As a Tesla Model 3 owner, I recently did a video covering the four-year update of owning my 2018 long-range rear-wheel drive model. In that video, I discussed various aspects of owning the car, but one important detail I didn’t cover was the total cost of ownership over those four years and driving 48,260 miles. It’s crucial to understand the financial aspects of owning an Electric Vehicle, so let’s dive into the numbers.
When discussing the total cost of ownership for a vehicle, it’s essential to break it down into four common areas: depreciation, taxes, fees, incentives, financing, auto insurance, maintenance, tires, repairs, and fuel. I’ll go over each of these areas to give you a comprehensive view of the costs associated with owning my Tesla Model 3.
Starting with depreciation, I calculated the original cost of the car, added the cost of autopilot two years later, and factored in the annual appraisal value, state highway use tax, sales tax, and other fees. The total depreciation cost over four years came to $11,613.16.
Moving on to auto insurance, I paid a total of $3,502.64 over the four years, with costs decreasing as the car’s value depreciated. It’s always a good idea to shop around for insurance to ensure you’re getting the best deal.
In terms of maintenance, tires, and repairs, I listed out all the expenses, including replacing tires, fixing side repeater cameras, and performing brake and suspension inspections. The total cost for this category was $1,197.02.
For fuel, which in my case is electricity, I tracked both AC and DC charging costs using my average home electricity rate and Tesla‘s supercharging data. I spent a total of $1,821.48 on electricity over the four years.
In summary, the largest cost category was depreciation, accounting for 64% of the total cost of ownership. Auto insurance followed at 19.3%, with electricity at 10% and maintenance, tires, and repairs at 6.6%. Comparing my Tesla to a typical ICE vehicle, the differences in maintenance and fuel costs are significant, making electric vehicles a more cost-effective option in the long run.
Overall, understanding the total cost of ownership for my Tesla Model 3 has been eye-opening, and I hope this breakdown provides valuable insight for current and prospective EV owners. If you have any questions or comments, feel free to leave them below. Thanks for reading, and stay tuned for more updates on my Tesla ownership journey.
