Trading in Your Honda Accord for a Tesla
Imagine you’ve recently finished paying off your 2017 Honda Accord, and you’re relishing the feeling of not having a monthly car payment—until you consider the frequent stops at the gas station that strain your wallet. Upgrading to an electric vehicle like the base Model 3 Tesla could be the cost-effective solution you’re looking for.
You could start by trading in your Honda Accord for $11,365 and taking advantage of the $7,500 federal tax credit for electric vehicles (EVs). Funding the tax credit portion through a credit card balance transfer to Tesla might be an option, with the plan to repay it after getting your tax returns in about six months. Then, by financing the residual amount of approximately $19,000 through a 7-year loan with a credit union, your monthly installments could be roughly $300—a small price for a considerable upgrade.
The Financial Perks of EV Ownership
An initial glance at the $300 monthly payment might suggest additional costs, but the real financial benefits lie in the fuel savings and lower maintenance expenses of an electric car compared to its gas-powered counterparts. With projected yearly fuel savings of $2,350 (or $196 per month), and notable reductions in repair and maintenance costs as shown in comprehensive studies like those from Consumer Reports, the overall savings for someone driving 24,000 miles annually are substantial. Over the first two years, this could mean an average of $330 in monthly savings, potentially covering your car payment.
Furthermore, investing in a Tesla Model 3 presents long-term value. Not only do EVs like the Model 3 have impressive lifespan expectations, but they also retain their worth much better than older, conventional vehicles, leading to equity build-up without increasing your monthly expenditures.
Switching From a Leased Nissan Altima to a Tesla Lease
For those who prefer leasing over buying, consider taking over an existing Tesla lease. Assuming a 12,000-mile annual cap—that’s 1,000 miles per month—the monthly cost difference is negligible. Fuel, maintenance, and repair savings of about $165 a month easily eclipse the trivial $23 uptick in leasing expenses.
If you’re pondering a fresh lease, the rate for a new Tesla Model 3 lease would be higher, yet still competitive, especially when compared to well-equipped versions of other market contenders—all while offering a bevy of safety features, zero emissions, and exceptional performance.
Final Verdict on EV Upgrade
Regardless of whether you purchase or lease your vehicles, Tesla Model 3 emerges as an excellent, affordable option in the current market. The anticipated immediate savings on fuel, repairs, and maintenance transform it into a financially savvy choice, particularly for high-mileage drivers. This is even truer in states with additional EV incentives, making the switch from a fully paid-off older vehicle to a fresh Tesla Model 3 seemingly cost-free in terms of monthly expenses.
While the final valuation of a seven-year-old Honda Accord against a 2023 Tesla Model 3 wasn’t calculated in this article, the differences could be striking—the Tesla’s higher residual value easily outstripping that of the Honda after equivalent use.
Additional Resources and Disclosures
For those interested in an exhaustive breakdown of ownership costs, further reading is available in other detailed articles. And if you’re considering tapping into a Tesla referral link for Reward Credits, you can use this code: https://ts.la/paul92237. However, if someone else has been of great assistance, their referral link should take precedence.
Disclosure: The author holds shares in Tesla [TSLA], BYD [BYDDY], Nio [NIO], XPeng [XPEV], Hertz [HTZ], and several ARK ETFs. This is for informational purposes only and not intended as investment advice.
