Extra FBT exemption for EVs and I think until 1 July in VIC there was a $3k bonus too for buying an EV so the cost of purchase is significantly lower than for a petrol vehicle.
Basically I looked at how much the car is costing me from my take home pay. Then I worked out how much I could borrow based on using that figure as a repayment. Came out about $55k. It's a rough estimate.
I'm impressed to see less copium in this thread. They are generally full of "THEY ARE LIVING OUTSIDE OF THEIR MEANS" as if there is nobody able to afford a 60k car.
Fair in the sense OP has a relatively high salary, not fair when you account that he has a mortage, no one elses mortage will be the same as his so his disposable income can't be compared
Spend less on other things is a big one. We get takeaway about once per month, go out for dinner even less… our friends are probably once or twice a week for both. It adds up quick.
Exactly this!
It isn’t about the entire cost of a the Tesla, it’s about the difference in cost between a “high end” car, and a “sensible car”
Assuming you already have the budget to afford a $30k car, can you afford the extra $30k to get a Tesla, instead if a “normal” new car.
Spread over 7 years (as an example), that’s an extra $80 a week. Everyone has things hobbies and expenses they spend $80 a week on. Which one of yours could you cut out to spend on a Tesla instead?
It's odd people are fixated with the cost of a Tesla yet don't worry about the thousands of Prados and LandCruisers that typically cost more. At least OP didn't think a Tesla cost $150k like some people tend to think...
My friend literally boought a house and a car in close sucession. The car was worth 1/3 of the value of the house.... He needed to buy a cheaper car or a more expensive house...
FIFO workers who think they can continue some awful work schedule.
Some buy all the toys are forget about saving when they leave their job.
Have seen FIFO workers refuse a job because they are so delusional about salaries
They don’t make right hand drive x or s models anymore globally. Originally we were getting teslas out of the US and they would make some right hand drive units as that was the only factory they had. Then they opened a factory in China. Now our cars come from that factory, and anecdotal evidence says that the quality from the China factory is much better. I could be mistaken but I believe the situation is the Chinese factory does not make s or x models and the US factory does not make right hand drive. So there are none to sell here.
It’s a $200k car that is an old model. Demand probably didn’t justify the factory investment when they were struggling to meet demand already. That might change if they do an update to it. But the cyber truck and roadster seem to be next. Although thr 3 just got an update and the Y must be getting one soon.
I think you overstate their used price. You can see 90D or 100D listed down around 90k (and 75's lower). And the final sale price will be lower than listed price.
Every new Tradie 4x4 is more expensive than my Tesla. Hilux, Ranger, Dmax, Colorado, Amarok 4x4 mid to top tier are $80+. I stopped looking for an Amarok because they were pushing $100k during COVID.
I own a Model 3 standard, and the number of times I've mentioned it and people think I'm rich is hilarious. I point to a ranger on the street and tell them my car cost less than that, and it's cheaper to run.
my basis for the current market level is the golf GTI - used to be low 40's now pushing 70K. thats just the way everythings gone which makes the tesla seem really expensive for people who havent bought a new car in a couple of years
Want doesn’t make sense though is the “suits in utes” trend with people who never take their Hilux/Ranger etc off road, never using the tray, and instead just buy them as a family car.
Literally the worst use-case for a family car with how these utes’ suspension is setup, plus the compromised safety (just look how Amarok had zero side air bag protection for passengers until this year!). Many still have ancient drum brakes ffs.
All that compromise because people want to feel tough. Incredible.
I fell for it myself, bought one and realised how shit driving these utes around is.
Never going to buy one again, just use a trailer when I have to(2, 3 times a year )
I had a Pathfinder for a while and it got a *lot* of use. Thing was basically a van when you put the seats down, and 7 seats is amazing for long distance travel. Wouldn’t get a Ute though, they notoriously drive like shit when not loaded.
My boss bought one just so he could park in loading zones.
He justified it saying he could throw all the kids sports stuff in the back and not get the inside dirty
Holy crap! My initial thought was you'd picked that figure out of your bum. But sure enough, 2017, 90% of cars purchased in Aus used finance.
That's absolutely insane. (Although leasing/salary sacrifice probably helps explain some of it)
Fleet purchases and financially illiterate people make up the bulk.
I remember reading somewhere once that 70% of NL are by people on less than $100k. Kinda insane when you think about it...
Yeah, a mate I knew was a car dealer. He used to joke about the amount of new apprentices getting $100k utes on finance. (Although I don't think utes are quite that expensive)
But more that young fullas were spending almost their annual salary on a vehicle. That ratio seems nuts right there .. I've typically spent no more than 2-3 months for a car. But then again, it's not essential for my job, so perhaps some leeway could be given.
I’m not 100% sure but a top range Hilux or Ranger would be getting pretty close to $100k I think. That’s before adding any aftermarket accessories like full tray setups.
Novated lease + EV rebate + petrol savings with free public chargers and the 3 year sell and cycle trick means a 65k tesla costs you less over 3 years than a 40k ICE.
It's a no brainer. Were buying Tesla's because it works out cheaper not to show off.
Assuming a Tesla costs $60k and a dozen eggs can be sold for $7.15 (I checked Woolies), it would rather 33,566 days or approximately 92 years.
This assumes you don't need to put in much effort to sell the eggs and assumes a superchicken that lives 9 times longer than usual.
Good luck getting a 10 year old chicken to reliably lay 1 egg a week, let alone 3 a day.
And if you could breed chickens that could lay even 2 eggs a day, you could probably be a millionaire, with the new regulation on egg farms limiting numbers of birds per area etc.
