In this video and in the table below we explore the reasons a someone who is recently laid off would spend the money on a new Tesla Model 3. At first this seems nonsensical but once you run through the logic, it makes a lot of sense.
We focus on the total cost of ownership and elimination of most unexpected variable costs like maintenance:
| Car | 2021 Tesla Model 3 SR+ | 2022 Honda Civic EX |
| Purchase Price | $39,900.00 | $24,700.00 |
| Sales tax | $2,793.00 | $1,729.00 |
| Destination & doc fee | $1,200.00 | $920.00 |
| 5 Year Resale Value (via KBB) | -$19,918.30 | -$9,640.80 |
| Federal Incentive | -$5,000.00 | $0.00 |
| California Incentive | -$1,500.00 | $0.00 |
| Cash Cost after Incentives & Resale Deduction & Taxes/Fees | $17,474.70 | $17,708.20 |
| Price of Gas | — | $3.50 |
| Avg Price Of Electricity For Car | $0.20 | — |
| Average Miles Per Year | 15,000 | 15,000 |
| Maintenance Costs (5 Years) | $980.72 | $3,159.00 |
| Miles/kWh | 4 | 33 |
| Average Gallons Of Gas Per Year (Miles/MPG) | — | 450 |
| Average kWh Of Electricity Per Year For Car (Miles/4) | 3,750.00 | — |
| Average Cost Of Fuel Per Year | $750.00 | $1,575.00 |
| 5 Year Total Cost of Ownership Tesla Model 3 vs Honda Civic | $22,205 | $28,742 |
The 7 Reasons to Buy a Tesla Model 3 instead of a Honda Civic
1: About the same up front cost a lowly Honda Civic
2: No maintenance cost or maintenance hassles
3: No gas to buy or pumps to freeze or boil at while waiting in line
4: Free electricity from the office and my solar array
5: No price shocks from OPEC
6: Reduced cost of Insurance
7: Cheapest total cost of ownership
2 Comments
Sedique Majid · November 14, 2021 at 10:49 pm
thanks
Ian Matthews · November 19, 2021 at 8:55 am
Hi Sedique;
EV’s are just less expensive AFTER A FEW YEARS, fun to drive and easier to drive. The argument I get from people is the same as my solar panels; it will take a few years to be cash positive oh-my I would rather save $10K today than $20K over ten years. Many consumers are very short sighted and that is an opportunity for those who want to get ahead.