Is my cost of ownership realistic?

[MGMX]

So our current car from 2002 is slowly dying and it's time for an upgrade.

While the Model 3 is quite a bit more than we need currently, the idea is the car should last many years.
So I have tried to calculate the cost of ownership, does this sound realistic?

Total Price (LR AWD Blue/Grey color with Enhanced Autopilot): $82K
Down payment: $30K

Electricity: $88/mo - We live in an apartment, so we have to use a nearby charger for the majority of charging. However, this is a fixed rate for unlimited charging on any of their stations (they have a lot).

Service/Reparation savings: $80/mo - Making sure to put some money aside, to cover any repairs. If no major repairs, then the money will go towards the bi-yearly recommended service.

Loan: $600/mo - Fixed rate.

Green fee: $8/mo - Fixed fee.

Insurance: $145/mo - Very few companies offer decent prices on Telsa insurance. This is the "InsureMyTesla" product, which covers unlimited miles etc.

So a total of ~$900/mo worst case.

Our current car costs $330/mo, but it lacks aircondition, drive comfort and has broken down twice in the middle of the road in the last three years. The clutch needs to be changed at some point as well, which costs +$500.

I think the additional $570/mo is worth it for driving a brand new car, compared to our car from 2002.

Does this sound way off?

 

[idealsol]

I would add the cost of depreciation

 

[cantdecide]

I would add the cost of depreciation

Technically yes... Depreciation should count instead of counting the principle portion of the loan, however for the first few years this should be about equal.

My instinct is that maintenance will be less than you have accounted for the first few years, and depreciation/loan will average out to less than you have accounted for after the first few years.

Your electricity cost is probably about double what it would cost if you owned your own home and put solar on the roof... But you know your charging cost.
How far do you drive each month?

There are a couple of studies online comparing model 3 TCO to that if a new fully loaded Camry... I would compare what you have to that.

 

[jjrandorin]

I was about to say that I thought your initial pricing was off, but then I noticed you are in denmark. Obviously a surcharge there, as the cost in California for a Model 3 performance +tax, registration, doc fee, etc was $78,XXX (Model 3 P, Blue, black interior, EAP). AWD non P would have been less.

As for figuring depreciation, that only really matters when you sell the car. If you keep it, then the depreciation never really effects you.

Given how OP's current car is from 2002, its likely OP is the type to keep cars "for the long haul", so while depreciation is definitely a cost, if you keep the car long enough it doesnt matter, and OP likely will unless it gets totaled or something, so OP should ignore the depreciation in the "monthly cost" discussion for his purposes.

I know its a cost (before I get jumped on) but like I said it doesnt matter if you keep the car, per se.

 

[mikefocke]

Depreciation happens no matter how long you keep the car as you have to replace it sometime. Yes it gets less per month the longer you keep the car. Offset by increased costs of repairs in a typical ICE car.

Additionally, any money you spend buying the car (even via payments) can't be used for investments. (Had I not bought my current car, I would have had $??k more to invest back then and that money would be worth way more than double that today.)

So keeping the equivalent of $80k or so tied up in a car for even 17 years has both significant capital and opportunity costs.

 

[eye.surgeon]

If low cost of ownership is your prime directive, get a leaf or a prius. M3 is a great car but it's nowhere near the cheap end of the cost of ownership scale.

 

[ewoodrick]

The loan cost at $600/mo seems really low. That's seems to be a 10 year loan, and that's a really long loan on an automobile. At that rate, is seems as if your loan will be upside down until, well, always.

 

[dhrivnak]

It appears you are coming from a very basic car, so the base model at about $60K would still be a big step up cutting your down payment significantly. Maybe your power is a LOT more as mine is $.095/kWh so your charging costs seem double what I pay, which is helped out more by my solar. Your maintenance seems high as well as my Roadster has average $60/month over the last 8 years and the Model 3 should be a good bit less money than the Roadster. Finally your insurance is a lot higher as well as our model 3 (base not performance) is $50/month. Maybe rural USA is a lot lower cost of living than Denmark.

