In-depth reviews

Tesla Model 3 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
£40,000 - £59,000
Fuel Type:
Electric
Insurance groupWarrantyService interval2021/22 company-car tax cost (20%/40%)
48-504yrs / 50,000 milesVariableFrom £82 / £164

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. After all, while it has few 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, 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 to pay on the Model 3 right now – or any other purely electric car for that matter.

Most Popular

Best electric motorbikes 2021
Harley-Davidson Livewire
Best cars

Best electric motorbikes 2021

More and more brands are getting in on the electric motorcycle action. Here's our pick of what's out there right now...
13 Sep 2021
How much is the Benefit-in-Kind company-car tax on an electric car?
Mercedes EQA
Company cars

How much is the Benefit-in-Kind company-car tax on an electric car?

The company-car tax, or BiK rate, on electric cars is 1% during the 2021/22 financial year and will rise to just 2% in 2022/23, making a zero-emission…
13 Sep 2021
Top 12 best Motability hybrid cars 2021
Renault Arkana E-TECH hybrid
Hybrid

Top 12 best Motability hybrid cars 2021

Mild, full and plug-in hybrids are all now offered on the Motability scheme, for those who are looking to reduce fuel consumption and emissions but ca…
13 Sep 2021