I remember the first time I seriously compared the cost of a Tesla Model 3 with a petrol car: the headlines made EVs sound cheaper, my friends told stories about low running costs, and yet the sticker price pushed me to pause. If you’re asking “What will it really cost me to own a Model 3 in my city?” — you’re not alone. Here’s how I walk through the numbers, the small print, and the practical choices so you can make a real, local comparison.
Start with the framework: total cost of ownership (TCO)
When I calculate ownership costs, I use a simple framework: purchase + ongoing costs + one-time adjustments — all measured over a clear time horizon (usually 3, 5, or 7 years). That gives a Total Cost of Ownership (TCO). For city comparisons, the keys to localising are energy/fuel price, local taxes and incentives, insurance rates, parking and congestion charges, and how much driving you actually do.
Which inputs you need (and where to find them)
Gather these local figures before you start plugging numbers in:
Sources: your local transport authority, national statistics, EV owner forums in your city, insurance comparison sites, and dealer quotes. I usually keep a small spreadsheet where I slot in these numbers and can quickly change the city-specific inputs.
How I calculate each cost component
I break the TCO into straightforward line items. Below I explain the calculations and assumptions I use.
- Petrol cost per year = (annual miles / mpg) * price per litre (adjust units if necessary).
- EV cost per year = (annual miles / miles per kWh) * price per kWh.
For the Model 3, I use an efficiency around 4–5 miles per kWh (city vs mixed driving varies). For a petrol car, check the real-world mpg rather than the theoretical figure.
EVs typically have fewer moving parts (no oil changes, simpler drive trains), but you should include tyre replacement, brake fluid or occasional battery checks, and software/connected services. For petrol cars include scheduled services, timing belt if applicable, exhaust and gearbox repairs over time.
Use local quotes. Insurance for EVs can be higher because of repair costs and specialised parts, but sometimes lower if the car has strong safety ratings. I average 3–5 quotes to avoid outliers.
Estimate resale value after your ownership period. Model 3 depreciation has varied by market. EVs can retain value well in cities with strong demand, but battery concerns or market shifts affect this. I like to test two scenarios: conservative and optimistic resale.
Include congestion charges, low-emission zone fines (or exemptions for EVs), parking discounts or permit costs, and any free charging or dedicated EV parking your city offers.
If you can charge at home, factor in the cost of installing a wallbox (e.g., £500–£1,500 in the UK, varying by electrician). If you rely on public chargers, add the time cost and higher per-kWh pricing. I also include occasional fast-charge sessions because they cost more.
Example: quick TCO comparison for London (5-year horizon)
To make this concrete, here’s an example I ran using approximate UK/London numbers. You should replace these with your city’s values.
| Tesla Model 3 (Long Range estimated) | Petrol hatchback (mid-range) | |
|---|---|---|
| Purchase price (net) | £45,000 | £20,000 |
| Incentives | £0 | £0 |
| Annual miles | 10,000 | 10,000 |
| Energy/Fuel cost per year | 10,000 mi ÷ 4.5 mi/kWh ≈ 2,222 kWh × £0.30 ≈ £667 | 10,000 mi ÷ 40 mpg ≈ 909 litres × £1.60 ≈ £1,454 |
| Insurance per year | £900 | £700 |
| Maintenance per year | £300 | £600 |
| Parking/congestion & permits per year | £200 (congestion exemption) | £800 |
| Home charger installation (one-time) | £800 | £0 |
| Depreciation after 5 years | £45,000 → £25,000 (loss £20,000) | £20,000 → £8,000 (loss £12,000) |
| Total 5-year cost (approx) | £45,000 - £25,000 + (5×(£667+£900+£300)+£800) ≈ £24,335 | £20,000 - £8,000 + (5×(£1,454+£700+£600)+£0) ≈ £30,270 |
In this illustrative London scenario I ran, the Model 3 becomes cheaper over five years despite the higher purchase price because of lower energy and running costs and congestion/parking savings. Your numbers will vary — especially if you drive less, if electricity is expensive, or if local incentives change.
Practical tips I use when doing this for my city
How to adapt this for your city right now
Open a simple spreadsheet with columns for each cost component. Plug in your city’s petrol price, household electricity tariff (use off-peak if you plan to charge overnight), local insurance quotes, and parking/congestion rules. Use two car rows (Model 3 vs your petrol benchmark) and compare totals for your chosen timeline.
If you’d like, tell me your city, approximate annual mileage, and whether you can install a home charger, and I’ll run a tailored example with local numbers and realistic assumptions. I usually find that once you see the TCO laid out clearly, the decision becomes less about hype and more about what suits your daily life and wallet.
