Teslas are considered luxury vehicles and are relatively expensive, so right now is probably not a good time to buy one. Or is it? Some crazy things are happening in our economy right now. People are losing jobs, stock marketās crashing, so this is going to sound like first world problems, but it’s relevant to my channel and it begs the question: is it dumb to buy a Tesla during a pandemic or possible recession?
First of all, disclaimer: Iām not a financial expert. None of this is legal advice. Nobody knows if a recession will even happen. We could be back to normal in a few weeks or things could get worse. But in this video I want to talk about the pros and cons if youāre thinking about buying a Tesla during uncertain times like these.
First and foremost make sure you have the budget to afford a Tesla. Thereās never a good time to buy a Tesla just for the sake of flexing on fools ok? To see if a car is within your budget you should follow these three rules: put down at least 20 percent, finance the car for no more than 4 years, and keep your total monthly car payment at or below 10 percent of your gross monthly income. For example: the Model Y I have on order is right around $60,000 so according to these rules I should put down at least $12,000 cash, and then get a loan for the other $48,000 which should be no longer than a 48 month loan which puts the monthly payment right around $1,000 per month. That means for me to afford this particular Model Y my monthly income should be at least $10,000. So itās super important to make sure your monthly budget allows for the car payment, and if an emergency happens where you lose your income for a while you want to make sure your emergency fund can cover your car payment. Do those calculations for yourself and if you canāt make it work, try to find a cheaper vehicle that fits your budget if you absolutely need one right now.
Buying a new car means youāre buying a depreciating asset. We all know that as soon as you drive a new car off the lot, it decreases in value by thousands of dollars which is why a new car is usually frowned upon when it comes to personal finance. However, Teslas do seem to keep their value pretty well. According to a study by automotive research firm iSeeCars, the average one-year-old used car costs 20 percent less than its new version. However, some models have as little as a 5 percent difference and after analyzing over 6 million cars it identified the Tesla Model 3 as the best car to buy new. According to Kelly Blue Book, the Model X has the best electric vehicle resale value for 2020 with a predicted resale value of 44% after 5 years of ownership. Last year, Elon tweeted that when Teslaās ride sharing network comes online all Tesla vehicles with the Full Self Driving option will actually become appreciating assets that increase in value. That’s obviously extremely far fetched, but if and when that does happen it will allow a Tesla to potentially make money for the owner which is a feature that does differentiate Teslas from other cars and is a factor to consider when deciding to buy a car.
But you donāt always need to get a new Tesla. The good news is right now with the Model Y coming out there are many people selling their Model 3ās which are only 2 years old at the most so you may be able to save some money by finding a used Model 3 if that fits your lifestyle. Donāt plan on buying mine though because like Iāve said before, the Model 3 is the best car Iāve ever driven and I plan to keep it for at least 10 years. The Model Y I have on order is mostly for my wife.
If you are adamant on buying a car during a pandemic or potential recession, I highly recommend you plan to keep the car for as long as possible. The good news is that Tesla is probably the most forward thinking car company right now. They build their cars with the long term future in mind by giving their cars all the hardware capabilities that they think it needs to be able to fully drive itself when the software and regulations reach that point, which is something that no other car company is doing on the level that Tesla is.
If you decide you want a new Tesla during these times itās possible that auto loan interest rates will be super low right now. However the rates can change at anytime and will depend on your own personal situation so itās best to shop around and get multiple quotes from different sources to find the best rate for you if you plan to finance. I guess a potential downside of buying a Tesla is that sometimes during hard financial times for car companies you can negotiate a good deal with a dealership that’s trying to sell off their inventory. With Tesla, they donāt have dealerships which I actually love, but that means you wonāt be negotiating the price with Tesla. They prefer to set prices and allow you to purchase it anytime online. I personally think that is still way better than having to go to a dealership to buy.
Also, as with any electric vehicle, buying a Tesla means youāll never buy gas again, and Tesla likes to show you the potential gas savings when you go to purchase one of their cars online. During the first year and a half of driving my Model 3 I saved nearly $3,000 in fuel alone. Also no more oil changes which is another added savings over the lifetime of the car. Plus during a crazy time like this, not having to go to gas stations is actually really nice. Even though gas prices are super cheap right now, the price can change any minute. You donāt want to be affected by how careless and evil that industry is, trust me. And if youāre practicing social distancing, driving an electric vehicle like a Tesla is so much better because it charges at home overnight while you sleep. No stopping at gas stations so no risking yourself or others or having to touch a gas pump that is most likely loaded with germs. Sounds petty but itās true.
