Lifelong lessons to learn and remember!
There’s an ass for every seat.
People don’t buy a new car because they need a new car. They buy a new car because they want a new car.
Don’t buy cheap stuff cheap. Buy good stuff cheap.
Tried and true truthful sayings.
If my family, and maybe you, had a dollar for every time you’ve heard me repeat any of these phrases you would have a lot of dollars.
The first half of today’s newsletter is more data-driven. The second half shows just how much in life can get messed up at just the wrong times. If you ask me the second half of today’s read is the most entertaining. You decide.
Randy’s New Car Buying Method.
Today’s message is NOT about Randy’s New Car Buying Method. Nevertheless, you may have first been introduced to my writings when I came up with “Randy’s New Car Buying Method”. This strategy has saved me, my family, and many of my readers literally hundreds of thousands of dollars.
Not familiar with Randy’s New Car Buying Method? It’s simple. You do a little research; you send out a few emails and then you march into a new car dealership on New Year’s Eve and pick up a new car for pennies on the dollar. That’s a brief summary of the program. This description leaves out a few details, but it is essentially correct. Click on the link above for the latest, published in 2023, version of Randy’s New Car Buying Method.
Sometimes I just want stuff.
I wanted a new car. This is different from my needing a new car. It is rare to encounter some broken-down hunk of junk sitting along the side of the road with a forlorn parent with three toddlers bemoaning their fate in the desert hot sun. This person NEEDS a new car or at least a new car to them. I didn’t need a new car. I only wanted a new car.
However, I did not want to use Randy’s New Car Buying Method. Why? Why you ask? You might be saying, “Randy, please use Randy’s New Car Buying Method. It’s so simple. It always works and it’s just downright cool”.
If you said that I couldn’t really argue with the logic of your statement. My method is cool. It is easy. But, it wasn’t going to work this time.
How about I clarify something?
Before we go further let me clarify one thing. I understand everyone does not want a new car. I actually recommend that people who are younger or still building their net worth and retirement funds NOT buy new cars. New cars depreciate.
However, if you don’t want a new car and have some money please don’t hoard your money. Spend your money on you, yourself, your friends, and/or groups who can use your money and enjoy it yourself. Hoarding money or waiting to give it to family and friends when you die and when those people are too old themselves to enjoy it is…well just wrong.
I’ve got a Tesla but I wanted another one.
That headline makes it sound like I wanted TWO Teslas. No, one would be enough. I own a 2020 Tesla Model X. I wanted to buy a new Tesla. Tesla doesn’t negotiate prices. They have a fixed pricing system; I would not be able to use Randy’s New Car Buying Method with Tesla. And yes, before we go any further, it does sound like I am speaking in the third person, doesn’t it?
Why do I want a new Tesla?
Next, you might be asking this question. “Randy, you just bought a new Tesla less than four years ago. Why do you need a new one? Did the batteries die? Did the car catch on fire? Did you get tired of the car taking forever to charge?” First, I didn’t say I needed a new Tesla. I said I wanted one. And what is my response to those questions? Please!
If I had a dollar…
I will tell you this. If I had a dollar for every time I have been asked one of these questions or another group of questions that are nearly identical but with different words, I would have a lot of dollars.
Just yesterday, a friend asked me, “Why did you buy a new Tesla after you just bought one four years ago?” I had a simple response.
Die with Zero, baby! If you don’t know what that means you have not been reading my newsletters close enough. If you want to know more about Die with Zero just click on the link.
Hop in and ride with me.
Ride with me on Part 1 of this two-part journey that begins with me explaining exactly what it took to buy a new Tesla. You might think if Tesla doesn’t negotiate prices I would just walk into a dealership and buy one, right? It wasn’t that simple.
Part 2 will be just as exciting.
Part two? I will tell you what it took to sell my 2020 Tesla Model X. You might think that would be a simple operation as well. I could just walk into CarMax, sit in a chair for 30 minutes while they pretended to test drive my car, and then walk out with a check. It wasn’t that simple.
Let’s get started.
Test drive 1.
I took a test drive. Ya, drove the red one above. My conclusion? Sorry, not going to get a new Tesla. I don’t think the new one is as good as the one I have.
Test drive 2.
Gave it some more thought. I took a second test drive. This time I brought Carol with me. I wasn’t seeking her approval. She don’t like Teslas…but that’s not really her talkin’. I kept the car overnight. I examined it. I changed my mind. I’m getting a new Tesla Model X! Why? These were my plus and minus conclusions are having two test drives.
