Hi, guys. You have probably seen instances where people "spend money to save money." You know, buy that new frypan so you can have restaurant quality burgers and home and that will save you money! Does it really? No. And does buying a Tesla or other "cool" electric car save you money? Well, since it's "cool," you convince yourself that it does. It does not. (If it was all about savings then everyone would be driving an Elio car.) Before going any further, I must say, that if you have money to buy a Tesla and want one, then do what you like with your money. You win and don't need to read any further. Second, if you're an idiot who a) doesn't have a lot of money but b) insist in driving a new BMW, Mercedes, or even Cadillac, then yes, a Tesla will save you money. For everyone else, read on.
I will show you some numbers that are heavily weighted in the direction of the Tesla Model 3 vs buying a Toyota Camry. Gas throughout most areas of IL, OH, TN, KY, AL, MS FL, TX etc. has been $2/gallon. Electricity is $0.13/kilowatt hour. We're going to use $2.50 gas. (If you have $3.50 gas and $0.16 electricity where you live then the numbers might change.) This assumes buying the car new, which again favors the Tesla and the money-waster because we know you can get a 1-2 year old Camry for 25% off of its original price.
First let's convert some electric vehicles to their MPG equivalents (not the "MPGe" BS they put in on the window stickers). We're going to assume warm weather. This again favors the electric vehicle which would have reduced range in cold temperatures. Gas engines will vary but not as much.
As you can see the electric vehicles are not as efficient when we transfer them into a dollar-based MPG equivalent. About double the MPG for a similar sized vehicle. Note that I feel the Tesla Model 3 is more comparable to the Honda Civic than the Camry (Camry is about 12" longer) and the Civic new is only $21,000. Yet, as mentioned, this is weighted in favor of the electric car. Below we used 15,000 miles per year, which is a lot, again favoring electric. And we did not factor in cost of a 220v charger, any battery replacement, etc.
So, as you can see, even in summer, driving a lot of miles, the Tesla Model 3 is more expensive to operate over 10 years vs the larger Toyota Camry.
Finally, here's a handy chart showing how if you have an older car getting 30 MPG, you shouldn't spend $30,000 for a new 40 MPG hybrid because it's better on gas (but if you have an old 12 MPG pickup truck, you might want to). It will take many, many years to make up those savings.
Make your decisions based on need and numbers, not the opinions of others!
I will show you some numbers that are heavily weighted in the direction of the Tesla Model 3 vs buying a Toyota Camry. Gas throughout most areas of IL, OH, TN, KY, AL, MS FL, TX etc. has been $2/gallon. Electricity is $0.13/kilowatt hour. We're going to use $2.50 gas. (If you have $3.50 gas and $0.16 electricity where you live then the numbers might change.) This assumes buying the car new, which again favors the Tesla and the money-waster because we know you can get a 1-2 year old Camry for 25% off of its original price.
First let's convert some electric vehicles to their MPG equivalents (not the "MPGe" BS they put in on the window stickers). We're going to assume warm weather. This again favors the electric vehicle which would have reduced range in cold temperatures. Gas engines will vary but not as much.
As you can see the electric vehicles are not as efficient when we transfer them into a dollar-based MPG equivalent. About double the MPG for a similar sized vehicle. Note that I feel the Tesla Model 3 is more comparable to the Honda Civic than the Camry (Camry is about 12" longer) and the Civic new is only $21,000. Yet, as mentioned, this is weighted in favor of the electric car. Below we used 15,000 miles per year, which is a lot, again favoring electric. And we did not factor in cost of a 220v charger, any battery replacement, etc.
So, as you can see, even in summer, driving a lot of miles, the Tesla Model 3 is more expensive to operate over 10 years vs the larger Toyota Camry.
Finally, here's a handy chart showing how if you have an older car getting 30 MPG, you shouldn't spend $30,000 for a new 40 MPG hybrid because it's better on gas (but if you have an old 12 MPG pickup truck, you might want to). It will take many, many years to make up those savings.
Make your decisions based on need and numbers, not the opinions of others!
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