Frugal Man Buys $52,000 Car - Why?

[El_Viajero]

Look at this guy! https://mrmoneymustache.com/2023/04/27/why-buy-model-y/

It's painfully obvious that the author couldn't muster the self-discipline to avoid such a big consumer sucka purchase. Oh, and since buying this car is a such a major break from character, he had to write a whole blog post attempting to justify it.

[Dicey]

There's a lively discussion of this topic here:

https://forum.mrmoneymustache.com/continue-the-blog-conversation/'because-i-want-it-and-can-afford-it'/

[Chris Pascale]

I guess because after 24 years his van conked out, and it's time to replace with something that cost about what that vehicle costs.

[zolotiyeruki]

A year ago, a coworker bought a brand new Tesla, and justified it to himself by saying the gas savings would pay for it.

IIRC, I ran the numbers for myself, with three options:  a new hybrid Camry (50mpg) and an old beater (30mpg), and the new Tesla.  The assumption was 30k miles/year (for reasons).  Yes, the TCO for the Tesla is slightly lower than the Camry, but only after 300,000 miles, and only if you ignore net present value of cash.  As for the beater, like my $1,750 Geo Prizm?  You could literally throw it away and buy another every two years and still be ahead.

The reality is that he bought a Tesla because he loves gadgets.  When I asked him what features made it so much better than other cars, he started talking about being able to play music outside the car, and make fart noises come from any seat in the car.

[Cassie]

Also when something goes wrong because everything is interconnected it may cause the entire car to shutdown. A friend was on a trip and the AC quit working which caused the computer screen to go blank and only allowed the car to drive slower. They had to get to a town with a repair shop that worked on teslas and it took 5 days so the trip was ruined and it was still under warranty at 11 months otherwise it would have cost 3k.

[farmecologist]

A year ago, a coworker bought a brand new Tesla, and justified it to himself by saying the gas savings would pay for it.

IIRC, I ran the numbers for myself, with three options:  a new hybrid Camry (50mpg) and an old beater (30mpg), and the new Tesla.  The assumption was 30k miles/year (for reasons).  Yes, the TCO for the Tesla is slightly lower than the Camry, but only after 300,000 miles, and only if you ignore net present value of cash.  As for the beater, like my $1,750 Geo Prizm?  You could literally throw it away and buy another every two years and still be ahead.

The reality is that he bought a Tesla because he loves gadgets.  When I asked him what features made it so much better than other cars, he started talking about being able to play music outside the car, and make fart noises come from any seat in the car.

Exactly...and talking to these people if you have a differing opinion is like talking to a brick wall.  The C(ult) word comes to mind...

I will give them credit for being early adopters though...but I have to laugh at the hoops they go through to convince themselves that they end up "saving money".  I can easily counter them on it...and they always get miffed about it.  Oh well...

[jinga nation]

Also when something goes wrong because everything is interconnected it may cause the entire car to shutdown. A friend was on a trip and the AC quit working which caused the computer screen to go blank and only allowed the car to drive slower. They had to get to a town with a repair shop that worked on teslas and it took 5 days so the trip was ruined and it was still under warranty at 11 months otherwise it would have cost 3k.

heard from my CTO that Tesla windscreens apparently have a lot of sensors and there's a backlog on replacement parts. And delays on replacement appointments. Can only be done in a Tesla service center or maybe certified 3rd party installers.

https://old.reddit.com/r/teslamotors/comments/vufpub/a_shortage_and_massive_delay_regarding/
and in Europe/UK: https://teslamotorsclub.com/tmc/threads/tesla-model-y-windscreen-replacement.303934/

Regarding the OP's post, I have serious doubts that MMM's Tesla will last as long as his Honda minivan. Especially battery life.
But he got his money's worth out of the Honda. Man's loaded with cash, man can afford to get new transport plaything as he's optimized a lot. I'm all for other people's money being used for early adoption and new technologies.

[AMandM]

I'm all for other people's money being used for early adoption and new technologies.

Me, too. Then I can indulge in the fantasy that I wisely decided to make other people be the guinea pigs, when in fact I simply don't have the money/time/interest/knowledge to be an early adopter myself.

