With government tax credits, Tesla cars are now more affordable. Does this mean Tesla is no longer a luxury vehicle? How does it stack up against other brands like Honda and Toyota? Check out our 20/3/8 car-buying rule to make sure you are making smart financial decisions when it comes to purchasing a car.

In this highlight, Brian and Bo talk about what qualifies as a luxury car, expand on the rules, and treating yourself.

Want to know what to do with your next dollar? You need this free download: the Financial Order of Operations. It’s our nine tried-and-true steps that will help you secure your financial future.

How did Brian get a Tesla for under $10,000?! In this episode, Brian breaks down every step he took along the way to get his new Tesla Model Y for under $10,000 (and why he gave up his Model 3). You won’t want to miss this one!

In this episode, you’ll learn:

• The steps Brian took to get his Tesla for under $10,000
• The numbers of how Brian went from the original price to under $10,000
• What steps Brian took to sell his Tesla

Research and resources from this episode:

• Tesla Bull asks Elon Musk for full self driving value to be added with vehicle trade in
• Work with us

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Is it possible to buy a Tesla Model 3 for only $78 per month? Financial YouTuber Graham Stephan says it is. Combine the brands of Tesla and Graham Stephan and you get his channel’s most popular video with over 7.6 million views titled: “How I bought a Tesla for $78 Per Month.” Find out how Graham does it and watch as we, as financial advisors, react to his methods. We’ll share our own experience with purchasing a Tesla discuss whether or not this is a smart way to buy a luxury vehicle.

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Electric cars are here to stay. Manufacturers of traditional gasoline powered cars, like Ford and GM, are starting to jump into the electric vehicle market. It’s not difficult to imagine that at some, possibly not-too-distant point in the future, the majority of new cars sold will be electric vehicles, or EVs. EVs have several distinct advantages over gasoline cars, from a lack of pollution and money saved on gas and maintenance to potential tax credits, but the initial cost of electric cars is still too high for many Americans. Accounting for the savings, are EVs cheaper overall or are gasoline cars still the best deal out there?

Tesla Model 3 vs. BMW 3 Series

Tesla has the price of a luxury vehicle, but how does it actually stack up to a BMW? To get close to an apples-to-apples comparison, we decided to compare the Tesla Model 3 LR AWD to the BMW 3 Series M340i xDrive AWD. Performance specs are similar; the BMW has slightly more horsepower, and the Tesla has a slightly quicker 0-60 time. Initial costs are close. The Tesla is about $7,000 cheaper, $46,990, compared to the BMW, which is $53,961.

The Tesla Model 3 turned out to be much cheaper than the BMW over the first 5 initial years of ownership (and it likely would have been even cheaper if we looked at a longer period of time). The Tesla costs less to maintain, less to drive, and has a greater resale value. Altogether, the cost of owning the Tesla for 5 years would be about $26,651, assuming it is sold back at an average resale value, and the cost of owning the BMW for 5 years would be a whopping $46,012 – almost $20,000 more than the Tesla!

It’s not surprising that owning a Tesla is cheaper than owning a BMW; although the initial price of a Tesla lands the car firmly in the “luxury” category, once you own the car, it costs much less to drive and maintain than a typical luxury vehicle. BMWs require premium gasoline, which is very expensive, aren’t known for being the most reliable cars (service and repair costs in the first 5 years normally total almost $10,000), and don’t have a great resale value when compared to the high initial purchase price. What if we compared a Tesla to a car that has a lower initial price, is cheap to drive and maintain, and has a great resale value?

Tesla Model 3 vs. Honda Accord

It probably isn’t fair to compare the base model Tesla to the base model Honda Accord; those considering purchasing a base Accord probably aren’t also considering a Tesla. The Honda Accord EX-L 2.0T might be a closer match to the Tesla Model 3 SR. The initial cost of the Accord is much cheaper, at $31,942 compared to the Tesla’s $39,416, but performance specs are similar. The Tesla has slightly more horsepower and is a little quicker, but the Honda Accord is no slouch.

The Honda Accord is affordable to drive and maintain, and holds its resale value quite well. The initial 5 years of ownership would come to about $24,400, making it a quality, affordable vehicle. The Tesla is cheaper to maintain and drive than even the Honda Accord, and retains its value just as well. After 5 years, the cost of owning the Tesla is expected to be about $24,033 – slightly less than the cost of owning the Honda Accord.

Electric vehicles, like the Tesla, can match the performance of luxury cars and save thousands in the long run. We have also discovered that affordable electric cars can compete with non-luxury gasoline vehicles on price. Teslas won’t be replacing base model gasoline cars anytime soon, but shoppers looking for a mid-range vehicle might want to take a closer look at electric vehicles.

We took a close look at the numbers in our latest show to determine if Teslas really can compete with luxury cars and non-luxury cars. We discuss who buys Teslas, what they actually cost in the long run, and if your Tesla might last 1,000,000 miles, all on our most recent episode, “Is Tesla About to Revolutionize the Auto Industry [AGAIN]?” Watch it now on YouTube below.

Telsa is revolutionizing the auto industry, but what does that mean for your finances? Get ready for some mind-blowing math about how this luxury vehicle may be coming for tried-and-true brands like BMW and Honda.

