Teslas are the newest, spiffiest electric vehicles on the block. The first models were priced as luxury vehicles, but Elon Musk promised to make an EV affordable for most Americans by rolling out the Model 3 at an advertised price below $35,000. There is more to the price, however, as weâll explain.
Muskâs fancier models will cost you a pretty penny â up to $250,000 â along with Teslaâs upgrades. Availability and price depend on the model and the trim you choose. For the whole picture, keep reading.
In order of price, Tesla offers five consumer car models: 3, S, X, Y and the upcoming second-generation Roadster, which you can reserve now. It speaks to company founder Elon Muskâs sense of humor that if you put the first models in the order they were produced you get âS3XY.â
*Itâs important to note that the advertised prices donât include a $1,200 destination and document fee, and they do include a $1,875 federal tax incentive and an estimated savings in gas over six years. Neither price includes taxes or registration fees.
Time ran out on the full $7,500 federal tax credit that was available to the first 200,000 new Tesla owners. Customers who have their Teslas delivered from July 1 to Dec, 31, 2019 get a fourth of the tax credit amount, $1,875. In 2020, there is no scheduled tax credit.
The good news? There are state tax credits you may be able to use for your new Tesla. The following states and Washington D.C. offer incentives like tax credits, tax exemptions and reduced rates for EV charging: Arizona, California, Connecticut, Colorado, Delaware, Hawaii, Louisiana, Maryland, Massachusetts, Nevada, New Jersey, New York and Pennsylvania.
The Model 3 is Teslaâs least expensive car. You may be able to drive away in one for a minimum of $41,100. If that amount surprises you, then you know the Model 3 is often highlighted as costing less than $35,000. So why the discrepancy?
The quoted $33,725 price tag is after estimated savings, including the $1,875 tax credit and the fuel savings you would have over six years if you owned a gasoline-powered car. Add those back in and you get to the sticker price of $39,900. Then, tack on Teslaâs standard $1,200 delivery and document fee to get a price of $41,100, not including tax and registration fees.
The sticker price for the Standard Range AWD of a Model S is $75,000. For a greater driving range by about 76 miles, the Long Range AWD trim comes in at a $85,000 sticker price. And for a greater performance, the Performance AWD goes from zero to 60 in 2.5 seconds, a 64% faster acceleration for $11,000 more than the Long Range AWD.
While models 3 and S are sedans, the Model X is an SUV crossover with optional third-row seating. The lowest trim, the Standard Range AWD, has an $81,000 sticker price. The next trim up, the Long Range AWD has a sticker price of $91,000 and will get you 58 miles more in driving range. The top trim Performance AWD for $102,000 will get you from zero to 60 mph in 2.9 seconds, instead of 4.7 seconds that the Long Range AWD achieves.
A smaller crossover than Model X, Model Y doesnât have a Standard Range option. Its least expensive trim is the Long Range at a price of $48,000. The Long Range AWD is $52,000 and the Performance AWD is $61,000.
The most expensive Tesla model is the second-generation Roadster. A Founders Series Roadster is $250,000; although you could get a base Roadster for $200,000. Given the $50,000 price difference between the Founders Series Roadster and the base Roadster, which is enough to buy a whole other Tesla, the Founders Series Roadster has got to offer something special â and it does. You can go from zero to 60 in 1.9 seconds and from zero to 100 in 4.2 seconds, which is pretty dang quick acceleration.
Most car brands let you negotiate on prices. We even wrote about how to negotiate a car price. With Tesla, however, there is no price negotiation. James Wolf, a senior engineer at LendingTree, the parent company of MagnifyMoney, bought his Model 3 in October 2018. He explained, âThere is no negotiation when it comes to the price, only your options [can] adjust the price.â
There are no back-and-forth, tit for tat price negotiations on a new Tesla. The price is the price, take it or leave it. The only negotiation on a new Tesla is the one you may have with yourself and your budget: there are plenty of drool-worthy option upgrades, the cheapest of which adds a cool $1,000 to the price tag. More on that later.