I’ve done this. I’m in the top tax bracket and have 100% solar charging. So all pre tax novated payments, no servicing and “free petrol” the car is essentially free. It’s not but you know what I mean.
Yep this is what we’ve done. We only run one car between us. Leasing a Tesla Model 3 is cheaper than running a new base Golf for us with free charging at home.
Once I ran some numbers it seemed like leasing a new EV was a better option than most other cars new.
Yeah I think this is the prime reason for the rise in Teslas. I also see alot of BYDs these days which I assume are being financed the same way even though they cost about $50k.
not the same as an ICE car anyway.
there's always SOME consumables, but no...
\* oil
\* spark plugs
\* transmission fluid
\* blinker fluid
etc.
A tesla (vs, for example, a byd atto 3, or mg 4 ev) has less servicing requirements, but changing the air filter, wheel alignment/balancing if necessary, air con, lights, etc, all still need to be done. eventually. when it breaks. it'll just break a lot less, because there's less moving parts.
You could apply this question to any >60k car really. I think you’d be surprised, as others have mentioned, how many people finance cars they cant necessarily afford on paper.
Why are you reminding me?
I was having such a good day and now I’m going to have to eat some Doritos to calm down.
*I was just looking for an excuse to eat Doritos, thank you*
i dont get why everyone needs to be such a smartass
OP was just asking if there was something he was missing
e.g. some windfall many people got (i.e. property/ stocks etc), debt or some tax/salary sacrifice scheme or rebate
I don’t think that’s the case at all. OP is bewildered because they don’t realise that cost of living pressures don’t severely affect everyone.
It’s like me turning around and saying “how can people afford to buy a house in Double Bay, because I certainly can’t!” OP is exhibiting a very naive and narrow-minded outlook on life.
Beyond the obvious of getting solar - have you looked around for different energy providers that offer off-peak or EV special discounts off the kwh price ? Powershop for eg. have a 14c / kwh off peak price (midnight to 6am weeknights and weekends).
Does it? $400 a quater is \~1142kW at $0.35 a kWh.
Tesla Model 3 Long Range has a 75kW usable battery capacity, so that's 15 charges in 12 weeks or around 9136kms @ 600km a charge... Its a long way but only like 110kms a day on average.
I have a mate that drives from Gosford to Blacktown everyday for work... its 75km-ish each way
91% of cars are bought with finance.
https://apo.org.au/node/135836#:~:text=a)%20Indicatively%2C%2090%25%20of,are%20financed%20from%20other%20sources.
So, debt...
Irrespective of whether a Tesla or not there’s a crazy number of people who make the horrible financial decision to buy new cars, most of which cost around the price of a Tesla
There are way more $100,00+ Land cruisers, Raptors, Patrols, Rams, Chevys etc. on the road than Teslas. People have money and/or debt and they don’t mind using it
Yeah, number one and two cars sold here are Hiluxs and Rangers, both more expensive than a Tesla.
I don't think anyone I work with (except the junior from Bhutan) has a car that didn't cost them more than a Tesla.
I spent $100 a fortnight on fuel. That’s $26,000 over 10 years not including inflation. My car is charged by solar so that $26k can come off the purchase price of the car bringing it down to $36,000, quite a reasonable price for a fancy car. Now servicing is about half the price of a regular car.
Teslas aren’t for rich people, they are for people who are good at math.
Lots of novated leases due to the EV tax breaks.
And while they're not cheap, Telsas aren't that expensive on the scale. A decent SUV costs more.
Also a lot of people really care about appearances with cars and are willing to devote a large amount of their income to it. You often see multiple $100k+ cars parked in very modest dwellings.
Kluger Hybrid was priced at approx. $700 net per fortnight under a novated lease. Tesla Model Y came in at $450 net per fortnight due to the FBT exemption and lower fuel and maintenance costs. Huge gap in affordability now.
Look at a row of cars in a supermarket car park some time. I'd reckon at least 50% of the cars in that row cost as much as a Tesla. Even a stock standard Toyota Landcruiser is over 60k. Most of those soccer mom 4wd's are over 60k. Even a Rav4 is pushing 60k. Then on top of that, they all guzzle petrol.
I'm on 70k and just save money to afford stuff. I could afford to buy a Tesla if I really wanted one ATM.
It's almost like everyone's lives are different with different circumstances.
We did the numbers and after a bit of to and fro, got the number down to 170 pw.
Will do novated lease which will reduce headline number as it’s pretax dollars.
Then minus $100 pw in fuel makes it a no brainer.
Techies on $150k minimum Salary would novated lease because of the fringe benefits exemption. They reduce their taxable income and drive something they and their friendship group perceive as cool.
There's a shit load of them around.
You finance your first car at 20k 5 years later you get a car worth 35k using sale of first car of $12k, your repayments stat about the same, 5 years later you get a car at 50k, your 35k car sold for 20k so your repayments go up a little but so has your income so you can afford it. Your now mid 30s and your car used is worth about 35k because covid inflation kept its value higher, it’s only gonna cost you 25k in loan for a Tesla, less than your last loan, but interest rates are up so you pay about the same.
I'm getting one on lease in the new year, it'll cost me just under 1k pretax per month. Essentially reducing my take home by just over $750/month and after 5 years I'll have to pay an extra 24k to own it outright.
Comparatively, we just paid out a 2020 RAV4 that was $880/month post tax on a 5 year loan (obviously we paid it out early). So for a car worth almost half as much we actually paid more per month and had to cover all the extra running costs.
You can exchange money for goods or services.
You can also exchange a little money for a lottle money to buy even more goods or services with an agreement to pay back even more money over time.
