Skip to main content
No. of Recommendations: 3
And the TCO is already comparable to ICE vehicles (and even better if you qualify for incentives) and is dropping every year. So what you get is an amazingly better, safer, more pleasant car. And you never need to visit a gas station again.

I should probably check the latest numbers on that. I know TCO is dropping. The tax credit (on those vehicles for which it is still available) helps a lot.

But even then, not every decision has to be based on taxes and money. My mortgage is currently 3.375%. We're paying it off early. We've been paying extra for a few years now. I'm fully aware that if I had that money in the market, I would have gotten considerably more for it**. But we don't want such a large payment anymore. And, frankly, I was expecting the bottom to drop out sometime over the past four years (since the problems in the market really haven't been fixed since 2008, so it's gonna happen again). We're less than two years to pay-off at this rate. Did I calculate how much less I would have to liquidate from assets after I retire when I pay this thing off, to try to manage the capital gains to qualify for the ACA subsidy? Nope. I could have. Did I consider this a "guaranteed 3.375% return"? Yep, because it is.

So was my purchasing a new EV (common wisdom is you should always buy used) smart? Maybe not. But it had the form and function we liked, and was considerably cheaper than a Model S or X (both of which I like), so was within our price range. We still won't have to visit the gas station***, there isn't much to maintain****; basically costs almost nothing to actually own it after you purchase it.

And in two years we'll have a paid-off house, and have to liquidate roughly $24K/yr less than we would otherwise have to do. Which can only help for the ACA subsidy, though I didn't calculate it out.


**Though it wasn't in the market, it was transiting through my checking account that pays less than 1%. A lot less than 1%.
***We still have two ICEs, one of which I want to get rid of. I like our Jeep, though, and it may be some time before an EV can go where a Jeep can.
****Tires, the 12V battery, maybe some lubrication after 50K miles or more, brakes...that's about it, I think.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.