In-depth reviews

Tesla Model 3 running costs

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

Tesla Model 3
Overall rating

5.0 out of 5

Running costs rating

5.0 out of 5

Price
£42,500 - £59,000
Fuel Type:
Electric
Insurance groupWarrantyService interval2020/21 company-car tax cost (20%/40%)
48-504yrs / 50,000 milesVariable£0

The Tesla 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 nonetheless. After all, while it doesn’t have any direct rivals, something like a BMW 330d or Audi S5 Sportback (both of which are close to the Model 3 Standard Range Plus on performance, executive swagger and price) will cost a similar amount on finance.

But they can't boast Congestion Charge exemption in London, zero road tax and well under half the fuel costs of a diesel car. The Tesla also benefits from zero Benefit-in-Kind company-car tax in the 2020/21 financial year, rising to just 1% in 2021/22 and 2% in 2022/23. 

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 to pay on the Model 3 – or any other purely electric car for that matter.

Most Popular

Best plug-in hybrid cars 2021
Skoda Superb iV
Best cars

Best plug-in hybrid cars 2021

The best plug-in hybrid cars offer great fuel economy and very low running costs as long as you keep their batteries charged
17 Feb 2021
New Volvo C40 Recharge expands pure-electric range
Volvo C40
Volvo C40

New Volvo C40 Recharge expands pure-electric range

Coupe-SUV model to join XC40 P8 Recharge in Swedish brand's zero-emissions line-up
2 Mar 2021
Volkswagen Tiguan hybrid review
VW Tiguan hybrid
Volkswagen Tiguan

Volkswagen Tiguan hybrid review

The plug-in hybrid VW Tiguan is comfortable, relaxing and good to drive – but no official efficiency figures are available yet
22 Feb 2021