[Scandium]

Also when something goes wrong because everything is interconnected it may cause the entire car to shutdown. A friend was on a trip and the AC quit working which caused the computer screen to go blank and only allowed the car to drive slower. They had to get to a town with a repair shop that worked on teslas and it took 5 days so the trip was ruined and it was still under warranty at 11 months otherwise it would have cost 3k.

heard from my CTO that Tesla windscreens apparently have a lot of sensors and there's a backlog on replacement parts. And delays on replacement appointments. Can only be done in a Tesla service center or maybe certified 3rd party installers.

https://old.reddit.com/r/teslamotors/comments/vufpub/a_shortage_and_massive_delay_regarding/
and in Europe/UK: https://teslamotorsclub.com/tmc/threads/tesla-model-y-windscreen-replacement.303934/

Regarding the OP's post, I have serious doubts that MMM's Tesla will last as long as his Honda minivan. Especially battery life.
But he got his money's worth out of the Honda. Man's loaded with cash, man can afford to get new transport plaything as he's optimized a lot. I'm all for other people's money being used for early adoption and new technologies.

My dad has a fancy Mercedes plugin hybrid thing, with lots of gizmos like radar/cameras, HUD hooked up to the windshield etc. Of course he got a crack in the windshield and I believe the replacement was on the order of $4,000. Insurance covered most, but not sure what that does to your premium..

[aasdfadsf]

Meh, MMM bought an expensive car because he's rich. He got rich doing all the right things. His wealth is at the point such that he can do this without regret. So he did it. And he talked about why he did it. And I don't see anything wrong with that. It would be nuts if he were hurting his bottom line, if there were an actual threat to his financial future that this would incur, which is what happens when most unaware people go out and buy expensive cars. But that's not his situation. So it goes.

[Stimpy]

Meh, MMM bought an expensive car because he's rich. He got rich doing all the right things. His wealth is at the point such that he can do this without regret. So he did it. And he talked about why he did it. And I don't see anything wrong with that. It would be nuts if he were hurting his bottom line, if there were an actual threat to his financial future that this would incur, which is what happens when most unaware people go out and buy expensive cars. But that's not his situation. So it goes.

Honestly, I don't think anyone cares that he bought the car.   We all knew at some point he was going to, though we all expected a used car so, it's not as big deal in that perspective. The issue (in my eyes) is his justification.   He could have probably found a justification with in the current frugal logic (ie. added to cart , waited, still wanted it, situation was appropriate and as you said it won't hurt the bottom line.) but he didn't.  He used consumer logic to make the purchase.....   (Basically, "I want it, so I'm getting it!  After all I need to Treat myself...")

I agree that there should be a discussion on spending all your excess wealth, but there has to be more in line with the values already laid out (with appropriate adjustment for each individual) and that I am sure has happened on some level in the forums, but on the blog, not so much.

[TheGrimSqueaker]

Meh, MMM bought an expensive car because he's rich. He got rich doing all the right things. His wealth is at the point such that he can do this without regret. So he did it. And he talked about why he did it. And I don't see anything wrong with that. It would be nuts if he were hurting his bottom line, if there were an actual threat to his financial future that this would incur, which is what happens when most unaware people go out and buy expensive cars. But that's not his situation. So it goes.

Well... being able to buy what you want, when and how you want, without going into debt, and without impacting your lifestyle is the essence of badassity. That's why so many people go into debt or jump onto a hamster wheel: they want the rewards of badassity without doing the work. MMM did the work.

[Dicey]

I wish this thread would die. I know I'm not helping....but-but-but:

MMM bought this car AFTER he used the principles of Mustachianism (a term he invented) to reach FIRE. For a dude as rich as he has become, 52k is peanuts. Let him enjoy the fruits of his success, for Pete's sake. (Intended)

[Cassie]

Totally agree Dicey!!

[cleverscreenname]

Sorry, Dicey.
As mentioned, I'm glad this is one more quality EV available to by used after Pete tires of it. At his milage rate, I'm confident it will outlast him. I have a Tesla as well, but it's old (10 years), high mileage, and still saving us plenty of money on fuel. I also DIY some repairs on it, and more complicated manners are fixed by some of our excellent general-repair local shops. The only unique parts, the battery and motor, would have to go to a well-trained third-party shop, but there are already 8 in the New England area that I know of that can rebuild the motor.

My old car is a base model without AWD or radar, and I've been quoted just $700 to change the windshield at a local shop. (My car is also completely disconnected from the internet, I physically unplugged the antennas. The car gives an occassional notice, but still functions fine.) Pete's choice, model Y has also shown high reliability by having all the bugs and shortcomings worked out over gradual improvements the past 10 years.

I like zolotiyeruki's $1,750 Geo Prizm. There's been 3 geo prizms/toyota corollas in my family, all 1994, extremely mustachian choice. All vehicles 1995 and older do not have ODB2, and receive a half-price/half-ass inspection in New York of just tire tread, horn, and exterior lights. All my vehicles in my 20s were 1995 and older for this reason, I never had to fear a Check Engine Light failing my inspection.