How To Afford a Tesla Electric Car

Car enthusiasts around the world have expressed their desire to own a Tesla EV, but not everyone can afford it.

Elon Musk has designed these cars to include unparalleled green technology, which gives it a steep market price.

However, there are other multiple ways one can afford to experience this futuristic automobile.

How Can You Afford a Tesla Electric Car?

The price of a brand-new Tesla electric car is significantly higher than most gas-powered vehicles. If an interested buyer cannot pay a Tesla EV’s purchase price, they have other ways to afford it.

Apart from worrying about the initial purchase price, Tesla electric car owners also look for ways to afford their EV’s maintenance and running costs.

The best ways to afford a Tesla include:

  • Purchasing a Used Tesla electric vehicle
  • Renting a Tesla electric car model for a limited period of time
  • Purchasing a Tesla electric car without a battery
  • Purchasing a Tesla electric car on a lease (either directly from the company or the bank)

Some of the common ways that can help a Tesla electric car owner afford the maintenance and running costs of a Tesla EV include:

  • Charging the Tesla electric car at home instead of at public DC supercharging stations
  • Driving your Tesla electric car a certain way to reduce battery usage and recharging costs
  • Avoiding certain routes and weathers that could affect a Tesla electric car’s charging needs

Continue reading the article below to learn in greater detail about what makes a Tesla electric car so expensive, and how an interested buyer can afford to own and experience a Tesla electric car.

How To Afford a Tesla Electric Car
How To Afford a Tesla Electric Car

Read How Long Will a Tesla Battery Last?

What Makes a Tesla Electric Car so Expensive?

The technology, electrical components, and research into designing an electric vehicle result in the high market price.

Tesla is the company that has pushed the boundaries of electric car technology to where it is today. Hence, a Tesla electric car carries a higher price tag than other vehicles.

More reasons for the higher price tag include:

  • Tesla electric cars come with green technology, modern design, and a great reputation.
  • The company spends millions of dollars on research and development to keep evolving to produce better electric car technology and offer greater performance efficiency.
  • Most Tesla electric vehicles offer a far higher range than other electric vehicles.
  • A Tesla electric car includes several features that significantly enhance a consumer’s driving experience.
  • The global demand for Tesla electric vehicles is higher than its global supply. As a result, the price keeps going up.
  • The lithium-ion battery power pack is one of its major price drivers, as these batteries are costly to develop and maintain.

Read What Happens if Your Tesla Runs Out of Battery?

Ways to Afford a Tesla Electric Car

Purchase a Used Tesla Electric Vehicle

Consumers around the world are able to afford a Tesla by buying one secondhand. Secondhand Tesla electric cars can be purchased from multiple different sources.

Some of the places that deal in used Tesla electric cars include:

Tesla’s Official Website or their Showrooms

Tesla has a section of their consumer website dedicated to selling used Tesla electric cars in great condition. A buyer can choose their preferred Tesla EV Model, select a Tesla according to the year of manufacturing, and browse the different prices available for sale.

The site gives the consumer an authentic and clear report regarding the condition, mileage, battery life, etc., of the used Tesla EV they are selling.

Finally, a consumer can contact a Tesla agent and book an appointment for a test drive. Once the consumer decides to pay for the Tesla, they can pay in cash or through third-party financing.

Tesla does not allow leasing or credit payments on their used electric vehicles.

Contacting a Tesla Owner Selling their EV

This method of buying a used Tesla gives a buyer the chance to directly contact the seller without a third-party mediator and go on a test drive whenever possible.

Visiting an Electric Car Showroom that has Used Tesla EVs

Many local electric car showrooms carry different Tesla electric vehicles, many of which are used. One can visit these showrooms and select an available used Tesla electric car of their choice.

Moreover, the price of a used Tesla will depend on multiple factors. Some of these factors include:

  • The used Tesla model and the year it was manufactured. Newer versions will have a higher resale price.
  • The Tesla electric car’s condition. This includes the state of the EV’s exterior body, interior, tires, etc.
  • The mileage. A used Tesla EV with lower mileage will have a higher market price.
  • The total remaining lifespan and the used Tesla electric car’s battery state. The lower the charge holding capacity and range of a Tesla EV’s battery, the lower the resale price will be.
  • If the former owner has spent money on adding some customizations or additional features to their EV, the EV’s resale price will be higher.

The table below demonstrates a comparison between the price of different new and used Tesla electric car models.

Tesla Electric Car ModelPrice of a New ModelPrice of a Used Model
Tesla Model S (Standard Range)94,990 USD30,000 USD
Tesla Model X (Long Range)119,900 USD115,000 USD
Tesla Model X (Standard Range)104,900 USD48,000 USD
Tesla Model 3 (Long Range)58,995 USD62,000 USD
Tesla Model 3 (Standard Range)44,990 USD32,000 USD

Read How Much To Wrap Tesla Model 3

Is Buying a Used Tesla Electric Car a Wise Decision?           