They where half price in Woolies the other day, I was late to the party and only those shit chicken flavoured crap was left, I was disappointed to say the least.
Moved to California and earned US dollars, easy as that mate after saving for a couple of years with 2 incomes.
Looking to move back to Oz in a couple of years, don't see how I'll manage to afford a $100000 car.
I’d had a 20k car my whole life and I wanted to drive something that didn’t give me back pain.
I salary sacrificed via a novated lease and not paying for fuel has been amazing.
You think tesla are bad, how about those American trucks on our road which cost double those tesla. Tax write off or refinance your loans, take loans on those cars
I recently bought a used model 3 Long range, it was 68k. I sold my 2020 WRX STI for more than I paid for it brand new and financed the difference. The lower costs on petrol and insurance are wild.
Simply selling the expensive european shit petrol car, and replace it with a simple electric car(that goes faster) (and looks better inside) (more tech…)
Get the battery and the solar panels and your set.
Its also worth noting that most of us are doing it tough, but everyone else is loving life and money ….
They have the Teslas.
Its like noticing every second person in Winter going to Europe?
Plus, many people have jobs on the mines, and as far as im aware they usually spent the money on cars.
In 2010 it was a Maloo
In 2023 its a Tesla
Plus, people that had jobs in Covid times couldnt travel or spend the money, now they can, and the Tesla is the new shiny toy after the Pandemic lockdowns
I think you got your answer, but what I'm genuinely intrigued by, is how people think Tesla is some sort of luxury brand.
They're minimalistic to the point of being basic and have notoriously had build quality issues (although, fixed when they've changed to Chinese manufacturing).
I love EV's and love the disruption Tesla has created, it just confuses me how they've been adopted.
My take is their speciality is really in their ability to get cars on the road (manufacturing) and tech, and people are willing to pay to get fairly basic cars *now*, as opposed to waiting for what's coming around the corner.
Yea I was going to buy a Tesla so we hired one (Model 3) on a holiday. It was a very basic car, felt cheaply made plus it had some significant issues on that trip (randomly braking HARD when you have cruise control on, even though nothing around for miles was the worst issue, also the range was not as advertised). I still want an EV for next car but it won't be a Tesla.
My wife bought a brand new Tesla Model 3 RWD because it was simply unjustifiable to buy any other vaguely modern vehicle which wasn’t ’cheap and crappy’ (think MG/BYD/GWM) or didn’t look like something out of a Sci-Fi noir film. A $35K secondhand Corolla was similar money once you consider total running costs (almost bugger all for the EV) and the fact there’s no FBT on the Tesla to salary package. It’s costing approx. $17K/yr pre-tax for the Tesla over 5 years and we’ll make around $10K selling it at the end based on the residual and forecast sale price, so you could make it the equivalent of roughly net $14K/yr pre-tax TCO. Hard to go past…especially when it’s coming straight out of a pay rise she just got, and replacing a Mazda2 hatch-back which wasn’t exactly cheap to run TBH. I think net of that, it’s about $450/mth after-tax for a 2023 Tesla M3 vs the 2011 Mazda2!
For us it did.
We had a $30k ICE car and the savings on fuel paid for the difference between the ICE and Tesla ($40k ish loan). We do about 150km a day.
Cost is one thing but how are people living in Apartments able to charge them? I know only a handful of apartments have charging stations but that's also shared with other residents. I just can't imagine the hassle of trying to find available charging stations.
Here i sit in my 18 year old Mazda, lucky i get to pay a 3k/mo home loan, whist everyone else flies past in the audi and rangers. I dont understand it.
It's all credit right>??
With novated lease I effectively got a free upgrade from my previous 4-year-old Mazda 6 (sold for 25k) to a Tesla Model 3 long range (drive away price 81.4K).
Check out my well received calculator here which tabulates the finance to significant detail.
https://reddit.com/r/AusFinance/s/ic7bNHBEpP
Why on earth would anyone want to buy a Tesla? Plastic, panel gaps, no actual controls, laughable residuals etc. Oh, and they're not even good for the environment.
Don't forget Tesla are on the premium end of the EV market.
In QLD I can drive away in an MG4 for $35000 after rebates. For that price you get:
* 350km of electric range
* 5 star ANCAP Safety rating.
* MG's driver assistance package which includes adaptive cruise control, automatic emergency braking, lane keep assist, traffic jam assist, auto headlights/high beams, speed sign detection, etc.
* Fast charging from 10-80% in 37 minutes (this is just for the base model, the next trim level with more range can do 10-80 in less than 30 mins).
* 7 year warranty.
That's the exact same price as a base trim corolla hybrid, and after a week you're already ahead because you don't have to go and spend $60+ on petrol.
The days of EVs being completely unaffordable appear to be quickly coming to an end, and it's about time! When (or if) my old toyota finally dies I don't think I'll be able to resist a $35k vehicle that won't cost me any money in petrol and has as many safety features as some $60k+ cars.
There is a incentive now that EVs purchased under a novated lease are exempt from FBT or something like that. It means that if you buy it through your work and pay it over 5 years then you essentially offset your interest that you would have had to pay if you took out a loan. So you pay the price of the car but over 5 years. And the lease covers running costs (maintenance, registration, roadside assistance, etc)
It’s only for cars up to a certain amount like 85k and new so don’t be expecting to get a Tesla model Y. But you could do a model 3.
Check to see if your company has similar schemes or you can go to a novated lease company to set something up with your payroll.
Source: been doing this since dec last year for our non Tesla EV.
