When I first decided to splurge on a brand new Tesla Model 3 for fifty thousand dollars, I knew it was a risky financial decision. Up until then, the most I had ever spent on a car was twelve thousand dollars for a used Pontiac. However, recent news has come out claiming that the Tesla Model 3 is actually cheaper than the average new car in the US. This got me thinking – how does the total cost of ownership for an expensive Tesla Model 3 compare to cheaper popular cars like the Toyota Camry?
After nearly five years of ownership of my 2018 Tesla Model 3, I decided to calculate the total cost of ownership. Starting with the upfront cost, my Model 3 was priced at fifty-six thousand dollars, but after factoring in the federal tax credit and other expenses, my total upfront cost was forty-nine thousand four hundred and forty dollars. When considering service costs, insurance, tires, and charging, my grand total cost of ownership for the Tesla Model 3 came to sixty-four thousand two hundred and sixty-two dollars after 120,000 miles – equating to around fifty-four cents per mile.
Next, I compared this cost to what it would have been if I had purchased a Toyota Camry. Taking into account the upfront cost, estimated maintenance, fuel, insurance, and tire costs, the total cost of ownership for the Camry came to sixty-four thousand three hundred dollars after five years and 120,000 miles. Surprisingly, the total cost of ownership for both the Tesla Model 3 and the Toyota Camry was almost identical in my personal situation.
However, there are several factors to consider when comparing these two vehicles. Electric vehicles like the Tesla Model 3 generally have lower maintenance costs and can be more cost-effective in the long run due to savings on gas. Additionally, with the availability of more affordable models and federal tax credits, the upfront cost of a Tesla Model 3 has come down significantly in recent years.
In conclusion, if you are planning to keep a car for at least 10 years, an Electric Vehicle like the Tesla Model 3 may be the best option for most people. The total cost of ownership, including maintenance, insurance, and charging, can be comparable to traditional gas cars like the Toyota Camry. Ultimately, the decision between an expensive Tesla and a cheaper alternative comes down to personal preference and long-term financial goals.
What do you think about the comparison between the Tesla Model 3 and the Toyota Camry? Let me know in the comments below. And if you enjoyed this blog, please share it with others who may benefit from understanding the true costs of Tesla ownership. Thank you for reading!
