New vs used Tesla Model 3: which saves you more?

With a range of up to 332 miles on a single charge, a minimalist interior and generous practicality, the Tesla Model 3 remains one of the UK’s most popular electric cars. Whether you’re considering a brand-new example or a used model, there’s plenty to like.

However, the upfront price is only part of the story. Once you factor in depreciation, charging costs and tax, the total cost of ownership can vary significantly between a new and used Tesla Model 3.

To find out which offers better value, we compared a new Tesla Model 3 with a similar used example over a typical three-year ownership period and 30,000 miles. By looking at the total cost of ownership (TCO) for each, we reveal which option is likely to cost you less overall.

If you’re just after the headline figures, jump to the summary below. Otherwise, read on for the full cost comparison.

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Remember, you can buy a brand new or used car right here on Carwow. And you can sell your car, too. We’re here to help you through every step of your car-changing journey.

Buying new

First, let’s look at how much it’ll cost to buy a new Tesla Model 3. You’re more likely to finance your car, so the total cost will usually include interest and additional fees. These costs can vary depending on the type of deal, when you buy, and current interest rates.

For our calculations, we used PCP finance, a flexible car finance option where your monthly payments cover much of the car’s expected depreciation rather than its full purchase price.

Using Tesla’s own website, we’ve assumed a deposit of £5,000, a three-year only term and annual mileage of 10,000 miles.

The recommended on-the-road price of the RWD Tesla Model 3 is £37,990. Monthly payments start at £382, at the time of writing. This particular deal also comes with 0% APR, meaning you won’t be charged any interest or borrowing fees over the course of the agreement.

At the end of the PCP agreement, you’ll have the option to make a final payment – often referred to as a balloon payment – of £19,406 to own the car outright, according to the Tesla calculator.

However, we’ve assumed that you return the car to the finance company after the three year term. In that case, you won’t need to make the final payment, and the total amount paid over the three-year term would be £18,584.

Here’s a full breakdown of the costs of a RWD Tesla Model 3 on PCP at a glance:

Car’s list price	£37,990
Initial deposit	£5,200
Regular monthly payments	£382
Optional final payment	£19,406
Total cost to PCP if you return the car	£18,584

Buying used

Next up is a used Tesla Model 3. For this comparison, we used a 2024 example with 19,742 miles on the clock, priced at £27,740 at the time of writing.

Unlike a PCP agreement, where much of the vehicle’s expected depreciation is built into the finance payments, buying a used car means we need to account for its depreciation over the ownership period.

A new car typically loses 15-35% of its value in its first year before depreciation slows to around 10-15% annually, so this Model 3 has already undergone much of its initial drop. We therefore used valuation data from Cap HPI to estimate its future value.

Based on Cap HPI trade-in valuations for a vehicle in good condition, this Tesla Model 3 is expected to depreciate by around £18,525 over three years and 30,000 miles.

That means depreciation alone would cost around £18,525 over the ownership period.

Road tax

You then need to factor in road tax.

Since the Tesla Model 3 is an electric car, you’ll pay a £10 first-year rate, followed by the standard £200 annual rate from the second year onwards.

There’s also an extra charge to be aware of for more expensive cars.

If your electric car has a list price of £50,000 or more when new, you’ll pay the Expensive Car Supplement. This adds £440 a year from the second to the sixth year of the car’s life. After that, you simply revert to the standard £200 annual rate.

Fortunately, the examples we’re using have a list price below £50,000, so this extra charge doesn’t apply. However, if you opt for a higher trim level or add enough optional extras to push the list price above the threshold, you’ll have to pay the supplement.

With that in mind, using the base model as an example, you’d pay £410 in VED over your first three years if you bought the Tesla new (£10 in year one, then £200 in years two and three).

Buying the same car used after its first year would cost £600 over your first three years of ownership, because the discounted first-year rate has already been used by the original owner.

With that in mind, here are the costs so far when you factor road tax in:

Buying a new Tesla Model 3	£18,994
Buying a used Tesla Model 3	£19,125

Charging costs

Now costs get a bit more complicated, as prices vary wildly depending on where you plug in, so we used three separate rates to better reflect differences depending on how you charge. Here are the average charging rates used in our analysis to calculate costs, as of the time of writing:

• Home charging: 8p/kWh (E.ON Next)
• Public slow charging (AC): 54p/kWh (Zapmap)
• Public fast charging (DC): 79p/kWh (Zapmap)

Tesla claims the Model 3 can achieve 4.6 miles per kWh efficiency, so we used this figure in our calculations to give an estimate of charging costs.

We also considered that many people use a mix of home and public charging in their day-to-day driving, so we carried out a quick calculation based on this. The figures are based on the total electricity consumption (kWh) over 30,000 miles, assuming that charging is split between 70% at home, 20% using slow AC public chargers, and 10% using rapid chargers.

Home charging	£521.74
Public slow charging	£3,521.74
Public fast charging	£5,152.17
Mixture of charging	£1,584.78

How much will it cost you overall?

When we add the applicable road tax and the various charging costs, here’s how much it could cost you to own a new or used Tesla Model Y over three years:

	New Tesla Model 3	Used Tesla Model 3
Total cost using home charging	£19,515.74	£19,646.74
Total cost using public slow charging	£22,515.74	£22,646.74
Total cost using public fast charging	£24,146.17	£24,277.17
Total cost using mixed charging (most realistic)	£20,578.78	£20,709.78

Our comparison shows that over three years and 30,000 miles, a new Tesla Model 3 on a PCP deal is actually around £130 cheaper than buying used.

While the difference is small, we’d recommend buying new. You’ll benefit from lower finance rates, a full manufacturer warranty, and a car with no hidden wear or unknown history. That means no worries about previous accidents, missed servicing, or how the car was driven – giving you extra peace of mind.

Car change? Carwow!

Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.

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