So you‘ve decided to join the electric vehicle revolution and buy a Tesla. Their high-tech models like the sleek Model 3 and cutting-edge Model Y crossover SUV certainly look appealing. But exactly how much will scoring your very own Tesla set you back in real-world dollars?
The upfront sticker prices might lead you to believe you can drive off the lot in an entry-level Tesla for around $43,000. However, smart shoppers know there‘s more to the true cost of car buying than just the base MSRP advertised on the manufacturer‘s website.
Between additional new car fees, sales tax, electric vehicle incentives, and used Tesla depreciation rates – the out-the-door price can vary significantly. Here‘s your in-depth guide on just how affordable Tesla ownership can be in 2023 and what to expect at each stage of the buying process.
New Teslas – What You‘ll Actually Pay
Let‘s start by taking a closer look at what it really costs to buy one of Tesla‘s new electric cars straight from the factory. Across the model lineup from the compact Model 3 to the ultra-luxury Model X SUV, the base Manufacturer‘s Suggested Retail Price (MSRP) is just the starting point.
Here‘s a breakdown of the typical extra costs that get added on top of the sticker price when buying a brand new Tesla in most states:
| Fee | Typical Amount |
|---|---|
| Destination & Documentation | $1,200 |
| State Sales Tax | 5-10% of Vehicle Price |
| State EV Incentives | ($500 to $3,000) |
| Federal Tax Credit | $7,500 |
As you can see in the chart, state sales tax can tack on quite a bit to the final price tag. At an average of 8% sales tax, expect to pay $3,360 extra on the $42,990 base price of the rear-wheel drive Model 3 Standard Range. Even more for the Model X which stickers for $109,990 before any fees.
However, federal and state electric vehicle incentives also help offset some of those costs. Currently, the federal government provides a $7,500 tax credit for Tesla buyers that directly lowers your tax bill or refund amount. Some states like California offer additional rebates up to $3,000 on top!
When you add up all of the taxes and incentives, the true out-the-door price for a new base Model 3 lands around $46,000 on average. A chunk pricier than the headline $42,990 MSRP, but still very competitive among luxury vehicles. Now let‘s explore if you can score an even better deal by going used.
Used Teslas – Value Pricing on Pre-Owned Models
Due to rapid vehicle depreciation, buying a lightly used Tesla is arguably the most affordable way to get into one of these high-demand EVs. The used car market provides access to loaded 2019-2021 Model 3 and Model Y vehicles at significant discounts compared to their original list prices:
| Model | Year | Average Used Listing Price |
|---|---|---|
| Model 3 Standard Range Plus | 2019 | $38,500 |
| Model 3 Long Range | 2020 | $47,800 |
| Model Y Long Range | 2021 | $56,300 |
*Listing prices sampled from Autotrader.com, Cars.com, Craigslist
As shown in the chart above, pre-owned Tesla buyers can enjoy price cuts of 15-25% off the current prices of those same new model year vehicles. Thanks to strong resale value, a used Model 3 from 2019 or 2020 provides the most affordable Tesla ownership experience.
The savings over new comes mainly from the upfront vehicle depreciation already absorbed by the first owner. However, it‘s important to still budget for potentially higher lifetime maintenance and repair costs out of warranty on used EV batteries.
Pro Tip: When shopping used listings, aim for 2019-2021 Model 3 Long Range or Performance versions under 50k miles for the optimal value sweet spot!
Leasing and Promotions – Even Lower Monthly Payments
If tying up $35-45k+ to completely purchase a Tesla doesn‘t fit your budget, leasing is another great option to consider. This route often provides the lowest monthly payments in exchange for not owning the car at the end of your lease term.
Hot listing sites like Leasehackr showcase just how affordable leasing a Model 3 or Model Y can be right now:
- Model 3 Lease – MSRP $59,940 → $479/month with $3,100 down
- Model Y Lease – MSRP $65,940 → $569/month with $4,500 down
As you can see from the examples above, current average lease payments ring in at less than $600 per month to drive home a brand new Tesla. Much easier to swallow than the full $60k+ purchase price tag.
And if you have stellar credit, Tesla is also known to offer periodic discount promotions that can slash lease pricing even further or provide credits towards your down payment amount.
So when all the calculations are finalized – you can realistically get behind the wheel of an amazing new Tesla electric car for as little as $35,000 used or $479 per month on a lease deal. Not too shabby given their cutting-edge technology, performance and vast charging network!
Now that you know precisely how much it costs to actually buy or lease a Tesla straight from the source, you‘ll be well equipped to confidently make the switch to sustainable electric vehicle transportation in 2023. Feel free to reach out to me directly here if you have any other EV buying questions!