Also during this unique situation, food delivery services like Uber Eats and Post Mates have surged so you could make some money while helping people out, and with a Tesla you could do it without having to pay for gas and while being way less harmful to the environment. Plus whenever Teslaās robo-taxi network becomes a reality in the future if something like this happens again you could send your Tesla out by itself with no human inside while you practice self distancing at home and watch more of my YouTube videos hopefully.
Teslas are also some of the safest cars in the world which should in theory help reduce your car insurance bill especially now that Tesla is starting to offer insurance directly to their owners at seemingly good prices. Right now, anything that gives you a chance to lower your bills is pretty crucial.
I guess a potential downside to buying a Tesla is that they are the youngest car manufacturer out of all the major car companies so they may have a tougher time ramping up production through all this. However, it turns out that this might actually help them take a breather from trying to frantically deliver cars and instead fix bottlenecks and optimize their workflow at their factory, something they probably couldnāt have focused on if they were at 100% full speed production ramp. I think their biggest struggle will be making sure their service centers and mobile technicians are prepared for the increase in Tesla ownership throughout the country with the deliveries of the Model Y. Service is definitely something to consider when purchasing a car for the long term. Iāve owned a Model 3 for two years and so far the service has been minimal but weāll see how it continues. I also believe that this pandemic will lead to people wanting to live a more āgreenā and healthy lifestyle, and when people do that it may lead to more people getting interested in Teslas and going solar which will in turn help Tesla succeed in the long run.
So is it dumb to buy a Tesla right now? Well, if you absolutely need a car, if you can afford it even if you lose your job temporarily, and if you plan to keep it for a long time then no itās absolutely not dumb in my opinion. In fact if all of those things apply to you itās probably smart to buy a Tesla given everything we talked about.
Iām still planning to go through with my Model Y purchase as of now. Iām patiently waiting for Tesla to notify me of my delivery date. Stay tuned and subscribe so you donāt miss my upcoming videos. I hope youāre doing well through all this. Stay safe and best of luck with your decision. Let me know what youāre planning to do in the comments below. Thank you for watching. My name is Andy, and Iāll talk to you in the next one.
One of the biggest problems with Tesla vehicles up to this point may have just been fixed with this new feature on the Model Y that Tesla decided to hide from us until now. Letās talk about it.
Tupac once said āCalifornia knows how to partyā but what about the rest of the country? See, Tesla vehicles are made in California, and many people have claimed that Teslas are designed with the typical California climate in mind, where itās pretty much warm year round. So when someone like me who lives in the Midwest where it gets below freezing in the winter, driving a Tesla can be somewhat scary because of ārange anxietyā which means youāre worried about running out of battery before reaching your destination.
In cold winter conditions an electric vehicle can lose up to 40% or more of its estimated range. In February I was on a road trip in my Model 3 and lost 50% of my estimated range while driving highway speeds when it was around 30 degrees Fahrenheit outside. I pulled in my driveway with 4 miles of estimated range remaining. I had a little range anxiety.
But why do electric vehicles lose so much range in cold temperatures? Itās mostly due to three things: colder air which means more drag, energy loss from heating the battery, and the energy used to warm up the vehicleās cabin. All Tesla vehicles prior to Model Y, warm the cabin through something called a resistive heating system where electricity is sent through a resistive heating element, which creates heat thatās blown out of the air vents. A resistive heating system does not produce heat unless the heat is turned on. Think of it like you’re running a space heater that’s plugged into the wall in your house. Itās immediate heat as soon as itās turned on. This is unlike in a gasoline vehicle which uses some of its waste heat to heat the cabin.
An electric car doesnāt have as much waste heat as an internal combustion engine vehicle which is why resistive heating is commonly used. This means for an EV (like my Model 3) to warm up the cabin, energy from the battery must be used which of course decreases the estimated range. An interesting thing to know, however, is electric resistance heating is considered 100% energy efficient in the sense that all the incoming electric energy is converted to heat. For example, in the Model 3, S, and X, one unit of electricity turns into an equal unit of heat thus 100% efficiency.
So you may be thinking: Well it doesnāt get any better than 100% efficiency, right? Well, actually there is something better. Itās called magic. No not really. Itās called a heat pump, and the Model Y is the first Tesla to have one. In the manual it says āModel Y uses a heat pump to maximize efficiency; therefore, your air conditioning compressor and external fan may run and make noise even when the outside temperature is cold and your vehicle is heating or Supercharging”
So what is a heat pump and how is it better than resistance heating? A heat pump can be thought of as an air conditioner that has the ability to work in reverse. An air conditioner works by using refrigerant to trap the heat inside of an area, then move it outside. A heat pump works in exactly the same way, only it has a reversing valve which allows it to reverse the flow of the refrigerant and heat an area when it’s cold out.