2023 Tesla Model X advantages…the new car.
Less Interior Road noise
More Speed. 3.8 seconds vs. 4.4 seconds, 0-60 mph.
Better bright lights…by far
Better sound system
Air-cooled seats
Rear air-conditioning
Rear video screen
Dual phone charger
$7500 federal tax credit
Four-year/50,000-mile warranty
Faster supercharging
A little bit more range
Key card lighter than a key fob
Insane mode…is insane!
New tires
Extends California carpool lane availability by nearly 2 years.
Touchscreen airflow control
Lithium 12v battery
2020 Tesla Model X advantages…the old car.
Slightly more Interior space
Seat comfort
Bigger steering wheel – 2020 steering wheel 15” x 15”; 2023 steering wheel 14 3/4” X 14.5”…trust me, I could feel it
Wider opening of doors
Better garage distance measurement – ultrasonic cameras
Ceramic coating
Window tinting
Better auto loan interest rate for the next two years
No difference
Unlimited supercharging
Video screen vertical in 2020 and horizontal in 2023, both 17 inches. Later I would conclude horizontal is better than vertical.
The Tesla line-up.
Tesla has 4 models. This was true when I started my Tesla-buying adventure. During that long road to ultimate success, they started shipping their new “Cybertruck”.
The Cybertruck might be the most polarizing automotive idea since…well, I don’t know how to complete that sentence. The waiting list to get one is literally years. The list of people who hate the looks of the Cybertruck stretches around the world several times.
Tesla’s four models.
S…Model S sedan – $74,990 – Range 402 miles – Top Speed 130 mph – 0-60 mph 3.1 seconds
3…Model 3 sedan – $38,990 – Range 272 miles – Top Speed 125 mph – 0-60 mph 5.8 seconds
X…Model X SUV – $79,990 – Range 335 miles – Top Speed 149 mph – 0-60 mph 3.8 seconds
Y…Model Y SUV – $43,990 – Range 260 miles – Top Speed 135 mph – 0-60 mph 6.6 seconds
S3XY. Get it? S3XY is sort of like SEXY. The above info is for the entry-level models in each class. If you want to pay a little more you can get more range and faster speeds. Other than range and speed each model is decked out with pretty much the same stuff. The Tesla Model Y is the best-selling car in the United States, Europe, and the world!
Give me the most expensive thing you got.
I wanted a Model X. That’s the most expensive Tesla. The MX is a big car and I’m a big guy. I already had a 2020 Tesla MX.
I ordered the car. O.K. I didn’t just order the car. I did quite a bit of pre-work.
Got a smartphone? You can order a Tesla.
Anyone can order a new Tesla on their smartphone and have the car delivered to their home. It’s kind of like ordering toothpaste from Amazon. There are just 7 questions to answer on the Tesla app and then you go out to your front door and wait. What are the questions?
What color?
What color do you want? Tesla has just five colors for the MX. They have just five colors for all of their models. Of course, Tesla and private companies will “wrap” your car in any color you want…for a fee…a fairly big fee.
Did you know Tesla offers one color for “free” as in no upcharge with each model? By the way, all of my references that follow will be for the Model X.
Currently, the “free” color changes from year to year. Right now, the “included” color is Stealth Grey. White, blue, and black have a $1,500 upcharge. Finally, red will set you back $2,500.
White used to be the free color. That’s why you see so many white Teslas and so few red Teslas. Cheap bastards! My 2020 MX is black. I also chose black for my 2023 MX purchase. Yes, I said “2023” Tesla MX. More on that later. More on my changing from black later as well.
Wheels.
Second choice? Wheels. 20” Cyberstream wheels are included. 22” turbine wheels for $5,500 extra. I chose the Cyberstream wheels. I’m glad I didn’t like the big wheels. Those things are pricey.
Interior color.
Moving on to the interior color. Black is included. Black and white as well as cream are $2,000 more. I chose a black interior. O.K., let’s get real. I didn’t WANT a black interior. I live in Southern California for gosh sake. The United States government via Tesla wanted me to have a black interior. More on that later.
How many seats do you need?
I could get my MX in three different seating configurations. Those were 5 seats, 6 seats, and 7 seats. There was no extra charge for the 5-seater which is what I wanted. I would have had to pay $6,500 for six seats. Using that pricing logic how much do you think the 7-seat option would be? $13,000? Nope. $3,500. Go figure.
Wanna yoke with them eggs?
