You hear it at every backyard cookout: “Sure, Teslas are cool, but are they really cheaper than gas once you add everything up?” In 2025, with gas hovering around $3.10 a gallon and electricity averaging roughly 16–19¢ per kWh, the honest answer is: it depends what you buy, how much you drive, and what you pay for power, but the math usually tilts in Tesla’s favor, especially if you buy used.
What this guide will actually do
We’ll walk through real‑world numbers for energy, maintenance, insurance, depreciation, and financing, then run side‑by‑side scenarios for a Tesla Model 3 versus a similar gas sedan, plus what changes when you buy a used Tesla through a marketplace like Recharged.
Why “Tesla Cost of Ownership vs Gas” Matters Now
Comparing Tesla cost of ownership vs gas isn’t an academic exercise anymore; it’s a household budget question. AAA’s 2025 "Your Driving Costs" report pegs the average annual cost to own and operate a new vehicle at about $11,600, or roughly $965 per month, for 15,000 miles a year. Fuel is only one slice of that pie. Sticker price, depreciation, interest, insurance, and maintenance now matter more than ever, and that’s where Teslas quietly pull ahead, especially over five or more years.
Gas is cheap… for now
Gasoline as a share of household income is at a 20‑year low, with national prices projected around the low‑$3 per gallon range. That narrows the fuel savings gap for EVs in the short term, but it doesn’t erase them, and it doesn’t touch maintenance or resale value.
How Total Cost of Ownership Really Works
Forget dueling anecdotes. To compare a Tesla with a gas car, you need to look at Total Cost of Ownership (TCO) over several years, not just what you pay at signing. TCO typically includes:
- Purchase price (minus rebates or tax credits)
- Financing costs (interest over the life of the loan)
- Fuel or electricity
- Maintenance and repairs
- Insurance, registration, and taxes
- Depreciation – what the car is worth when you sell or trade it
The right way to think about cost
Instead of asking, “Is a Tesla cheaper than gas?” ask, “Over five years and 75,000 miles, which car costs me less per month, all‑in?” That’s the number that actually hits your bank account.
2024–2025 Energy Cost Snapshot (U.S. Averages)
Key Assumptions for Our Tesla vs Gas Cost Comparison
To keep this from turning into a spreadsheet hostage situation, we’ll use realistic but simple assumptions. You can fine‑tune them later for your own commute.
The Two Cars We’ll Compare
Think of these as well‑equipped daily drivers, not stripped rentals or top‑spec unicorns.
Tesla Model 3 RWD (New)
- Purchase price (out the door): ≈ $42,000
- Battery: ~60 kWh usable
- Efficiency: ~4 mi/kWh (mixed driving)
- Annual miles: 15,000
- Ownership horizon: 5 years / 75,000 miles
Gas Sedan – Toyota Camry / Honda Accord Class
- Purchase price (out the door): ≈ $34,000
- Fuel economy: ~32 mpg (mixed driving)
- Annual miles: 15,000
- Ownership horizon: 5 years / 75,000 miles
You can mentally substitute your favorite midsize: Camry, Accord, Sonata, etc.
Energy price assumptions
We’ll assume gasoline at $3.10/gal and home electricity at 17¢/kWh as a national average. If you live in a high‑cost electricity state like California, your personal break‑even shifts, we’ll talk about that later.
Fuel Costs: Tesla Electricity vs Gasoline
This is the part everyone argues about. Let’s run it straight.
Tesla Model 3: Electricity Cost
- Efficiency: ~4 mi/kWh
- Annual miles: 15,000
- Electricity price: $0.17/kWh at home
Annual kWh used: 15,000 ÷ 4 = 3,750 kWh.
Annual electricity cost: 3,750 × $0.17 ≈ $638/year.
Even if your all‑in rate is 20¢/kWh, you’re still at about $750/year.
Gas Sedan: Fuel Cost
- Fuel economy: ~32 mpg
- Annual miles: 15,000
- Gas price: $3.10/gal
Annual gallons used: 15,000 ÷ 32 ≈ 469 gallons.
Annual fuel cost: 469 × $3.10 ≈ $1,455/year.
Bump gas to $3.50/gal and you’re at ~$1,640/year.