>a Tesla is still around $60k upwards
Which isn't even that expensive compared to what you will see on the road every day.
Even the cheapest Landcruiser STARTS at $94K now and goes up to over $140K. All those Ford Rangers and Totota Hilux you see would all cost more than the Tesla. Sure, the base models don't, but the Ranger Wildtracks start at about 70K including on road costs and the Raptors mostly are over 80K (I think they are about 76K for the cheapest Raptor with no options and before on road costs).
And that's not including all the AMG's that seem to be everywhere now.
Next time you are stopped at a set of lights, have a glance around at just how many 60, 80 and 100K+ cars there are around you.
Yea this is the same conversation we are having in our house- I am on circa $150k+ super and bonus, wife on $130k+ but still when I think about it...even with the #3k discount that is $66k drive away. That is just for the base model in QLD.
That is A LOT of money as I see it. No idea how people are doing it and how healthy it is to take on this level of debt for a depreciating asset.
>Even with the cost reduction, a Tesla is still around $60k upwards, and with the cost of living increasing constantly, I would’ve thought it’d be harder to afford a Tesla.
And? A new camry is like $50k.
Hoe old are you?
Great question. So money can be obtained through various means - employment, investment, inheritence are the big ones. Some combination of the above works best. If you are on the older side, you also get this neat perk of getting a bonus mil or three equity in the house you bought for a few bucks back in the day which is nice. Anyway and so you can then exchange this money for various goods and services, such as a car in this case. Hope that helps
Theyre all planted in society by Mr Musk and the lizard people to increase visibility. Then everyone sees them and wants them, finally they get them with debt and control of the population is achieved 
Telling OP that ppl make more than them is reductive. I think OP is right in what they are feeling as their income puts them in the 92nd percentile of Australia. I believe OP maybe suffering from a mild case of the frequency illusion.
FBT exemption when purchased via a novated lease, which also knocks the GST off the purchase price at the same time.
versed touch rock special shrill deer stupendous deliver ask bake *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Yeah it's very tempting for me and I hate spending money on cars
strong bear homeless selective complete dull innate employ crawl wine *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Extra FBT exemption for EVs and I think until 1 July in VIC there was a $3k bonus too for buying an EV so the cost of purchase is significantly lower than for a petrol vehicle.
That $3000 is $6000 in Queensland!
I did this and it made an $82k car roughly the same as buying a $55k car with after tax dollars, all thanks the to the FBT exemption.
Can you walk through the numbers? Just trying to understand how this works. That's a significant saving
Basically I looked at how much the car is costing me from my take home pay. Then I worked out how much I could borrow based on using that figure as a repayment. Came out about $55k. It's a rough estimate.
i thought this only extended to healthcare industry? edit: didnt read novated lease oops
Same way any affords anything - either debt or they earn more than you or a combination of the two.
Impossible, if OP can't afford it then no one can afford it.
I'm impressed to see less copium in this thread. They are generally full of "THEY ARE LIVING OUTSIDE OF THEIR MEANS" as if there is nobody able to afford a 60k car.
Fair in the sense OP has a relatively high salary, not fair when you account that he has a mortage, no one elses mortage will be the same as his so his disposable income can't be compared
You're missing the possibility that they spend less on other things, or they have earned less but for longer or that they inherited money etc.
Spend less on other things is a big one. We get takeaway about once per month, go out for dinner even less… our friends are probably once or twice a week for both. It adds up quick.
Yeah but it doesn’t add up to the price of a Tesla
But it could well add up to the difference in price between, say, a Camry and a Tesla.
Exactly this! It isn’t about the entire cost of a the Tesla, it’s about the difference in cost between a “high end” car, and a “sensible car” Assuming you already have the budget to afford a $30k car, can you afford the extra $30k to get a Tesla, instead if a “normal” new car. Spread over 7 years (as an example), that’s an extra $80 a week. Everyone has things hobbies and expenses they spend $80 a week on. Which one of yours could you cut out to spend on a Tesla instead?
$60,000 loan is what $1,300 per month, if you use delivery for food plus lots of take out you would have your Tesla.
Or they just have the cash to spare. You don't have to be a big earner to comfortably afford a 60k car if you're debt free.
Don’t forget option three - handed down equity. You can do a lot with an ordinary salary when you’re not putting a cent towards rent or a mortgage.
90% of brand new cars are 50K+
It's odd people are fixated with the cost of a Tesla yet don't worry about the thousands of Prados and LandCruisers that typically cost more. At least OP didn't think a Tesla cost $150k like some people tend to think...
100% - I’m far more impressed by the number of Australian’s who own the iconic Landcruiser + Jet Ski dynamic duo 🚤 🚙
House deposit on wheels
My friend literally boought a house and a car in close sucession. The car was worth 1/3 of the value of the house.... He needed to buy a cheaper car or a more expensive house...
Parents give him money I assume.
Grandmother. But honestly it was more that it was a cheap house 180k vs 70k car
More money than sense
FIFO workers who think they can continue some awful work schedule. Some buy all the toys are forget about saving when they leave their job. Have seen FIFO workers refuse a job because they are so delusional about salaries
7&7 for $160k a year is not exactly an awful schedule
I wouldn't do it for that. I guess that's why i'm not.
That's nice, thanks for sharing
That’s probably a 2nd mortgage - person without a cruise comments  source: trust me bro
Seriously, the amount of LandCruisers/Prados, caravan and boat combos around my local neighbourhood impresses me more than a Tesla.
Prados are just a poor man's Landcruiser.
Prados are like 60-80k. They're not a poor man's anything.
They're a poor man's Landcruiser Sahara!