Then there was the steering wheel option choice. The last time you bought a Chevy did they give you a steering wheel option choice? Fortunately, the basic steering wheel was included. Thank goodness! The steering “yoke” was a $1,000 option. You laugh. A few months ago, the yoke was standard and the basic steering wheel was an option! I went with the basic steering wheel.
Want somebody or something to do the driving for you?
Next up? Enhanced Autopilot. $6,000. What’s that? You can navigate on Autopilot, change lanes on Autopilot, and have the car park itself among other things. I passed on this option.
Sit in the backseat and let your Tesla drive you to McDonald’s.
Finally, “Full Self-Driving Capability”. $12,000. I bought this option on my 2020 MX…for $7,000. Ultimately that one option would be what allowed me to sell my 2020 MX. I passed on full self-driving this time around. I enjoy driving myself and have since I first started driving on public highways at the age of 10 in a 1955 Ford Galaxie.
You choose what you want and press send on your phone.
That’s it. Pick the model, the car color, the wheels, the interior color, how many seats you want, what kind of steering wheel you prefer, and whether or not you want to drive the car yourself or not. Then press “send” on your phone and wait. Waiting was going to be the issue for me…but at least I had ordered my new 2023 Tesla MX!
This is where things got interesting.
On October 24, 2023, I placed my order for a 2023 Tesla Model X! I did it. I acted. Far too many people get to different stages in life with different ideas and projects and never take the final step…acting.
Good deals won’t last forever.
Time was of the essence for me. Several different things had to happen for my deal to be a complete success. What “things”? Permit me to elaborate.
We are not just talking about buying cars. This is really important to understand.
But…before I do move forward please, pretty please do not think we are talking exclusively about buying a Tesla today. The principles that I am about to explain can be applied to just about everything in life. Not sure about that? Give the idea some more thought.
One brand, just one brand is dominating the EV market in the United States.
Just a point of clarification. My comments about electric cars are almost exclusively about Teslas. When I owned Lexus automobiles (19 years) I was never a fan of domestic cars and now with Tesla that remains the case. Tesla is dominating the EV market in the U.S. Here’s a list of the top 10 selling EVs for the year 2023 in the U.S.
Brand/model Unit sales
Tesla Model Y 394,497
Tesla Model 3 220,910
Chevy Bolt 62,045
Ford Mustang Mach E 40,771
Volkswagen ID-4 37,789
Hyundai IONIC 5 33,918
Rivian R1S 24,783
Ford F-150 Lightning 24,165
Tesla Model X 23,015
BMW i4 22,583
Yes, Tesla is kicking butt for many reasons. Remember, consumers vote with their feet. Why is the car I am buying, the Tesla Model X so far down the sales chart? It costs 2-3 times what most of the models listed cost!
Free is usually best.
I have owned my 2020 Tesla MX since late December 2019. That was nearly four years from the time of my late October 2023 purchase. During that time, I had free “lifetime supercharging”. Most people charge their EVs at home. With the cost of gasoline and using the mileage I got from my last Lexus SUV, I would have had to spend about $18,000 (before tax) over four years…just for gasoline! Free lifetime supercharging was a HUGE win for my purchase back in late 2019.
I do have 38 solar panels sitting on my roof. However, our normal electrical home usage eats up almost all of the production from those solar panels. If I wanted to charge my car at home I would need about 25% more solar production. My current solar system would not cover the charging of my Tesla. I would be faced with paying California’s super high electricity rates. That wouldn’t be a good idea.
Wow! Not another $18,000!
Lo and behold, Tesla began an offer of “free lifetime supercharging” with their 2023 Model X cars. That offer was not being made available on any other Tesla cars…just the Model X. I guess I was just lucky (Carol is always telling me “You’re lucky” when I think my “luck” comes from listening to others’ ideas and massaging those ideas until they work well for me). With another opportunity at free lifetime supercharging, I HAD to buy a new one. How could I not?
I placed my order for my new car on October 24, 2023. According to Tesla, “As long as I took delivery by December 31, 2023” I would get free unlimited supercharging. That was an $18,000 advantage!!
Charging doesn’t take any of my time.
By the way, my supercharger of choice is located at our local shopping mall. That’s a nine-minute drive from our house. This location has 50 superchargers and I NEVER wait. On average it takes 25-30 minutes to charge my car from 20% to 80%. What do I do during that time? I walk. I walk four miles every day. That amount of walking takes 60-80 minutes. I don’t get all of my walking in during a charging session but I get some of it done. Since I “have” to walk four miles every day I don’t consider the charging that goes on in the background to take any of my time at all. Most others charge their cars at home overnight…while they are sleeping. People have to sleep, right? If someone charges their Tesla while they sleep are they really spending ANY of their time charging their car? I don’t think so.
