Can I Really Own a Tesla Model 3 for Free?
Absolutely! You can most definitely own a Tesla Model 3 for free. I know this because The Witch wanted to own a Tesla Model 3. However, she really did not want to pay for it. Imagine that. The Tesla Model 3 was and still is the only car on the road that she did back flips over. In fact, if you have never driven a Tesla, I highly recommend you test drive one as soon as you can. It truly is a driving experience like no other.
The Witch tossed the idea back and forth for months. Fighting the desire to just go out and buy one. Then one morning out of the blue she said, “I think I can own a Tesla Model 3 for free.” I raised an eyebrow along with a crooked smile and said, “Yeah, and just exactly how do you think you can do that?”
Get Someone Else to Pay for It
“I am going to get someone else to pay for it”, she said. Of course, I went on to ask exactly how she decided to do just that. When she was done explaining her plan to me, the only thing I could say was “Let’s go”. The Witch got a very puzzled look on her face and demanded “Where are we going?” That is when I just smiled.
After test driving a Tesla Model 3, she could not say no. She had to have one. That night, she pulled the trigger and ordered a Tesla Model 3 AWD Long Range in Midnight Silver. This is where it all started.
The Plan for a Free Tesla Model 3
At this point, I am sure you are wondering, how do you get someone else to pay for your Tesla Model 3. To be very on point, the answer in The Witch’s case is Turo, a website, and some stickers. For the skeptics, I am going to say right up front. This works, and I will be supporting that statement with numbers and all the details of the plan. It is all about having an Investor’s Frame of Mind.
Making Money with Turo
If you are not familiar with Turo, it is a car sharing marketplace where guests can book any car they want, wherever they want it, from a vibrant community of local hosts across the US, Canada, and the UK. Guests choose from a totally unique selection of nearby cars, while hosts earn extra money to offset the costs of car ownership.
You can definitely keep your Tesla rented on the regular just utilizing the Turo platform. Their website and app are both user friendly and will provide regular leads in getting your Tesla rented. However, the Witch not only doesn’t want to pay for her Tesla, but she would also like to turn a profit. She is one ambitious woman. One of the many reasons I love her so much. The goal of having a personal website is to be able to market the rental of her Tesla specifically which will ultimately lead to more income due to more rentals.
The website she built for this was a simple website that highlighted all the features of her Tesla. It was optimized for showing up in search results for renting a Tesla Model 3 in Colorado. I can not give you a link to her specific website as it is no longer active. However, to provide you an example I recommend you check out www.rentmytesla.ca
The owner of the above site is actually renting out a Tesla Model X but it is a great example of a very simple website that can be marketed that links to the Turo platform for a customer to rent your Tesla.
The Stickers are part of the marketing of the website. The Witch designed two stickers at Sticker Mule. One was simply a vinyl sticker she put on the back windshield that said, “www.rentmytesla.net”. This was advertising her website letting people know they could rent her Tesla while she was driving or anyone else was driving the car. The other sticker was a QR code that linked to the website that she could stick in various places around town and hand out to customers for referrals.
The Numbers of It All
It always comes down to the numbers. Lets first talk about how much is a Tesla Model 3. In this case for a 2020 Model 3 AWD Long Rang Midnight Silver Metallic with Black Interior and Aero Wheels the total cost came to $50,190.00. That included the destination delivery charge of $1,200.00.
$50,190.00 is a hefty price tag when you don’t want to pay for it. The Witch, I said before did indeed pull the trigger on that price tag and ordered her car through the Tesla website. There was a deposit of $100.00 necessary to place the order which she happily paid.
After a what seemed like an eternity of waiting (6 weeks), she finally received the call from the local dealership that her car was ready to be picked up. Oh, the excitement she had on that day. We made it to the dealership and finalized all of the paperwork. She was able to finance the purchase through Wells Fargo at 3.5% with only $807.90 for a down payment and leaving her with a monthly payment of $791.95 a month. Ouch! The face I made at that.
The Costs Initially and Monthly
The big cost in the initial cash outlay was the registration costs. That was a kicker for sure. After spending the initial $3,666.90 there was going to be an ongoing monthly expense of $907.94 for the loan, insurance, and the webhosting for the personal website.
Renting Out The Tesla
The next step was getting the Tesla listed on Turo so she could start getting it rented out. Listing it was super easy and took all of an hour. Seems like a daunting task that took longer than you would think. But, it was easy. Most of the time was spent writing out the description and the policies for charging, cleaning, etc. as well as some research in picking a rental price point. She settled on $125.00 a day. That would net her $87.50 a day after the commission to Turo. The Witch then linked her website to her specific listing on Turo. Just like that she was done.
In order to cover the monthly cost it would be necessary to rent out the Tesla for at least 11 days a month. 11 days at $87.50 a day would bring in $962.50 a month which would cover her expense of $907.94 a month. That is how you get a Tesla Model 3 for Free!
Now that everything was all set up and she knew her monthly rental day target it was all about enjoying her new car and marketing it so she can get it rented. Full of excitement and a sense of accomplishment she took me out joy riding all over town and bought me dinner. Love that!
The very next morning, someone rented her Tesla for 3 days! And, just like that, she was making money on her new Tesla. That is how The Witch got her Tesla Model 3 for Free!
A Hit of Realism
It is a big commitment and a decent amount of money to pay upfront not to mention the monthly expense for one not to be sure if they can pull this off. The Witch was only able to rent out her Tesla the first month for 9 days. So she didn’t hit her target of 11 days a month. On her first month she only made $787.50. For her that didn’t matter. After all it was only the first month. She knew it would take a minute to ramp up. But, at the end of the month she owned and enjoyed a Tesla for only $120.44. Not a bad deal.
My two cents on the first month: The Witch could have used her car to Uber for 3 or 4 days and would have easily made money with the Tesla for the shortfall in revenue.
The Witch however, was able to successfully rent out the Tesla for the next two months for more than her target of 11 days. Which covered her cost of the monthly expenses plus some.
I know some of you are asking the question what about the initial costs? How long until you get that back? Well for The Witch, she got it all back and then some in the first two months.
The Witch picked up her Tesla on December 21, 2019. She then turned around and filed her taxes at the beginning of February and received $5,000.00 from Colorado and $2,500.00 from Federal. That is $7,500.00 in tax credits she received for purchasing an electric vehicle. In her case, this was refunded to her as she was already getting a refund on her income taxes.
As of the writing of this post, Tesla’s no longer qualify for the Federal Tax Credit. However, that could change in the future and there are several new electric cars out there that do qualify. After all, you don’t have to buy a Tesla. You could do this with any car. In fact, if you run your numbers, you could purchase any vehicle and have it be free or even make you a profit.
There are several individuals out there who have obtained a mini fleet of cars and are renting them on Turo. This can be done and it is not that difficult nor is it very time consuming. You can do this in stride with life. I wish you the best and look forward to your comments as I love to discuss ways to make money or have life pay for itself.
Speaking of Taxes
Another aspect of this plan that I want to touch on is the fact that you will be able to deduct all the business mileage or business expenses of your Tesla on your Taxes. Once The Witch files her 2020 taxes I plan on updating this post and giving you some more numbers on this aspect of the plan.