In-depth reviews

Tesla Model 3 running costs, insurance, warranty & tax

The Tesla Model 3 looks expensive to buy, but it's cheaper to own than most combustion-engined alternatives once you factor in fuel and tax costs

Overall rating

4.0 out of 5

Running costs & insurance rating

5.0 out of 5

Price
£41,000 - £49,000
Fuel Type:
Electric
Insurance groupWarrantyService interval2021/22 company-car tax cost (20%/40%)
48-504yrs / 50,000 milesVariableFrom £80 / £161

The Model 3 isn’t a cheap car to buy, but given its performance, desirability and rock-bottom running costs, it’s a compelling financial prospect. After all, while it has few direct rivals, something like a BMW 330d or Audi S5 Sportback (both of which are close to the standard Model 3 on performance, executive swagger and price) will cost a similar amount on finance.

But they can't boast Congestion Charge exemption, zero road tax and well under half the fuel costs of a diesel car. The Tesla also benefits from only 1% Benefit-in-Kind company-car tax in the 2021/22 financial year, rising to just 2% in 2022/23 and 2023/24.

Tesla Model 3 insurance group

Insurance groups for the Model 3 are pretty high: 48 for the Standard Range Plus and the highest possible rating of 50 for the Long Range and Performance models, so coverage won't be cheap.

Warranty

Tesla offers a standard four-year/50,000-mile warranty, which is a bit low on the mileage side, but does exceed the three-year warranties offered by rivals Audi, BMW, Mercedes and Jaguar. The car's batteries get an eight-year/100,000-mile warranty and will also be refurbished or replaced by Tesla if they fall below 70% of their as-new performance within that time. That’s unlikely to happen though, given Tesla’s excellent reputation for battery longevity.

Servicing

Tesla doesn’t state specific servicing intervals – the car will inform you if it needs attention. However, Tesla recommends checking the interior air filter and brake fluid every couple of years.

Road tax

Thanks to its zero tailpipe emissions, there’s no road tax (VED) to pay on the Model 3 right now – or any other purely electric car for that matter.

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