Afford the Tesla Model 3 with a $12 Per Hour Salary: A Comprehensive Guide

Do your own math although if you make only twelve dollars an hour, math may be hard. This article will guide you through understanding the affordability of the Tesla Model 3 while working at $12 per hour.

Can I Afford the Tesla Model 3?

Initial Hurdle: Insurance vs. Car
You couldn’t even afford the insurance let alone the car. After calculating your monthly earnings, it becomes apparent that owning a Tesla Model 3 would be a significant challenge without proper financial planning.

Factors Influencing Affordability

Financing the Model 3
If you can get the money together to finance or by outright, you definitely can afford it because the Model 3 is so inexpensive to own. Driving on a $4 budget, you can easily cover 200 miles in your '3' at home. This cost breaks down to approximately 25 cents per mile.

Typical Car Mileage on $4
How far can you drive a typical car on $4? Around 50 miles in a fuel-efficient car. The Model 3, however, is completely different, with no maintenance required, no trips to the dealer, and only tires to change. This significant difference in cost and convenience highlights the Model 3's value proposition.

Strategies to Increase Affordability

Supply and Demand
To achieve and amass things, increase your earning potential. If you make $12 per hour, you are likely not pushing yourself enough. Aim to increase your earning power and your labor time. Once you apply yourself, you can afford anything, including cars.

Comparative Cost Analysis: Nissan Versa
The lowest cost of ownership car is a Nissan Versa, which costs $8,355 in the first year, including $1,012 for fuel, $1,294 for insurance, and $1,089 in tax and fees. Retail new price is $17,005. The problem with cars like the Model 3 is the government and its mandated insurance. If you buy our EV with a monthly subscription offering unlimited miles, it will be very clear each monthly paycheck if you can afford it or not.

Leasing the Tesla Model 3

Monthly Lease Costs
The least expensive way to drive a Tesla Model 3 is to lease one for $399 per month. Assuming you can save up the $4,500 down payment, you still have $595 for all other debts. If the sum of your monthly payments, including rent, house, alimony, child support, student loans, credit card minimum payments, and other loans or debts, is less than $595 and can be expected to stay at that level for the term of the lease, then you can afford a Model 3.

Debt Management: Dime by Dime

Debt to Income Ratio
To manage your debts effectively, keep your debt to income ratio below 43%. Assuming you work 40 hours a week, your gross income is $2,080 per month. This gives you a maximum monthly debt payment of $894.

Maximizing the Model 3’s Value
If you are delivering pizzas and getting paid after tips at $12 per hour, driving at an average speed of 40 mph, and suddenly buy a Magic EV that lets you deliver at 180 mph, your salary of $12 shoots up to $54 per hour. Investing in a fast EV like this instead of the Model 3 might be more lucrative.

Conclusion

While a $12 per hour salary presents initial challenges, understanding the true cost and value of the Tesla Model 3 can help you decide on a viable purchasing or leasing strategy. Whether through careful budgeting, maximizing your earning potential, or innovative approaches to enhance your work efficiency, the Model 3 can indeed be an affordable reality.