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> I am a monetarily concious consumer who sees the value in a high quality car which maintains its value well, has good purchase incentives. That makes no sens

> I am a monetarily concious consumer who sees the value in a high quality car which maintains its value well, has good purchase incentives. That makes no sense. How does buying an $89K car instead of a $25K hybrid save you money? These incentives better be of $64K in value, otherwise there is no monetary argument to be made here. Don't get me wrong, I like the Model S, I think it is a wonderful car with tons of innovative technology inside (and, no, I am not just talking about the battery power). But there is no financial argument you could make that would justify buying one over a Prius or Ford Fusion. The only reason the Model S appears to have such a good resale value is that there was a huge backlog for a while, and people were paying OVER retail price just to get ahold of one. Kind of like the Nintendo Wii the first christmas it came out, doesn't mean a Wii maintained that value over the medium to longer term.

Consultant32452 13y ago
You're looking at it from the perspective of a person that can't really afford a Tesla. When you look at the world and say "What's the best bang for the $100k I'm going to spend on my next car?" then you may feel a Tesla is a good monetary value based on resale value or other factors even though it's not the most economical way you could transport yourself back and forth to work.
- alexeisadeski3 13y ago
  Tesla S competes with E Class MB, latter costs ~55-65k. 100k S Class is much better car than Tesla S.
  - keithwarren 13y ago
    I disagree on the S class. It is bigger but I find nothing else about it 'better' and certainly not 'much better'
    - alexeisadeski3 13y ago
      De gustibus non est disputandum No doubt there are components of the Tesla S which are nicer than the S Class. But taken holistically, they are not in the same class. Wheelbase, length, interior volume, rear legroom & headroom, overall refinement are all quite different between the Tesla S and M-B S. Though they do weigh about the same... But as I said, de gustibus non est disputandum.
      - ericd 13y ago
        What about torque/throttle response? I really like the idea of a car that seats a good sized family comfortably but can drag race with an M5. I've driven and loved some very high performance cars, the Tesla is incomparable because of that ridiculous immediacy. Not having to compromise on practicality to get it puts it in a class of its own, IMO.
  - whatusername 13y ago
    Assuming Elon Musk comes through with his statement about not inflating prices for a specific country -- Tesla might start killing it in Australia. (S Class starts at $215,000. E Class 4 door starts at $79K. Going up to 130 (or 250 for the AMG))
  - cloudwalking 13y ago
    Tesla Model S costs $63k after tax rebate, and you'll save $3k per year on gas and oil.
    - alexeisadeski3 13y ago
      MSRP is $106k with normal options (almost exactly the same as S Class), with a $7,500 rebate that comes out to $98k.
      - altyus 13y ago
        That's for the performance version. Check your facts. http://bit.ly/Mtgrlq http://bit.ly/Mtgrlq
        alexeisadeski3 13y ago
        It is not.
    - aestra 13y ago
