EVs are expensive initially. Do the savings offset the upfront costs enough to make them affordable?

If you're considering buying your first electric vehicle, you probably have some reservations. Tesla is becoming hard to ignore since it's all over the news these days. While the U.S. automaker's cars are arguably nice to look at, incredible performers, and packed with high-tech features, you may find it difficult to justify taking ownership of a car like the Tesla Model 3 without doing plenty of homework. Perhaps a less expensive EV is a better option? Or, a practical and reliable gas car?

Electric cars are certainly growing in popularity, but they still haven't really caught on, especially in terms of sales in the United States. Tesla outsells all other automakers on our shores when it comes to EVs. However, even the hugely popular Model 3 doesn't sell at anywhere near the volume of top-selling vehicles in the U.S.

Part of the reason EVs aren't selling very well is it's a new technology and people are skeptical. In addition, there just aren't that many options available yet. Perhaps the primary concern, though, is that electric cars are expensive. For many car buyers, it's hard to focus on the long-term savings over the initial purchase price. This is especially true as our economy heads into extremely tough times.

Tesla Model 3 owner and YouTuber Evan Michiels does the math for us to let us know how much it has cost him to own his car. He tracks purchase price, financing rate, charging cost, insurance, and maintenance. Michiels also includes his tax credit, which you can no longer get if you buy a Tesla. However, there are a handful of compelling EVs on the market today that still qualify for the full $7,500 U.S. federal EV tax credit. Some states also have tax rebates over and above the federal credit.

Check out the video and let us know what you think. Are you saving money by driving an EV?

Video Description via Evan Michiels on YouTube:

Tesla Model 3 | TRUE Cost of Ownership | Price, Insurance, Maintenance, Car Loan...

I’m going to tell you the true cost of owing my tesla model 3 and why I think it is still the best purchase I have ever made. My name is Evan and if you’re new here welcome! If not, welcome back!

1. Price to Purchase.
2. Tax Credit
3. How much it Costs to Charge
4. Depreciation
5. Insurance
6. Maintenance
7. Tires
8. Car Loan Rates
9. Home Charging Installation Cost
10. Tesla Supercharger Cost

To start off I purchased my tesla model 3 mid-range back in December of 2018. The purchase process was flawless and with a few simple clicks I purchased my first electric car online with a small deposit on my credit card. 3 months later I was notified that my model 3 was ready to be picked up at my local tesla facility. With all the customizations I have added to my tesla including the white interior package, the silver metallic exterior paint color and the 19” sport wheels the total came to a whopping $49,000. This does not even include the destination and documentation fee which added another $1,200 dollars and we also have to add local sales tax along with registration and titling fees adding another $1,739 dollars. Giving me a final grand total of $51,939 for my brand-new tesla model 3 midrange. Now keep in mind the added sales tax and registration fees will vary based on your state of purchase. This was my total based on my state of residence in her in North Carolina. By far this is the most expensive car I have ever purchased but let me tell you how I did not end up paying the full price of $51,939. Back in December of 2018 the $7,500 tax credit was about to be cut in half to $3,750. This being the reason I wanted to purchase the car before the expiration of this tax credit. So, when I took deliver during this time frame I fully qualified for this large tax credit bringing my total tesla model 3 purchase price down to $44,439. While this is still a large sum of money for any vehicle in my opinion, there are a few more incentives as to why the tesla model 3 is still cheaper to own over the long term.