r/TeslaModelY

I’m currently debating whether to keep my 2024 Volvo XC60 T6 Recharge (Ultra Dark, fully loaded) or switch to the new Tesla Model Y Performance.
For context, I’m based in Belgium, Europe, and my Volvo is the plug-in hybrid (PHEV) version, meaning I can drive approximately 70 km on electric power alone before needing the petrol engine.
I really enjoyed test-driving the Tesla Performance, especially its handling, suspension, seats and overall driving experience (i did not like a lot the premium version). However, I’m struggling to figure out whether switching actually makes financial sense.
My current Volvo:
2024 XC60 T6 Recharge PHEV (European version), around 42,000 km.
€625/month car loan, with roughly 5 years remaining.
No balloon payment.
Petrol: approximately €170/month.
Electricity: approximately €550–600/year.
Annual road tax: €560.
Maintenance: approximately €700/year.
Estimated resale value: €42,000–€48,000, although I haven’t received any actual offers yet.
Tesla Model Y Performance:
Purchase price: approximately €65,000.
Financing: approximately €500/month for 60 months, with a €19,599 balloon payment at the end.
Down payment: approximately €13,000, partly funded by selling the Volvo after paying off its remaining loan.
Electricity: approximately €500–600/year.
Annual road tax: €107.
Estimated maintenance: €200 every two years.
Insurance: approximately €300/year more than the Volvo.
I drive approximately 12,000 km per year and can charge at home.
A bit more context about my finances:
I actually have enough money in savings and investments to purchase the Tesla outright if I wanted to. However, most of that money is invested in the stock market, and I’d much rather keep it invested for long-term growth than withdraw a large amount to purchase a depreciating asset.
That’s why I’m considering financing the Tesla instead of paying cash. I understand that investments aren’t guaranteed to outperform the interest on a car loan, but I value keeping my capital invested and maintaining financial flexibility.
The Tesla would obviously be cheaper to run, but I’m concerned about the additional down payment, depreciation and the large balloon payment after five years.
When I calculate the monthly costs, including setting money aside for the balloon, the two cars seem surprisingly close in terms of monthly expenses.
My question:
Would switching to the Tesla actually make financial sense over five years, or would I just be spending more money overall to replace a relatively new car?
Would you keep the Volvo until it’s paid off, or switch to the Tesla Performance?
And considering that I could technically afford to pay cash but prefer keeping my money invested, would financing the Tesla with a balloon payment be a reasonable financial decision?
I’d especially appreciate opinions from people who have made a similar switch, financed a Tesla with a balloon payment, or compared the total cost of ownership of a PHEV versus a fully electric vehicle.

I drive 38 miles one way to work through NYC. It can take 1h30m. Sometimes longer. I often take the train which takes longer (2h) because I cannot deal with chaos of driving. When I drive it is white knuckles the entire time. I am a very aggressive driver because I just can’t deal with all the distracted drivers out there and the gridlock. I arrive home max stressed out.
Will FSD improve my life much? Is it really possible to disconnect and let the car do the work? Or do I have to still pay attention and I will still have the same anxiety?

I am looking to buy a Model Y Premium AWD. I really like some of the new features that were introduced on the Model YL but don't really need the larger size or extra seats. It makes sense that Tesla would include some of those features on the 2027 Model Y.

Some of the YL features that I'd like Tesla to include on the 2027 Model Y Premium:
Zen Grey Interior Option
New front seats with Thigh Extenders and Adjustable Headrests
AC Vents on the door pillars for the 2nd row
Improved roof tint (30% less solar energy entering cabin)
Rear cup holders in the console
Electronic variable shock absorbers (with rear comfort switch)
Hands Free Cargo Liftgate
Magnetic catch for Cargo Cover
etc.

Any thoughts on whether you think Teslas will do this based on what they have done in the past. I'm new to the Tesla world, so don't know if this is something they typically do.