      How much are you really spending on gas? I paid $11,000 for my now 3 year old car when it was 2 years old. I didn't finance it so I didn't pay interest. I average about 35 mpg and drive about 12,000 miles a year. If gas was $4 a gallon that is about $1,412 a year. If I drove 15,000 miles a year that is $1,700 in gas. My owner's manual* says to change the oil once every 10,000 miles or once a year whichever is first. The dealership does that for me for free. I'd have to drive my car for 30 years to make up the price difference between the cars ($52,000) If you want to get a luxury car, then get a luxury car, but don't act like you're doing it to save money. *it is no longer true you have to change your oil every 3,000 miles for most cars. http://autos.yahoo.com/news/how-do-you-really-know-when-to-change-oil-in-your-car-.html http://autos.yahoo.com/news/how-do-you-really-know-when-to-c... http://skeptics.stackexchange.com/questions/4209/is-it-necessary-to-change-motor-oil-every-5-000km-3-000-miles http://skeptics.stackexchange.com/questions/4209/is-it-neces... http://www.edmunds.com/car-care/stop-changing-your-oil.html http://www.edmunds.com/car-care/stop-changing-your-oil.html http://www.nytimes.com/2010/09/11/your-money/11shortcuts.html?pagewanted=all&_r=0 http://www.nytimes.com/2010/09/11/your-money/11shortcuts.htm...
adt2bt 13y ago
> The only reason the Model S appears to have such a good resale value is that there was a huge backlog for a while I'd be careful calling it the ONLY reason. It's true - for the mid-term range (6-24 months?), resale values will be inflated due to backlogs. I have a hunch that the cars will hold their value well, especially if the main depreciating factor is the battery pack getting tired. Another factor, as well, is the potential for Tesla to produce another luxury car that's either heads and tails better than the Model S for a similar price, or of the same quality for a significantly lower cost (scale + battery prices dropping?). Either of these cases could whack resale values of current Model S's down.
base698 13y ago
A friend of mine just did a TCO spreadsheet comparing the Model S with various assumptions of depreciation to an Audi, Infiniti, Suburu Outback, and a few other vehicles. Even assuming 70% depreciation the cost per mile was less than most of the other luxury cars at the point you hit 128,000 miles. To me it's comparing the > $50K class of vehicles. If you're going to spend $50K you may as well buy a $90K Tesla, because it will be cheaper if you keep it 6 years or more.
- tracker1 13y ago
  Not to mention that the Tesla (and other hybrid ev) have been holding their value better than any gas powered vehicles. Though you did say "even assuming" .. just wanted to make that point clear. I'd love to get a Tesla S, but being I live in an apartment, it's not really a practical option for me.
keithwarren 13y ago
All things are relative. I am not some gazillionaire for which money is no concern but I am financially successful enough that I look at money a bit differently that most. When I consider buying cars I expect a certain level of quality and craftsmanship that you typically only find in higher end automobiles. Given that as my baseline - the Model S makes a pretty compelling fiscal argument. On top of that value and cost are not the same. The value represented by the Tesla can far outpace the cost factors between its sticker and those of a Prius or Fusion. tldr; I am not in the market for a cheap car, I want a great car.
- lttlrck 13y ago
  Why lease then when you could buy?
  - keithwarren 13y ago
    Personal thing really, started about 10 years ago. I dont drive often but when I do I want it to be an enjoyable and luxurious experience which I often equate with the freshness of a new car. I also get bored of the character of a car over time. Leases gives me a controlled and knowable insulation (given the rapid depreciation of new cars) from the value downside. Basically, I get the new car experience far more often without taking big cash hits.

