When it comes to electric vehicles, Tesla has quickly become the gold standard. They’re fast, innovative, fun, and fun to drive. The biggest problem is that they are also very expensive. If you’re looking for deals, don’t bother flipping through coupons, just read the rest of this article.
How to buy a Tesla cheaply? The best place to start is the base-class Model 3 with high mileage. Buying from a private seller will offer the lowest price, but be sure to avoid buying through connections on online EV marketplaces. It also helps to view Tesla’s CPO offerings directly through their website.
I’ve put together this guide to buying a cheap Tesla to help potential Tesla buyers find a great deal on Tesla. I’ve also put together some tips that can help you adjust your Tesla within your budget without hurting you.
What makes Tesla so great?
If you haven’t heard of it, Tesla is leading the way when it comes to electric vehicles. It’s a luxury electric car that looks great, travels fast, and is super reliable.
They were the first major company to offer electric vehicles specifically, and other industries are following their lead.
Whenever a new electric car is introduced, it is immediately compared to a comparable Tesla. Their battery packs and motors are also used by aftermarket buyers who convert ICEs to EVs.
If you’ve taken it for a test drive, you’ll understand the hype.
The only problem is that this level of performance and luxury comes with a hefty list price (as you’ll see later). That’s the only reason I’ve put together this article. I hope you can get your hands on a Tesla at the cheapest possible price so you can experience it for yourself.
Suggested retail price for Tesla models
How to buy a Tesla cheaply? How can I talk about buying a Tesla cheaply without talking about their MSRP? This term stands for the manufacturer’s suggested retail price. That’s what Tesla says their car should be worth.
Since there are no dealers in the mix, the MSRP is also the selling price of the car. In comparison, the 2021 Honda Civic has an MSRP of $21,250, but you may only have to pay $18,000.
Model 3: $39,990 to $69,990
Model S: $89,990 to $148,990
Type X: $99,900 to $143,490
Type Y: $53,990 to $74,990
As you can see, the base Model 3 is by far the cheapest option.
Guide to Buying Tesla Cheaply: How to Buy Tesla (Current Business Model)
As far as automakers go, the current business model is my favorite. You can go directly to Tesla’s website or visit one of their many showrooms in the United States.
On their website, you can build a car to your exact specifications – exterior and interior colors, performance packages, any extra bells and whistles you want.
Once you’ve completed the build, you’ll be given a non-negotiable amount that you have to pay. You can decide whether to buy in full, lease it, or get a loan through Tesla. For a loan or lease, you can adjust all the parameters and you will get the monthly price.
To complete the order, all you have to do is make the payment and enter the address where you wish to have the car delivered. They will give you a rough delivery schedule and then ship the exact car to you.
At the same time, the Tesla factory will assemble a car according to your specifications and send it to you.
Know your state’s restrictions
I had a friend trying to rent a Tesla in Delaware, and as a result, they had to turn around New Jersey. Yes, there are some strange laws and restrictions when it comes to picking up a Tesla.
When I write about automakers selling directly to consumers, Tesla is the big name in the conversation. They are the only automaker that does not sell its products directly to consumers through dealers.
Despite this, there are still 10 states that completely ban the purchase of Teslas within their states. Another 20 states have some degree of restrictions on Tesla showrooms.
Before you make up your mind to drive to the showroom and pick up your Tesla, you should do some homework. Even if your state prohibits the sale of Teslas, you can still buy a Tesla and transfer the registration to your state of residence – which is not a big deal at all.
Disclaimer: Don’t rob a car you can’t afford
I realize that some people will be looking for a way while reading this article, despite not having the budget to afford a Tesla.
As much as I love Tesla and recommend them to everyone, I highly recommend that you don’t buy them if you can’t afford them. While the following tips will help you find a cheaper Tesla and find something that fits your budget, I don’t want people to make the mistake of not being able to afford a car.
If nothing else, just save money for a few years until you can afford a Tesla. If you also need a lower-cost electric car, consider the Chevrolet Bolt.
With the disclaimer out of the way, let’s talk about lowering the list price.