Heat pumps help efficiency because they move heat rather than generate it. The electricity is used by the compressor to send refrigerant around the system and capture the heat from outside, then bring it inside. It can do this because the refrigerant has an extremely low boiling point. And the best part is a heat pump can typically produce around 3kW of thermal energy for every 1kW of electrical energy resulting in an āefficiencyā of 300%. I used air quotes for efficiency because according to the law of physics itās impossible to have an efficiency greater than 100% because you canāt create energy from nothing. So instead, it’s expressed as a Coefficient of Performance or (COP) rather than efficiency.
So this ā300% efficiencyā sounds awesome, right? Well, there’s a catch. Heat pumps are usually not effective below a certain temperature range and typically don’t work well in extremely cold temperatures. However, heat pump technology has recently improved, and in some cases can be rated for outdoor temperatures as low as -4Ā°F. So why is the Model Yās heat pump so important? Well, as you can guess by now, a heat pump should be able to heat the cabin while using less energy which should lead to longer battery range when driving in cold temperatures compared to all the other Tesla models. This is a huge advantage! Actually an article by GreenCarReports claimed that in New York City at 14 degrees, an EV’s heat-pump-based system offered up to a 30 percent improvement in driving range. Itāll be interesting to see how the Model Y winter range improves compared to the other Tesla models. The only downside to a heat pump is itās slower to heat compared to resistive heating.
Even though the Model Y is the first Tesla to have a heat pump, some other EVs including the Nissan Leaf have already had it as an option for a while now. So if heat pumps are really that much better than resistive heating, why didn’t Tesla implement this before the Model Y? Most likely it was because a heat pump adds cost, complexity, and weight. But for a Tesla, which already has an air conditioner, a heat pump seems like a no-brainer because the added complexity would be pretty minimal. And it seems with the Model Y Tesla finally decided that it was worth it. After all, Teslas are going out to all parts of the world where there are actual real winters instead of just sunny California.
I guess the biggest questions now are: where does the heat come from in the Model Y heat pump and does the Model Y always use a heat pump or does it alternate between heat pump and resistance heating? From the Model Y manual it looks like it could be taking excess heat from the motor and battery, which would probably make it efficient even in extremely cold temperatures which would be nice. Teslas already have the ability to use the motors to heat the battery, and if the heat pump is powerful enough it can potentially heat both the battery and the cabin.
Either way, I canāt wait to see how the Model Y handles driving in the winter. It sounds like it will be the best Tesla for that task. I canāt wait to get mine and Iāll be doing a lot of videos about it so be sure to subscribe so you donāt miss out on those. What do you think about this new feature? Let me know in the comments below. If you enjoyed this video please be sure to give it a thumbs up. My name is Andy. Thank you for watching and Iāll talk to you in the next one.
The Model Y is Teslaās latest vehicle, and it’s the most hyped electric car since its predecessor the Model 3. In 2017 I did the complete guide to the Model 3 and in it I said that the Model 3 is the iPhone 3G of cars. Well if thatās true then the Model Y, in this context, is like the iPhone 5. A little bigger. A little newer. Big thanks to Audible for sponsoring todayās video.
Many people are saying the Model Y will be more successful than the Model 3, and guess what? Model Y hits the road this month in March 2020 so in this video Iāll go over everything you need to know.
The Model Y is an all-electric mid-size SUV. That’s what Tesla calls it, but from what we know so far it’s more of a compact crossover vehicle. It’s basically a slightly larger hatchback version of the Model 3, and it was announced one year ago. I was lucky enough to attend the unveil event and even got to ride in it, and of course I reserved one immediately after the test ride so make sure you subscribe to my channel to see my full review when I release that. The Model Y is based on the Model 3 sedan platform so it looks very similar to the Model 3, and they share about 80% of the same components, but there are some key differences.
The Model Y comes in three versions: Performance, Long Range, and Standard Range. If you want a Model Y in 2020 you have to choose from the Dual Motor All Wheel Drive options which is either the Performance or Long Range because the Standard Range wonāt be produced until 2021.