The wins just kept coming.
Getting free supercharging was not the only benefit of buying a new car. There were two other “winners” waiting in the wings to step up and add to my personal net worth. “Randy, tell me more”. Glad you asked.
Uncle Sam wanted me.
First, the U.S. Government wanted to help me buy my Tesla. That’s right, Uncle Sam. The government already helped pay for those solar panels and they cover some of my huge jumbo home mortgage. I never could have afforded such an expensive modest seaside cottage without their help. I think of the government as my “buddy”.
No shade please.
Folks, before you think about throwing any shade my way for me being so friendly with the government try to think about it this way. I like baseball. When I go to a baseball game I am more than willing to accept that baseball operates on a three strikes and four balls framework. I don’t sit in my seat and bitch and moan when my favorite player is called out after just three strikes. Baseball has rules. I am not going to be able to change those rules.
The government has rules. I’m not going to be able to change those rules. People who know me will tell you, “Randy never complains about the government no matter which party is in power, and never complains about paying taxes”. I never complain about the weather either but in SoCal, there isn’t anything to complain about.
Rather than complain about the rules I do this. First, I do my best to understand the rules of whatever game I play. Then I try to exploit those rules while not breaking any rules. Does that make sense to you? Now are you still going to throw shade on me? I certainly hope not.
The government encourages people to do certain things. What things? Buy a home, give to a charity, invest in equipment for your business, and stuff like that. It seems the government would like folks to buy electric cars to save the planet. Remember…no shade throwing. You’re here for the entertainment and maybe to catch a new financial idea or two.
Off-topic for just a moment. Today, as this is being written, I’m making my quarterly estimated tax payment…with a credit card. Remember I told you about the creative use of credit cards in an earlier message? Paying by credit card will give me a rebate of about $500. Remember, me and the government are buds.
The U.S. government was offering tax credits, not tax deductions, for people who bought electric cars that used batteries that were sourced from places we liked and not from places we didn’t like…like China.
Free money. I’ll take all the free money I can get, wouldn’t you?
The Tesla Model X qualified for the maximum tax credit of $7,500…until at least the end of 2023. After that? Who knew? I needed to take delivery of my car by New Year’s Eve to get both the free unlimited supercharging ($18,000) AND the government tax credit ($7,500). It was kind of creepy how New Year’s Eve is such a key time for “Randy’s New Car Buying Method” and now just as much when I was buying a Tesla.
Oh, one more thing about the government and me. I don’t complain about the government regardless of whether it’s red or blue in power for one simple reason. It don’t do no good. I only spend my energy on things I can change. If I can’t change something I don’t think about, I don’t worry about it. This approach works very well for me but from the sound of things not so well for others.
My mantra is…I just wanna borrow money.
There was a third item that would also be important. I like to buy stuff. I just don’t like to pay for it right away. That sounds reasonable, doesn’t it? When you like to buy stuff and you don’t want to pay for it banks and other people let you BORROW money. I LOVE borrowing money. Of course, I like to borrow at low rates and invest the money I am not paying for the stuff I bought, at higher rates. Pretty simple, huh?
This was a smoking hot deal.
I bought my 2020 Model X four years ago. I financed that car with a loan for $100,000 at 1.99% with a credit union up in Fresno. Then I invested the money in the stock and bond market.
During the four years I owned that car my investments earned $22,000 above and beyond the interest I paid on that six-year loan. Folks, let’s just take a moment. Do you see how I have little pots of money, $7,500, $18,000, $22,000 just percolating all around the room? Don’t get me wrong. Life is not all about money. But…it don’t take all that much brainpower to do the stuff I’m doing and be financially rewarded.
Die with Zero, baby!
What do I do with all of that money? Die with Zero, baby. I try to optimize experiences for me, my wife, family, and friends. I try to create memories. I sort of create these financial resources almost out of thin air and translate them into vacation photos.
What caused inflation?
Covid happened. Then inflation happened. Then interest rates went up to battle inflation caused by COVID-19. Pandemics do happen, right? In today’s world, I could no longer get a 1.99% auto loan. Bankrate.com told me the average auto loan rate now was going for nearly 7%. Oh my.
I earn on average 8% on my investments. After-tax, I earn about 5.5% on my investments. To borrow rather than pay cash for my car I would need to get a loan rate lower than 5.5% to make any money. Bankrate.com was saying the best I could do with a car loan was going to cost me nearly 7%. What would I do now?
I do best when listening to others and then acting.