Ways to get a Tesla at a cheap price
How to buy a Tesla cheaply? The first part is about finding a cheap Tesla. This means that the car will have a more reasonable price tag to start working.
Purchase of third parties
The cheapest way to get a Tesla is to buy it directly from a private seller. In fact, it is the cheapest way to buy any car.
How does it work? Head to your favorite car market and check out the list. Connect with someone who has a reasonable position and make a deal.
If the price is too low, then avoid it. There was a major problem with the car, or the deal was a scam.
Find a CPO
Tesla Cheap Buying Guide: Certified Pre-Owned (CPO) Vehicles Go Through Extensive Testing Before Getting Manufacturer’s Support. This is essentially a low-risk way to buy a used car.
A typical CPO car is subject to multiple inspections by certified inspectors. This is the manufacturer’s saying “don’t worry, this car is still great”.
Tesla sells CPO vehicles directly through its website. It comes with markings due to the guarantees associated with the program, but they are still cheaper than the new Tesla (obviously).
Get basic information
The cheapest version of any car will be their base model. The Model will remove all the extra bells and whistles, allowing you to have the simplest version of the car. With Tesla, you can deduct $17,000 from the purchase price by purchasing the base model.
At the end of the day, Tesla is Tesla. From the outside, they are almost identical. From the inside, it’s still an incredible driving machine. That’s my statement, you probably don’t need a higher top speed and a faster 0-60 or lower suspension. Tesla is fantastic.
Choose a high-mileage Tesla
A common car buying tip to minimize the total cost of ownership is to opt for a high-mileage option.
They are cheaper because they are usually closer to the grave. However, electric vehicles can last a long time. Third-party studies have shown that the motor and battery pack don’t stall until 500,000 miles have been driven.
So, what’s so bad about picking up a Model 3 with 150,000 on its odometer? If you’re looking to minimize the price tag, this might be your best bet.
Bargaining (whenever possible)
Haggling the price of a used car is a subtle (and frustrating) dance. However, it can work wonders on the right sellers. If all goes well, you can make hundreds or thousands of dollars quickly.
Under Tesla’s business model, there is no way to negotiate the purchase or lease price, so this is only reserved for private sellers. If you want to learn more, I’ve put together an ultimate guide to auto price negotiations.
Avoid dealer batches
I may sound like a record-breaker, but if you want to overpay for a car, the dealership lot should just be your destination.
In the case of Tesla, it becomes even more dramatic. Keep in mind that there are no Tesla dealers in the United States (for now). So, if you’re shopping at a dealership, it means you’re buying from a company that doesn’t do business with electric vehicles.
They don’t know how to do a thorough inspection of electric vehicles. After writing a hefty check, you might drive home with a Tesla lemon.
Don’t fall for the “electric car market” scam
Trying to buy a Tesla through the “electric car market” is rarely a good idea. This is usually a group on Facebook that lists your Tesla specifically and sells it.
It’s also where EV enthusiasts talk about what they love about Tesla. This is completely different from the real car market.
Why is shopping in the EV market a bad idea? On the one hand, people in these markets will significantly increase the price of their Tesla. They know that they sell directly to people who are so fond of electric cars that they join the market.
It’s like selling your cat sweater at a local cat fan club.
In addition, it is not uncommon for fake Tesla posts to go up. The main goal of the poster is to scam you and take your money.
Obviously, this isn’t the case in all of these markets, but I’ve heard enough horror stories to avoid them altogether.
Guide to buying a Tesla cheaply: How to install a Tesla on your budget
I’m a big fan of budgeting and making numbers work. That’s the only reason I’m putting so much emphasis on figuring out how much car you can afford before going to a dealership.
Since I’m a budget person, I’d like to talk about how to fit a seemingly expensive car like a Tesla into your budget. Suppose you already know how much money you can spend on car-related expenses in a month. It’s time to squeeze Tesla in.
Extend the loan
While this isn’t the best personal finance advice, it’s one way to fit Tesla into your budget. Extending the loan repayment period means you’re delaying the time it takes to pay off your car.