A Tesla electric car’s exterior body, interior, and electrical components are designed to have long-lasting durability.

Moreover, most electric and gas-powered vehicles tend to depreciate to half their value in just three years.

However, a Tesla electric vehicle can retain its quality and worth for much longer due to its slow depreciation rate, 35% in three years.

Hence, a secondhand Tesla does not come with compromised range and performance.

As a result, someone buying a used Tesla can experience the world of premium EV technology at an affordable price.

Renting a Tesla Electric Car

Renting a Tesla electric car is an extremely common way that allows a car enthusiast with a limited budget to experience what Tesla has to offer.

Although renting does not give a consumer the ownership of the Tesla electric car, it still gives them an excellent and affordable opportunity to enjoy driving one of these vehicles.

In general, the average rental fee per day in America for most Tesla electric cars is around 66 to 150 USD for simple sedans and 400 to 550 USD for luxurious SUVs.

However, the per-day rental fee of renting a Tesla electric car will vary according to multiple factors, such as the Tesla EV’s condition, average mileage, etc. However, the most important factor is the model and manufacturing date of the Tesla EV.

Different Tesla electric car models come at different market prices. The compact Tesla sedan models are significantly cheaper than the high-range luxurious SUVs Tesla offers. Just like the purchase price, the rental fee also varies with the model of the Tesla electric car.

The table below demonstrates the average per day rental fee in America for different Tesla electric car models, with the highest rental fee at the top and the cheapest at the bottom.

Tesla Model Being RentedAverage Per Day Rental Fee within America
Tesla Model X 225 to 235 USD
Tesla Model Y200 to 230 USD
Tesla Model S150 to 170 USD
Tesla Model 3120 to 135 USD

Moreover, the year of manufacturing will also affect the per-day rental fee of a Tesla electric car. A newer Tesla model variant will have a higher per-day rental fee than an older variant.

For instance, the rental fee for a Tesla Model 3 electric car manufactured in 2018 will approximately be around 108 USD per day. On the other hand, the same Tesla Model 3 electric car manufactured in 2021 will have a rental fee of 130 USD per day.

This is because newer versions come at a higher purchase price due to their many additional features and better performance efficiency compared to the older visions.

Read How to Reboot and Restart a Tesla Electric Vehicle’s Screen?

Purchasing a Tesla Electric Car Without a Battery

Selling Tesla electric cars without batteries was an idea initially coined by Elon Musk himself. However, he never went through with this plan.

Later on, in the year 2007, a small startup from Israel managed to work on Musk’s idea and successfully introduced the battery swapping concept in an attempt to make Tesla electric vehicles more affordable.

Today, countries like China have fully functional battery swapping stations that have allowed consumers to purchase a Tesla EV at almost half the original market price.

How to Make a Tesla Electric Car More Affordable
How to Make a Tesla Electric Car More Affordable

How Does the Battery Swapping System Work?

The concept behind the battery swapping system is very simple.

  • A Tesla electric vehicle owner who has purchased a cheaper, battery-less EV has to drive to the nearest battery swapping booth or station after their battery charging level has dropped below 20%.
  • On arrival, the trained mechanics available at the battery swapping stations will proceed to remove the depleted battery and will swap it with a same-sized, fully charged electric battery.
  • The Tesla EV owner then has to either pay the charges of battery swapping or can choose to pay a lump sum amount for a specific number of swaps.

Benefits of Using the Battery Swapping Method

  • Since the price of a Tesla battery makes for 30% to 50% of a Tesla EV’s market price, buying a battery-less Tesla means you pay almost half the original price. This price drop greatly increases the affordability of Tesla electric cars.
  • The entire battery swapping process usually takes less than ten minutes, whereas charging a Tesla at a supercharging station will take at least 20 to 30 minutes.

Downsides of the Battery Swapping Method

  • Not all Tesla electric vehicles can have their battery detached this easily. Hence, not all Tesla EVs can enjoy the quick battery swapping service.
  • Investing in and setting up a battery-swapping station is almost 7 to 10 times more expensive than installing a public supercharging station.
  • Since a battery swapping company has to buy multiple batteries in different sizes, the high capital investment makes this business extremely hard to set up.

Purchasing a Tesla Electric Car on Lease

To cater to their consumer’s needs, Tesla offers extremely convenient and affordable terms and conditions for leasing a Tesla electric car.

A consumer has to properly qualify and submit a credit application to apply for purchasing a Tesla electric car on monthly leases.

Click here to learn about the complete Tesla electric car leasing process.

Final Thoughts

Tesla is a brand known for its superior technology, unparalleled design, and excellent market reputation. However, it is also known for its extremely pricey electric vehicles.

Purchasing a brand-new Tesla electric car may seem like an impossible dream to many car enthusiasts; however, renting, leasing, and buying a used Tesla or battery-less Tesla are some great ways to enjoy this futuristic electric mobile.

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