– Alright guys, today we’re gonna talk about how I was able to get my Tesla Model 3 for far less than the actual price of it. And it involves some cryptocurrency stuff, and I wanna keep it simple and easy to understand, so I’m gonna bring my wife in– (cheering) to help make sure that I don’t get too deep into the weeds there. So let’s get started. Alright honey, so I told you that we weren’t gonna spend that much money on this car. – Yeah. – And it was almost $60,000. – Right. – I know that’s a lot, and you’re not thrilled. – I just think when you spend money on cars, you don’t get that money back. Like the instant you drive it off the lot, it all goes away, so it just doesn’t seem like a good investment to me. – Oh snap! – That is true. – It’s a hard sell for me. – That is true, and so to recap, our Tesla Model 3 was $54,000 MSRP, then taxes and everything else were– – [Jenny] Because you had to have the autopilot, you had to have– – [Ben] Well to get the long range, we had to get the, or I’m sorry, to get it earlier we had to get long range and premium upgrades, and autopilot you just have to have.
– [Jenny] Right. – So taxes and fees and everything came to just under $60,000, $59,866. Pretty expensive for a car, especially not the higher end Tesla. – Yeah, I mean I think the most I’ve ever spent on a car was close to 26 or 27 when I bought the car right before Jack was born. – The Acura RDX, and so we actually used some of that to pay for this car. So overall, I think the message here today is that we have good news, that we didn’t pay nearly $60,00 for our car.
– Well this is how it always starts. I complain about spending too much money, and you go let me look at the data, and I’ll make sure that’s not how much we spent. So, that’s were it’s subtle. – That’s how the first one happened. – This is where this is born from. – Okay, so let’s just talk about real quickly what these numbers are. We got a loan for $27,090. – So here, I had a question for you, why did you get a loan? How come you didn’t find some way just to– – Just to pay for it? – Right, because I think what you’ll get into is that we pulled from certain investments.
– Yeah. – Like, you’re very into getting loans. – Well okay, so if I can get a loan for under 5%, then I can essentially take that same money, put it into an index fund or another investment that is more or less guaranteed to get a 5% or greater return, and we’re making money on the deal. – Say what?! – Okay. – That make sense? So we’re borrowing the money and we’re paying for that, but we’re taking that same amount of money and putting it somewhere else where the amount we’re making on it is greater than the cost of borrowing. – So you think you can do more with money if it’s not– – Yeah, and it’s tricky, right, but I think it’s smart if you can do it, and so our loan, $27,090, we got a 2.19% interest rate.
– That’s pretty good. – Which is extremely low. Tesla was offering I think was the lowest that they had, and so yeah, this is just a little bit less than that but still better. The reason we got the lower interest rate is because we got the shorter term, right? – What did you do, three years? – We did three and a half, 42 months.
– Three and a half. – Some people do, most people do 60 months, like a five year loan. Some people do 72 months. I think that’s too long, most people don’t keep their cars that long, and the only reason to even get a loan was to save money on interest. – Okay. – That’s what we did. – Yeah. – So, hopefully that makes you happy. – Yeah. – And so that gives us a monthly payment of $673.00. – Jeez still? – That’s not bad. – I know, but– – If we were to get a loan for the entire amount, it would be close to $1,000 a month. – Wow, okay. – Yeah. ♪ I make it rain, I make it rain ♪ – Which is what the other Tesla was. I think actually it’s like $1,200 a month or something.
– Yeah. – And that’s ’cause we financed almost all of it. – The shorter loan makes your payment higher. – Right, right, and you know you build up, if you were to resell it, it’s a better deal but really the main reason to do it is for better interest rates. – Okay. – The cost of borrowing the money. – So we’ve got about half in a loan. – More than half, yeah. Well actually no, yeah that’s about right. Then we sold your car and we sold it at CarMax, not a sponsor. – I love CarMax. – I do too, they always give us a good deal. – They make it so easy. I’ve sold two cars on Craigslist, do not recommend that. It is like the worst experience I’ve ever had. – Great experience So they gave us $14,500 for your 2013 Acura RDX. – Yep. – We paid originally $26,000 or so. – Something, I can’t remember.
– Anyways, so that was 14, so that money is, that’s money out of pocket. – And I had already paid that off. – Right. – So I didn’t have a loan or a lien on it. – Right, so that was money that was sitting in the car, and we took it out of the car and spent it here. Then comes the magic, and this was one of the coolest things that I was lucky enough, we were lucky enough, to have a friend that recommended looking into certain cryptocurrencies a while ago. – And I think it’s so cool. I’m just still trying to grasp– – Yeah. – What cryptocurrency is. – Don’t really need to worry about what it is, how it works, or any of that. – Money! – There was an amount of free money here, so we spent $2on Ethereum back in January of 2017. – [Jenny] Okay. – Which at the time the cost of one of Ethereum was $10.00, and we sold 20 of those Ethereum close to $800.00.
And so our final after fees and everything for processing now was $14,5that we got from a $2investment. – Gotcha. – So think about that like stock, or something. We invested in Tesla, they went up and we sold the Tesla– – Can you can take out the money whenever you want? – Yeah. – Oh, okay. – Yeah, it’s just like a stock or gold or something. – You didn’t want to take out $60,000 because you feel like it could make more. – So here’s the thing, a lot of cryptocurrency fans, people probably watching are freaking out right now because we sold Ethereum, but if you think about it, we went from $to $800.00. That’s a great, a huge return. That’s a win. Now we didn’t sell all of our Ethereum, that’s why I got a loan. – Yeah. – So I’m calling that $2is what we spent. Yes, we could have taken the $15,000 went out and done something else with it, but really we put that $2and turned it into $15,000 almost, and that paid for a lot of the car. So starting out with the loan amount, our total cost for that including interest was just over $28,000, Jenny’s car gave us $14,500 to put towards it.
The $2Ethereum purchase which later turned into almost $15,000 helped a lot. We have our $3,500 deposit which we had already paid, and then we’re subtracting out the tax credits gives us a final price that we’re actually out of pocket for, for our Tesla Model 3, at $36,468. – Alright guys, well, thanks for joining us. I’m curious what you guys think about this. Was selling the Ethereum a bad idea, was it a good idea? How are you going to finance it, are you finding better rates than we found? Leave all this stuff, all those comments down below, and we’ll have a chat about it.
Until then, don’t forget when you free the data, your mind will follow. Thank for watching we’ll see you back here next time..
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