The Real Numbers
A Tesla Model 3 costs $45,000-$52,000 over 5 years (including purchase, charging, insurance, maintenance). That's $6,000-$12,000 less than a comparable gas car. The Model Y runs $50,000-$60,000 over the same period.
The break-even point hits around year 3-5. After that, your savings accelerate due to minimal maintenance and lower fuel costs.
5-Year Cost Breakdown
Based on 15,000 miles per year. These are real-world costs from Edmunds and owner reports.
Tesla Model 3 Long Range
Tesla Model Y Long Range
Tesla vs Gas Car: 7-Year Comparison
Real data from Atlas Policy comparing popular vehicles over 7 years.
Tesla Model Y Long Range
Jeep Grand Cherokee Limited
Tesla Saves $8,144 Over 7 Years
That's $1,163 per year in savings, mostly from fuel costs
Real Owner Example
Sarah's 2020 Model 3 (5 Years)
Purchase: $49,990 (before $7,500 tax credit = $42,490 net)
Charging: $3,200 total (mostly home charging at $0.12/kWh)
Insurance: $7,800 total ($1,560/year with USAA)
Maintenance: $1,850 (tire rotations, cabin filters, one tire replacement)
Current Value: $22,000 (55% depreciation)
Total 5-Year Cost: $33,340
Her previous Honda Accord would have cost $41,500 over the same period (mostly due to $8,500 in gas costs vs $3,200 in charging)
Understanding Each Cost Category
Depreciation (Biggest Cost)
Teslas lose about 60% of their value over 5 years. A $45,000 Model 3 will be worth around $18,000 after 5 years.
This is similar to luxury gas cars but higher than economy brands like Toyota or Honda.
Charging Costs
Home charging: $500-$800/year (15,000 miles). Supercharger-heavy users: $1,200-$1,800/year.
Compare to $2,000-$2,500/year for gas in a comparable vehicle. That's 60-70% savings.
Insurance
Model 3: $1,700-$2,000/year. Model Y: $2,400-$2,800/year. About 15-20% higher than gas cars.
Higher due to expensive repairs and parts. Shop around - rates vary 40% between insurers.
Maintenance
$400-$600/year for routine service. No oil changes, transmission service, or spark plugs.
Gas cars average $1,200-$1,500/year. Tesla's simplicity saves $800-$900 annually.
7 Ways to Lower Your Total Cost
Claim All Tax Credits
Federal $7,500 + state incentives can save $8,000-$12,000. Check eligibility before buying.
Charge at Home 90% of the Time
Home charging costs $0.04-$0.06/mile vs $0.12-$0.15/mile at Superchargers. Saves $600-$900/year.
Shop Insurance Aggressively
Get 5+ quotes. Rates vary 40% between insurers. Can save $500-$800/year.
Rotate Tires Every 6,250 Miles
Extends tire life by 20-30%. Can delay $1,500 tire replacement by 6-12 months.
Buy Standard Range if Possible
$5,000-$7,000 lower purchase price. Lower insurance too. Still 250+ miles of range.
Use Time-of-Use Electricity Rates
Charge overnight during off-peak hours. Can cut charging costs by 30-50% ($150-$300/year).
Keep It Longer Than 5 Years
Depreciation slows dramatically after year 5. Years 6-10 have the best cost-per-mile ratio.
5 Costly Mistakes to Avoid
Ignoring Tax Credit Eligibility
Check income limits and vehicle eligibility before buying. Missing the $7,500 credit adds 15% to your total cost.
Relying Heavily on Superchargers
Supercharging costs 3x more than home charging. Using it daily adds $600-$900/year to your costs.
Not Shopping Insurance Rates
Accepting the first quote can cost $3,000-$4,000 extra over 5 years. Always get 5+ quotes.
Buying Too Much Car
Performance models cost $10,000-$15,000 more upfront plus higher insurance. Standard Range covers 90% of daily needs.
Selling Too Early
Depreciation is steepest in years 1-3. Selling before year 5 means you absorb the worst depreciation without enjoying the low operating costs.
Common Questions
Related Articles
Tesla Insurance Cost
Model-by-model insurance rates and how to save 20-40%
Tesla Maintenance Cost
Service schedule and real maintenance expenses over 5 years
Tesla Tax Credits and Incentives
Federal and state credits worth up to $7,500 or more
Tesla Resale Value and Depreciation
What your Tesla will be worth in 3, 5, and 7 years