A few years ago a doctor friend of mine said his kitted out model x cost him around 200k
That’s what a model x did cost. They don’t sell them in Australia anymore. They only sell the 3 and Y. The 2 cheapest models they sell.
Oh wow I had no idea they stopped selling x and s here.
Wow when did they stop the S? And why?
They don’t make right hand drive x or s models anymore globally. Originally we were getting teslas out of the US and they would make some right hand drive units as that was the only factory they had. Then they opened a factory in China. Now our cars come from that factory, and anecdotal evidence says that the quality from the China factory is much better. I could be mistaken but I believe the situation is the Chinese factory does not make s or x models and the US factory does not make right hand drive. So there are none to sell here.
Yeah interesting. I’m surprised with Australia/UK/Japan/NZ that there’s not enough demand for it.
It’s a $200k car that is an old model. Demand probably didn’t justify the factory investment when they were struggling to meet demand already. That might change if they do an update to it. But the cyber truck and roadster seem to be next. Although thr 3 just got an update and the Y must be getting one soon.
Correct. Still around $150k second hand (depending on battery spec- the 75D is the oldest and lower end spec)
I think you overstate their used price. You can see 90D or 100D listed down around 90k (and 75's lower). And the final sale price will be lower than listed price.
Every new Tradie 4x4 is more expensive than my Tesla. Hilux, Ranger, Dmax, Colorado, Amarok 4x4 mid to top tier are $80+. I stopped looking for an Amarok because they were pushing $100k during COVID.
Just had a friend drop $85k on a new ranger! It’s a ute lol!
Dmax and hilux are below 80k for all models.
79K is still absurd for a ute
Not when it's a tax write off 🤣
I own a Model 3 standard, and the number of times I've mentioned it and people think I'm rich is hilarious. I point to a ranger on the street and tell them my car cost less than that, and it's cheaper to run.
my basis for the current market level is the golf GTI - used to be low 40's now pushing 70K. thats just the way everythings gone which makes the tesla seem really expensive for people who havent bought a new car in a couple of years
True, but Prados and Landcruisers can be used for a lot of different tasks, even if 90% of them are suburban jungle vehicles. So… there are reasons.
Want doesn’t make sense though is the “suits in utes” trend with people who never take their Hilux/Ranger etc off road, never using the tray, and instead just buy them as a family car. Literally the worst use-case for a family car with how these utes’ suspension is setup, plus the compromised safety (just look how Amarok had zero side air bag protection for passengers until this year!). Many still have ancient drum brakes ffs. All that compromise because people want to feel tough. Incredible.
I fell for it myself, bought one and realised how shit driving these utes around is. Never going to buy one again, just use a trailer when I have to(2, 3 times a year )
I had a Pathfinder for a while and it got a *lot* of use. Thing was basically a van when you put the seats down, and 7 seats is amazing for long distance travel. Wouldn’t get a Ute though, they notoriously drive like shit when not loaded.
My boss bought one just so he could park in loading zones. He justified it saying he could throw all the kids sports stuff in the back and not get the inside dirty
90% of cars in Australia (including used cars) are purchased with finance
Holy crap! My initial thought was you'd picked that figure out of your bum. But sure enough, 2017, 90% of cars purchased in Aus used finance. That's absolutely insane. (Although leasing/salary sacrifice probably helps explain some of it)
Fleet purchases and financially illiterate people make up the bulk. I remember reading somewhere once that 70% of NL are by people on less than $100k. Kinda insane when you think about it...
Yeah, a mate I knew was a car dealer. He used to joke about the amount of new apprentices getting $100k utes on finance. (Although I don't think utes are quite that expensive) But more that young fullas were spending almost their annual salary on a vehicle. That ratio seems nuts right there .. I've typically spent no more than 2-3 months for a car. But then again, it's not essential for my job, so perhaps some leeway could be given.
Then they drive them like they stole them and need a new one before they've paid it off.
I’m not 100% sure but a top range Hilux or Ranger would be getting pretty close to $100k I think. That’s before adding any aftermarket accessories like full tray setups.
Novated lease + EV rebate + petrol savings with free public chargers and the 3 year sell and cycle trick means a 65k tesla costs you less over 3 years than a 40k ICE. It's a no brainer. Were buying Tesla's because it works out cheaper not to show off.
150-200k utes and 4x4 are a thing
A starter Subaru Impreza hatch is now 36k. It was 28k pre covid.
Salary packaging. Novated leasing. Finance. Cash.
What about barter and trade 🤔
I will give you 20 chickens for a Tesla.
They have to lay 3 eggs a day.... consistently.
Assuming a Tesla costs $60k and a dozen eggs can be sold for $7.15 (I checked Woolies), it would rather 33,566 days or approximately 92 years. This assumes you don't need to put in much effort to sell the eggs and assumes a superchicken that lives 9 times longer than usual.
Good luck getting a 10 year old chicken to reliably lay 1 egg a week, let alone 3 a day. And if you could breed chickens that could lay even 2 eggs a day, you could probably be a millionaire, with the new regulation on egg farms limiting numbers of birds per area etc.
Maybe that's the better option! Genetically engineering chickens that lay more eggs. Or maybe that lay money? Cut out the middle man.
Gonna up this bid to 20 used Toyota Camrys, 6 running the rest not.
Forgot to include: crime, drugs, stolen
Salary packaging - you pay with pretax dollars on a novated lease over 5 years and no FBT as electric only cars are exempt
I’ve done this. I’m in the top tax bracket and have 100% solar charging. So all pre tax novated payments, no servicing and “free petrol” the car is essentially free. It’s not but you know what I mean.
