The debate between purchasing a Tesla Model Y and a Honda CRV hybrid can be a tough decision, especially when considering the initial purchase price. However, when you delve deeper into the various savings associated with driving a battery Electric Vehicle and the available incentives, the true cost of owning a Model Y for five years may surprise you.
Let’s break down the numbers to see which vehicle actually costs less over a five-year period. The starting cost of a long-range all-wheel drive Model Y is just under $55,000, while the Honda CRV sport touring hybrid has a starting MSRP of just over $39,000. Taking into account the federal tax credit of up to $7,500 for the Model Y, the price difference between the two vehicles becomes more manageable.
To calculate the true five-year cost of ownership, factors such as average miles driven per year, energy and fuel costs, vehicle efficiency, insurance costs, finance costs, maintenance and repair costs, and estimated depreciation after five years are considered. When all these factors are added up, the Model Y comes out to be slightly more expensive than the CRV hybrid, costing around 63 cents per mile compared to 50 cents per mile for the CRV.
However, for those who qualify for the federal tax credit, the cost difference between the two vehicles narrows down to just 3 cents per mile. Additionally, it’s essential to consider local incentives for EVs, which can further reduce the cost of owning a Model Y. In some states, incentives can amount to significant savings, making the Model Y more affordable than initially thought.
It’s also worth mentioning the additional cost of installing a wall charger for the Tesla, which can range from $750 to $1,500. This cost should be factored in for convenience and efficient charging.
In conclusion, owning a Tesla Model Y may be more affordable than expected, especially when taking advantage of federal tax credits and local incentives. By doing the math and considering all the factors, you may find that the Model Y is a cost-effective and environmentally friendly option for your next vehicle purchase.