I joined a Tesla Model X Facebook group. Twenty thousand members. This was the type of group where you could ask a question and get ten responses in five minutes. One person mentioned a credit union in Maryland, FedChoice. According to this source, they were offering a 4.99% rate. However, if a new member applied for a loan in the first 90 days of their membership the rate was reduced by one point to 3.99%. Whoa.
I called ‘em. I told them I was Randy and I was here for an auto loan. I wasn’t a member. To become a member of this credit union I needed to give them ten bucks. On this particular day, I had ten bucks. I sent them a ten-spot. I placed my Tesla order on October 24, 2023. Remember that date. Four days later FedChoice approved me for an $80,000, six-year car loan….at 3.99%. I could make money at 3.99%. Not as much money as I made at 1.99% but I could make money. FedChoice gave me 90 days to close the loan. As the boys back at the Caterpillar Tractor Company factory, where I worked during college, were fond of saying when something went their way…”I was golden”.
Tesla has a most unique nearly unheard of pricing strategy.
As you probably know the government doesn’t exactly just “give” you money although some folks think they do. I paid $96,000 plus tax for my 2020 Model X. This was four months before COVID-19 started. Just two years after I bought my car Tesla had begun raising their prices dramatically, almost every month.
I took this quote from one of my Tesla MX Facebook group members. Lots of people in 2022 were paying MUCH more than the $96,000 I paid for my Model X in late 2019.
“Anyone that bought in 2022 like me got it the worst. I got my red no option 2022 model x plaid for $143,000 before tax and $157,000 out the door. Today my car new from Tesla sells for $100,000 before tax and $110,000 out the door. Worst timing in the world. And this is got to be the worst depreciation on any new car in the world ever.”
Tesla was selling cars like crazy with their new lower prices…and they were making money doing it.
The government wanted to help me buy my Tesla. But just for appearance’s sake they couldn’t give me too much help. By 2024 COVID was becoming less of a problem. Tesla was beginning to lower prices. They were lowering the prices of their cars by 20-40%. No carmaker had ever done such a thing. When Tesla lowered prices they sold more cars. Duh!
For the year ending 2023, they sold 1.8 million cars a 38% increase over the previous year. Tesla has a more than solid growth curve going. They were selling cars like crazy and their competitors weren’t selling virtually any electric cars. This convinced the press to write stories about waning EV demand. Yes, for Tesla’s competitors demand was not just waning, demand for their cars had left the building! Tesla had a 38% sales increase ending just three months ago for the full 2023 year.
What did I have to do to get Uncle Sam’s money.
For me to get that $7,500 tax credit I had to do a couple of things. First, Carol and I could not have an adjusted gross income higher than $300,000. Ladies and gentlemen, I was born at night but not last night. I could meet that requirement. I use Turbo Tax!
Secondly, my Tesla Model X assembly and battery had to meet these requirements. I was good to go on these rules.
- Have a battery capacity of at least 7 kilowatt hours
- Have a gross vehicle weight rating of less than 14,000 pounds
- Be made by a qualified manufacturer.
- FCVs do not need to be made by a qualified manufacturer to be eligible.
- Undergo final assembly in North America
- Meet critical mineral and battery component requirements (as of April 18, 2023).
Uncle Sam didn’t want to give rich people too much help.
Finally, my new 2023 Tesla MX couldn’t cost more than $80,000. Wait. What? I bought my 2020 Tesla MX for $96,000. The guy we listened to above from the Tesla FB group said his MX cost $143,000. How was I going to get a new Tesla MX for $80,000 with these recent purchases and with all of the inflation the country was supposed to be having? Oh my.
The Tesla people were not born last night either. The government’s upper limit to get the Federal Tax Credit with an SUV was $80,000. Wouldn’t you know it! Tesla priced a brand spanking new Tesla MX for $79,990. Wow! They beat the government requirement by ten dollars. What a coincidence. Coincidence? I think not!
What would I get for only $79,990?
To get to the $79,990 number Tesla eliminated the upcharges for paint colors. They REQUIRED that everyone go with a black interior. Maybe they got that idea from Henry Ford. If I really wanted the black and white or cream interior that would cost $2,000 more and put the price above $80K and prevent me from getting the $7,500 tax credit. Net, an interior color other than black would cost me $9,500!
I didn’t want a black interior…but a number kept ringing in my head…$79,990. That was a steal. I ordered a black car with a black interior. My 2020 MX had been a black car as well.
Code Red.
