- Hey guys, before we get into the video,
I just wanna say that I know right now
buying a new Tesla is probably not the most important thing
for many of you out there
and I wanna be sensitive to that
but I also want to say that we are gonna get through this.
And so hopefully this provides a little bit of a distraction
for you during these tough times
and then after we get out of them,
hopefully this'll actually be really helpful
when you do decide to sit down
and think whether or not the Tesla Model Y
is the right purchase for you.
So thanks and let's get into the video now.
The Tesla Model Y is finally here.
People are taking delivery
and with 316 miles of EPA estimated range,
a 0 to 60 time of close to 3.5 seconds,
and 68 cubic feet of cargo storage.
You might be wondering is this the Tesla for you.
This adds to the lineup that already exists
of the Model S, the flagship sedan,
the Model X with the crazy falcon wing doors,
and of course the extremely popular Tesla Model 3.
So, we have a complete family here
and I wanted to just go through
and give you my thoughts
on whether or not the Tesla Model Y is right for you.
Let's free the data.
Before we get into the video,
I wanna thank today's sponsor, Dollar Shave Club.
Now, you might be thinking,
hey Ben, you don't shave,
how are you sponsored by Dollar Shave Club?
Well it turns out,
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deodorants, oral care, and even styling products.
And they did send me the ultimate shave starter set
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to kinda clean up the neck regions there
before I'm going out with my wife.
In the shave starter set here
you have the executive handle and blades
which is kind of this weighty handle
with these high quality six blades that you get.
1 oz. tube of Dr. Carver's prep scrub,
1 oz. tube of Dr. Carver's shave butter,
and a 1 oz. tube of Dr. Carver's post shave dew.
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and learn more about which products they have
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So if you take their quiz,
you'll see that they actually have a ton of products
as I mentioned.
For example, when I took it,
I have the shave butter, the razors, and the blades,
like I already mentioned.
Then you have this daily face cleanser,
the hair and scalp shampoo,
a body cleanser, and some deodorant.
So, really products for every kind
of grooming need you may have.
So visit dollarshaveclub.com/teslanomics
to get the ultimate shave starter set for only $5.
After that, the restock box ships full size products
at regular price.
So thanks Dollar Shave Club
for sponsoring this portion of today's episode
and let's hop into the video now.
In the United States,
the crossover represents the largest selling auto segment
by far with 37% of the total market share
followed by the pickup, small car, medium sized car,
and then actually the SUV way down there.
So, this kinda fits all those needs of an SUV
by having more storage, having more seating capacity,
but is easier to park, is easier to deal with,
and doesn't take as much space in your driveway.
So, it kinda gives you more bang for the buck
in terms of how much money you're spending
as well as how much space the vehicle takes up.
In a recent survey by Consumer Reports,
show that SUV owners
really want more fuel efficient vehicles.
Notably in that survey,
it found that 73% of people
currently driving a large SUV or pickup truck,
are interested in getting a vehicle
that is more efficient than their current one.
And so, with zero emissions
and a fuel cost that's somewhere between 70 to 80% cheaper
than what you may pay for gasoline,
the Model Y definitely fits the bill.
Now as I mentioned, Tesla has other models out there
so lets first look at what separates this one
from the other economical counterpart, the Tesla Model 3.
Now really, the two things that are unique here
about the Tesla Model Y versus the Model 3, are one,
more room for kids.
So, this will eventually have a seven seat option,
granted it will be a very small seven seat option
in the very back, the two seats, the leaked photo we've seen
and even seeing it up close,
it's not gonna be a ton of room for full size adults.
So, it's gonna be tiny back there
but you will be able to fit more people
which is good if you have a larger family
and it really kinda fits that need
of traveling with five or six people in the car.
It also has a hatchback
and this is really good for storing things.
So, whether or not you're, say moving furniture
or you're hauling stuff for your business
or you just wanna go outdoors more
and put things like a bike
or a surfboard or whatever back there,
this has a hatchback that opens really really big
which is different than the Model 3
which has a good sized trunk but the small opening
so it can't fit these larger items.
Plus, the roof of the Model Y
is quite a bit taller than the Model 3
giving you even more room to kinda stand items up,
so it really serves to be more of a utility vehicle
than the Model 3 which is kind of a midsize sedan.
