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 - £41,000
Fuel Type:
Electric
Insurance groupWarrantyService intervalAnnual company-car tax cost (20%/40%)
48-504yrs / 50,000 milesVariableFrom £193 / £387

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. The same is true of its main rivals, the Polestar 2 and BMW i4, while 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 will be more expensive to run.

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 2% Benefit-in-Kind company-car tax.

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. Tesla has a few service centres dotted around the country, and offers a mobile service where a technician will come to you.

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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