3 ways to save over $7,500 by buying a Tesla

Electric vehicle sales have skyrocketed over the past few years. Launching new models and expanding charging networks will help attract first-time EV buyers.

Tesla remains one of the most in-demand electric vehicles (EVs). But with electric vehicle prices rising significantly over the past few years, how can you save money on your purchase? Here are three ways to get $7,500 off your Tesla purchase.

1. Get a full tax deduction

The IRS’s EV tax credit is the easiest way to save $7,500 on your Tesla purchase. The credit can be applied immediately to the price of a qualifying Tesla vehicle (see details below) and can save you up to $7,500 off the purchase price.

To qualify for the tax credit, your modified adjusted gross income (AGI) cannot exceed $300,000 for married couples, $225,000 for heads of households, and $150,000 for other filers.

There are also restrictions on which EVs qualify for the tax deduction. The following Tesla models are currently eligible for the full $7,500 credit:

• 2024 Tesla Model 3 Performance
• 2024 Tesla Model Y
• 2024 Model X

2. Buy a used Tesla

Used Teslas are more affordable than ever. The average price of a used Tesla fell 36% from last year to $31,800, according to car shopping platform CoPilot. That means it costs about $17,900 less to buy a used Tesla today.

You can lower the price of your used Tesla even further by taking advantage of benefits from the IRS. used EV tax credit. The IRS offers a tax credit of 30% of the price of a used EV, up to $4,000.

Not all used Teslas are eligible for the credit, but those that do must meet the following requirements:

• Vehicle must be purchased from a dealer.
• Sale price must be $25,000 or less.
• The model year must be two years prior to the current year.

A quick search on Carvana found many used Teslas that matched the criteria for the used EV tax credit. Factoring in credits, the selling price of at least one used Tesla Model S would be approximately $19,590.

3. Repair and maintenance costs

Consumer Reports recently compared maintenance and repair costs for more than 30 auto companies and found that Tesla came out on top as the company with the lowest maintenance costs. Maintenance and repairs cost just $580 in the first year, for a total of $4,035 over 10 years.

On the other hand, many luxury vehicles have the highest repair and maintenance costs. Buying a Tesla instead of a car from a top luxury brand could save you more than $7,500 over 10 years.

Here’s a look at 10 years of maintenance and repair costs for five luxury car brands and how much more expensive it is than owning a Tesla.

• BMW: $9,500 ($5,465 more expensive)
• Audi: $9,890 ($5,855 more expensive)
• Mercedes-Benz: $10,525 ($6,490 more expensive)
• Porsche: $14,090 ($10,055 more expensive)
• Land Rover: $19,250 ($15,215 more expensive)

Another Way to Buy a Tesla

While choosing the right Tesla model at a price you can afford is the most important part of the car-buying process, the next step is purchasing car insurance, which can save you thousands of dollars in the long run.

EV insurance typically costs more than gasoline vehicle insurance due to the complexity of repairing expensive battery packs and electrical systems. Unfortunately, Teslas are one of the most expensive electric vehicles to insure.

That’s why it’s important to shop around and compare rates when purchasing EV car insurance. Considering you’re looking for a Tesla discount anyway, you might want to consider getting a few quotes for cheap car insurance while you look for a deal.

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