 

[Dana1]

So our current car from 2002 is slowly dying and it's time for an upgrade.

While the Model 3 is quite a bit more than we need currently, the idea is the car should last many years.
So I have tried to calculate the cost of ownership, does this sound realistic?

Total Price (LR AWD Blue/Grey color with Enhanced Autopilot): $82K
Down payment: $30K

Electricity: $88/mo - We live in an apartment, so we have to use a nearby charger for the majority of charging. However, this is a fixed rate for unlimited charging on any of their stations (they have a lot).

Service/Reparation savings: $80/mo - Making sure to put some money aside, to cover any repairs. If no major repairs, then the money will go towards the bi-yearly recommended service.

Loan: $600/mo - Fixed rate.

Green fee: $8/mo - Fixed fee.

Insurance: $145/mo - Very few companies offer decent prices on Telsa insurance. This is the "InsureMyTesla" product, which covers unlimited miles etc.

So a total of ~$900/mo worst case.

Our current car costs $330/mo, but it lacks aircondition, drive comfort and has broken down twice in the middle of the road in the last three years. The clutch needs to be changed at some point as well, which costs +$500.

I think the additional $570/mo is worth it for driving a brand new car, compared to our car from 2002.

Does this sound way off?

Depreciation is divided over the life of an asset (or IRS required time period) to account for timing differences between revenue and cost. It’s an accounting measure that has no cash value. When creating statements of cash flow we add depreciation back.

The 3 is great. You’ve added up the monthly costs which tells you monthly costs. The 3 gets appx 4.1 miles/kWh (310m/75kwh). If you drive 1000 miles/month the $88 equals $0.088/mile. If you drive 100 miles it’s $0.88/mile. The same math can apply to the loan, insurance, etc. Look at Tesla maintenance schedule to estimate costs, estimate tires and brakes and divide those over the miles estimated in time period you plan to keep the car (e.g. 5 years, 10 years).

Do the same calculations for your ICE. Compare the per mileage cost. Mine was $0.03/mile compared to $0.14/mile.

But it sounds like you want a new car and you’ve figured out you can swing the monthly costs. Enjoy your car!

 

[Needsdecaf]

If low cost of ownership is your prime directive, get a leaf or a prius. M3 is a great car but it's nowhere near the cheap end of the cost of ownership scale.

Agreed. This car is no super money saver. Sure, you spend less on gas...after you plump $500 for an outlet or more if you want a charger. And yes, there is definitely less maintenance but it’s certainly not nothing.

 

[NeverFollow]

Our current car costs $330/mo, but it lacks aircondition, drive comfort and has broken down twice in the middle of the road in the last three years.
The clutch needs to be changed at some point as well, which costs +$500.

You drive a manual car, not so common! I have a 1987 GTI with 400k miles, I wonder what car you have?

I think the additional $570/mo is worth it for driving a brand new car, compared to our car from 2002.

Does this sound way off?

If you can afford, don't hesitate. I could have bought a new compact car for half of the price and this would have been fine.

But after driving a Model 3 and tested the Enhanced Auto Pilot, I realized how different and advanced this car was.

I'm not too much into luxury cars or cars of this category of price.

However it was the only car of any type that I continually come back to my mind.

And honestly, it really stands out when I parked it among other cars.

 

[MGMX]

If low cost of ownership is your prime directive, get a leaf or a prius. M3 is a great car but it's nowhere near the cheap end of the cost of ownership scale.

I have considered looking at the Leaf as well, as the price is $49K for the version with the bells and whistles. That doesn't include the financing, but it is something to consider.
The reason I made my post, was because I haven't had any other car than our current beat up car, which costs next to nothing - unless it breaks down.

The loan cost at $600/mo seems really low. That's seems to be a 10 year loan, and that's a really long loan on an automobile. At that rate, is seems as if your loan will be upside down until, well, always.