Annual Fuel/Energy Cost – Tesla vs Gas
What about public fast charging?
Tesla Supercharging or third‑party DC fast charging can cost 2–3× home rates on a per‑mile basis. If you road‑trip constantly and almost never charge at home or work, your fuel‑cost advantage shrinks. For most owners who charge at home 70–90% of the time, the savings hold.
Maintenance and Repairs: Tesla vs Gas
This is where Teslas have an almost unfair advantage. No oil changes, no timing belts, no exhaust system, far fewer moving parts. You still have tires, brakes, suspension, cabin filters, but the expensive wear‑items of a combustion engine simply don’t exist.
Typical 5‑Year Maintenance & Repair Costs
Realistic ballpark numbers for mainstream ownership, not worst‑case horror stories.
Tesla Model 3 / Y
- Routine service: Tire rotations, cabin filters, brake fluid checks.
- Estimated 5‑year cost: ~$2,000–$2,500 for an average driver.
- Brake wear: Often minimal thanks to regenerative braking.
Battery and drive unit are typically covered by long warranties (often 8 years or 100k–120k miles).
Gas Midsize Sedan
- Routine service: Oil + filter changes, transmission service, spark plugs, air filters, fluids.
- Estimated 5‑year cost: ~$3,000–$4,000 if you follow the maintenance schedule.
- Potential repairs: Exhaust, fuel system, cooling system components.
Certain items (like CVT or turbo issues) can add thousands if they fail out of warranty.
The elephant in the garage: battery replacement
High‑voltage battery failure is the nightmare scenario people fixate on. In reality, most Teslas retain the majority of their battery capacity well past 100,000 miles, and warranty coverage is long. That said, out‑of‑warranty pack replacements can run into the five figures. This is exactly why Recharged puts every used EV through a Recharged Score battery health diagnostic, so you’re not guessing about pack condition.
Insurance, Taxes, and Fees
New Teslas typically cost more to insure than a mass‑market gas sedan, largely because of higher repair costs and expensive electronics. On the other hand, some states reduce registration fees or offer perks for EVs, while others have started adding EV‑specific road‑use fees to make up for lost gas‑tax revenue.
Insurance
- Tesla: Often $150–$400/year more than an equivalent gas sedan when new, depending on driver profile and region.
- Used Tesla: As the vehicle price drops, the insurance gap often narrows.
- Gas sedan: Benefit from cheaper body parts and a vast repair network.
Always quote both vehicles with the same coverage levels before you buy; local crash statistics and theft rates move the needle more than tribal internet wisdom.
Taxes and Fees
- Some states offer EV incentives or reduced registration fees.
- Others charge extra EV registration fees ($100–$300/year) to offset reduced gas‑tax revenue.
- Luxury or weight‑based taxes can bite if you spec a Tesla into the stratosphere.
When you do your own TCO, check your state’s DMV site for EV‑specific surcharges or rebates.
Depreciation and Resale Value
Depreciation, the slow leak of value over time, is usually the biggest single cost of owning any new car. Teslas famously held their value extremely well during the pandemic shortage years, then came back down to earth when Tesla started cutting new‑car prices and building inventory. Today, the picture is more normal, but still generally favorable compared with most gas cars.
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How Teslas Tend to Depreciate vs Gas Cars
Numbers vary by trim and market, but the pattern is consistent.
Early hit is bigger on new cars
Buy new and you’ll typically lose the first 20–30% of value in the first 3 years, regardless of powertrain. Price cuts from the manufacturer can accelerate this.
Used Teslas stabilize
By year 4–6, clean used Teslas with good battery health often hold value very well, especially popular trims like Model 3 and Model Y.
Gas sedans have more competition
The midsize gas segment is crowded. Heavy incentives and fleet sales can drag resale down faster than for high‑demand EVs.
If you want to beat depreciation, don’t buy the hype cycle. Buy the car <em>after</em> the TikTok wave and the showroom markup have left the building.
Where Recharged fits in
Because Recharged focuses on used EVs, you’re already skipping the steepest part of the depreciation curve. Add in a Recharged Score Report with verified battery health and fair‑market pricing, and you have most of the scary unknowns taken off the table before you click “Buy.”
