Hi Mustachians,
I am considering switching my VW T-Roc for a Tesla (3 or Y) and I make some calculations that I hope to refine with your feedback, wishing that this also comes in handy for other Mustachians who are about to make a similar decision.
You will tell me that getting a Tesla is not the best Mustachian move but, unless I am off somewhere in my analysis, it looks promising. Here is the spreadsheet:
[TCO Analysis] (TCO: VW vs Tesla - Google Tabellen)
Contrary to some analyses out there, it turns out to me that:
-
Switinch to a Tesla is more cost-efficient than keeping my VW T-Roc
-
Financing it with a Loan is the best option. The biggest advantages of a Loan are:
- Deducting from my taxable income the yearly loan payments of ~8K CKF with a marginal tax rate of ~35% I get back ~2.7K CHF per year
- Selling my current car worth ~30K CHF and putting 20K CHF into stocks at ~5% return. The remaining 10K CHF is for the downpayment.
What are your thoughts? What did I miss?
Happy for face punches that help me make the right decision!
Thanks, guys!
P.S:
I tried to make the spreadsheet self-explanatory but just in case some references are needed:
- Data table is the source data I used in the analysis
- Summary of cost table summarizes all direct costs, depreciation, and some other minor costs (these minor ones were not taken into consideration in the analysis as they were minor)
- Depreciation table: 15K annual milage, AVG depreciation rate at 5% and 6% for VW and Tesla respectively.
- Casflow Analysis: Colum U is the NET value of this 5-year (assumed) project
- Cash: T Roc vs Tesla Model 3 only
- Loan: Model 3 vs Model Y
- Leasing: Model 3 vs Model Y, here I did not consider the option of purchasing the car at its residual value as I am not sure this is actually possible.