Is a used Tesla Model 3 cheaper to run than a gas car? It depends on the exact vehicles, your electricity and gasoline prices, and how much you drive. Lower energy costs do not automatically mean lower total ownership costs. Compare purchase price, insurance, maintenance, repairs and eventual resale value too.

Tesla Model 3 vs. gas cost: a transparent example

The following inputs are hypothetical—not current Southern California rates, a Model 3 specification or a dealer savings promise. Replace them with the consumption figure for the exact Model 3 year, trim and wheels you are considering, your actual charging costs and the gas vehicle’s MPG.

Assume 12,000 miles per year, 28 billed kWh per 100 miles for the EV, and 30 MPG for the gas car. Compare electricity at $0.30 or $0.60 per kWh with gasoline at $4.50 per gallon. Billed energy is the electricity you pay for, not just energy shown as used while driving.

Illustrative scenario	Energy cost per mile	Annual energy cost
EV at $0.30/kWh	8.4 cents	$1,008
EV at $0.60/kWh	16.8 cents	$2,016
Gas car at $4.50/gallon and 30 MPG	15 cents	$1,800

With these assumptions, the lower-rate EV scenario costs $792 less per year for energy; the higher-rate scenario costs $216 more. Neither result includes insurance, purchase price, charging installation, fees, repairs or resale value. This is why your charging plan matters more than a generic “EVs save money” claim.

Calculate your own charging-versus-gas cost

EV cost per mile: billed kWh per 100 miles ÷ 100 × electricity price per kWh.
Gas cost per mile: gasoline price per gallon ÷ miles per gallon.
Annual energy cost: cost per mile × annual miles.

The EPA’s electric-vehicle label guide explains kWh per 100 miles and MPGe. Use a consistent consumption basis: do not apply an extra charging-loss allowance to a figure that already includes it. If you use charging bills and mileage, account for all charging sessions and recognize that climate control and parked energy use can affect the result.

For mixed home and public charging, weight prices by the kWh purchased at each rate. Add session, parking, idle or subscription fees separately where applicable. Check your actual utility plan and charging app; the examples above are not quotes from a utility or charging network.

Compare total ownership cost, not only energy

For the same ownership period, estimate: purchase price minus expected resale proceeds, plus taxes and fees, financing interest, insurance, energy, maintenance, repairs and any charging setup costs. Do not add the entire loan principal again if the purchase price is already counted.

Purchase: compare current written quotes for vehicles with similar condition, mileage and equipment.
Insurance: get quotes for the actual VINs with the same coverage and deductible. Do not assume a fixed EV surcharge.
Maintenance: review each vehicle’s schedule and records. Tesla’s maintenance guidance is a starting point; electric cars still need care.
Repairs and warranty: arrange an independent inspection and verify remaining coverage by VIN. Budget for uncovered repairs without assuming a battery replacement is inevitable or free.
Resale: test more than one future resale estimate. No vehicle is guaranteed to retain a particular percentage of its value.

Tax-credit assumptions need a date

Do not subtract a federal clean-vehicle purchase credit from a new acquisition today. The IRS states that the new, previously owned and qualified commercial clean-vehicle credits are unavailable for vehicles acquired after September 30, 2025. Earlier acquisitions with later possession require separate eligibility review. Other programs have their own rules; this guide promises no incentive.

A practical Southern California shopping checklist

Before choosing a used Model 3 or gas car, write down your annual mileage, where you can reliably charge, the rates at the times you would charge, and your insurance quotes. Renters should confirm charging access and permission before counting on home charging. Include installation quotes where needed and compare the same ownership period for both vehicles.

Start with used Tesla Model 3 inventory, browse all used Teslas, or compare current used-car inventory. Availability changes. Build the final comparison around the individual vehicles and written quotes—not the illustrative numbers above.