Hey guys! This blog is in conjunction with the very first episode of Chai Tea-V on my YouTube channel. In this show, I will do my best to help you with any questions that you might have with tech, photography, my latest interest, Teslas, and anything else that I make for my channel. I hope you find this show informative and entertaining.
In the first episode, I answer a question that I’ve been asked a lot over the past week, since I made the video about getting a Tesla: What is the best way of paying for the car? Please bear in mind that I am not a financial advisor, and anything I said is only my personal experience. You should ALWAYS seek the help of a financial professional when making big decisions like this.
Now, assuming you’ve decided that you’re gonna buy a Tesla, we’re going to go through the ways that most people use to pay for the car. All the juicy information is on my video:
But in summary, there are 3 common ways, and I’ll outline the pros of each here:
OUTRIGHT PURCHASE
This is the cheapest method because you don’t pay anybody any interest. Not to nobody.
You can do anything you want with the car because it’s yours.
Only works if you have that much money lying around not being used for anything.
Is the most cost-effective, unless you can find a way to use that money to make bigger returns on some investment (like stocks, etc) than the amount it would cost to borrow money to buy the car, after tax.
In NSW, you get a rebate for stamp duty (about $3000)
CAR LOAN
You pay interest as you are borrowing money (usually because you don't have enough cash to pay for it). You can reduce the amount of money you borrow by paying a bigger deposit and / or balloon payment at the end.
You can do anything you want with the car because it’s yours.
In NSW, you get a rebate for stamp duty (about $3000)
NOVATED LEASE You are borrowing the car, and don’t actually own it, during the term of the lease. You don’t have to pay GST (about $6000). All the expenditures (fuel / charging, insurance, service, insurance, etc) during the life of the lease are budgeted for in the fortnightly deductions, so there’s no bill shock. Costs are taken before paying income tax, so you reduce your tax burden (your taxable income is lower). At the end of the lease, you can give the car back (you need to pay the residual in some way), and then get a new car.
Buying your Tesla outright is the cheapest, but the novated lease also sounds good too, right? There are a few things that you need to remember before you sign on the dotted line for a lease:
You cannot modify the vehicle or purchase accessories after the initial order
You don’t own the car at the end of the lease, unless you pay the balloon (residual) payment
You cannot claim for the charging of your Tesla at home, unless it’s on its own separate meter (but you probably can’t claim this if you buy the car anyway)
There are additional fees from the leasing company
If you stop working, the rest of the payments come out of your after-tax funds, and you lose all of the advantages
So, there is a lot to think about. I hope I’ve explained things a little bit for you, but please bear in mind, that this is just a layman’s perspective, and I may have missed out some important details. Again, please speak to your accountant or financial advisor, and make your own, informed decision.
Thanks for watching. I hope you find this post useful.
D
Post
Block
Status & visibility
VisibilityPublic
PublishFebruary 27, 2022 8:46 pm
Post Format
GalleryImageLinkStandard
Stick to the top of the blog
Author
Derek
Enable AMP
Move to trash
2 Revisions
Permalink
URL Slug
The last part of the URL. Read about permalinks(opens in a new tab)
VIEW POST
https://dereksniche.wordpress.com/2022/02/27/financing-a-tesla-model-3/(opens in a new tab)
Categories
Search Categories
Chai Tea-V
tech
Tesla
Christmas
daily life
Entertainment
Harry Potter
Food
Online Shopping
pets
Product Review
social media
Travel
Uncategorized
Add New CategoryNew Category Name
Parent Category
— Parent Category —Chai Tea-VtechTeslaChristmasdaily lifeEntertainment Harry PotterFoodOnline ShoppingpetsProduct Reviewsocial mediaTravelUncategorized
Add New Category
Tags
Add New Tagfinance (1 of 3)financeTesla (2 of 3)TeslaModel 3 (3 of 3)Model 3
Separate with commas or the Enter key.
MOST USED
Product Review
tech
shopping
Apple
unboxing
Online Shopping
iPhone
iPad Mini
Apple Watch
iPhone 13
Build your audience with tags(opens in a new tab)
Featured image
Replace Image
Remove featured image
Excerpt
Write an excerpt (optional)
Learn more about manual excerpts(opens in a new tab)
Discussion
Allow comments
Allow pingbacks & trackbacks
Financing A Tesla Model 3 is now live.
What’s next?
Post address
Copy
View PostAdd New Post
Convert to audio
Seamlessly turn this post into a podcast episode with Anchor - and let readers listen to your post.
Create a podcast episode
This post has been sent to 145 readers
Always show pre-publish checks.
Post
Notifications
Copied 6 blocks to clipboard.