Is It Cheaper to Drive a Tesla or a Gas-Powered Car?
Often, the question of whether it's cheaper to drive a Tesla or a gas-powered car arises. While electric vehicles (EVs) have gained popularity due to their eco-friendliness and lower operating costs, several factors need to be considered before making a decision. In this article, we will explore the various aspects of cost comparison, including purchase price, electricity vs. gasoline costs, maintenance, and resale value, and provide a comprehensive analysis to help you make an informed decision.
Cost Comparison: Purchase Price and Operating Costs
When comparing the purchase prices, a Tesla Model 3 Long Range AWD starts at $47,000, whereas a BMW 228i XDrive Gran Coupe, which is about the same size, starts at $40,400. Similarly, a Toyota Corolla Hybrid, known for its fuel efficiency, starts at $23,500. The purchase price alone might not be the most significant factor, but it does contribute to the overall cost of payments for a Tesla Model 3 Long Range AWD range from $821 to $956 for 72 or 60 months, respectively. For a BMW 228i XDrive Gran Coupe, monthly payments range from $787 to $826 for 60 or 72 months, respectively. The Toyota Corolla Hybrid boasts lower monthly payments of around $381 to $434 for 60 or 72 months, respectively. These numbers show that gas cars can be more cost-effective upfront.
Operating Cost: Electricity vs. Gasoline
The cost of operating an EV vs. a gas vehicle depends on several factors, including electricity rates and gas prices. According to AAA, the current average gas price in the U.S. is around $3.50 per gallon. However, in some locations, the cost can be lower. Meanwhile, the average price of electricity in the U.S. varies, with some sources reporting as low as $0.17 per kWh and others as high as $0.25 per kWh. For the sake of comparison, we will use $0.17 per kWh as the base rate.
The Tesla Model 3 Long Range AWD is rated at 3.88 miles per kWh, which means it would require approximately 306 kWh of electricity per month for an average driver who drives 1,188 miles per month. This translates to a cost of around $54.02 per month for electricity. On the other hand, the BMW 228i XDrive Gran Coupe averages 28 miles per gallon, and its monthly fuel cost would be approximately $147.30, while the Toyota Corolla Hybrid, averaging 48 miles per gallon, would cost about $87.50 per month for fuel.
In locations like Colorado, where the electricity rate is $0.15 per kWh plus a $0.10 surcharge for peak hours, the monthly electricity cost for a Tesla increases to $94. In comparison, the BMW's monthly cost is $117.60, the WRX's is $166.60 for premium fuel, and the Corolla's is $70.
Additional Costs and Resale Value
While electricity costs and monthly payments are crucial, there are other considerations. For instance, home charging equipment and modifications can add several thousand dollars to the initial cost. Furthermore, the useful life of a Tesla may be shorter than that of a typical gas car, and its resale value can plummet. The resale value of a Tesla, especially models launched in recent years, has been decreasing, raising concerns about long-term value.
Repairs and insurance are also factors to consider. Teslas require significant downtime and repair costs, and the insurance for Teslas, particularly for the Cybertruck, can be exorbitant. Additionally, if a Tesla catches fire, it can lead to substantial damage, from replacing parts to filling a home with smoke.
Lastly, the tax credits for Tesla are one-time and limited. Although a federal tax credit of up to $7,500 is available, it is no longer as high as it was before. Utilizing this credit can significantly reduce the initial cost of a Tesla, but it does not eliminate the additional costs associated with ownership.
Conclusion
Based on the purchase price, electricity vs. gasoline costs, and additional expenses like repairs and insurance, driving a Tesla can be more expensive than driving a gas-powered car for certain vehicle types and driving patterns. While EVs have advantages in terms of long-term cost savings and reduced environmental impact, the upfront and ongoing costs can be higher. Drivers should carefully consider their driving habits, driving location, and budget before making a decision.