The Standard Range should start around $40,000 with a range of 230 miles and a 0-60 speed of 5.9 seconds. But keep in mind Tesla has a tendency to make the specs even better than what they initially announced, just like they did with the AWD variants of the Model Y.
Long Range Model Y starts just above $54,000 after factoring in the required $1200 destination fee, and the Performance Model Y starts just above $62,000. Both of these have an estimated range of 315 miles which makes the Model Y the most energy efficient electric SUV in the world. I will go ahead and assume the Performance will not get as good of a range as the Long Range so if you are considering buying a Model Y I would highly recommend getting the Long Range instead of the Performance. That way youāre saving money and most likely getting better range.
The Long Range goes 0-60 in 4.8 seconds while the Performance does it in 3.5 seconds so both are obviously very quick. If you choose a Performance model you can get the optional Performance upgrade package which includes 21ā Ćberturbine wheels, increased top speed, lowered suspension, and aluminum alloy pedals, but by doing that the estimated range drops to 280 miles. If you know me Iām always recommending the longest range possible for people looking to buy an EV.
When it comes to color options, the base color white is included at no cost but if you want a different color: black, blue, midnight silver, or red youāll pay anywhere from $1,000 to $2,000 depending on your choice. The base wheels included at no cost are 19ā Gemini wheels which look to be similar to the Model 3 Aero wheels in the sense that the caps should be able to be easily removed to reveal a standard good looking rim underneath.
If you want 20ā induction wheels it costs an extra $2,000. The base interior color is black at no cost, but if you want to upgrade to white interior that costs $1,000. The five seat interior is included as a base feature at no cost and each second row seat folds flat independently which is nice. You can choose to upgrade to the third row seven seat option for $3,000 but that wonāt be available until 2021.
All Teslas, including Model Y, come standard with Autopilot at no cost which enables the car to steer, accelerate, and brake automatically for other vehicles and pedestrians within its lane. All Model Ys come standard with Tesla’s latest internal hardware 3.0 computer, and all new Teslas in general come standard with driver assistance features such as emergency braking, collision warning, and blind-spot monitoring.
All Model Ys have multiple 360Ā° cameras, a forward facing radar that provides a long-range view of distant objects, and 12 Ultrasonic Sensors to detect nearby cars, prevent potential collisions, and assist with parking. The Full Self Driving software option costs $7,000 at time of order and gives you some more features such as automatic driving from highway on-ramp to off-ramp including interchanges and overtaking slower cars, automatic lane changes while driving on the highway, Autopark, and Summon.
Full Self Driving option also includes features that Tesla says are coming later this year like recognizing and responding to traffic lights and stop signs, and automatic driving on city streets. This is not set in stone because it has been delayed before, but of course, if you have the Full Self Driving option your car will drive itself in the future when Tesla finalizes and releases the update and when it is legal to do so which may be a long time from now.
However, since it is a software option, Full Self Driving can be purchased later on at any time. Although Tesla says the price will likely increase as time goes by. And finally you can place an order for a Model Y online at any time, but it does require a nonrefundable $100 deposit.
Which configuration is getting delivered first? Well, thereās no exact answer, but usually Tesla will deliver the most expensive configurations first. What Iāve seen so far are people who have ordered the Performance with black interior, 20″ wheels, five seat option, and full self driving seem to be among the first to get their emails to schedule delivery this month. It’s also based on first come first serve so the people who ordered on Day 1 should be ahead in line, and Tesla may also do what they did for the Model 3 deliveries and deliver the west coast orders first before the midwest and east coast.
If youāre wondering about my configuration, I placed an order on day 1 for a white Long Range All-Wheel Drive with 19āā Wheels, Black Interior, Five Seat option with basic Autopilot. I’m holding off on Full Self Driving since I already have it on my Model 3. I’ll plan to bite the bullet and pay for FSD when it’s actually released even if it does cost more. I still havenāt gotten my email to schedule delivery. Hopefully soon.
If youāre like me and you’re itching to test drive a Model Y and your nearest Tesla store doesnāt have one yet, check out Turo. Thatās what I had to do two years ago with the Model 3. No Tesla stores had the Model 3 to test drive so I rented one on Turo and it was a great experience.
Some of the Model Y’s biggest advantages over the Model 3 include the hatchback that has a powered lift gate compared to the manual trunk in the Model 3, the Model Yās front trunk and split-folding second-row seats provide a total of 66 cubic feet of storage space which is much more than the 15 cubic feet in the Model 3, the all-glass panoramic roof which is similar to that in the Model X since the Model Y lacks the crossbar that the Model 3 has, and the 3rd row seating option that can seat 7 adults.