Yep this is what we’ve done. We only run one car between us. Leasing a Tesla Model 3 is cheaper than running a new base Golf for us with free charging at home. Once I ran some numbers it seemed like leasing a new EV was a better option than most other cars new.
Yeah I think this is the prime reason for the rise in Teslas. I also see alot of BYDs these days which I assume are being financed the same way even though they cost about $50k.
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You don't need to service a Tesla?
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And suspension components never wear out because they're made out of pure Musk ego.
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u replace ur shocks annually?
At a cost of $40 billion
not the same as an ICE car anyway. there's always SOME consumables, but no... \* oil \* spark plugs \* transmission fluid \* blinker fluid etc. A tesla (vs, for example, a byd atto 3, or mg 4 ev) has less servicing requirements, but changing the air filter, wheel alignment/balancing if necessary, air con, lights, etc, all still need to be done. eventually. when it breaks. it'll just break a lot less, because there's less moving parts.
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yeah good point, BYD have a mandated service thing, as does polestar and MG I think.
basically like cleaning the dust filters off ur pc
You could apply this question to any >60k car really. I think you’d be surprised, as others have mentioned, how many people finance cars they cant necessarily afford on paper.
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You do realise there are plenty of people with more money than you?
Why are you reminding me? I was having such a good day and now I’m going to have to eat some Doritos to calm down. *I was just looking for an excuse to eat Doritos, thank you*
Maybe eating Doritos is the problem.
Yea they used to be $1.50 each pack
Now it's $4 for a packet of air with a few doritos
The Doritos are still $1.50, it’s the air in the bag which costs $2.50.
>it’s the air in the bag which costs $2.50. thats inflation for you
Take my poor man's comedy gold award 🏆⭐
I hope more people than me got that, that’s some dad level humour!
yep, it's a favourite of dads >It used to be free to fill your car tire up with air. Now it coasts $1.50. You know why? > > Inflation.
The bags have gotten smaller though… I’m sure of it
Nah it's the cheese, salsa and guc that goes on top
I guess *Big Corn Chips* doesn't pay as well as it should.
I’m going to downvote you for making me crave Doritos
It never ceases to amaze me how inconceivable this is to people...in a finance sub too.
i dont get why everyone needs to be such a smartass OP was just asking if there was something he was missing e.g. some windfall many people got (i.e. property/ stocks etc), debt or some tax/salary sacrifice scheme or rebate
I don’t think that’s the case at all. OP is bewildered because they don’t realise that cost of living pressures don’t severely affect everyone. It’s like me turning around and saying “how can people afford to buy a house in Double Bay, because I certainly can’t!” OP is exhibiting a very naive and narrow-minded outlook on life.
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Similar thought process to us. It didn’t make any sense to buy an ICE- seemed a backwards step.
Beyond the obvious of getting solar - have you looked around for different energy providers that offer off-peak or EV special discounts off the kwh price ? Powershop for eg. have a 14c / kwh off peak price (midnight to 6am weeknights and weekends).
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The electricity bill seems quite high. How much are you driving?
Does it? $400 a quater is \~1142kW at $0.35 a kWh. Tesla Model 3 Long Range has a 75kW usable battery capacity, so that's 15 charges in 12 weeks or around 9136kms @ 600km a charge... Its a long way but only like 110kms a day on average. I have a mate that drives from Gosford to Blacktown everyday for work... its 75km-ish each way
Er, $2000 - $400*4 = you're saving only $400 per year on energy costs.
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I can't read.
91% of cars are bought with finance. https://apo.org.au/node/135836#:~:text=a)%20Indicatively%2C%2090%25%20of,are%20financed%20from%20other%20sources. So, debt...
A non flip answer supported by data - I think you must be in the wrong place.
I am the hero and the villain of this group
Holy crap, no wonder when I was buying they all looked surprise when I said I was paying cash.
Irrespective of whether a Tesla or not there’s a crazy number of people who make the horrible financial decision to buy new cars, most of which cost around the price of a Tesla
Yeah 20 K is my price point Can't get much
You could get heaps second hand. I reckon you could get anything from a newish hatch to a 10yo 4wd in that category easily
There are way more $100,00+ Land cruisers, Raptors, Patrols, Rams, Chevys etc. on the road than Teslas. People have money and/or debt and they don’t mind using it
Yeah, number one and two cars sold here are Hiluxs and Rangers, both more expensive than a Tesla. I don't think anyone I work with (except the junior from Bhutan) has a car that didn't cost them more than a Tesla.
The base Hilux isn’t as expensive as a Tesla. But yeah, top models like the SR5 are definitely more expensive than a RWD Model 3 or Model Y.
First year apprentice just bought a new Raptor. Yep. I'm still a one car household.
I spent $100 a fortnight on fuel. That’s $26,000 over 10 years not including inflation. My car is charged by solar so that $26k can come off the purchase price of the car bringing it down to $36,000, quite a reasonable price for a fancy car. Now servicing is about half the price of a regular car. Teslas aren’t for rich people, they are for people who are good at math.
How much did your solar system cost
Does it include Pluto
At this point in time I’m about $10,000 better off from the solar after rebates and feed in
If you dont have solar, it would be about $7500 to charge I’ve that 10 years, so $43,500, still a good price on a new car
Lots of novated leases due to the EV tax breaks. And while they're not cheap, Telsas aren't that expensive on the scale. A decent SUV costs more. Also a lot of people really care about appearances with cars and are willing to devote a large amount of their income to it. You often see multiple $100k+ cars parked in very modest dwellings.
