Tesla Model 3: running costs & insurance
The Model 3 is generally affordable to buy and run, but it’ll cost plenty to insure
|
Insurance group |
Warranty |
Service interval |
Annual company-car tax cost (20%/40%) |
|
48-50 |
4yrs/50,000 miles |
Variable |
From £160/£320 |
Electric executive cars aren't cheap, but Tesla CEO Elon Musk has long repeated the brand’s pledge of making EV motoring more affordable for all. This is reflected by the fact that the base Model 3 sits in-line price-wise with electric family hatchbacks such as the Vauxhall Astra Electric and Volkswagen ID.3.
Regardless, owning an EV can dramatically reduce your car ownership costs – especially if you’re a business driver. All electric cars currently fall into the lowest 2% Benefit-in-Kind bracket.
Charging your electric car at home is typically much cheaper than filling up a petrol or diesel car at a petrol station; at a typical average energy rate of 30p per kWh, fully charging the base Rear-Wheel Drive Model 3 will set you back by around £18, and even less if you have an EV-specific energy tariff. It’s worth noting that using public chargers – even Tesla Superchargers – can be much more expensive.
Tesla Model 3 insurance group
Insurance groups for the Model 3 are pretty high: 48 for the base rear-drive Model 3 and the highest possible rating of 50 for the Long Range and Performance models, so coverage won't be cheap. Despite coming from a premium brand, the BMW i4 starts in just group 36, making it a chunk cheaper to insure, although top-of-the-range M50 models occupy group 43.
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. Tesla has several service centres dotted around the country, and offers a mobile service where a technician will come to you.
Road tax
Like all electric cars, the Tesla Model 3 is exempt from road tax (VED) until April 2025. It can also enter London’s Ultra-Low Emissions (ULEZ) zone for free, too.