Adding to the utility of the vehicle,
there is a large frunk
which is the trunk in the front of the car,
if you're unfamiliar with that term.
And it's much bigger than the one the Model 3 has
which is nice.
Also, underneath the flat part in the back
where the hatchback is,
there is an undercarriage, an under trunk you may call it.
The Model 3 does have that, it's a bit smaller,
but the Model Y boasts another undercarriage trunk,
another undercarriage compartment there.
So the storage and the capability of the Model Y
is kind of infinitely better than the Model 3 in these ways.
So if you have kids
or just need to load more stuff in your car
on a regular basis,
the Model Y definitely fits the bill.
But there's also the Model S
which basically does all of these things as well.
Now, a new model S is a very expensive vehicle
that starts around $80,0000 and goes upwards of $100,000,
so yeah, it's kinda not fair to compare those
but there is a significantly large used market
for the Tesla Model S,
which will actually meet a lot of the needs
and a lot of the things we just mentioned
that the Model Y offers for possibly a better price.
Let's see what the data says.
You can see currently there are two options,
the long range and the performance.
And the purchase price for each of them
is $52,990 for the long range
and $60,990 for the performance.
So, if the reason you're getting this car
is for the utility of it,
I assume most people will get the long range version
so I'll leave that as is.
Click next.
Then you have the color selection,
the pearl white multi coat is included
if you want any of the other colors,
they will have an added cost.
And of course, the 19 inch wheels that come with it
have these aero caps that are kinda like hub caps
and those are included
but if you want the upgraded 20 inch ones,
you will pay $2,000.
Again, let's assume
that you're going just minimalistic approach here
just the most utility you can get out of the vehicle.
From the interior, we'll leave it as black
with the five seat option.
Here is that seven seat option for an addition $3,000
and it currently is reported
that it will be available in 2021,
so keep that in mind.
And then you have autopilot.
So, in terms of just keeping you in the lane
and speeding up and slowing down
with the traffic aware cruise control,
this is included in the price of $52,990.
There is an add-on
that you can get for the full self-driving
which is an additional $7,000.
And this is an interesting choice
because $7,000 is a lot,
but if you plan on keeping the car for a very long time,
that could pay off really well.
But if you're like most people
and you only plan to keep it say three to five years,
this probably isn't gonna serve you much
and bring you a lot more value on a practical basis.
So for this comparison,
we're just gonna go ahead and leave it off there.
Okay, now let's have a look at a used Model S.
Remember, our budget is $52,990
and we can go to the inventory website for Tesla
and kinda set our zip code here.
I'll set it to San Diego where I live.
Southern California tends to have a lot of used Teslas,
so depending on where you live,
your mileage may vary.
There are other sites by the way
if you search for them
and they can transport them to you and deliver them to you.
So, there are other options than what you see here
if you don't see a lot when you go to this website.
Now, the first thing you'll notice
is that the price of the lowest end one here
at $35,100
is good.
I mean that's a lot cheaper than that $52,990.
So, you could be saving a lot of money here
with this model
and while it is a bit different in some of the specs,
it's still pretty comprobable.
So, 265 miles of range is not nothing,
it's not the 316 miles
but unless you're going on road trips,
chances are you're not gonna really notice that
on a day to day basis.
The 0 to 60 time and the top speed again aren't important
because what we're looking at
is the practicality of this vehicle.
And so here is an option that is quite a bit cheaper,
just the very first you see.
Now, this one here doesn't happen to have autopilot,
so that is something that is a big difference.
So let's go down and find one that does.
In fact, just to the right of that one actually,
we have a 2015 Model S85, that's the size of the battery.
That battery will give you 265 miles of range.
Top speed to 140 and 0 to 60, a 5.4 seconds.
Again, those aren't the important numbers
we're looking at here.
$38,500 and this one does have the autopilot hardware here.
So, again it has a hatchback,
it has tons of room,
I can tell you from first hand experience,
that it is a very functional vehicle.
It likely has a very large frunk as well.
And you can kinda scroll down here
and see that there are a ton of Model S's that are used
that are within this price range.
