The Tesla Model 3 has been making waves in the automotive industry with its sleek design, impressive performance, and cutting-edge technology. With the total number of orders for the model surpassing 115,000 in the past 24 hours, it’s clear that many are considering making the switch to an Electric Vehicle. But is owning a Tesla Model 3 really worth the investment? How do the long-term costs compare to those of traditional cars, and what surprises might you encounter along the way?
When I first considered switching to an Electric Vehicle, the Tesla Model 3 caught my eye. It seemed like a promising choice, but I was curious about the real-world costs involved after 5 years of ownership and over 70,000 miles driven. The results are in, and I must say, I’m shocked by the total cost of owning a Tesla Model 3.
Let’s break down the costs. The initial purchase price for the 2018 Tesla Model 3 Long Range was $54,000, but with the United States federal tax credit of $7,500, the effective cost was brought down to $46,500. However, Tesla‘s dynamic pricing strategies have since introduced substantial price cuts, making a new Model 3 Rear Wheel Drive available for just over $40,000. This reduction highlights how market fluctuations and manufacturer decisions can significantly impact the overall financial picture for new buyers.
But purchasing the car is only the beginning of understanding its true cost over time. Insuring an Electric Vehicle like the Tesla Model 3 can be expensive, with insurance costs exceeding $6,200 over 5 years. The high cost of repairs and advanced technology embedded within the vehicle contribute to these steep figures. Despite the lower maintenance requirements, the complexity and expense associated with fixing an Electric Vehicle drive insurance rates up, making it a significant ongoing cost to consider.
One of the most appealing aspects of owning a Tesla Model 3 is the minimal maintenance required. Over 5 years, my total maintenance costs were just $2,400, with an additional $214 spent on a single repair (a lower control arm replacement). This stark contrast in maintenance expenses showcases the financial benefits of reduced upkeep in electric vehicles compared to their internal combustion engine counterparts.
When it comes to fuel costs, the savings with an Electric Vehicle like the Model 3 can be significant. Over 5 years, the cost to charge my Tesla Model 3 was only $2,300, largely due to the efficiency of electric power and the relatively low cost of electricity compared to gasoline. These fuel savings are a key factor in the total cost of ownership for the Model 3, making it a more economical choice in the long run.
Depreciation is a significant concern for any vehicle owner, but the Tesla Model 3 has shown remarkable resilience in this area. While all cars depreciate, Tesla‘s brand strength, continuous software updates, and growing consumer demand for electric vehicles have helped maintain its value better than many expected. This retention of value helps mitigate some of the higher upfront costs, making the Tesla Model 3 a more attractive investment over time.
Owning an Electric Vehicle like the Tesla Model 3 does come with unique fees, such as the Electric Vehicle tag fee, which amounted to $820 over 5 years for my 2018 model. Additionally, there’s the cost of installing a home charging station, which can range from $500 to $2,000. These expenses, while not insignificant, are often outweighed by the long-term savings on fuel and maintenance.
Overall, after 5 years and over 70,000 miles, the Tesla Model 3 proved to be a cost-effective and reliable vehicle. The initial purchase price was offset by lower fuel and maintenance costs, and the high insurance premiums were balanced by the car’s impressive performance and convenience. While Electric Vehicle ownership has unique costs, the overall savings and benefits make the Tesla Model 3 a compelling choice for those considering the environmental impact, advanced technology, or potential cost savings. In the end, the Tesla Model 3 stands out as a worthwhile investment for the long haul.
