It takes into account depreciation, taxes, fuel, maintenance, and more. I published an analysis the other day showing the Tesla Model 3 undercutting the Toyota Camry on a 5 year cost of ownership. The video above dives into the total 5-year cost of ownership of the Tesla Model 3 and the Toyota Camry. Honda Accord Comparable 5 Year Cost to Own. If only buyers actually looked at a car's total cost of ownership, they may quickly learn that the car with the cheaper upfront price may not always be the one that's cheaper to own over time. The Camry is also a 'Recommended' car from Consumer Reports in this model year. With that said, if a buyer is comparing the base Model 3's ~$40K price to a car like the sub-$30,000 Toyota Camry, which is a very highly rated gas car that's also available as a hybrid, there's a good chance they'll "save money" by picking the cheaper car. Consumer Reports owner data gives the Camry an edge with a 5/5 Reliability Ratings vs. Not only does the Camry power ahead of the Accord in terms of standard power, but its optional 3.5L V6 engine gives you race-quality performance that the Accord. This means people are paying $40,000 for a new car, and not a new car that's necessarily going to save them a ton of money on fuel or maintenance. We've compared the Toyota Camry 2018 3.5L Sport (298 HP) vs Honda Accord 2018 3.5L V6 EX on YallaMotor so you can make a better purchasing decision. However, interestingly, according to Kelley Blue Book, the average purchase price of a passenger vehicle in the US in 2020 was $37,876. That's because $40,000 is a lot of money, especially for a smaller car.
The Tesla Model 3 is one of the least expensive long-range EVs on the market today, with a starting price of $37,990. Sticker shock can turn people away from virtually any product. In fact, while range anxiety and a lack of charging infrastructure in some areas are primary reasons many people don't buy electric cars, arguably the number one reason is the high starting price.