The true cost of owning a vehicle goes way beyond just the initial purchase price. When considering the cost of ownership, there are a number of factors to take into account, such as fuel, maintenance, insurance, depreciation, and more. In this blog post, we will compare the true cost of ownership of a Tesla Model 3 and a Toyota Prius over a five-year period.
Let’s start by looking at the initial purchase price of these two vehicles. The Model 3 rear-wheel drive has a starting MSRP of just under $44,000, while the Prius XLE has a starting MSRP of around $33,725. This makes the Model 3 nearly $12,000 more expensive upfront. However, the Model 3 qualifies for a $7,500 federal tax credit, which brings the net purchase price down to around $38,100 for those who qualify.
Next, we need to consider the cost of fuel and electricity. The Model 3 is electric and can go 100 miles on 25 kilowatt-hours of battery capacity, while the Prius can go 52 miles on a gallon of gas. The average residential electric rate in the US is around 16.09 cents per kilowatt-hour, and the average national gas price is around $3.50.
When it comes to insurance, financing, maintenance, and repair costs, the Model 3 is slightly more expensive to insure than the Prius. However, the maintenance and repair costs for the Model 3 over a five-year period are actually lower than those of the Prius.
Taking all of these factors into account, the true five-year cost of ownership for the Model 3 comes out to just over $40,000, or 54 cents per mile. With the $7,500 tax credit factored in, the cost drops to around $32,700, or 44 cents per mile. On the other hand, the Prius has a five-year cost of ownership of $32,886, or 44 cents per mile.
In conclusion, the Model 3 and the Prius have very similar true costs of ownership over a five-year period. However, the Model 3 offers superior technology, better software, and is better for the environment. If you’re in the market for a new vehicle, it’s worth considering the cost savings associated with driving an Electric Vehicle like the Model 3.
Do you own a Prius or a Model 3? Share your experience with the cost of ownership in the comments below. And don’t forget to check out span for remote monitoring and circuit level control for your home energy use. Thank you to all the Patreon supporters who make these videos possible. And remember, when it comes to the true cost of owning a vehicle, it’s more than just the initial purchase price.