As with any car purchase, there will be unavoidable fees and some enticing options you could add to the vehicle. Both will increase the final price.
Can you avoid the destination and document fees?
No. Of the $1,200 fee, $1,000 is the delivery fee, which is charged in the U.S. and Canada regardless of delivery method or location, even if you pick it up hot from the factory floor. Why? Itâs government-mandated. The delivery fee, also known as the destination charge, has to be separate from the MSRP and clearly disclosed. The remaining $200 is the document fee.
How much do options cost?
The least expensive upgrade is getting a black and white interior in a Model 3, rather than the all black. The most expensive is adding autopilot after you buy the car for $7,000, instead of ordering it for $5,000 when you get the car new.
**For Models S and X the interior options of Black and White, and Cream are available for purchase on the two lower trims only. The Black and White option is available for no up-charge on the top trim, but the Cream is not available on the top trim.
Property tax. Vehicle property tax depends on your state and your county or city of residence. It varies pretty wildly, so check your stateâs Department of Motor Vehicles website for more information.
Sales tax. If youâre lucky enough to live in state without sales tax (Alaska, Delaware, Montana, Oregon, New Hampshire), you may not have to pay taxes on the carâs purchase.
For the rest of the country, state sales tax applies. You may also have local sales taxes to contend with. The highest average combined state and local sales tax rate is in Tennessee at 9.46% as of July 2018. The lowest is Alaska at 1.43%. And the average in California is 8.55%.
Is tax included in the final amount I pay for the Tesla? If you live in a state where Tesla has a sales license, the applicable taxes youâll have to pay will be included in your total. If you live in a state where Tesla does not have a sales license, taxes will not be included in the total, but you will have to pay them when you register the car in your state.
Do I have to pay California sales tax? If you pick the car up in California and you live in a different state where Tesla does not have a sales license, Tesla, by law, has to charge California sales tax. For further information on this, see a tax professional or talk to a Tesla representative.
Where does Tesla have a sales license? Tesla has a sales license to directly sell vehicles in about half of U.S. states. Different states have different automotive sales laws. You could see a thread on the Tesla Motors Club website with a map on Tesla sales licensure.
If youâre not paying cash, you may be able to get a loan through Tesla or another lender. It does not hurt your credit to apply to multiple lenders any more than it does to apply to one lender, as long as you do so within a 14-day window. Itâs always good idea to shop around for a car loan just as you would for the car itself â only talking to one lender is one of the common mistakes people make when they need an auto loan.
Tesla financing and leasing. Once you create a Tesla account, which you may do here, you can submit a credit application online and hear back from Tesla within 48 hours. Tesla financing is only available in these states: California, Colorado, Florida, Georgia, Hawaii, Illinois, Indiana, Maryland, Massachusetts, Minnesota, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Tennessee, Virginia and Washington.
Financing with your own lender. If you have your own lender, youâll need to provide the name of the lender, the exact dollar amount of the loan and the lenderâs address and phone number to Tesla. In turn, the lender will want the VIN, which you can find in your Tesla account.
Despite it being a relatively new car company, there are used Teslas available for sale. Some models are almost 10 years old, as the first generation Roadster came out in 2008. Itâs these older models that are the least expensive Teslas youâll find, priced in the upper $30,000 range. Tesla itself offers used models that passed a rigorous inspection and come with a warranty. You can also find used Teslas for sale off third-party car buying sites, such as AutoTempest and CarGurus.
Because they are used, you wonât have to pay the $1,000 destination fee, which only applies to new cars; unless, of course, youâre getting the car shipped to you specially. If you buy the car from a dealership rather than a private person, you will still face all of the typical dealer fees. And no matter how you buy the car, youâll need to pay the appropriate taxes.
The least expensive new Tesla will cost you $41,100 before taxes and before any available tax credits. You canât negotiate on the price of a Tesla, but you can pick and choose options that suit you. If youâd like to see what else is out there without leaving your couch, you could look at the best online car buying sites for 2018.
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