5‑Year Cost Comparison Examples
Let’s put all of this together. These aren’t lab‑grade calculations; they’re realistic sketches to show how the money tends to flow over five years. We’ll look at an all‑new comparison, then a used‑Tesla vs new‑gas scenario.
Example 1: New Tesla Model 3 vs New Gas Sedan (5 Years / 75,000 Miles)
Rounded, illustrative numbers in today’s dollars. Your actual figures will vary with location, deals, and driving style.
| Cost Category | New Tesla Model 3 RWD | New Gas Midsize Sedan |
|---|---|---|
| Purchase price (out the door) | $42,000 | $34,000 |
| Estimated depreciation (5 yrs) | -$20,000 | -$16,000 |
| Net value lost (depreciation) | $20,000 | $16,000 |
| Fuel / electricity (5 yrs) | ≈$3,200 | ≈$7,300 |
| Maintenance & repairs (5 yrs) | ≈$2,300 | ≈$3,500 |
| Insurance delta (5 yrs) | +≈$1,500 vs gas | Baseline |
| Extra EV fees / gas tax | +$500 EV fees | $0 EV fees |
| Estimated 5‑yr total cost | ≈$28,000–$29,000 | ≈$26,800–$27,800 |
| Approx. cost per mile | 37–39¢/mi | 36–37¢/mi |
Fuel savings from a Tesla often offset much, but not always all, of the higher purchase price when both cars are bought new.
What that first comparison really says
When both cars are brand‑new and similarly priced, a Tesla’s lower fuel and maintenance costs largely offset its higher purchase price and insurance, bringing total 5‑year cost very close. Your local energy prices and incentives are often what tip the scale one way or the other.
Example 2: 3‑Year‑Old Used Tesla vs New Gas Sedan (5 Years Ahead)
Here’s where things get interesting: you buy a 3‑year‑old Tesla today and a friend buys a brand‑new gas sedan. You both keep the cars for 5 years.
| Cost Category | Used Tesla Model 3 (3 yrs old) | New Gas Midsize Sedan |
|---|---|---|
| Purchase price today | $28,000 | $34,000 |
| Value in 5 years | ≈$14,000 | ≈$18,000 |
| Depreciation over your ownership | $14,000 | $16,000 |
| Fuel / electricity (5 yrs) | ≈$3,200 | ≈$7,300 |
| Maintenance & repairs (5 yrs) | ≈$3,000 (older car) | ≈$3,500 |
| Insurance (5 yrs) | Similar to gas | Baseline |
| Extra EV fees / gas tax | +$500 EV fees | $0 EV fees |
| Estimated 5‑yr total cost | ≈$20,700 | ≈$26,800–$27,800 |
| Approx. cost per mile | 27–28¢/mi | 36–37¢/mi |
Buying a used Tesla after the steepest early depreciation often produces the lowest cost per mile, even against a brand‑new, efficient gas car.
The used‑Tesla sweet spot
Once you let someone else eat those first 2–3 years of depreciation, a well‑priced used Tesla with documented battery health can undercut a brand‑new gas car by thousands of dollars over a five‑year span, even with today’s relatively low gas prices.
When a Used Tesla Beats a New Gas Car
The crossover point, where a Tesla is clearly cheaper to own than a gas car, shows up fastest when you buy used and drive a normal or higher‑than‑average amount. In that world, a used Tesla isn’t a Silicon Valley gadget; it’s an appliance that prints savings quietly in your driveway.
Signs a Used Tesla Will Likely Beat a Gas Car on Cost
1. You drive at least 12,000–15,000 miles per year
The more you drive, the more you cash in on cheap electricity and low maintenance. Low‑mileage drivers still save, but the gap narrows.
2. You can charge at home or work
Home charging is the secret sauce. If 70–90% of your charging is at residential rates, you keep your cost per mile low and predictable.
3. You’re buying after the early depreciation hit
Shopping 2–5‑year‑old Teslas means someone else already paid for the hype years and price cuts. You get the tech without the sting.
4. You verify battery health up front
Battery condition is the biggest variable in used‑EV value. A <strong>Recharged Score Report</strong> gives you a quantified view of pack health before you commit.
5. You compare insurance quotes first
For some drivers and zip codes, insuring a Tesla and a gas sedan costs about the same. For others, it’s not even close. Always get quotes for both cars.
