FYI: Comparing the ownership costs of a Tesla Model 3 and a BMW 3 Series reveals significant differences in maintenance and insurance expenses.
The Cost Benefits of Owning a Tesla Model 3 Compared to a BMW 3 Series
When evaluating two popular mid-size sedans, the Tesla Model 3 and the BMW 3 Series, Shelby Church, a YouTuber and long-time Tesla owner, provides an interesting insight into their long-term running costs. While both vehicles have similar starting prices around $45,000, the ownership expenses reveal marked differences.
Running Costs: Tesla vs. BMW
The analysis conducted by Church highlights considerable savings for Tesla owners in areas such as maintenance and fuel. Here’s how the five-year expenses stack up:
- Tesla Model 3:
- Maintenance: $1,000
- Insurance: $8,008
- Electricity: $2,250
- Unexpected Repairs: $3,000
The total costs amount to $58,574, including purchase price and additional expenses.
- BMW 3 Series:
- Insurance: Approx. $14,400
- Fuel: Around $8,000
- Maintenance (assuming no major issues): About $3,000
The BMW incurs about $954 more per year compared to the Tesla, mostly due to higher insurance and fuel prices.
Key Observations
Several factors influence these cost discrepancies:
- Lower Electric Costs: Charging the Tesla is notably cheaper than fueling the BMW.
- Insurance Variance: Tesla’s insurance is considerably lower than BMW’s, contributing to the Tesla’s overall cost-efficiency.
- Repair Costs and Depreciation Risks: While the Tesla showed unexpected reliability issues, costing an extra $3,000, it still fared well in comparison to the BMW. However, depreciation remains a concern, as EVs like the Tesla Model 3 generally depreciate faster than their gasoline counterparts.
The Broader Picture
Across the automotive industry, electric vehicles are predominantly cheaper to run than traditional combustion engines – a trend also observed with hydrogen vehicles. However, speedier depreciation in EVs is an ongoing challenge, one that could balance out as EVs become more mainstream.
At the moment, Tesla’s lower operational costs provide a compelling reason for its growing popularity despite its faster depreciation rate compared to traditional models.
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William Rapp, Editor of Automotive.fyi
