Purchasing Strategies for the Affordable Tesla Model S

Are you considering purchasing a Tesla Model S but worried about the high initial cost? In this article, we will explore several strategies to make buying a Tesla Model S more affordable, including buying pre-owned, taking advantage of warranties, and understanding the long-term cost savings.

Buying Pre-Owned Tesla Model S

In an attempt to make the Tesla Model S more accessible to a wider range of consumers, buying a pre-owned Model S is one of the most cost-effective approaches. Let's start with a real-life example: in 2018, I purchased a 2015 Model S 70D, fully loaded, with only 22,000 miles for $52,000. The original sticker price for this vehicle was over $80,000, and with such a low mileage, it was practically brand new, still coming with the 4-year warranty of a brand new Model S.

However, it's essential to be aware that while pre-owned vehicles can save you a significant amount of money, they can also come with unexpected costs. Even though you might be covered under the warranty, some warranty providers might only replace part of the issue or charge you for the labor needed to fix it. For instance, I've had to replace the retracting door handles on my Model S due to a faulty plastic gear that was prone to breaking. Initially, it cost around $700, but now it's just $150 for the gear itself, after labor expenses.

Using Tesla's Warranty System

One of the advantages of buying a Tesla through an official dealership is access to Tesla's comprehensive warranty system. However, it's crucial to use it wisely. In the past five years alone, the door handles, screen, and other components have been frequently replaced under warranty. While this might seem like overuse, it's important to manage your expectations going forward and not abuse the warranty if you don't have genuine issues. This can prevent potential disputes with Tesla and save you money in the long run.

Alternative Methods and Savings

Another approach to purchasing a Tesla Model S is through platforms like CarMax, which currently has late-year Model S available for about 20% below the new sticker price. I've even seen earlier models from 2018 priced at 40% below sticker. This offers a great opportunity to save a substantial amount of money.

Once you have the pre-owned Tesla, there are several steps you can take to ensure it's fully equipped and operational. Install a high-voltage plug in your garage to accommodate the car's charging needs. Additionally, the cost of electricity for charging should be significantly lower than the cost of gas for a car that gets about 28–30 MPG. In fact, the cost of an additional 25–30 per day for electricity is far lower than the cost of gas.

Comparing daily transportation expenses, a Tesla Model S might be the most economical option, with the only cheaper means of transportation being a motorcycle or public buses. My daily commute on a Tesla costs far less than a round trip on the DC Metro subway!

Long-Term Costs and Considerations

Despite the immediate savings, there are still other considerations to keep in mind. Tesla models require high-performance tires that are considerably more expensive than regular tires. Also, while you might not need as many repairs as an ICE (internal combustion engine) car, when repairs are needed, they can be quite expensive. Historically, it was challenging to find a non-Tesla repair shop that could perform necessary maintenance or repairs. However, this has improved significantly in recent years, providing more options for consumers.

In conclusion, purchasing a Tesla Model S can be achieved through various strategies, including buying a pre-owned vehicle, using the warranty system responsibly, and comparing transportation costs. With a little planning and the right approach, it's possible to own a Tesla Model S without breaking the bank.