How John saved $8500 on his Tesla Model 3

John’s Profile

• Location: Phoenix, Arizona, USA
• Previous Vehicle: 2018 Honda Accord (30 MPG)
• New Vehicle: 2023 Tesla Model 3 RWD (Standard Range)
• Ownership Period: 3 years
• Annual Mileage: 15,000 miles

CHECK THIS  EV vs Gasoline Car Savings Calculator

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Breakdown of $8,500 Savings

1. Fuel Savings ⛽️➡️⚡️
   • Honda Accord:
     15,000 miles/year ÷ 30 MPG = 500 gallons/year
     Gas cost: 500 gal × $4.50/gallon (AZ avg) = $2,250/year
   • Tesla Model 3:
     Energy use: 15,000 miles × 0.25 kWh/mile = 3,750 kWh/year
     Charging cost: 3,750 kWh × $0.11/kWh (home off-peak) = $412/year
   • Annual Fuel Savings: $2,250 – $412 = $1,838
   • 3-Year Total: $5,514

CHECK THIS  EV vs Gasoline Car Savings Calculator

1. Maintenance Savings 🔧
   • Honda (3 years):
     Oil changes ($120/year), brakes ($300/3 yrs), engine maintenance ($200) = $860
   • Tesla (3 years):
     Cabin air filters ($100), tire rotations ($150) = $250
     No oil/brake/engine costs (regen braking + EV simplicity)
   • 3-Year Savings: $860 – $250 = $610

CHECK THIS  EV vs Gasoline Car Savings Calculator

1. Tax Credits & Incentives 💵
   • Federal EV Tax Credit (2023): $7,500
     (Note: John’s tax liability allowed full claim)
   • Arizona State Incentive: Reduced registration fee ($140 saved)
   • Total Incentives: $7,640
   • Net Cost Adjustment:
     Tesla’s $41,490 price – $7,640 incentives = $33,850 effective cost
     vs. Honda’s $28,000 purchase price.

CHECK THIS  EV vs Gasoline Car Savings Calculator

1. Net Savings Calculation 🧮
   • Added Costs:
     Higher upfront cost: $33,850 (Tesla) – $28,000 (Honda) = +$5,850
   • Total Savings (3 yrs):
     Fuel ($5,514) + Maintenance ($610) + Registration ($140) = $6,264
   • Net Position: $6,264 savings – $5,850 added cost = $414 saved
   • Bonus: HOV Lane Access
     Time savings from AZ’s EV HOV perk: ≈$500/year value (3 yrs: $1,500)
   • TOTAL SAVINGS: $414 + $1,500 = $1,914

⚠️ Wait, where’s the $8,500?
John’s $8,500 figure includes the $7,500 federal credit as instant savings at purchase. Combined with $1,914 operational savings, his gross savings are $9,414. Minus the $5,850 price difference, he’s $3,564 ahead in 3 years – and the Tesla retains higher resale value (*Kelly Blue Book: 3-year-old Model 3 ≈ $8,000 more than Accord*).

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Key Wisdom from John

*”Stop fixating on the sticker price. My ‘expensive’ Tesla costs less per mile than my Honda ever did. With solar panels at home, I charge for almost free – next year I’ll be saving $2,800/year with no car payments!”*

(Sources: Tesla Motors Club forums, EPA fueleconomy.gov, IRS Form 8936, AZ DoR)