As a personal finance writer for GOBankingRates, I often report on how to save money and plan responsibly for the future. However, I have a guilty pleasure — I’m a major car enthusiast, especially for European exotic and performance vehicles such as Aston Martin, Porsche, McLaren and more.
More Bang for Your Buck: These 20 Cars Will Last You Twice as Long as the Average Vehicle
Be Aware: 6 Used Cars To Stay Away From
Import performance vehicles are expensive beyond the sticker price — tires, oil changes, insurance, and maintenance don’t make them practical for day-to-day use. After much research, I chose a Tesla Model Y as my everyday driver. Some of my fellow car enthusiast friends gave me a hard time about my choice. They compared it to cooking in a microwave versus a Viking Professional oven. However, I maintained my position for many reasons.
Teslas are fast and responsive and once you get used to one-pedal driving, the convenience is a game-changer. Plus, the savings can’t be beat — and go well beyond skipping the fuel pump. Here’s how I saved money by owning a Tesla.
1. Sticker Price
One of the top arguments about buying a Tesla is that you pay a premium for gas savings. However, I disagree. A 2023 Model Y Long Range’s MSRP starts at $37,890. When including taxes and upgrades I paid roughly $45,000. Models along that price point include a Subaru Outback Limited, Audi A3 or Lexus UX.
I’m a Mechanic: Here Are the 6 Best Luxury Cars I Recommend
2. Lower Fuel Costs
The most obvious and significant way owning a Tesla saves money is by getting rid of fuel costs. Unlike traditional gasoline-powered vehicles, Teslas run entirely on electricity. The cost of electricity is substantially lower than gasoline, depending on your location and energy rates. Charging your Tesla at home can be significantly cheaper, and many workplaces and public charging stations offer free or low-cost charging options.
I installed a Tesla wall charger for roughly $600. The charger was $425 and professional installation was $175. My Tesla is programmed to charge at night to be ready to go in the mornings. I’m on my local energy company’s EV program which gives me reduced rates between 10:01 p.m. and 8 a.m.
Based on the lower overnight EV rates of 10 cents per kWh, my Tesla costs me about $30 per month to charge. According to the Tesla app, I save about $150 per month on gas.
Best of all, the rate applies to everything I run during those hours and not just my Tesla. I program my dishwasher and washer/dryer to run in the middle of the night to save money overall on my electric bill.
3. Reduced Maintenance Expenses
Teslas have fewer moving parts than conventional internal combustion engine (ICE) vehicles. This means there are fewer components that can wear out and require maintenance or replacement. I don’t have to change oil, transmission fluid, or service exhaust systems. I have yet to replace the brakes at nearly 40,000 miles, thanks to regenerative brakes.
I rarely hit the brakes and let off the accelerator instead, which converts kinetic energy into electricity during the coast while the car slows down to a stop. This not only enhances energy efficiency but also reduces wear and tear on the brake pads and discs.
The following are my maintenance expenses in the last two years I’ve owned my Tesla:
-
Replaced tires after 35,000 miles: $1,500 (I chose premium Pirelli all-season tires that are filled with foam and specific to Tesla to reduce noise)
-
Annual tire rotation: $50
-
Annual change of cabin air filters: $53
Best of all, tire rotation and air filter service take place in my home, saving me time without a vehicle or having to take the car to the dealer. I simply leave the car outside of my garage and the Tesla tech can enter the vehicle with my authorization if I’m not home.
4. Federal and State Incentives
Depending on your location, you may be eligible for federal and state incentives for purchasing an electric vehicle. I didn’t have any available at the time of purchase, but federal tax credits can significantly reduce the cost of a new Tesla.
Some states offer additional incentives, such as rebates, reduced registration fees, or access to high-occupancy vehicle (HOV) lanes, which can further enhance your savings.
If you have a small business and purchase a new Tesla in 2023, the Inflation Reduction Act allows eligible businesses to claim up to a $7,500 credit. Plus, you can write off up to $28,900 if you drive your Tesla for business purposes at least 50% of the time, thanks to its weight of more than 6,000 pounds.
5. Competitive Insurance Rates
Car insurance was another big saver for me. I initially insured my Tesla through USAA since I had multiple vehicles and home insurance with the carrier. However, my monthly premium was around $250 per month.
I switched to Tesla Insurance and save considerably. Tesla coverage isn’t available in every state. However, if it is, it’s worth looking into. Premiums are based on your driving which is monitored through the Tesla app. Avoid tailgating, aggressive turns, or hard braking to keep your safety score over 90%.
I manage to maintain a Safety Score of 96% for a monthly premium of $105 per month for full coverage of 100/300/100 insurance and a $500 deductible with roadside assistance and rental car reimbursement. Last month, my safety score was 94 and my premium was $113 per month.
The biggest selling point for me on Tesla coverage is that I was able to add my other vehicles for a flat rate of $90 per car for the same coverage as the primary Tesla, saving me hundreds of dollars. My teen is one of the named insured on one of my vehicle’s policies and I wasn’t dinged with an extremely high premium because of her age.
Sponsored: New Chase checking customers enjoy a $200 bonus when you open a Chase Total Checking® account and set up direct deposit.
The Takeaway
I’m happy with my Tesla overall. I save considerable money in several ways and feel that I’m not compromising on a responsive drive and luxury vibe. I didn’t tout the environmental benefits of driving a Tesla since the jury is still out on whether electric-vehicle batteries cancel out any potential sustainability.
If I had to share any cons, I would say that Tesla would be inconvenient for longer commutes or road trips. Range anxiety is real and in the rare road trips I’ve done, I’ve had to stop to recharge more often because of my lead foot.
And despite the impressive selection of Tesla high-speed Superchargers, I’ve noticed that lines and wait times to charge are getting longer as more people buy Teslas. Not to mention, Mercedes EV owners will be able to use Tesla Superchargers in 2024, potentially creating further delays. Fortunately, I use my Model Y primarily around town and charge at home.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: I Drive a Tesla: Here’s How It Saves Me Money
Credit: Source link