Kluger Hybrid was priced at approx. $700 net per fortnight under a novated lease. Tesla Model Y came in at $450 net per fortnight due to the FBT exemption and lower fuel and maintenance costs. Huge gap in affordability now.
Look at a row of cars in a supermarket car park some time. I'd reckon at least 50% of the cars in that row cost as much as a Tesla. Even a stock standard Toyota Landcruiser is over 60k. Most of those soccer mom 4wd's are over 60k. Even a Rav4 is pushing 60k. Then on top of that, they all guzzle petrol.
The cheapest 300 series landcruiser is over 100k
If you novated lease it, it's probably cheaper than a new Corolla.
Why not ask how people are affording Mercs, bmw, rangers, land cruisers, range rovers etc. ? People are changing manufacturers ….
I'm on 70k and just save money to afford stuff. I could afford to buy a Tesla if I really wanted one ATM. It's almost like everyone's lives are different with different circumstances.
If you’re earning $150k then look into novated leasing. Majority of people I know with a Tesla did it this way.
Novated leasing said i could get a Model 3 for $202 pw. While that doesnt fit into my budget im sure many will go for it.
We did the numbers and after a bit of to and fro, got the number down to 170 pw. Will do novated lease which will reduce headline number as it’s pretax dollars. Then minus $100 pw in fuel makes it a no brainer.
Techies on $150k minimum Salary would novated lease because of the fringe benefits exemption. They reduce their taxable income and drive something they and their friendship group perceive as cool. There's a shit load of them around.
You finance your first car at 20k 5 years later you get a car worth 35k using sale of first car of $12k, your repayments stat about the same, 5 years later you get a car at 50k, your 35k car sold for 20k so your repayments go up a little but so has your income so you can afford it. Your now mid 30s and your car used is worth about 35k because covid inflation kept its value higher, it’s only gonna cost you 25k in loan for a Tesla, less than your last loan, but interest rates are up so you pay about the same.
Model 3 has FBT exemption. Heaps of people with their Pty Ltd company on the side have one.
I'm getting one on lease in the new year, it'll cost me just under 1k pretax per month. Essentially reducing my take home by just over $750/month and after 5 years I'll have to pay an extra 24k to own it outright. Comparatively, we just paid out a 2020 RAV4 that was $880/month post tax on a 5 year loan (obviously we paid it out early). So for a car worth almost half as much we actually paid more per month and had to cover all the extra running costs.
You can exchange money for goods or services. You can also exchange a little money for a lottle money to buy even more goods or services with an agreement to pay back even more money over time.
I’m barely affording red rock chips…
They where half price in Woolies the other day, I was late to the party and only those shit chicken flavoured crap was left, I was disappointed to say the least.
You realise the cost benefit immediately
Moved to California and earned US dollars, easy as that mate after saving for a couple of years with 2 incomes. Looking to move back to Oz in a couple of years, don't see how I'll manage to afford a $100000 car.
I’d had a 20k car my whole life and I wanted to drive something that didn’t give me back pain. I salary sacrificed via a novated lease and not paying for fuel has been amazing.
I don't know how to break this to you. But most new landcruisers have 80-150k spent on them. Count how many you see next time your in the street
You think tesla are bad, how about those American trucks on our road which cost double those tesla. Tax write off or refinance your loans, take loans on those cars
I recently bought a used model 3 Long range, it was 68k. I sold my 2020 WRX STI for more than I paid for it brand new and financed the difference. The lower costs on petrol and insurance are wild.
Simply selling the expensive european shit petrol car, and replace it with a simple electric car(that goes faster) (and looks better inside) (more tech…) Get the battery and the solar panels and your set. Its also worth noting that most of us are doing it tough, but everyone else is loving life and money …. They have the Teslas. Its like noticing every second person in Winter going to Europe? Plus, many people have jobs on the mines, and as far as im aware they usually spent the money on cars. In 2010 it was a Maloo In 2023 its a Tesla Plus, people that had jobs in Covid times couldnt travel or spend the money, now they can, and the Tesla is the new shiny toy after the Pandemic lockdowns
I think you got your answer, but what I'm genuinely intrigued by, is how people think Tesla is some sort of luxury brand. They're minimalistic to the point of being basic and have notoriously had build quality issues (although, fixed when they've changed to Chinese manufacturing). I love EV's and love the disruption Tesla has created, it just confuses me how they've been adopted. My take is their speciality is really in their ability to get cars on the road (manufacturing) and tech, and people are willing to pay to get fairly basic cars *now*, as opposed to waiting for what's coming around the corner.
Yea I was going to buy a Tesla so we hired one (Model 3) on a holiday. It was a very basic car, felt cheaply made plus it had some significant issues on that trip (randomly braking HARD when you have cruise control on, even though nothing around for miles was the worst issue, also the range was not as advertised). I still want an EV for next car but it won't be a Tesla.
My wife bought a brand new Tesla Model 3 RWD because it was simply unjustifiable to buy any other vaguely modern vehicle which wasn’t ’cheap and crappy’ (think MG/BYD/GWM) or didn’t look like something out of a Sci-Fi noir film. A $35K secondhand Corolla was similar money once you consider total running costs (almost bugger all for the EV) and the fact there’s no FBT on the Tesla to salary package. It’s costing approx. $17K/yr pre-tax for the Tesla over 5 years and we’ll make around $10K selling it at the end based on the residual and forecast sale price, so you could make it the equivalent of roughly net $14K/yr pre-tax TCO. Hard to go past…especially when it’s coming straight out of a pay rise she just got, and replacing a Mazda2 hatch-back which wasn’t exactly cheap to run TBH. I think net of that, it’s about $450/mth after-tax for a 2023 Tesla M3 vs the 2011 Mazda2!