Later in the process, I decided I really didn’t need four years of owning a black 2020 MX and likely another four years of owning a black 2023 MX. I changed my choice to a red exterior with a black interior. Remember, under “normal” conditions the red color came with the maximum upcharge of $2,500. Now I was getting that color for free! Tesla owners name their cars in their Tesla app. Chevy has an app, right? It don’t matter. I named my new red Tesla, “Code Red” after the soft drink.
Tesla: Send me a big old Tesla as soon as you can.
I had placed my order. I had secured my loan. Now I just needed to sell my 2020 MX. However, Tesla would not let me do that. Because I was “transferring” the free unlimited supercharging from my old car to my new car I couldn’t sell my old car until I took delivery of my new car. That seemed like strange logic but in this case, Tesla was making the rules.
Electric cars were starting to back up on new car lots! Really?
Now I waited. Have you heard those news stories about electric vehicles backing up on new car lots? They’re just not selling? That’s not true for Tesla. Ordering a Tesla on your iPhone can be done in a couple of minutes. Getting a new Tesla can create a wait of months. Almost all Tesla buyers must wait weeks or months to get their car. Want a Cybertruck? Your wait might be more than a year!
Talk about pressure! I didn’t need more deadlines in my life.
I’m retired. I don’t do deadlines. But…. my free unlimited supercharging, federal tax credit, and credit union loan all had deadlines from when I placed my order on October 24, 2023. The supercharging and tax credit had to be wrapped up with a car delivery of December 31, 2023. That gave me 67 days. I had 90 days to get the car and qualify for my super-low 3.99% car loan rate. Several time bombs were ticking.
We travel a lot. We travel maybe more than anybody you know. Tesla must not like travelers. A Tesla buyer has to pick up their car in person. No powers of attorney, no sister-in-law’s, no neighbors can get the car…I had to pick up my car in person. When Tesla calls and says your car is in you have THREE days to pick up the car. Can’t do that? No problem. Tesla would give my car to the next person in line and I would go to the BACK of the line. We had several international trips planned between the time I ordered the car and when my financial pumpkin would burst into flames at midnight on New Year’s Eve. From day one I began to sweat bullets. People who know me consider me to be the most laid-back person they know. I don’t sweat bullets.
Where is my freaking car?
Maybe you can sense where I’m going with this. I like to win. Who doesn’t? I really like to win especially at games where I have prepared well and have some expertise. I considered all of what I was doing as simply a game. I DID have $40,000-$50,000 at stake. Maybe that made it more of a game.
Days passed into weeks and then two months. No Tesla. We have a very upscale shopping mall in our area. Tesla has a store in the mall. From time to time, I would drop in there. I would even show up before they opened! I knew the people from when I bought my Tesla four years ago. After the pleasantries of our conversation ended we always got down to just one real question. Where’s my freaking new car? They didn’t know any more than I knew.
It got to be December. On December 4 with just 27 days remaining of my time clock off I went to Oman, Qatar, and Kuwait with J.J. and Dustin. We had a great time. Tesla surely wouldn’t make me fly back from the Middle East to take delivery in person of my new Tesla? They didn’t call and I returned on December 12…19 days remaining.
Please. It’s not my fault.
I suspected that Tesla would not withhold their free supercharging offer that was supposed to expire on December 31. It wasn’t my fault I couldn’t take delivery of their car. It was their fault! Luckily, they agreed with my thinking. They told me I could still get the unlimited free supercharging for the life of my car’s ownership whenever they did get around to giving me my new car. Nevertheless, I still couldn’t sell my old car until I got the new car.
I was so close to taking advantage of the government…er better wording…qualifying for their generous offer.
The $7,500 government tax credit. The rules for 2024 regarding which cars qualified for the credit were changing compared to 2023. The rules on exactly how much of this or that was needed to qualify were being tightened. In 2023 more than 30 EVs qualified for the credit. In 2024 that number was being reduced to just ten EV models. Each of those ten met the more stringent battery sourcing requirements.
Would my Tesla Model X still get the credit in 2024? In late December the government announced which cars that qualified for the credit in 2023 would still get that credit in 2024. My Tesla MX was one of those ten models that would continue to get the credit in 2024! That was worth $7,500 buckaroos! As Charlie Sheen was fond of saying I was “winning”.
How many issues did I need to keep track of?
There was one other benefit that I haven’t mentioned yet. Back in December 2019 I had ordered a Tesla MX. I thought I was going to get a 2019 model but they gave me a 2020 model. That was worth maybe five grand right there. From one year to the next, there really isn’t any difference in Tesla cars functionally. With over-the-air software updates that Tesla provides every couple of weeks the cars all have the same software. However, a VIN (vehicle identification number) that says “2020” will be more valuable than one that says “2019” when it comes time to sell four years later.
