If you’re thinking about purchasing your first electric car, you undoubtedly have some doubts. Tesla seems to be one of the many things Elon Musk touches that turns to gold. The business has transformed the concept of an eco-friendly electric car into a lusted-after luxury automobile. These days, it’s difficult to avoid hearing about Tesla since it dominates the headlines. Let’s learn how to afford a tesla model 3.
The vehicles made by the American carmaker are undeniably attractive, fantastic drivers, and loaded with cutting-edge technologies. Despite this, it could be hard for you to justify buying a vehicle like the Tesla Model 3 without completing a lot of research. To help you, we have created this guide on how to buy a Tesla Model 3.
Even if the popularity of electric vehicles is increasing, they still haven’t taken off, particularly in terms of sales in the Country. Tesla outsells all other manufacturers on our borders when it comes to E.V.s. However, even the very popular Model 3 doesn’t sell anything close to the number of top-selling cars in the U.S.
When the first Teslas came out, only wealthy people could afford the $100,000 or more price tags for a brand-new Model S or Model X.
But today, more than ten years later, someone with a middle-class wage may afford to acquire one of these motivational cars. Tesla cars are stunning works of art that will draw attention wherever they go. Others like you want one, but how can you afford one?
If you have a six-figure yearly income, you can buy a Tesla. Some people with typical incomes can purchase the Tesla Model 3 basic model with financing. Join us as we go into more detail about this below.
How to Afford a Tesla Model 3
The Tesla Model 3’s base price is $39,990. It was released in 2017. Even though it can be seen as being pricey, the following straightforward advice might help further reduce the price of a Tesla:
Let’s discuss these 5 points in detail now;
1. Determine the starting and recurring expenses.
When you’ve decided to purchase a model 3 and any bells and whistles you want to add, you may visit the Tesla website to receive an exact price for everything. You may see the pricing alter in real-time as you add any extras.
After completing the calculations about the purchase and arriving at a figure, you must determine recurring expenses. This covers auto insurance, certification, maintenance costs, loan interest rates, etc. If you want to apply for a loan, don’t forget to factor in the down payment.
2. Lower your costs or raise your income
You may either increase your income or decrease costs while planning and saving for your Tesla model 3. The money you save might also be utilized toward your objective. Look for automobiles that can at least keep up with inflation if you’re trying to save money. Additionally, keep an eye out for investments that might increase your wealth without placing you in danger.
3. Save several thousand dollars through state subsidies.
Several states and municipal utilities provide E.V. rebates that may help you save thousands of dollars, even if Tesla owners are no longer eligible for the federal tax credit for electric cars.
After you’ve bought the automobile, you may normally claim refunds and tax credits by filing an income tax return. Many states additionally provide non-cash benefits for electric car owners, such as free public parking in California and entry to carpool lanes.
4. Buying old can save you a ton of money
Some items, like a toothbrush, you don’t want to purchase secondhand. But purchasing a secondhand Tesla Model 3 is the best action in this case.
According to a study, new automobiles lose at least 20% of their initial worth during the first year. Although the “new vehicle fragrance” is wonderful, what’s even better? Huge financial savings
Tesla provides heavily discounted certified pre-owned vehicles. You may even calculate your monthly payment using the affordability calculator on the Tesla website.
Additionally, you want to confirm that you’re receiving the greatest vehicle loan rate. You should use a site like LendingTree to compare loan rates from other lenders, as most sellers have less-than-stellar interest rates. By doing this, you may get a loan with the best interest rate. Fast, simple, and best of all, it’s free.
5. Save money on auto insurance by comparing prices.
If you don’t account for the cost of auto insurance in your yearly car ownership expenses, you might be in for an unpleasant shock.
According to a recent survey, the average yearly insurance cost for a Tesla Model 3 was $2,390. Make sure you get the best deal when spending more than $2,000 on anything.
Every six months, you should search around for the best deal on your Tesla Model 3. We know it seems like a lot of effort, but the savings are worthwhile. And fortunately, some businesses can provide you with various quotations and bring you in contact with insurers that can help you save a lot of money.
This has also been highlighted in the infographic below.
Frequently Asked Questions
Is purchasing a used tesla smart?
If you can find a decent deal on a lower mileage Tesla still under warranty, it makes sense to purchase one used. Tesla automobiles with high mileage may have issues that wind up being more than you would pay for a brand-new model.
People choose to purchase pre-owned Tesla automobiles to skip the waits between pre-orders and deliveries. Cost gains on the price of a new automobile may seem like a good argument, but that isn’t always the case.
Is a Tesla Affordable for the Average Person?
Yes. Suppose they simply worry about paying their rent or mortgage and other small living expenditures. In that case, the ordinary individual can afford a Tesla if they don’t have any major debts.
However, to be considered an average person, you must make at least $53,000 annually, the mean earnings for salaried workers in the United States, according to the U.S. Bureau of Labor Statistics (BLS).
Even if you fit into this category, probably, you can only buy a Tesla via a loan or lease.
How much money do you need to make to own a Tesla?
You must earn at least $60,000 annually to own a Tesla. The precise income may vary depending on the model you’re considering and whether you plan to pay cash or take out a loan.
Additionally, you’ll need to earn at least twice as much as the Tesla model you’re considering. This is true if you’re considering paying with cash. Additionally, this will help you have enough cash to cover your annual needs, therefore, if you want to pay cash for a Model 3, which costs $43,990 (basic model), you must earn at least $80,000 annually.
The price of different Tesla models is shown in the table below, along with the suggested annual income needed to buy one outright. This is in addition to the annual income requirement for a six-year loan and the anticipated monthly loan installments.
| Model | Price of the Base Model | Recommended Annual Income for Payment In Cash | Income Recommendation for a Six-Year Loan | Monthly Payments Expected for a Six-Year Loan |
| Model 3 | $43,990 | $90,000 | $60,000 | $721 |
| Model S | $94,990 | $200,000 | $110,000 | $1,327 |
| Model X | $104,990 | $210,000 | $120,000 | $1,477 |
| Model Y | $56,990 | $115,000 | $70,000 | $833 |
Personal Advice
As the industry expands, prices for E.V.s will likely decrease over time, and sales will become more frequent and competitive. But shortly, it could be difficult for the typical buyer of a new E.V. to purchase one. At this point, the above tips on how to afford a Tesla Model 3 will aid you immensely.
Conclusion
In conclusion, Teslas are stunningly beautiful works of art that can draw attention everywhere. If you want one, you’re not the only one, but can you afford it?
If you have a six-figure yearly income, you can buy a Tesla. Some people with typical incomes may buy the Tesla Model 3 basic model. This is their least expensive option, but it requires financing.
References
- https://moneywise.com/insurance/auto/afford-tesla-even-if-not-rich
- https://www.quora.com/How-much-should-one-earn-to-afford-a-Tesla-model-3
- https://www.tesla.com/support/tesla-lending
I am an Automotive specialist. I graduated from Michigan with Bachelor in Automotive Engineering and Management. Also, I hold degrees in Electrical and Automation Engineering (BEng), Automatic and Industrial Electronic Engineering, and Automotive Technology. I have worked at General Motors Company for over five years as the Marketing Operations Production Coordinator. Now, I own my garage in Miami, Florida. I love cars and love to share everything about them with my readers. I am the founder of the Automotiveex blog, where I share everything about automotive, like car news, car mechanical issues, and anything else that comes up in my blog posts.