In this episode, you’ll learn:

• How Tesla is demolishing the value of your BMW
• How much it costs to own a Tesla, BMW, or Honda in the long-term
• Whether or not your Tesla can last 1 million miles
• Honda Accord vs. Tesla Model 3: a surprising a comparison

Research and resources from this episode:

• Tesla Owner Demographics (Hedges & Company)
• Tesla Model 3 Demographics (Hedges & Company)
• 2020 BMW 3-Series (US News)
• 2020 BMW 3 Series Pricing (TrueCar)
• 2020 BMW 3 Series Cost to Own (Edmunds)
• National Average Gas Prices
• Tesla Model 3 Stats
• Tesla Model 3 Maintenance Guide — Costs Even Lower Than I Thought! (Clean Technica)
• BMW 3 Series Depreciation (Car Edge)
• Tesla Depreciation (Car Edge)
• Despite SUV Craze, Tesla Model 3 Dominates US Luxury Vehicle Market (Clean Technica)
• Your 2020 Honda Accord (TrueCar)
• 2020 Honda Accord Cost to Own (Edmunds)
• EX-L 2.0T 4dr Sedan Specs (Auto Blog)
• Honda Accord Depreciation (Car Edge)
• Elon Musk Reveals Plans for His Million-Mile Battery (Popular Mechanics)

Enjoy the Show?

• Get FREE downloads full of financial advice from our Resource Page!
• Subscribe on YouTube or wherever you listen to podcasts.
• Leave us a review on Apple Podcasts.
• Send us your questions or share your story.

If you have any questions (or just want to say hi!), join the conversation on Facebook, Twitter, or Instagram!

Michael Jordan is one of the greatest basketball players of all-time. Steve Jobs was one of the greatest businessmen and inventors in American history. Walt Disney was another brilliantly successful man. Although they come from different walks of life and pursued different professions, there are common elements of success that Michael Jordan, Steve Jobs, and Walt Disney all share. What makes successful people so successful, and how can their success be replicated? Or would you even want to replicate it?

Desire for greatness

The great ones are always a little bit egotistical, it seems. To reach a level of success beyond what anyone else in your field has achieved, you’ve got to have a desire for greatness that motivates you to go above and beyond what anyone else is willing to do. Greatness comes at a great price; to be great at anything, you must pour an enormous amount of time and energy into it. To be greater than everyone else at something, you must be willing to work harder than anyone else for it. Not everyone is willing to do that, obviously.

Time

Michael Jordan spent five hours a day in the offseason working on basketball, in addition to his other business ventures and time spent with his family. In the ‘80s, Steve Jobs bragged about his team working 90-hour weeks. Elon Musk said in 2018 that he works 120 hours per week. That means Musk works, on average, just over 17 hours per day. That leaves less than 7 hours every day for Elon to sleep, eat, relax, and spend time with his family.

The time commitment required for that level of greatness is enough to turn most people off to the idea. You’re required to give up so many things, and dedicate your time almost solely to one objective. Other aspects of your life will become neglected. You won’t be sleeping enough or spending enough time with your family. Your health could suffer from overwork and a lack of sleep. To be better than anyone else at something, you may have to give up everything else in your life and dedicate yourself entirely to that one thing. Very few people are willing to do that.

Doing what others aren’t willing to do

Greatness may not seem like a competition, but it always is. We naturally want to compare the greats to determine who is the greatest. In basketball, Michael Jordan is constantly compared to other greats like Kobe Bryant or Lebron James. Steve Jobs is compared to Bill Gates, and Musk draws comparisons to other titans of industry such as Henry Ford or Nikola Tesla.

You don’t have to give up all of your time to be great. You can be great at something and still have time for your family, hobbies, and enough time to sleep eight hours a night. You can’t be the greatest without being willing to give up more than everyone else. 

Motivation

We often hear stories of successful people rising from poverty to become great. If you’ve watched some of our Money Guy Show content about millionaires, you may already know that 80% of millionaires are first-generation wealthy. Poverty, or not coming from money, can be a great motivator for success. Parents naturally want their children to have a better life than they did, and often instill a sense of hard work and determination that helps their children become more successful than they were.

On the other hand, if money isn’t seen as a scarce resource growing up, you may not have the motivation required for financial success once you’re older. If you don’t have to work hard for something, why would you? Those who grow up in wealthy households could experience a lack of motivation if everything was handed to them on a silver platter.

A vision of success

For certain goals to be accomplished, there usually needs to be concrete steps taken to reach that goal. If you have a goal to write a book one day but never spend any time writing, that goal probably won’t ever be accomplished. Books don’t just grow on trees. If you want to write a book one day and spend time coming up with ideas for your book, writing drafts, and sending your book to publishers or planning to self-publish, though, you probably have a good chance at writing a book.

Michael Jordan didn’t want to just become great at something. He wanted to be the best basketball player of all-time, and he knew what he needed to do to make that happen. He sacrificed his time and energy to turn his goal into a reality. 

If you want to become great at something, you need to know what’s waiting for you at the peak. There is no joy in being famous or wealthy just for the sake of being famous or wealthy. Becoming successful in order to give your family a better life is a great reason to strive for greatness. Being great at something just to increase your personal wealth or fame probably won’t lead to long-lasting happiness.

Our latest show is about financial lessons that can be learned from the recent ESPN documentary, “The Last Dance.” The documentary covers Michael Jordan with a great level of detail, and we think there are financial lessons that can be gleaned from Jordan and company. Watch our show, “11 Financial Lessons Learned from The Last Dance,” on YouTube below.