How I bought a Tesla for $78 per month - Graham Stephan

To kick things off, this car qualifies for a $3,750 federal tax credit until June 30, 2019. This means that if you owe more than $3,750 in federal taxes, you’ll be able to claim the full amount as a credit when filing your tax return—essentially cash in hand.

In addition, California residents can claim a $2,500 Electric Vehicle Rebate. Once you provide proof of purchase, the state will mail you a $2,500 check.

But here’s where Tesla gets a little tricky… because that $29,450 figure also includes…

So, setting aside gas savings and just focusing on the two main cash rebates, the real price of the car works out to be $33,750—for a brand-new Tesla, Standard Range Plus, with Autopilot.

Here’s how I brought my monthly cost for this car down to $78.39:

Since I financed 100% of the car, my only out-of-pocket expenses up front were for taxes, licensing, and registration, which totaled $4,437.01.

With the rest financed, my monthly payment is $640, or $7,680 for the first year. So, in total, my first-year expenses—including payments, taxes, and insurance—come to $12,117.01.

However, after applying the rebates and tax credits, my actual cost for the first year is down to $5,867.01.

Plus, since I use this car for business purposes, I can write off the $1,438 I pay in loan interest, as well as the $4,437 in taxes, licensing, and registration fees. Additionally, I can depreciate the car against my income, resulting in a total tax deduction of $14,075, which saves me around $4,926.25 in taxes.

So, after factoring in tax incentives, my actual out-of-pocket expense is $5,867.01. When I add in the tax savings of $4,926.25, it means I’m effectively paying just $78.39 per month for a brand new Tesla Model 3. And if you consider that most of the $640 monthly payment goes toward the loan principal—and that I can earn a higher return on investments than what I’m paying in interest on the Tesla—it really works out to be essentially a free car.

After experiencing the process of buying a Tesla entirely online—sight unseen—I have to say I don’t see the fuss about Tesla’s dealership-free model. I actually think we’re going to see more automakers adopting a similar online-only approach.

We’re moving into an era where almost everything happens online. I can’t remember the last time I went to a mall or a physical store, because online shopping is more convenient and often cheaper due to lower overhead costs. And that’s a savings that gets passed down to us, the customers.