Tesla Model 3 TRUE Cost Of Ownership After 5 Years. Do I Still Recommend It?

Summary

After five years of owning a Tesla Model 3, the author compares its cost of ownership to a used BMW 3 Series. Despite the initial higher purchase price, the Tesla offers significant savings in fuel, insurance, and maintenance, making it more affordable overall. The author details the savings, including a $5,800 reduction in fuel costs and $6,392 savings on insurance. However, the experience wasn’t without challenges, such as an expensive autopilot issue. Despite this, the author still recommends the Tesla due to its technological advantages and long-term cost savings.

Takeaways

• 😀 Five years ago, the speaker bought a Tesla Model 3 with the expectation that it would be more affordable than a similar luxury sedan in the long run.
• 😀 The total cost of the Tesla, including taxes, registration, and financing, was around $50,000, while a used BMW 3 Series would have cost $37,800 after financing.
• 😀 Tesla's tax rebates in 2019 saved the speaker $6,000 ($3,000 federal and $2,500 from California), significantly lowering the initial cost.
• 😀 Over five years, the speaker saved approximately $5,800 in fuel costs by using electricity instead of gas for the Tesla, which only cost around $2,250 to charge.
• 😀 Insurance for the Tesla was significantly cheaper compared to other luxury sedans. Over five years, the speaker saved around $6,392 on insurance costs.
• 😀 The Tesla requires less maintenance than a luxury sedan. The speaker only spent about $600 on maintenance, whereas a BMW would have cost around $3,000 or more.
• 😀 The speaker encountered a frustrating issue with Tesla’s autopilot after a software update, leading to an unexpected $2,000 repair for a computer replacement, though it turned out to be a camera issue.
• 😀 Despite the repair issue, the speaker was still happy with the car, noting that Tesla's software updates made the car feel new without the need to upgrade.
• 😀 While the Tesla's interior was initially considered luxurious, the speaker now feels it is cheap, especially compared to luxury cars like BMW.
• 😀 After five years, owning a Tesla ended up being $476 cheaper than owning a used BMW, thanks to savings on insurance, electricity, and maintenance.
• 😀 Overall, despite the maintenance issue and the interior feeling less luxurious, the speaker would still recommend buying a Tesla, as it saved money and delivered advanced technology.

Q & A

What was the initial purchase cost of the Tesla Model 3?

The Tesla Model 3 was purchased for about $41,000, with an additional $4,000 in sales tax and $500 in registration fees, bringing the total cost to around $50,000 including financing.

How did the cost of ownership of the Tesla Model 3 compare to a used BMW 3 Series?

The Tesla Model 3 ended up being $4,500 cheaper to own over 5 years compared to a used BMW 3 Series, primarily due to savings on fuel, insurance, and maintenance.

What tax rebates were available for the Tesla purchase in 2019?

In 2019, the owner received $6,000 in tax rebates, which included a $3,000 federal rebate and an additional $2,500 from California.

How much did the owner spend on electricity over the 5 years for the Tesla?

Over the 5 years, the owner spent approximately $2,250 on electricity to power the Tesla, with the cost varying based on location and charging method.

What were the estimated gas savings when comparing the Tesla to the BMW?

The owner saved about $5,814 in gas over 5 years by driving the Tesla instead of a BMW, which would have cost approximately $8,000 in gas for the same 42,000 miles.

How did the insurance costs differ between the Tesla and the BMW?

The Tesla had significantly lower insurance costs. Over 5 years, the owner paid about $8,800 for Tesla insurance, while the BMW would have cost around $14,400, saving $6,392 in insurance costs.

What maintenance costs did the Tesla incur over 5 years?

The maintenance costs for the Tesla were relatively low, totaling about $600 for new tires and some minor maintenance, with the owner estimating $1,000 for typical maintenance needs.

What unexpected maintenance issue did the Tesla encounter, and how much did it cost?

The Tesla had an issue with its autopilot feature, which required the replacement of a computer and a camera, costing a total of $2,200 for the repairs.

How did the interior quality of the Tesla Model 3 hold up over 5 years?

While the technology in the Tesla remained impressive, the owner noted that the interior felt cheap compared to other luxury cars like BMW, especially with plastic parts that wore out easily and road noise during highway driving.

Does the Tesla Model 3 offer any long-term savings compared to gas-powered vehicles?

Yes, the Tesla Model 3 continues to save money long-term. The owner saves about $2,600 annually in fuel and insurance costs compared to a similar gas-powered vehicle like the BMW, making it cheaper to own over time as the car is paid off.