Now, the big difference that you're gonna see
is the variation in autopilot hardware
but unless you're paying that $7,000 addition
to get the full self-driving,
you're really not gonna notice a huge difference
between the autopilot system
that's just baked in the kind of base level in the Model Y
versus an autopilot version 1 from these cars.
And people may argue with that,
but I can tell you after having multiple different cars
with these different hardware suites,
that base of functionality
is really not gonna be something
that you're gonna notice much of a difference.
In fact, I still very much prefer autopilot 1,
because it is kind of simple and works better
and is more consistent than the upgraded one
which constantly changes with different software updates.
So if you're new to Tesla and you don't have autopilot now,
first off, it may be something
you're not even interested in,
in which case you could save even more money
but if it is something you're interested in,
I can tell you that you're really not gonna notice
a difference between these old autopilot 1 versions
and the new hardware versions.
The only reason or the only time you're gonna notice that
is if you get that full self-driving
which will give you some added features
and then maybe if you keep it for a long time,
where you see even more functionality
and more things coming out down the road.
But again, if this is your first Tesla,
it's not gonna matter, trust me.
So, let's keep going and see what we can find
in terms of a car just even near that price range
for a used Model S.
So scrolling all the way down
to the bottom of the page here,
you can see that we're looking at relatively new models,
the 2016's here with relatively low miles,
that serve a lot of that same functionality
that you get with the Model Y
for over $10,000 cheaper.
So, the whole point of this exercise
was to show that just because maybe the Model Y
is the newest model that's out there,
the price is pretty hefty
and you can get a lot of those same features
and a lot of those same functions
for quite a bit less.
Now, if this is your first Tesla
and you're coming from a gas car,
I can say that the Model S
is probably gonna feel more car-like to you,
it's gonna feel more familiar.
The Model Y has a minimalistic spartan kind of interior
which a lot of people that are Model 3 owners
have come to love and they kinda shun the ornateness
or the extra screens and extra stuff in the Model S
for a more minimalistic one.
I personally still prefer the Model S.
It's more luxurious to me
and just kinda has more features and bells and whistles
which I like,
especially when you're not paying
such a high price for a car.
And as you can see here,
for 10 grand less than that kinda base model
that is currently available for the Model Y,
you're gonna get a lot of that functionality,
a lot of those same things,
and even some added stuff, added bonuses,
inside of the car.
So, something to consider for sure
if you're looking at a Model Y
versus maybe any other option out there from Tesla.
And of course, if we priced out a Model 3,
you'll find that you can get one for quite a bit cheaper
but of course it lacks the cargo space
and the extra seating for kids or anything like that.
So really, if you don't need that extra stuff,
than the Model 3
is probably gonna be a really good buy for you
or again, a used Model S depending on your preference.
So with all that said,
looking at the numbers here,
is the Model Y worth buying, is it right for you?
Well I touched on it a little bit
but the big difference that you're gonna see in the Model Y
from say, a used Model S, is the hardware.
In the Y you have what is known
as autopilot 2 and hardware 3
which are the newer bits
to help your car one day drive itself.
As of today, those added hardware bits
are going to give you a few more features
on that self-driving side of things.
So notably, it'll give you smart summon
where the car will come to you from a parking lot
with I would say varying results, right now it's new.
It is really cool
but not something that's super practical that I found.
It'll also give you navigate on autopilot
where the car will actually merge lanes
and it'll do automatic lane changes around other cars
if they're going slow.
Also, it'll merge to get on and off freeways
and do those transitions itself
which in my experience, has worked actually pretty well.
It does have some flaws here and there
and it's something you absolutely need to monitor still
but it's getting pretty good.
So that could be a thing in the future
if you drive a lot or go on a lot of road trips
or for work, it could really be an added bonus there.
And it also gives this auto park functionality
which is either parallel or perpendicular parking.
It will automatically do that for you.
I've actually never ever used this
other than the first time I got the car just to test it out.
I don't know why,
maybe it's just me being a male and having an ego
but whatever it is, it's just something I never ever use.
It just seems to slow and it doesn't pop up that often.
So anyways, those are the things that it will give you
that the Model S with the autopilot 1
and hardware, not 3, offers.
