The new Tesla Model 3 is only $35K? That’s at least what their advertising would like you to believe. It’s only a “bit more” expensive than your last vehicle purchase. Maybe it’s finally time to get on that; you’ll save so much money on gas too!

Hmm… it seems too good to be true, let’s slow down and take a moment to do some due diligence… after all, the advertised price is after government tax rebates and alleged gas savings. That seems like a shady way to advertise… after all, the base purchase price is really ~$47,600 and after all the fees and high financing costs it’s really much, much more.

Let’s take a look at all of the costs – both at purchase and ongoing for the next 6 years. Let’s include all of the numbers – the government tax incentives, the savings of not having to purchase gas; we need to compare apples-to-apples to make a truly informed decision.

Whoa! Those numbers sure look different all of a sudden… once you compare everything, and look at the end result, you sure are looking at a dramatically different picture!

By comparing apples-to-apples, you can quickly realize how much actual savings are available to you by purchasing a more modest,  yet still brand spanking new vehicle – a whopping $532 a month!!!

Now imagine, what if you were to remain modest in your vehicle purchases and instead invest those savings and earn an average return over the next two decades?

The savings earning an average return of 7.8% annually (the same average that the stock market has delivered over the last 50 years, despite all stock market crashes, recessions, depressions, wars, etc.) would result in me having more than $370,000 by the time I’m barely into my sixties!

There’s absolutely nothing wrong with buying a luxury car, but you need to make these decisions knowing what extra costs you will incur. Don’t trick yourself into believing you’re only spending “a bit more” because the only person you’re fooling is yourself.

You can have a more expensive car or ~$370,000+ in ~21 years. The decision is yours…  the only person your decision impacts is yourself. It’s decision time!