Non‑Financial Factors: Performance, Comfort, and Environment
Money isn’t the only axis that matters. People don’t buy Teslas just to save on gas; they buy them because they’re quick, quiet, and deeply modern. Likewise, people stick with gas for reasons that have nothing to do with spreadsheets, road‑trip familiarity, towing, long‑distance refueling convenience.
Tesla vs Gas: The Intangibles
What your accountant won’t capture, but your daily life will.
Performance & Driving Feel
Tesla: Instant torque, quiet cabin, one‑pedal driving. Even the "slow" ones feel quick.
Gas: More engine character and gear changes; some drivers prefer the mechanical feel.
Tech & Usability
Tesla: Seamless OTA updates, slick UI, integrated trip planning and charging.
Gas: More variance, from bare‑bones head units to excellent modern systems, but rarely as integrated.
Environmental Impact
Tesla: Zero tailpipe emissions, lower lifecycle CO₂ in most regions as the grid cleans up.
Gas: Mature infrastructure, but permanent reliance on fossil fuels and price swings.
Road‑trip reality check
If you routinely drive 500–700 miles in a single day through rural areas with sparse fast‑charging, a gas car can still be the most convenient tool. But charging networks, especially Tesla’s, now cover most major corridors, and route planners have gotten very good at making long trips painless.
How to Run the Numbers for Your Own Driveway
Every household is different. If you want a brutally honest answer for your situation, you’ll need to plug in your own numbers. Here’s a simple way to do it without recreating AAA’s entire research team.
DIY: 7 Steps to Compare Tesla Cost of Ownership vs Gas
1. Lock in your mileage
Write down how many miles you actually drive per year. Don’t guess, check service records, odometer photos, or telematics apps if you have them.
2. Find your real energy prices
Look at your last electric bill for the total price per kWh (including fees). For gas, use the state or metro average, or what you actually see at the pump.
3. Estimate fuel and electricity costs
For each car, divide annual miles by its efficiency (mpg or mi/kWh), then multiply by the price of gas or electricity. That gives you annual energy cost.
4. Add realistic maintenance estimates
Use manufacturer schedules as a starting point, then pad for wear items. EVs usually win here; high‑performance gas cars can lose by a lot.
5. Get real insurance quotes
Call or use online tools to quote both vehicles with the same driver and coverage levels. Don’t rely on generic “EVs cost more to insure” takes.
6. Think about resale horizon
How long will you actually keep the car? A 3‑year flipper has different math than a 10‑year keeper. Factor in typical resale values for that age.
7. Compare total 5‑year cost, not monthly payment
Monthly payment can hide a lot. Add fuel, insurance, maintenance, and depreciation to see the full picture, then decide which car earns its spot in your driveway.
Let someone else sweat the spreadsheets
If you’d rather not build a model from scratch, shopping for a used Tesla on Recharged bakes much of this work in. Battery health, fair‑market pricing, and expert EV guidance are rolled into the experience, so you can focus on whether the car fits your life, not your pivot tables.
FAQs: Tesla Cost of Ownership vs Gas
Frequently Asked Questions
Bottom Line: Is a Tesla Cheaper to Own Than a Gas Car?
If you’re looking at a brand‑new Tesla against a brand‑new, efficient gas sedan in 2025, the total cost of ownership over 5 years is often surprisingly close. The Tesla’s higher purchase price and insurance are mostly offset by lower fuel and maintenance. In that new‑vs‑new fight, your local gas and electricity prices, plus any state EV incentives, decide who wins by a nose.
But if you’re willing to shop in the used market and you drive a normal or high number of miles, a well‑bought used Tesla with verified battery health tends to pull ahead of comparable gas cars. That’s the quiet truth behind the “Tesla cost of ownership vs gas” debate: the spreadsheets favor the patient buyer who lets someone else eat the early depreciation, then enjoys years of low running costs.
If that sounds like your play, exploring used Teslas on Recharged is a sensible next step. You get transparent Recharged Score battery diagnostics, fair‑market pricing, nationwide delivery, and EV‑savvy guidance from first click to final signature, so you can spend less time arguing about gasoline on the internet and more time deciding which EV actually deserves your driveway.