It is a 8 year loan, with a fixed interest rate of 2.64% a year. It is pretty common here to take the longer 8 year loan, even when buying cheaper cars.

It appears you are coming from a very basic car, so the base model at about $60K would still be a big step up cutting your down payment significantly. Maybe your power is a LOT more as mine is $.095/kWh so your charging costs seem double what I pay, which is helped out more by my solar. Your maintenance seems high as well as my Roadster has average $60/month over the last 8 years and the Model 3 should be a good bit less money than the Roadster. Finally your insurance is a lot higher as well as our model 3 (base not performance) is $50/month. Maybe rural USA is a lot lower cost of living than Denmark.

I have considered ditching the enhanced auto-pilot for the time being and then saving up (and paying the extra) for it to be enabled later.
Indeed power costs a lot more here. On average we are paying $.34/kWh, where most of it is fees and taxes.
As for the insurance, it is indeed high. To insure a new Nissan Leaf, you are looking at $90/mo - and that doesn't cover any cracks in the windshield and is from an insurance company I have never heard about.

Depreciation is divided over the life of an asset (or IRS required time period) to account for timing differences between revenue and cost. It’s an accounting measure that has no cash value. When creating statements of cash flow we add depreciation back.

The 3 is great. You’ve added up the monthly costs which tells you monthly costs. The 3 gets appx 4.1 miles/kWh (310m/75kwh). If you drive 1000 miles/month the $88 equals $0.088/mile. If you drive 100 miles it’s $0.88/mile. The same math can apply to the loan, insurance, etc. Look at Tesla maintenance schedule to estimate costs, estimate tires and brakes and divide those over the miles estimated in time period you plan to keep the car (e.g. 5 years, 10 years).

Do the same calculations for your ICE. Compare the per mileage cost. Mine was $0.03/mile compared to $0.14/mile.

But it sounds like you want a new car and you’ve figured out you can swing the monthly costs. Enjoy your car!

Ah, that's actually a good idea that I didn't consider! I will do that, thanks

You drive a manual car, not so common! I have a 1987 GTI with 400k miles, I wonder what car you have?



If you can afford, don't hesitate. I could have bought a new compact car for half of the price and this would have been fine.

But after driving a Model 3 and tested the Enhanced Auto Pilot, I realized how different and advanced this car was.

I'm not too much into luxury cars or cars of this category of price.

However it was the only car of any type that I continually come back to my mind.

And honestly, it really stands out when I parked it among other cars.

I drive a Peugeot 206 from 2002. It reached 137K miles earlier this year (We have had it for the last 4 years).
Quite an impressive GTI you have, I know cars from Germany are well regarded for their endurance, but wow!

But I am glad to know, that I ain't the only one who's a bit nervous about throwing down that kind of money for a car.

 

[Needsdecaf]

Being nervous spending this kind of money on a car is good. Even when you can afford it, it means you are thinking about it. My last two cars I bought were both more expensive than this....and I still debated it forever.

 

[NeverFollow]

I drive a Peugeot 206 from 2002. It reached 137K miles earlier this year (We have had it for the last 4 years).

If you have the space to park two cars, may be try to keep your Peugeot.
You will not get any money for it, and it will only cost you the car insurance.
If you have to use an L2 charger, it would take few hours to get a full charge,
so having a second car can be practical is the L2 charger is not at a walking distance from your home.
I did that few time before installing a 240 V 30 A plug in the garage of my apartment building.

 

[ivan801]

In regards to charging, I would do a "dry run": pretend that your gas car is Model 3 and park it by the L2 charger. Only put enough gas in it to drive 300 miles. See how it goes. If after a month you are still OK with this process, then you are ready for an EV. If, on the other hand, you are hating life, consider something else. Either way, 206 has got to go :0 I had a rental 206 in Chile one time, and it overheated on me. Was stuck on a side of a road for a while, so I feel your pain.