Are Tesla’s Good Investments? What You Need to Know
Many more drivers want to purchase a Tesla car than ever before, and it’s easy to know why- they are among the highest quality cars on the market. If you’re considering purchasing a Tesla car, it’s natural to wonder whether it’ll be a good investment. We’ll use the term “investment” loosely in this post, as cars are typically depreciating liabilities. Out of all the vehicles out around, only a relatively small handful appreciate, and those usually require very limited usage. Rack up the miles and you’ll likely get back into depreciation. When purchased by a consumer, vehicles are a consumption and not an investment. With that out of the way, let’s take a look at how Tesla can be cheaper over the total cost of ownership. Some people might quickly dismiss purchasing a Tesla from the initial sticker price. However, well informed buyers will dive deeper than the initial purchase price and look at the total cost of ownership. This also includes resell value. There’s people out there think these are six figure vehicles. While you can certainly get into that price point with options on the Tesla Model S and X, the Model 3 starts out under $38,000. The total cost of ownership of an entry level Model 3 is expected to actually be cheaper than a sub $21K Honda Civic over 5 years. We’ll cover these topics and more. Benefits of Tesla Ownership Tesla cars are great investments for many reasons, including: Lower depreciation over time Generous warranties Superior handling and overall performance Great range (300+ miles on most models)* on one charge Top of the line specs that matter Highest Rated Safety Lower Operating and Maintenance Costs Possible RoboTaxi Income *The Model 3 Standard Range Plus has 263 miles per charge, however the Long Range and Performance are well over 300. Tesla cars regularly beat out competitors in reliability, range, overall quality, and more. If you want to know more about why tesla cars are great investments, keep on reading. Tesla Cars are Incredible Investments Every single car depreciates the moment that you drive off of the lot, and Tesla cars are no exception. But if you are going to invest in a car, you should invest in the best of the best. Tesla cars are fantastic investments, as they shine in categories like safety and performance and do not depreciate as quickly as their counterparts. The following sections will go into the benefits of Tesla cars in detail. Depreciation Over Time While many cars depreciate fairly quickly and aren’t able to be resold for a good price, Tesla’s are found to hold their value really well. For instance, according to electric cars expert Simon Alvarez, the Tesla Model 3 holds its value several times better than comparable electric vehicles. It is believed that Tesla’s are great financial investments because their remote software updates help to keep them in good shape. In addition to that, some of these updates improve the overall performance of the cars over time. So, if you purchase a Tesla, you can rest assured that there won’t be a ton of depreciation over time. Teslas Come with Generous Warranties Another way to know if a car is a good investment is if it has a generous warranty. For new Tesla vehicles, you can expect a limited warranty that’ll last for either four years or 50,000 miles. The vehicles are also covered by a battery and drive warranty for 8 years. The warranties will cover either the repair or replacement needed to correct defects in Tesla products that occur with normal, reasonable use. Used Tesla Warranties Used Tesla vehicle warranties are not as long-lived. After the first 4-year warranty has expired, an additional year (or 10,000 miles) of coverage is available. Remote Repairs If something goes wrong with the vehicle, Tesla may be able to fix your car remotely using their computer system. If the problem cannot be rectified remotely, you can go elsewhere to get the repair done. However, your warranty could possibly be voided if you don’t go to a Tesla repair center. You can read more about Tesla’s warranties on their vehicle warranty page. Tesla Prices Are Somewhat Moderate What many don’t know about Tesla vehicles is that they are modestly priced. With all of the fancy specs, safety features, and their reputation for luxury and innovation, people would expect Tesla cars to start at a sky-high price. Below are all of the starting prices of the new Tesla vehicles on the market today (at the time of this article): Tesla Model S $69,420 Tesla Model 3 $37,990 Tesla Model X $79,990 Tesla Model Y $49,990 These prices are subject to change and increase based on the specific car’s specs. If you go with a base model, you can keep your cost down while still enjoying the superior safety and performance that we have come to expect from a Tesla. If you want a used car, you can snag a gorgeous Tesla vehicle for less than $40,000. Tesla’s Are Designed to Be Good Investments Tesla thought of everything when designing these cars, and this is not an exaggeration. This next section will focus on the intricate details that propel Teslas to the very top. Tesla’s Are Undeniably Safe Tesla cars are among the safest cars that you’ll find on the market, and this comes down to its design. While there are many different types of Tesla vehicles, you can rest assured that all of them were created with safety first. The Tesla Model 3 is made of both aluminum and steel, two metals that combine to create a very sturdy structure. It is stated on their website that this particular model can withstand the weight of 2 adult elephants! Tesla’s Model S is not only built with super-strong metals, but it also features a floor-mounted battery for maximum safety in a collision. It has a 5-star safety rating per the Tesla website. The Model X stands out when it comes
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