New Year’s Eve. I was winning but I hadn’t won the championship yet.
Carol and I celebrated New Year’s Eve 2024 quietly at home as we almost always do. I had my tax credit and I had my free supercharging…but I didn’t have my Tesla.
Fast forward a day later to January 1, 2024. New Year’s Day. This was the question I was now concerned about. It was 2024. Was Tesla going to give me a 2023 model in 2024? I didn’t much like how that sounded.
Folks, I don’t want you to think of me as greedy. It’s just that after I have won “yesterday’s game” my mind switches to today’s game and tomorrow’s game. It doesn’t matter to me that I won yesterday. That game is over. I want to win today’s game. I wanted to get a 2024 model since it was 2024 even though I admit that back in October I ordered and expected a 2023 model. My Tesla Model X Facebook friends were in a frenzy about this situation as more and more of January flew by.
Here comes another deadline. I am in the crosshairs.
Oh yeah. The car loan. My loan approval came on October 28, 2023. The credit union gave me 90 days to close the deal. We were now bumping up against that deadline. As a retired guy, I have my share of deadlines to deal with. As long as it’s not the “final deadline” I’m good with that.
January 18. Still no Tesla. Carol and I headed off to Europe. We were high up in the French Alps doing media work with my trackchasing. We would be there until January 29.
If Tesla called in the middle of our trip I would either have to fly back to take delivery in person or pass and go to the end of the line. I didn’t want to do that. Carol and I were hanging out with our Belgium buddies, Ronny and Bart, in Austria. January 23 came. I celebrated my birthday. January 24 came and we celebrated the fact I ordered my Tesla THREE MONTHS ago. I was still reading those idiotic news stories that said EVs were piling up on car lots…unsold…and I couldn’t GET a Tesla because demand so far exceeded the supply.
He who waits almost always loses.
It didn’t surprise me that every other EV manufacturer couldn’t sell their cars. GM and Ford got into the game ten years too late just like they did when Toyota and Honda came to the U.S. and killed the U.S.-made car business.
GM said they wouldn’t make money with EVs until 2026. Then Tesla lowered the hammer with their 20-40% price reductions. If GM couldn’t make money on these cars until 2026 BEFORE Tesla lowered the cost of ownership how long do you think it will take GM and Ford to make money with EVs now? No wonder they decided to cut back on their EV commitment. Folks, they’re screwed!
I had paid just ten bucks to join the FedChoice credit union in Maryland. They rewarded my membership with a far below-market car loan rate of just 3.99%. I got that FedChoice heads-up from the Tesla FB group back in October. Then in January, I mentioned that I had that rate and members of the group said that was “impossible”. Maybe they joined the FB group after October.
This is what I do know. Way too many people say stuff is impossible…when I’m already doing what is “impossible”. Way too many people can’t take the first step to act. They say you can “lead a horse”, right? I share so many of these very profitable ideas in my newsletter that need to be acted upon to get the reward. You can’t wait. Not much of what I share requires all that much work. How do I know that? I don’t like work so I would never put too much time into anything. However, if it shows up here you better act fast or the opportunity will pass you by.
When in doubt or need help? Talk with people personally…on at least on the phone.
Now I was on the phone with FedChoice. I had kind of a “fatherly” contact there. Remember, I was probably 15 years older than this guy but then I think of myself as being thirty-five. If this guy was 60 then he was a “fatherly” contact in my mind.
We talked on the phone for more than an hour. I wanted him to extend my loan expiration date. You know the type of phone call, right? “If you could just find a way to make this happen” kind of phone call. Some people get indicted for those types of calls but so far I haven’t.
Yes, you CAN give me special treatment!
The man and I brainstormed every conceivable option. He finally said, “I can’t give you special treatment and extend the loan. That wouldn’t be fair to others”. “Why the hell not,” I thought. My approach, which I have articulated to numerous car salespeople in the past is simple. “Cheat the next guy and pass the savings along to me”. It don’t hurt to ask.
Carol and I were returning from Europe on January 29. My loan was set to expire on January 28. I received a message from Tesla on January 26 that my car was ready to be picked up! I got busy.
All hands on deck. We’re going in.
At midnight I was in the lobby of the Hyatt Regency in Zurich, Switzerland. Carol had long since gone to bed. I was trying to talk to the Tesla people on the phone back in California where it was just 3 p.m. Tesla is not a company that likes to talk to people on the phone. They would just as soon that you ordered a car from them with your iPhone. If you need service they want you to send them a text.
