and residual assumptions. Do you really want to bet against the lessor’s actuary?

Financing anything except a residence is to become a serf - agreeing to pay the man for life, and coming out with less in the end. Whether folks believe it or not, it isn’t about a monthly payment and instant gratification. ONE 48-60 month wait, driving your old beater, and you can pay cash. Get on that merry-go-round and you will win life’s finances. Fail to do so, and run any credit card balances, ever, produces a financial loser and limits ann ability to retire in comfort.

Discipline, discipline. None of my family will ever have a car loan, car lease, or rolling credit card balances. It isn’t necessary to be wealthy to live well and be financially prudent. I cringe every time I see a Tesla owner talk about their loan or lease deal.

Cool story,
Our Explorer financing was 0%
Kubota financing was 0%
Paid income taxes on a new 0% credit card and made more in points than the transaction fees
The money we didn't use to pay cash on Cybertruck increased in value more than the lifetime loan interest. No reason to raid tax deferred accounts and raise our marginal tax rate.

BTW still waiting on your proof that there is a tax liability clawback with point of sale transfer.

 

[MyOtherTruck]

It’s worth half the price we paid when we drive it off the lot.

 

[Cyber Man]

Cool story,
Our Explorer financing was 0%
Kubota financing was 0%
Paid income taxes on a new 0% credit card and made more in points than the transaction fees
The money we didn't use to pay cash on Cybertruck increased in value more than the lifetime loan interest. No reason to raid tax deferred accounts and raise our marginal tax rate.

BTW still waiting on your proof that there is a tax liability clawback with point of sale transfer.

If you are paying 0% interest, then it’s not a loan ?. I agree on staying debt free for auto loans. I also agree on staying debt free on large home loans for the primary home. That’s how people get sucked into the hamster-wheel 9-5 jobs for 30 years!

 

[dalton108]

I'm thinking the guy that owns a Cybertruck, Model Y, and a Porsche while touting that he doesn't use loans/leases because he is isn't an "uninformed chump" is drastically disconnected with the general population. I'm happy for you and your wealth that you have the luxury of making such important ethical decisions, but your post came across as wildly condescending and pious for no good reason.

You might have valid points, but they're hidden under your holier-than-thou rant and there are responsible people on here with loans and leases that are happily and responsibly making payments while enjoying their vehicles.

We aren't all in the same financial situations, and to school everyone on how yours is the best is super gross, Dave.

I muted this chump a while back. Seems like I made the right choice. ?

 

[TeslaKen]

Thank goodness my Cybertruck is appreciating in value and continues to do so. Yours can too, simply don't sell your truck, in fact if no one sells their truck then the only way to get one is new from Tesla. If someone wants to buy your truck tell them you will only sell it for 1.5x or 2x or 10x what you bought it for. If they buy it then great, resale prices are up. If they won't buy it then don't sell it and again resale prices stay high. What was that we learned? supply and demand? There is a very limited supply of Halo Cybertrucks with my exact modifications to them, in fact as I understand it, there is a market of 1 and that 1 is not for sale, thus the truck continues to appreciate in value as I appreciate driving it.

 

[thecybertruckguy]

My wife totalled our FDN AWD and I was pretty upside down but thanks to GAP I got out without too much pain… progressive offered me 83k ACV and I think I could have got 75 Private Party. Trade in is in the 70k range depending on miles.

I was considering upgrading mine with the current 1.99% financing and can confirm, trade ins are around 65-70k, and private party ranges from 70-80k. Math didn't make sense for me, but it does for some folks.

 

[dalton108]

If you are paying 0% interest, then it’s not a loan ?. I agree on staying debt free for auto loans. I also agree on staying debt free on large home loans for the primary home. That’s how people get sucked into the hamster-wheel 9-5 jobs for 30 years!

Like @TheWholeBrevityThing said above different strokes for different folks. Well, he didn’t say that exactly, but you know what I’m saying.

 

[ponch]

I knew I was paying to be an early adopter & there’s no contractual obligation on the part of Tesla in terms of depreciation as long as you don’t have a lemon. When I price out a new CT now with all of the options my foundation beast had upon delivery I don’t see the crazy price difference anyhow other than the fact that we know based on history that perks will likely be added in the future, i.e. lower finance incentive, free supercharging, manufacturing kinks worked out, etc.

 

[cyberbeatles]

Keeping mine until Cybertruck 2.0 Foundation Series.

Greatest driving machine ever made.

Sponsored