This is based on @biophase original "How To Buy A Ferrari for 20k" thread from 2011..
At least one other member also executed something similar in the INSIDERS, but since it is private I will not comment on it (OP is welcome to add to the discussion if they wish).
I'm presenting a new twist on the idea..I recommend you read the original thread as I'm not going to talk too much about the general idea presented there.
So what's the Tesla plan?
A new Tesla 3 costs at minimum $40K...$44K with taxes where I'm located. The long range all wheel drive model is $55k.
I've test driven one last week..and have to say it would be fun to have one.
$44k-$55k on a depreciating asset? No way I'm spending that much on a toy..
But what if it can be an investment?
What if it can actually be two investments?
Here's the idea:
I've been looking at buying businesses.
I've been looking at businesses for a while now, and today a couple businesses in the $30k-$40k range, making $1K+/month popped up.
These businesses take 1-2hrs a week to run/maintain.
Financing the Tesla requires $5k at signing + $560-$750/month depending on the car options..so the business can finance the monthly costs of financing.
So here's the math:
Buy a business for $33k , making $1,200 profit a month.
This leaves $900/month after taxes.
Monthly Financed Cost of a Tesla: $750 for the more expensive one, Plus $200/month for insurance (can be less but I'm staying conservative) = $950/month.
Sweet. The business pretty much covers the cost of owning the Tesla.
Already a pretty good deal.
But not good enough.
Here's what makes this even sweeter:
Renting out the Tesla on Turo.
In my area, prices for model 3 go between $97-$149 a day.
Assuming an average rent price of $100/day and renting for 10 days a month (I'd price it low to get better occupancy), and platform taking 25% incl' insurance, that adds an additional $750/month.
This is conservative, as there are additional add on fees and it is possible to rent the car out 15 or 20 days out of the month as well.
Now here are the total numbers:
Out of Pocket (Assuming more expensive Tesla 3 Model):
$33,000 To buy Business
$5,000 To buy Tesla
$6,000 for Taxes
Total: $44,000 (which equals exactly the cost of just buying cheaper Tesla cash!)
Monthly Numbers:
Business making $1,200 month, $900 Net.
Car Renting on Turo: $1,000 month, $750 Net.
Total Income = $1,650/m
Expenses = $750 Car Payment, $200 Insurance = $950 /m
Cashflow = $1,650 - $900 = $700/m
Per year = $8,400
Add'l Benefits:
$1,725 Federal Tax Credit (EV car)
$5,000 State Tax Credit (EV Car)
Equity in car - Teslas keep value pretty well but I'm not sure how to calculate. Let's assume that the car is completely paid off after 3 years, and worth 60% of full price ($30,900 out of $51,500).
Divided by 3 years it would be $10,300 per year in 'equity'.
=$17,025 first year benefits.
Total First Year Cashflow + Benefits = $8,400 + $17,025 = $25,425
Now the conversation in my head changed from buying an unnecessary toy...to making $25,425 this year to drive a Tesla for fun
What am I missing?
At least one other member also executed something similar in the INSIDERS, but since it is private I will not comment on it (OP is welcome to add to the discussion if they wish).
I'm presenting a new twist on the idea..I recommend you read the original thread as I'm not going to talk too much about the general idea presented there.
So what's the Tesla plan?
A new Tesla 3 costs at minimum $40K...$44K with taxes where I'm located. The long range all wheel drive model is $55k.
I've test driven one last week..and have to say it would be fun to have one.
$44k-$55k on a depreciating asset? No way I'm spending that much on a toy..
But what if it can be an investment?
What if it can actually be two investments?
Here's the idea:
I've been looking at buying businesses.
I've been looking at businesses for a while now, and today a couple businesses in the $30k-$40k range, making $1K+/month popped up.
These businesses take 1-2hrs a week to run/maintain.
Financing the Tesla requires $5k at signing + $560-$750/month depending on the car options..so the business can finance the monthly costs of financing.
So here's the math:
Buy a business for $33k , making $1,200 profit a month.
This leaves $900/month after taxes.
Monthly Financed Cost of a Tesla: $750 for the more expensive one, Plus $200/month for insurance (can be less but I'm staying conservative) = $950/month.
Sweet. The business pretty much covers the cost of owning the Tesla.
Already a pretty good deal.
But not good enough.
Here's what makes this even sweeter:
Renting out the Tesla on Turo.
In my area, prices for model 3 go between $97-$149 a day.
Assuming an average rent price of $100/day and renting for 10 days a month (I'd price it low to get better occupancy), and platform taking 25% incl' insurance, that adds an additional $750/month.
This is conservative, as there are additional add on fees and it is possible to rent the car out 15 or 20 days out of the month as well.
Now here are the total numbers:
Out of Pocket (Assuming more expensive Tesla 3 Model):
$33,000 To buy Business
$5,000 To buy Tesla
$6,000 for Taxes
Total: $44,000 (which equals exactly the cost of just buying cheaper Tesla cash!)
Monthly Numbers:
Business making $1,200 month, $900 Net.
Car Renting on Turo: $1,000 month, $750 Net.
Total Income = $1,650/m
Expenses = $750 Car Payment, $200 Insurance = $950 /m
Cashflow = $1,650 - $900 = $700/m
Per year = $8,400
Add'l Benefits:
$1,725 Federal Tax Credit (EV car)
$5,000 State Tax Credit (EV Car)
Equity in car - Teslas keep value pretty well but I'm not sure how to calculate. Let's assume that the car is completely paid off after 3 years, and worth 60% of full price ($30,900 out of $51,500).
Divided by 3 years it would be $10,300 per year in 'equity'.
=$17,025 first year benefits.
Total First Year Cashflow + Benefits = $8,400 + $17,025 = $25,425
Now the conversation in my head changed from buying an unnecessary toy...to making $25,425 this year to drive a Tesla for fun
What am I missing?
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