Finally, I DID get a real person. I had only one question. Randy: “I got the message on January 26 that my car is ready to be picked up. I’m in Switzerland. I can’t pick up the car for five days which would be January 31. Is that OK?” Checking. More checking. Tesla: “It’s OK. We’ll make an exception!”
You owe…$800,000 on the car. Say what?
Then Tesla started emailing me paperwork to the Hyatt in Zurich. It was now well past midnight. I needed to receive all of this through Hyatt’s computer. I had everything Tesla had sent. I thought I was in good shape. Then I noticed an error had been made. Rather than saying my loan amount would be $80,000 Tesla mistakenly entered $800,000. That would be one expensive Tesla! I had to struggle to get in touch with Tesla again. Finally, I got the right paperwork. I sent everything off to the credit union.
Now the car loan. My loan was expiring on January 28. I would be losing my super-hot 3.99% interest rate on $80 grand for six years if I couldn’t close this deal right now. The credit union’s most current rate would be 6.85%. No! That’s losing.
One more call and this one was important.
I called FedChoice. I didn’t mention that I had been told this deal was dead. Nobody in big companies talks to anybody else in a big company. I would use that to my advantage. They had no way of knowing my credit union fatherly figure had said, “That’s it. I can’t help you. There is no way this loan will work.”
Although I didn’t have my car on January 27 I had my VIN. Having a VIN made me “golden”. I gave the VIN and other pertinent information to FedChoice ONE DAY before my loan expired. I didn’t mention that I wouldn’t actually get the car until January 31 three days after my loan would have expired. I’m a sales guy. I never lie…ever. At the same time, I don’t try to fill people’s brains with more information than I think they need to know. Fair enough?
Is this a good time to summarize?
$18,000 – I got the free unlimited supercharging for the lifetime of my ownership of the car.
$7,500 – I got the Federal tax credit. Up until early January, people had to wait until the next tax year to get the tax credit. Then in mid-January 2024, before I picked up my car, Tesla and the U.S. Government came up with a new program. The tax credit would be taken off the price at the time of sale. Now, I was really golden!
$8,000 – I’m estimating an average balance of $80,000 over 4-6 years with an after-tax investment return of 5.5% and a loan rate of 3.99% will earn another $8,000 or so.
I ordered a 2023 Tesla Model X on October 24, 2023. I paid just $79,500. The Tesla Model X from 2019 cost $96,000 but did come with the $7,000 option at the time of Full Self-Driving capability. I didn’t get that this time. So much for inflation. I was buying the same car in 2024 for a lot less than that car cost in late 2019.
Tesla waived the exterior paint color upcharges to meet the government’s $80,000 price cap so I could get the $7,500 federal tax credit. Then, by the time I got my car on January 31, 2024, Tesla had reinstated the upcharges for what they say are premium colors. My new car window price sticker shows a line item for $2,500 for the “Ultra Red” color. But…I didn’t have to pay for that.
I certainly hope the “drama” of this transaction came through in my description. I don’t like drama. When it’s all happening, I don’t know if I will be winning or losing. Honestly, I rarely lose but that doesn’t prevent me from thinking I might lose the “next one”.
It took me 100 days from the order date to the arrival date to get my car. You got the 100-day recap in just 7,000 words.
This wraps up Part 1 of my two-part series. Part 1 was “Buying my new Tesla Model X”. Part 2 will be “Selling my 2020 Model X”.
Just one more thing…this won’t take long.
Would you mind if I closed with one other zinger? I ordered a 2023 Tesla Model X in October. On the last frigging day of January 2024, they delivered my car. The car wasn’t what I ordered!
I ordered a 2023 model. They gave me a 2024 model!! In four years when I sell that car, I’ll get an extra $5,000 because of that. There was no good reason to remind Tesla that they didn’t deliver what I ordered, right? Do you feel me?
The title of this missive is “There’s an ass for every seat”. That sounds sort of negative. It isn’t meant to be. “There’s an ass for every seat” simply means that people want different things. Every product will be wanted by somebody, right? There truly is an ass for every seat.
And finally, I have a favor to ask. Would you nudge that guy sitting next to you reading my newsletter and thinking all of this is about buying cars and getting more money? He’s got it all wrong. This is NOT about those things. This is about preparation and patience. This message is about thinking out of the box until I get done what I want to get done. He won’t understand but at least you can say you nudged him.
Randy Lewis
Beaten down, trampled on but a winner in the end