Key Takeaways
- The Tesla Model 3 is identified as the most affordable car to run in the United States, according to Self Financial’s study.
- The Model 3 boasts the lowest annual energy costs of $636, which is significantly below the study average.
- Maintenance costs for the Model 3 are the lowest in the study, at $1,143 annually.
- Despite its affordability in other areas, the Model 3 ranks high in insurance costs at $2,241 per year.
- The Tesla Model Y also ranks well, being the 7th most affordable car based on its annual running costs.
- The study highlights fuel as the highest cost component among running expenses, averaging 34.8% of total annual costs.
- Hyundai Elantra, though more budget-friendly, follows the Model 3 in affordability for running costs in the study.
When it comes to owning a car, one of the most pressing concerns for American households is the cost of running their vehicle. In the recent study conducted by Self Financial, the Tesla Model 3 has emerged as the most affordable car to run in the United States. This revelation raises intriguing questions about the economics of electric vehicles and their competitors in the market.
Understanding the Costs Behind the Tesla Model 3
Annual Energy Costs
One of the standout features of the Tesla Model 3 is its impressively low annual energy cost of $636. This figure is substantially lower than the study’s average, indicating the potential savings electric vehicles offer when compared to traditional gasoline counterparts. The efficiency of electric powertrains plays a crucial role in reducing fuel expenses, positioning the Model 3 as a cost-effective option for environmentally-conscious consumers.

Maintenance and Upkeep
Beyond energy expenses, maintenance costs also play a critical role in determining a vehicle’s affordability. The Tesla Model 3 leads the pack with the lowest annual maintenance cost of $1,143. This reduction is attributed to fewer moving parts in electric vehicles, which means lower chances of mechanical failure and reduced servicing requirements.
However, it’s essential to note that while routine maintenance might be lower, certain repairs and replacement parts for Teslas can be pricey due to the specialized technology involved.
Insurance Considerations
Despite its economic advantage in energy and maintenance, the Model 3’s insurance costs present a more complicated picture at $2,241 per year. This high rate can be attributed to several factors, including the high cost of repairs for the vehicle’s sophisticated technologies and the relative novelty of widespread electric car adoption. As insurers better understand and adjust to the risks involved in covering electric vehicles, this area may become more favorable over time.
Comparing with Other Market Players
Tesla Model Y
Not far behind its sibling, the Tesla Model Y ranks as the 7th most affordable vehicle based on running costs. While slightly more costly to maintain than the Model 3, the Model Y offers a blend of affordable energy use and moderate maintenance costs, further reinforcing Tesla’s position in the affordable EV market.
The Hyundai Elantra Element
For those considering a gasoline-powered alternative, the Hyundai Elantra remains a competitive choice. With reasonable fuel and maintenance costs, it acts as a benchmark in cost-efficiency for internal combustion engine vehicles. However, compared to the Tesla Model 3’s efficiency, the Elantra’s annual running expenses are notably higher—a testament to the growing advantages of electric cars.
Broader Implications for the U.S. Automotive Market
- Fuel Costs as a Major Expense
- The study highlights fuel as the most significant running cost for vehicles, making up 34.8% of total annual expenses. This insight underscores the financial benefit of transitioning to electric vehicles, which avoid volatile fuel price fluctuations.
- The EV Advantage in Running Costs
- Electric vehicles appear to be a more economical choice in the long run. As battery technologies advance and production scales increase, the cost-effectiveness of EVs is likely to improve, paving the way for broader adoption.
The Tesla Model 3’s recognition as the most affordable car to run in the United States is a promising sign for the electric vehicle market. With its low energy consumption, reduced maintenance needs, and advancing insurance favorability, it raises the bar for what consumers can expect from their vehicles. As the automotive landscape continues to evolve, Tesla and other electric vehicle manufacturers are likely to push the boundaries of affordability and sustainability, making electric vehicles an attractive choice for more drivers.