To put a dumb financial decision in perspective

[jetsfan2013]

It really is never too late. Your story and honesty will inspire quite a few on here.

[Revelate]

Well basically a car of some sort is mandatory.

I'm in the black on the Tesla so I could sell it but ultimately if I can finish paying it off quickly (and that is in reach once the mortgage processes are done) and I do absolutely like the car and it keeps getting better... there isn't really any reason to get rid of it even if I will likely be able to walk mostly in Houston except for weekends.

That said, dating in Houston, needs car. It's a good car, I can afford it, I will have personal charging capability in the new home, it still works even if it is not cheap but converting to a beater or whatever isn't needed.

[WTL1]

Thing about the Tesla is ultra-low maintenance and long life of all the components. I'm a huge fan of Tesla and would be driving one today but that I am determined to first zero any debt and then buy Tesla stock, so it will be at least next year until I get one. You have a vehicle that is state of the art, and ultra-reliable and safe. That's worth something, and you should expect to still be driving it in 20 years if you wanted to. It was an excellent investment!

[wasCB14]

I'm thinking about getting a Tesla for my next car, but I don't drive too far most days and often take Metro/Uber to get around downtown. That "next car" purchase could be 5 years away (current primary car is 10 years old). Even my "guest" car (inherited 90's Toyota) still runs...though not so well that I'd take it downtown.

Sounds like the appetite for being an LA landlord has faded? Though IIRC you mostly wanted the depreciation deduction, and with lower overall taxes in TX you may not need the deduction...and the cap rates in TX likely offer a much better return.

How far into the old loan were you? With only $195k remaining, at first glance it would seem like you had already paid most of the interest and that the remaining amount was mostly principal. How much did the loan maturity change?

[wa3more]

Steeler, you doing LIRR everyday ?

[iced]

---

@Revelate wrote:

Bought the Tesla back in late 2018 just because I wanted it.

Fast forward to today where I'm refinancing my LA condo:

Current Tesla loan: $869/month

New condo refi: $887/month

**bleep** near line item identical in terms of monthly debt.  Sheesh.  Oh well, going to avalanche some of my debt and said Tesla is the high mark currently.  Go go Texas cash flow!

---

You've probably heard me say it before, but never finance a depreciating asset like a car unless the terms were ridiculously favorable (interest rate well below standard savings account interest rate) and you also have the cash on hand to pay it off immediately if need be. If I don't have the cash on hand to do that, I shouldn't be buying the car in the first place. More people used to rent-to-own furniture and such many years ago, and most figured out it's a bad, bad deal. Cars aren't really any different.

I read somewhere that a car costs the average person around $9,000/year (those may be New England numbers, though). When you consider that a percentage of those cars aren't even necessary (live in the city and take public transit instead, second or third car, etc), the average American is just flushing money down the toilet. They're the second largest expense people have, after rent/mortgage. The number of people even on this forum who are going out and financing a car that's a half, two-thirds, or even 100% of their annual income is insane. Honestly, I'm a little fascinated by the psychology behind that -- what drives (no pun intended) someone making $50,000/year to finance $60,000 worth of vehicles?

[iced]

---

@Anonymous wrote:

Revelate- definitely you have a good priced mortgage. And once you move to Texas you can definitely get something newly built and affordable. California is the worst! I check Zillow frequently and the prices are out of reach for me. I'll likely wait until I retire and move out of state. I may look for something now and rent it out since I still have 10years more to go on my job. 

---

This should honestly be a topic for a whole new thread, that being the discussion around the fascination/drive to buy new construction vs older home. It's a particular thorny issue for me right now because we're looking at homes and we want an older Victorian home that's just been tastefully maintained. They're very difficult to find, however, because every time an old house is going to go on the market, one of two things happens 95% of the time:

1. Developer swoops in, demolishes it, and builds a new disgusting McMansion on it.

2. Owner or developer takes advice from idiots on HGTV and updates it to look like a Victorian on the outside and IKEA showroom on the inside. Also disgusting.

Now, to be fair, Texas isn't exactly an old home state (excepting the remaining missions which aren't SFHs in the first place), and even in the most historic of old neighborhoods, we're going to be talking late 19th or early 20th century homes. Most of the "older" homes there are mid-century ranches which aren't exactly a loss to the architectural world should they vanish.

[Anonymous]

---

@wa3more wrote:

Steeler, you doing LIRR everyday ?

---

For now, I still have an apartment in the city for required appearances at work 4 days a week. I'll drive in at 4am to beat traffic on the first day of the week, then drive home once it's died down around 7:30pm on the last day of the week.

If I can get them to eliminate my in-office requirement, I'll ditch the apartment, save a bunch of money, and probably just take the train in a couple of times per month for meetings, etc.

I'll always debate whether or not I hate Penn Station or the LIE more. LOL.

[wa3more]

That LIRR ride from out East gets old and that commute is exhausting 

Penn vs LIE. Tough one. I like LIE better. More control over schedule. Being slave to LIRR schedule and uncertainty of maybe never getting home is stressful. I was getting chest pains coming from Nassau Suffolk border. I heard they are raising fares again ?

[wasCB14]

---

@iced wrote:

---

@Revelate wrote:

Bought the Tesla back in late 2018 just because I wanted it.

Fast forward to today where I'm refinancing my LA condo:

Current Tesla loan: $869/month

New condo refi: $887/month

**bleep** near line item identical in terms of monthly debt.  Sheesh.  Oh well, going to avalanche some of my debt and said Tesla is the high mark currently.  Go go Texas cash flow!

---

You've probably heard me say it before, but never finance a depreciating asset like a car unless the terms were ridiculously favorable (interest rate well below standard savings account interest rate) and you also have the cash on hand to pay it off immediately if need be. If I don't have the cash on hand to do that, I shouldn't be buying the car in the first place. More people used to rent-to-own furniture and such many years ago, and most figured out it's a bad, bad deal. Cars aren't really any different.

I read somewhere that a car costs the average person around $9,000/year (those may be New England numbers, though). When you consider that a percentage of those cars aren't even necessary (live in the city and take public transit instead, second or third car, etc), the average American is just flushing money down the toilet. They're the second largest expense people have, after rent/mortgage. The number of people even on this forum who are going out and financing a car that's a half, two-thirds, or even 100% of their annual income is insane. Honestly, I'm a little fascinated by the psychology behind that -- what drives (no pun intended) someone making $50,000/year to finance $60,000 worth of vehicles?

---

I used to live in the northeast and totally understand the need for a good car (at least outside of urban areas) in the winter. Southern CA is another matter.

A relative was once boasting about how fast his car could go, and I asked where he was actually able to drive those speeds. He decided not to answer, but the truth was clear: he does limited driving in a community with a lot of stop signs and school zones. Most days he doesn't go above 45 mph.