With the evolution of the automotive industry, the way we perceive car buying is undergoing a seismic shift. No longer should cars be viewed simply as depreciating assets; they can indeed be investments. Allow me to elaborate. Recently, a striking article in the Wall Street Journal brought attention to a compelling argument: economically, no car on the market right now offers more value than a Tesla, particularly their Model 3 and Model Y. This might sound audacious given that these cars are not exactly what you’d consider cheap. But when you look at the lifetime value, the scales tip in their favor.
Let’s demystify this claim.
Cars have traditionally been seen as depreciating assets, losing value the minute they’re driven off the lot. However, Tesla’s approach changes this narrative. With minimal maintenance requirements, efficient energy consumption, and unmatched longevity (some believe they could run up to a million miles), Teslas offer a future-proof advantage over their internal combustion counterparts.
While many marvel at how combustion cars manage to travel between 150,000 to 300,000 miles with explosions under the hood, electric cars don’t face these volatile conditions. The possibility of an electric vehicle like Tesla running for 20 years isn’t far-fetched. Not to mention the software upgrade capabilities that Tesla offers, like popping in a new computer module for enhanced self-driving capabilities.
Despite the higher initial costs, Tesla has made concerted efforts to make their cars more affordable. They’ve strategically reduced their prices to compete with traditional automakers. On top of that, there are attractive tax credits available for EV buyers, which could further reduce the overall cost. Financially-savvy individuals can strategize with their advisors and accountants to capitalize on these incentives and perhaps even synergize with other green initiatives like solar panel investments.
Phil highlights an innovative aspect of owning a Tesla with Full-Self Driving (FSD) capabilities: monetization. Most personal cars are left idle for the majority of their life, doing nothing more than taking up space and depreciating. But with Tesla’s advanced self-driving capabilities, a paradigm shift is imminent.
Imagine a world where your Tesla, equipped with FSD, can operate as an autonomous Uber while you’re at work or asleep, earning you money. A potential $100 to $300 daily earnings from this passive source can not only offset the cost of the car but even turn a profit over time.
Beyond the financial benefits, the safety and convenience offered by automated driving are transformative. As age catches up, many find driving daunting, especially under challenging conditions. Tesla’s automation promises to restore the freedom of movement to the elderly, ensuring they can safely visit friends, grocery stores, or events without the concerns that come with driving manually.
For the younger generation, the perks are no less enticing. Heading out for an evening? Enjoy your night and let your Tesla take you safely home, eliminating the risk of DUIs.
Mercedes, Ford, and other big players are diving into the EV space, but they’re playing catch-up. While traditional automakers have been embedding computers and sensors into their vehicles, Tesla began with a sophisticated computer and built a car around it. This distinction is significant
Tesla’s data-driven approach gives them an unparalleled advantage. Reports suggest they possess thrice the data needed to train self-driving systems compared to all other car companies combined. They’re not just ahead in the race; they’re defining it.
One of the most significant takeaways from Phil’s insights is the shift in how we perceive car buying. Spending $40,000 on a car a few years ago might now cost you $70,000, a surge that’s outpaced inflation. But with a Tesla, that cost can be seen as an investment that has the potential to offer returns.
This shift in perception – from cars as luxury or necessity to cars as investments – is groundbreaking. We’re on the precipice of a paradigm shift where cars can change your financial situation, rather than being a burden.
Phil’s insights provide a fresh perspective on car buying. With his extensive financial background, he offers not just personal opinions but well-thought-out advice based on rigorous analysis and forward-thinking. Whether or not you’re a fan of Elon Musk or Tesla, there’s no denying the value proposition that these vehicles bring to the table.
As the automotive world evolves, it’s essential to stay informed and make decisions based on more than just tradition or brand loyalty. So, whether you’re considering a new car for personal use or as part of a business strategy, Tesla undeniably offers a compelling case.
So, as Phil wraps up, delve deeper, challenge your perspectives, and consider embracing this new era of car buying. And as the seasons change, maybe take a drive in a Tesla, with some pumpkin spice in hand, and contemplate the future of automotive investments.
Watch Phil Ratcliff's full discussion in the video below:
This article was written for information purposes only and its content should not be construed by any consumer and/or prospective client as rebel Financial’s solicitation to affect, or attempt to affect transactions in securities, or the rendering of personalized investment advice for compensation. No client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from rebel Financial, or from any other investment professional. See our disclosures page for more information.
Predicting the trajectory of interest rates has proven to be a tricky endeavor. Despite the expertise of economists and financial analysts, the accuracy of such predictions is often no better than meteorological forecasts. While we’ve seen interest rates climb recently, the inherent uncertainty surrounding this metric makes it crucial to approach it with caution.
rebel Financial is a Registered Investment Advisor that provides retirement planning, estate planning, financial planning, and investment management services to individual and institutional clients. To get a more detailed description of the company, its management, and practices, view our (form ADV, Part2A) and Disclosures.
Fiduciary & Fee-Only Financial Advisors and Planners
All websites created by the rF marketing team