Iām a tall guy and I donāt know how much confidence I have in me being able to sit comfortably in the 3rd row seat, but weāll have to wait and find out. Also the Model Y supposedly has 2 under-storage compartments in the trunk compared to just one in the Model 3. A slight difference in the exterior design compared to the Model 3 is instead of the chrome trim, the Model Y has a blacked out trim so good news for those who were planning to do a chrome delete on their Model Y you don’t have to.
There are still some questions surrounding the Model Y. It seems a tow hitch has been spotted on one of the Model Y’s but we don’t know if it will be a standard feature yet. Tesla still hasnāt released the exact measurements of the Model Y, and ground clearance was a big question but it seems the ground clearance is around 7″. For comparison, the best selling crossover, the Toyota Rav 4, has a ground clearance of 8.4″.
As a Model 3 owner who has briefly ridden in the Model Y, a simple explanation of my experience is that itās almost exactly the same as being in a Model 3 except youāre sitting up higher with a better vantage point and viewing experience. The Model Y is a little taller and the seats are elevated and it has that panoramic glass roof without the crossbar, but other than that itās pretty much the same as the Model 3. It has the same minimalist interior design with the 15ā touch screen that controls almost everything about the car, along with the same steering wheel design, the same dash, and the same seats.
The premium interior consists of 12-way power adjustable front and rear heated seats along with premium audio system including 14 speakers, 1 subwoofer, 2 amps, and immersive sound. It comes with 1 year of Premium Connectivity of LTE data which includes: Satellite maps with live traffic visuals, internet streaming music and media, Video streaming, Caraoke, and an internet browser. After one year, premium connectivity costs $10/month.
Included in all models with premium interior are: Bluetooth streaming, LED fog lamps, Tinted glass roof with ultraviolet and infrared protection, Power folding heated side mirrors, Custom driver profiles, and a center console with 4 USB ports and docking for 2 smartphones. So besides the back seats, the interior is pretty much identical to the Model 3.
Also like the Model 3, the Model Y requires no keys but instead uses your smartphone as a wireless key for seamless entry and exit. When you walk up to the car with your smartphone in your pocket it will automatically unlock and when you walk away it will automatically lock. A key card will come with the Model Y as a backup entry method when smartphone entry via Bluetooth is not available. You can also use the Tesla Mobile app for controlling aspects of your car from anywhere as long as you have an internet connection or via Bluetooth if you’re in close proximity of the car.
For charging, the Model Y comes with Tesla’s mobile connector that includes a 20-foot long cable to charge at home which will most likely get about 5 miles of range per hour of charge on a standard outlet. If you want faster charging speed at home you have a few different options. A popular option is to install a NEMA 1450 outlet which will get about 30 miles of range per hour of charge but you will need to order the NEMA 1450 adapter from Tesla for $35.
For road trips and traveling long distances, Model Y is of course compatible with Teslaās Supercharger network of more than 16,000 Superchargers in 36 countries, as well as the new V3 Superchargers which can charge at rates up to 1,000 miles per hour. Thatās a huge benefit compared to older Tesla vehicles that arenāt compatible with those newer V3 Superchargers. Supercharging is not free. The fee is based on either how long you charge or how much power you pull while charging, and this depends on the Supercharger location.
I would say you could use my referral link to get 1,000 miles of free Supercharging when you order your Model Y but Tesla hasn’t made Model Y orders eligible for referrals. If Tesla enables this I will be sure to leave my referral link in the description below so you can get your free Supercharging or feel free to use anyone else’s referral link, it doesn’t have to be mine. Either way, Supercharging will charge your Model Y extremely fast to get you back on the road quickly and it costs much less than gas.
Of course like every Tesla, the Model Y is designed to be the safest vehicle in its class due to the low center of gravity, rigid body structure and large crumple zones. And it comes with a built-in WiFi connection so it can download Tesla’s free software updates as Tesla releases them via your homeās WiFi network. These over the air software updates allows your car to get even better as it gets older which is incredible and a huge benefit of owning a Tesla.
The big question is: how quickly can Tesla ramp production for the Model Y and get them out to customers as soon as possible. This will determine how much it impacts the current crossover hatchback market in 2020. Of course when I get mine I will be doing all kinds of videos about it and comparing it to my Model 3 so be sure to subscribe to stay up to date on my latest videos. What do you think of the Model Y? Are you going to get one? Do you think it’s ugly? Let me know in the comments below!