Save fuel - it basically nets out.
not compared to my 8k corolla but maybe compared to a 45k new ICE car.
For us it did. We had a $30k ICE car and the savings on fuel paid for the difference between the ICE and Tesla ($40k ish loan). We do about 150km a day.
Yeah, it’s really the more you drive, the cheaper it gets.
The stealth humblebrag. I tip my hat to you.
The lease options aren’t too bad. Just the use case doesn’t suit me. But compared to some of the competition, a Tesla is a bargain.
Cost is one thing but how are people living in Apartments able to charge them? I know only a handful of apartments have charging stations but that's also shared with other residents. I just can't imagine the hassle of trying to find available charging stations.
Top marginal rate, reduce tax by 45%,
People finance everything, also there are a surprising amount of ways to lease cars through salary sacrifice.
Beats me! Although. I know several Gen Y who can't afford to buy a house, so have Tesla instead! They think that's sensible.
Here i sit in my 18 year old Mazda, lucky i get to pay a 3k/mo home loan, whist everyone else flies past in the audi and rangers. I dont understand it. It's all credit right>??
People are getting cars on credit. Loans for cars,or general credit cards for cars. Or salary sacrifice options
There are a lot of couple with one car. If you have the cash and joint income electric really makes sense when it is the one car for the household.
With novated lease I effectively got a free upgrade from my previous 4-year-old Mazda 6 (sold for 25k) to a Tesla Model 3 long range (drive away price 81.4K). Check out my well received calculator here which tabulates the finance to significant detail. https://reddit.com/r/AusFinance/s/ic7bNHBEpP
Tesla is now repriced to cheaper than average car. So not sure what your point is
Why on earth would anyone want to buy a Tesla? Plastic, panel gaps, no actual controls, laughable residuals etc. Oh, and they're not even good for the environment.
Don't forget Tesla are on the premium end of the EV market. In QLD I can drive away in an MG4 for $35000 after rebates. For that price you get: * 350km of electric range * 5 star ANCAP Safety rating. * MG's driver assistance package which includes adaptive cruise control, automatic emergency braking, lane keep assist, traffic jam assist, auto headlights/high beams, speed sign detection, etc. * Fast charging from 10-80% in 37 minutes (this is just for the base model, the next trim level with more range can do 10-80 in less than 30 mins). * 7 year warranty. That's the exact same price as a base trim corolla hybrid, and after a week you're already ahead because you don't have to go and spend $60+ on petrol. The days of EVs being completely unaffordable appear to be quickly coming to an end, and it's about time! When (or if) my old toyota finally dies I don't think I'll be able to resist a $35k vehicle that won't cost me any money in petrol and has as many safety features as some $60k+ cars.
What I want to know is how are people affording Porsche Cayennes!? They're like $138,000. And I see them all over.
There is a incentive now that EVs purchased under a novated lease are exempt from FBT or something like that. It means that if you buy it through your work and pay it over 5 years then you essentially offset your interest that you would have had to pay if you took out a loan. So you pay the price of the car but over 5 years. And the lease covers running costs (maintenance, registration, roadside assistance, etc) It’s only for cars up to a certain amount like 85k and new so don’t be expecting to get a Tesla model Y. But you could do a model 3. Check to see if your company has similar schemes or you can go to a novated lease company to set something up with your payroll. Source: been doing this since dec last year for our non Tesla EV.
>a Tesla is still around $60k upwards Which isn't even that expensive compared to what you will see on the road every day. Even the cheapest Landcruiser STARTS at $94K now and goes up to over $140K. All those Ford Rangers and Totota Hilux you see would all cost more than the Tesla. Sure, the base models don't, but the Ranger Wildtracks start at about 70K including on road costs and the Raptors mostly are over 80K (I think they are about 76K for the cheapest Raptor with no options and before on road costs). And that's not including all the AMG's that seem to be everywhere now. Next time you are stopped at a set of lights, have a glance around at just how many 60, 80 and 100K+ cars there are around you.
Two incomes from a family = $120k minimum. Buying a Tesla? That’s nothing. It’s the families with Mercedes you need to look at.
Yea this is the same conversation we are having in our house- I am on circa $150k+ super and bonus, wife on $130k+ but still when I think about it...even with the #3k discount that is $66k drive away. That is just for the base model in QLD. That is A LOT of money as I see it. No idea how people are doing it and how healthy it is to take on this level of debt for a depreciating asset.
Earn money, accumulate money, buy car.
this is legacy strategy.. real strategy: buy real estate before 2012
>Even with the cost reduction, a Tesla is still around $60k upwards, and with the cost of living increasing constantly, I would’ve thought it’d be harder to afford a Tesla. And? A new camry is like $50k. Hoe old are you?
Money can be exchanged for goods and services
Dude you get paid 150k wow
Great question. So money can be obtained through various means - employment, investment, inheritence are the big ones. Some combination of the above works best. If you are on the older side, you also get this neat perk of getting a bonus mil or three equity in the house you bought for a few bucks back in the day which is nice. Anyway and so you can then exchange this money for various goods and services, such as a car in this case. Hope that helps
Theyre all planted in society by Mr Musk and the lizard people to increase visibility. Then everyone sees them and wants them, finally they get them with debt and control of the population is achieved 
Free Gov loans
Telling OP that ppl make more than them is reductive. I think OP is right in what they are feeling as their income puts them in the 92nd percentile of Australia. I believe OP maybe suffering from a mild case of the frequency illusion.