Every hybrid and electric car’s sales pitch is always the same –imagine how much you’ll save on fuel and trips to the gas station. For the most part, that is 100% true when buying Tesla. While the average cost for a Tesla may initially be off-putting to several consumers, it has eventually become one of the foremost electric vehicles in the United States, partyly thanks to Elon Musk and the brands repuation for offering an impressive miles of range compared to its competitors.
The Model S continues to be their bestselling model. Every Tesla shopper asks, “Are Teslas worth the luxury price?” Let’s look at some of the regular aspects of Tesla ownership to find out if it’s worth ditching a traditional ICE vehicle in favor of a luxury electric one.
Teslas at First Glance
Teslas isn’t just one of the mainstream electric car makers; it’s also one of the most luxurious and performance-based. Because of this, Teslas do cost much more than the average electric car. As you can imagine, owning a Tesla Model for the first year is often the most expensive when it comes to cost for reasons you are about to read. The current pricing may still allow you to save by having lower long term costs.
Teslas come in four different models, each with unique charging capabilities and features. Tesla insurance is also unique to any Tesla model. It is usually offered when purchasing a car, as repair costs for Teslas are pretty high. Tesla is also known for their presence in the stock market as a publicly traded company.
How Much a Tesla Car Costs
Tesla’s models include the Model 3, the Model Y, the Model S, and the Model X. The Model 3 is a sedan model and is the cheapest out of all of them, while the Model X is the most expensive being a sporty car. The Model Y is the median for cost and is described as a long-range crossover. The Tesla Model S isn’t exactly a sports car, but it has a sporty exterior. The following is how much each respective Tesla model costs:
- Model S - $104,990
- Model X - $120,990
- Model 3 - $46,990
- Model Y - $65,990
The most common way people purchase Teslas is to finance them with a payment plan since everyone may have less than $90,000 at their immediate disposal for the complete cost of ownership. Down payments of about $10,000 may be required when purchasing a Tesla. A Tesla Model S can be financed in around six years with a 2.49% APR rating if you have good credit with monthly payments of $1,365.
Are Teslas Worth The Electric Fuel Economy?
The electrical fuel economy and upkeep are why anyone would consider a Tesla, given their asking prices. Then again, gas prices are expensive compared to electricity, and it’s a good reason to drive an electric vehicle. According to data, the average driver spends about $3,000 annually on gas. Tesla’s latest data shows that the average annual fuel cost for one of its vehicles is around $614.51. So, yes, Teslas are highly worth the fuel economy and energy costs as advertised.
However, there is one notable catch. As a Tesla owner, you are also responsible for purchasing the home charging station, which is $1,200. So, the annual fuel cost for your first year of Tesla ownership will be $1,814.51 rather than $614.51. The first year will be the most expensive, but as you have seen –it is worth it right after. Even so, it’s still cheaper than two years of gas by an average American driver. If you don’t want to purchase a charging station, you could always use one of the Tesla supercharger outdoor charging stations.
What Are Tesla Tax Credits?
Tesla owners are entitled to a federal tax credit of $7,500. This came into effect at the beginning of 2020. How much your exact Tesla tax credits will depend on your state. The lowest tax credit offered is $2,500 in some states.
Some states even have regulations on what Tesla models are eligible for tax credits. It helps to look into your state laws regarding the federal tax credit for your Tesla.
Tesla Car Insurance
Car insurance for Telsas is more of a con regarding ownership. Car insurance is required in more than 90% of the country, so every driver must carry it as their state requires. Because Telsa makes more technologically advanced luxury vehicles with unique parts, car insurance rates for their models tend to be much higher than the average cars.
The average annual cost of car insurance is $2,200 annually. However, your specific rates are entirely based on the driver, their car, and where they live. As reported by some drivers, the average cost to insure a Model S Tesla is around $3,673 annually.
How Much is Tesla Maintenance?
Specialized service is required for Teslas because of their unique parts and components. Several automotive websites estimate that the five-year maintenance cost of a Tesla is about $1,490, which is about $290 every year.
The most expensive maintenance job that could be performed on a Tesla is a battery replacement. With the battery capacity and advanced technology, it can cost anywhere from $12,000 to $16,000. The good news is that every Tesla has a battery warranty for the first eight years or 150,000 miles. However, it’s common for Tesla batteries to last up to 500,000 miles rather than just 150,000 which eases the battery fear of some customers.
Is Buying Used Teslas a Good Idea?
You can buy a Tesla used for a slightly lower asking price than a new one –and slightly is used literally. Tesla cars are known to depreciate much less than the average vehicle. The most important thing to check when buying a used Tesla is the battery’s condition. The last thing you want to be stuck with is paying for a battery replacement for what would already be a pricey car.
When you buy a used Tesla, you’ll want to be aware of any major quality control issues that have cropped up in the past. And yes, even with Tesla continually refining its manufacturing process, an older model can still come with some electric issues that cost more to fix than you’d see in a traditional used vehicle.
Whether or Not a Tesla is Worth it Depends on You
Sure, you are guaranteed to save on fuel in the long run with a Tesla, and if you are a good driver, you may even find affordable car insurance for one. Always look at your finances if you believe buying a Tesla is right. You can always take the cheaper route with the Model 3.
Many owners find that a Tesla still makes a great daily driver for long commutes despite the luxury price tag. The battery longevity and the robust support systems that come with it—are big selling points. To understand the pros and cons of owning a Tesla, you should read what other owners say in customer reviews and look at performance reports for those vehicles.