So, lets look at what you do get with the older hardware.
So with autopilot 1 or AP1 as it's called,
you get a traffic aware cruise control
which will speed up and slow down your car
as you're in traffic.
So this means that if people in front of you
are completely stopped,
it will also stop
and that's nice because that essentially is the,
one of the key things that sucks
about being in stop and go traffic
or a traffic jam.
So you can turn that on and that'll work just fine.
Also, it will keep you in the lane.
This is known as auto steer.
Now, this works only on freeways
and the idea is that as the road turns
and changes and shifts,
it will also do that and keep you in that lane.
The next thing is that it will also
do automatic lane changes.
Now you as the driver will have to initiate this,
it's not something it will auto detect
and move around say, slower traffic,
but you can just flip on the turn signal
and it will automatically change lanes.
And it works well from personal experience.
And the last thing you'll get is summon
which is not to be confused with smart summon
that will find you anywhere in the parking lot,
this only goes forward and backward.
So the last question is,
how long do you plan on keeping the car
because this will play a big factor
in the financial side of it
as well as kind of the upgrades
and any potential future things that may come
from a software update.
If you're the kinda person that keeps your cars
until they are completely dead,
I would lean towards the Model Y
as over the long run, it will serve you better
and with more advanced hardware,
it will continue to get updates.
But if you're like most people
and you plan to upgrade your car every three to five years,
then I would seriously consider a used Model S.
As I mentioned,
it gives you basically all of the same functionality,
some better tech on the inside in my view,
and it probably feels more familiar to you
if you're coming into this as your first Tesla.
Now, the last thing to think about along those lines
is depreciation and what happens here.
So, depending on when you buy your Tesla,
it could either hold its value really well
or have terrible depreciation.
Here's what I mean.
Generally, and there are lots of studies out there,
some really good ones from Autolist,
show that these cars hold their value
much better than competitors
but inside of the Tesla family there are some nuances,
most notably, when there are huge technology shifts.
So for example,
the original Model S did not have autopilot.
Then a few years after having that car out in the market,
they came out with a new version that did,
a car that could drive itself seemingly at the time.
And what did that do to all those ones that didn't have it
and were not able to be upgraded?
The value just plummeted.
In fact, I bought my original Model S
for about half of its retail value
only two years after it was first built.
So, you can have these moments
where the technology just takes a leap ahead
and it makes everything else that's currently out there
just drop tremendously in value.
So, that is something to consider here
and that's why I think the length of time
you're gonna keep your vehicle,
really plays a big factor in the finances.
So to put that in perspective,
the Model Y is not likely to see a major shift in technology
that can't be retrofit.
Most likely, all the stuff happening
is gonna be software updates
which is why you see the Model 3 holding its value so well.
Now, if we get a much bigger battery pack
or some other things for the Model 3
in the next couple months,
I wouldn't be surprised
if you see a huge amount of used ones pop on the market
and the value of those just plummet.
So, that is a possibility but in the longterm,
the Model Y is gonna serve you better
in terms of continuing to get these upgrades
and all those kinda things.
And if you do want to resell it,
that is where you may take a larger hit on the Model Y
versus a used Model S
which that hit is already been accounted for
in that cheaper price.
So the last thing to think about
whether or not the Model Y is right for you,
is that the current models out there
are the more expensive ones.
Tesla has already announced from the unveiling
that they will have a long range non-dual motor version
which starts at $47,000, so quite a bit cheaper,
and a standard range which comes in at $39,000
which is still more than the standard range Model 3
but if you were to compare to a higher end,
more luxury compact SUV or crossover like that,
you'll find that price is actually pretty reasonable.
So there's a lot to consider here
and I hope this video helped you kind of understand that.
Of course, everybody's situation is different.
For some people, money is a bigger concern than others.
For others, you have this seven person family,
whatever the case may be,
I am here to help guide you through this process.
So if you're new, please consider subscribing
because each week,
what we try to do is just break down the numbers
and kinda the facts behind these things
to see exactly what's going on
and help kinda move it forward
towards this kinda more sustainable future.
So, thanks again for watching.
And lastly, don't forget,
when you free the data, your mind will follow.
I'll see you guys back here in the next one.