How I Bought a Tesla to Earn $70,000 For My Passive Income Plan
I just bought a Tesla to try and make $70,000. Let me explain! So you know what, it’s time to buy a shiny, new Tesla.
You may be thinking this is one of the worst investments I could possible make, as most new cars just lose value as soon as you drive them off the dealership.
I’m gonna come up with a plan to make this car pay for itself to hopefully prove buying a new car, especially a Tesla, can be a great investment as long as you know how yo turn it into an asset.
You never know, when you buy a new car, some of these strategies might be helpful. Meet my new Tesla Model 3. I call it the Dark Knight. It cost me $69,560.
Let’s run through my six phase plan to try and make $70,000 from the Tesla.
First of all, let’s set some rules. Number one, I can’t sell the car. This would just make it too easy.
Number two, everything has to be possible using today’s technology. So it wouldn’t be fair to factor in things that like, Elon Musk claims that you can use your car to make $30,000 as a robotaxi.
And number three, I only have one year to complete the challenge, and I have to document everything.
Phase one is all about breaking down the finances. Buying a Tesla may seem expensive at first, but actually, there’re so many hidden savings.
So let’s add up everything to see how much money I’ve made back already. And before you start thinking this is an advert for Tesla, it certainly isn’t, but if you’re reading, Elon, I wouldn’t mind a sweet brand deal or possibly a ride in your rocket!
So to convince more people to buy electric cars, governments across the world are offering free money, in the form of grants, to anyone that buys one.
In the UK, they’ve given me a grant equivalent to $4,094, which was deducted straight away from the purchase price of the car. Their aim is to prevent the sale of new internal combustion cars by the year 2030.
Back in my day, the only electric vehicles were the one that delivered milk every day, and there’s no way you’d have caught me driving one of those.
I bought the Tesla for my business, and I paid for it in full. Many people think that running a business is all about making as much profit as possible, but the more profit you make, the more tax you have to pay.
Writing off your expenses is one of the best things about running a business, as you’re able to get things at a much cheaper rate. Recently, we even wrote off a business trip to Malta.
So the Tesla comes off my profits the end of the year, and it reduces my tax bill by $12,404. This is a great way for me to spend some money on something that I want, and also get the government to give me a tax break!
This only really works well on electric cars. If you do this with a normal car, you’re heavily taxed for using it for personal use, like playing golf or going on a road trip.
This is called “Benefit in Kind” tax, and I don’t have to worry about it, because the Tesla is rated at 0%. So I can go and play as much golf as I like! I usually travel about 20,000 miles a year, as I have a lot of different business meetings to attend. This costs about $0.19 per mile, bringing my yearly total fuel cost to $3,800.
As the Tesla’s completely electric, it drives the cost down to less than $0.04 per mile, which actually costs me only $800 a year. So that’s a saving of $3,000!
But wait for it, it gets even better! I wasn’t actually meant to have my Tesla yet. I was gonna be picking it up in February. But I got a call at the end of December offering me one year free super charging, and also, self-driving for three months, free of charge.
At first I really wasn’t sure if they were just trying to sell me the old cars before the end of the year, but I did a little bit of research.
I found an interview from 2014 where Elon Musk said Tesla would deliver half a million cars in 2020, and apparently, they were really close to this target, so they decided to bump the sales with some great offers.
They actually managed to deliver 499,550 cars, which is just short of the target, but it’s still pretty good going. The great thing about this deal was that I have a super charger very close to my house, which means I won’t have to pay for any charging for the whole year!
So this is gonna save me another $800! Another thing to consider, is I have to go to London a lot, and if any of you have ever driven there, then you’ll know that you have to pay congestion charge, which is just over $20 per day, and I must go there at least once every two weeks.
Because electric cars don’t produce any fumes, I don’t have to pay the charge anymore, so it means that I’ll be saving $532 every year. In the UK, we have to pay road tax, as well.
This money’s supposed to be used to maintain our roads, but I really don’t know what they spend it on. On my previous car, this was costing me $205 per year, but the tax breaks just keep coming and coming with this car, ’cause I don’t have to pay any road tax!
Something that’s quite a big hidden cost, nowadays, is maintenance. I usually get my car serviced twice a year to make sure everything is working correctly and it’s safe.
This is far less expensive with a Tesla, as there are fewer parts that can go wrong. I’m now able to save that $511 instead. If the car has any issues, then I just log it on the Tesla app and someone comes out to service my car under warranty.
Talking of breakdowns, for over 25 years, I’ve been a member of the AA, which gives roadside assistance in the UK. But now, I can actually cancel this, as Tesla offers this as a complimentary service.
This isn’t the biggest saving in the world, but at least it’s another $80 per year. Something else to consider, is it’s a legal requirement in the UK to have an MOT every year.
This is just a test to make sure your car is safe to drive. But because it’s a new car, for the first three years I don’t have to pay one! This will save me another $75 each year.
So we’ve already made back $21,701. Some of these savings are gonna actually continue next year, but of course, those ones, we can’t include in this challenge.
Now it’s time to kickstart phase two, affiliate marketing. I recently bought some accessories for my Tesla that I really think improve the look of the car.
I got a carbon fiber spoiler, I replaced the hubcaps with a wheel cap kit, I covered the wood dashboard with a carbon fiber decal, and I added metal petals, all for under $200!
I think we can make an extra $2,000 towards our target. Remember, you can buy absolutely anything you want as long as it’s on Amazon.
Phase three, renting it out. People seem to be really interested in this car. They wanna experience the acceleration and the autopilot for themselves.
Electric cars are definitely the future, and people wanna learn more about them, and what it’s like to actually live with one. This got me thinking, it’d be a really good car to rent out on websites like Turo.
It’s like Airbnb for cars. I’ve never tried it, but it sounds like quite a good idea. You can rent the car out for a few days and get paid!
So I’ve had a little look, and there doesn’t seem to be many Tesla’s available for rent in the UK. That means low supply, high demand, which means we can probably make a profit of about $143 per day.
I never use my car between Friday and Sunday, anyway. So we aim to rent out the car, say, 15 three day weekends, we should get $6,450. Of course, I could rent it out more than 15 weekends, but I think this is a more realistic target.
Phase four, wrapping the car with advertising. So you might not know this, but I used to race cars. And when I did, it was normal for me to get sponsored in return for an advert on my car.
They would give me enough money to help fund my hobby. And one of the biggest sponsorship deals I did was for over $34,000. So this got me thinking, why don’t I try and do the same with my Tesla?
I know it’s not quite the same as sponsoring a race car, but most companies are just looking for the exposure. I couldn’t think of any other ways to make money from the Tesla.
There’s a 23 year old YouTuber that bought a Tesla last year called Jack Massey Welsh. And people thought he was absolutely mad. He then made a YouTube channel dedicated to it, and he’s managed to make more than the entire cost of the car back.
It’s probably one of the best investments he’s ever made. I think we could expect to make around about $15 per thousand views on YouTube, as we’re mixing the car and business niches.
So if we upload five videos on YouTube, we’ve got a pretty good chance of going viral, so I would say $15,000 is a good target to set.
Phase six, blog posts. I think $10,000 would be a good target to aim for. I’ve never tried this before, so we’ll just have to see how it goes. So if we manage to hit all these targets, then we’ll make $409 profit.
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