Consultant32452 13y ago

You're looking at it from the perspective of a person that can't really afford a Tesla. When you look at the world and say "What's the best bang for the $100k I'm going to spend on my next car?" then you may feel a Tesla is a good monetary value based on resale value or other factors even though it's not the most economical way you could transport yourself back and forth to work.

alexeisadeski3 13y ago
Tesla S competes with E Class MB, latter costs ~55-65k. 100k S Class is much better car than Tesla S.
- keithwarren 13y ago
  I disagree on the S class. It is bigger but I find nothing else about it 'better' and certainly not 'much better'
  - alexeisadeski3 13y ago
    De gustibus non est disputandum No doubt there are components of the Tesla S which are nicer than the S Class. But taken holistically, they are not in the same class. Wheelbase, length, interior volume, rear legroom & headroom, overall refinement are all quite different between the Tesla S and M-B S. Though they do weigh about the same... But as I said, de gustibus non est disputandum.
    - ericd 13y ago
      What about torque/throttle response? I really like the idea of a car that seats a good sized family comfortably but can drag race with an M5. I've driven and loved some very high performance cars, the Tesla is incomparable because of that ridiculous immediacy. Not having to compromise on practicality to get it puts it in a class of its own, IMO.
- whatusername 13y ago
  Assuming Elon Musk comes through with his statement about not inflating prices for a specific country -- Tesla might start killing it in Australia. (S Class starts at $215,000. E Class 4 door starts at $79K. Going up to 130 (or 250 for the AMG))
- cloudwalking 13y ago
  Tesla Model S costs $63k after tax rebate, and you'll save $3k per year on gas and oil.
  - alexeisadeski3 13y ago
    MSRP is $106k with normal options (almost exactly the same as S Class), with a $7,500 rebate that comes out to $98k.
    - altyus 13y ago
      That's for the performance version. Check your facts. http://bit.ly/Mtgrlq http://bit.ly/Mtgrlq
      - alexeisadeski3 13y ago
        It is not.
  - aestra 13y ago
    How much are you really spending on gas? I paid $11,000 for my now 3 year old car when it was 2 years old. I didn't finance it so I didn't pay interest. I average about 35 mpg and drive about 12,000 miles a year. If gas was $4 a gallon that is about $1,412 a year. If I drove 15,000 miles a year that is $1,700 in gas. My owner's manual* says to change the oil once every 10,000 miles or once a year whichever is first. The dealership does that for me for free. I'd have to drive my car for 30 years to make up the price difference between the cars ($52,000) If you want to get a luxury car, then get a luxury car, but don't act like you're doing it to save money. *it is no longer true you have to change your oil every 3,000 miles for most cars. http://autos.yahoo.com/news/how-do-you-really-know-when-to-change-oil-in-your-car-.html http://autos.yahoo.com/news/how-do-you-really-know-when-to-c... http://skeptics.stackexchange.com/questions/4209/is-it-necessary-to-change-motor-oil-every-5-000km-3-000-miles http://skeptics.stackexchange.com/questions/4209/is-it-neces... http://www.edmunds.com/car-care/stop-changing-your-oil.html http://www.edmunds.com/car-care/stop-changing-your-oil.html http://www.nytimes.com/2010/09/11/your-money/11shortcuts.html?pagewanted=all&_r=0 http://www.nytimes.com/2010/09/11/your-money/11shortcuts.htm...

adt2bt 13y ago

> The only reason the Model S appears to have such a good resale value is that there was a huge backlog for a while I'd be careful calling it the ONLY reason. It's true - for the mid-term range (6-24 months?), resale values will be inflated due to backlogs. I have a hunch that the cars will hold their value well, especially if the main depreciating factor is the battery pack getting tired. Another factor, as well, is the potential for Tesla to produce another luxury car that's either heads and tails better than the Model S for a similar price, or of the same quality for a significantly lower cost (scale + battery prices dropping?). Either of these cases could whack resale values of current Model S's down.

base698 13y ago

A friend of mine just did a TCO spreadsheet comparing the Model S with various assumptions of depreciation to an Audi, Infiniti, Suburu Outback, and a few other vehicles. Even assuming 70% depreciation the cost per mile was less than most of the other luxury cars at the point you hit 128,000 miles. To me it's comparing the > $50K class of vehicles. If you're going to spend $50K you may as well buy a $90K Tesla, because it will be cheaper if you keep it 6 years or more.

tracker1 13y ago
Not to mention that the Tesla (and other hybrid ev) have been holding their value better than any gas powered vehicles. Though you did say "even assuming" .. just wanted to make that point clear. I'd love to get a Tesla S, but being I live in an apartment, it's not really a practical option for me.

keithwarren 13y ago

All things are relative. I am not some gazillionaire for which money is no concern but I am financially successful enough that I look at money a bit differently that most. When I consider buying cars I expect a certain level of quality and craftsmanship that you typically only find in higher end automobiles. Given that as my baseline - the Model S makes a pretty compelling fiscal argument. On top of that value and cost are not the same. The value represented by the Tesla can far outpace the cost factors between its sticker and those of a Prius or Fusion. tldr; I am not in the market for a cheap car, I want a great car.

lttlrck 13y ago
Why lease then when you could buy?
- keithwarren 13y ago
  Personal thing really, started about 10 years ago. I dont drive often but when I do I want it to be an enjoyable and luxurious experience which I often equate with the freshness of a new car. I also get bored of the character of a car over time. Leases gives me a controlled and knowable insulation (given the rapid depreciation of new cars) from the value downside. Basically, I get the new car experience far more often without taking big cash hits.