On Tesla’s website, you’ll notice that the 48-month term costs $908 per month, while the 72-month term costs $616 per month.
If you do run out of numbers, the interest can really confuse you when you extend your loan. A 48-time 908 is $43,584, while a 72-time 616 is $44,352. That’s an increase of about $1,000, but the monthly bill is much lower.
As Tesla models get bigger and worse, this gap will get wider. I made the same comparison with the Tri-Motor AWD Model S, but the gap was ugly. Between the 36-month and 72-month terms, there is a gap of almost $5,000.
Put down more money
On the other hand, you can minimize your monthly payments by depositing more money. Basically, the monthly value is calculated by dividing the amount you owe by the number of months you pay it back, and then taking into account interest.
Saving more money is reducing the amount of money you owe to the car, which reduces your monthly payments.
This is a very common technique that people use when buying or leasing a car. If you have some extra money in your savings account, you can essentially “save” more on your car payments each month. Yes, I know you’re not really saving money by doing this, but you’re freeing up more of your monthly budget.
Occasional rental of a car
A surprisingly lucrative way to compensate for some of the money you spend on Tesla is to rent it out. Kind of like those who buy a vacation home on a beautiful lake and rent it out when they don’t plan to use it.
Places like Turo allow you to rent a car when you don’t need it. Someone else will use it, pay you, and give the Tesla back to you.
This is exciting news for everyone working from home today. When you also receive a monthly payment for the same vehicle, your monthly payment becomes more manageable.
Consider using your Tesla’s side gigs
Another way to achieve the same is to find a side hustle that uses your new Tesla. My personal favorite way is to become an Uber driver because Tesla is a luxury brand.
You can also become a delivery driver, usually paying an hourly rate, tips, and an extra per mile as a way to compensate for the cost of gas. Of course, you won’t spend it on gas, so this extra money is in your pocket.
Calculate the gas saved
As you already know, Tesla doesn’t need any nasty gas to keep going. I think it’s an interesting exercise to figure out how much money you can save with a new electric car to mitigate the impact on your budget.
Don’t know how much you’re spending on gas? There are a few ways to figure it out quickly.
First, calculate how many miles you drive each year. To do this, you can divide the odometer by the number of years you’ve driven it or find out how long it takes to change the oil twice. If there are 8 months and 10,000 miles between oil changes #1 and #2, now you know how many miles you’ve driven in a year.
Divide this total mileage by your car’s average mileage per gallon. This will tell you how many gallons of gas you have in your car. Multiply that by the price of gas in your area — sorry, Californians — and you have the total amount spent on gas alone.
For example: If I drive 1,500 miles in a month and my car averages 25 miles per gallon, then I fill up 60 gallons of gas in a month. On my side, gas is $3.00 per gallon. In a month, I spent $180 on gas.
Another way to put it is that a Tesla can save me $180 a month on fuel.
Calculate maintenance savings
How to buy a Tesla cheaply? Another reason why people love electric vehicles is that they lack the necessary maintenance. There is no need to change the oil or change the fuel filter.
The math that comes out is simple. Dig up your years of maintenance costs from your local auto shop or dealership and add them together. With the switch to Tesla, almost all of this will be saved – the only real maintenance is the air filter and tire rotation.
Consider leasing
Renting an electric car may seem like an odd option because electric vehicles typically last longer than internal combustion engine cars. Still, it’s a viable option if you’re looking to minimize your monthly payments.
At the end of the lease, you have the option to buy a Tesla at a fairly reasonable price. If you think your career will improve and you will be able to afford a better Tesla in the next 2 or 3 years, leasing may be the best option for you.
Check it out on their website, and the price of renting a base Model 3 isn’t bad at all. It costs $10,000 per month for 523 miles per year.
It’s the opposite of what I had in mind about leasing compared to owning, but it’s probably the best option for someone who is hell-bent on owning a Tesla.
Conclusion
There are many ways to buy a cheaper Tesla or minimize its impact on your budget. If this guide was helpful to you, please leave a comment below and let me know. For more car buying guides, check out the rest of my blog. I also have a list of products that every Tesla owner needs to buy.
