The Cheapest Way to Buy a Tesla UK | 8 Tips from mycardirect

Tesla has transformed the industry with its state of the art electric vehicles (EVs). For many, owning a Tesla is a lifelong aspiration but the steep price tag can put off many potential purchasers.

In this article, we will delve into the most economical methods of acquiring a Tesla in the UK, which involve taking advantage of government incentives, exploring financing and subscription alternatives, and employing savvy buying tactics.

Tesla Model 3 parked next to wind turbine

Understanding Tesla Expenses

Before we jump into cost saving methods when purchasing a Tesla, it’s important to understand the cost of buying and owning one:

  • Base Price: The base prices for Tesla cars in the UK vary by model:
    • Tesla Model 3 starts from around £39,000
    • The Model Y is around £44,000
    • For the Model S, expecting be paying around £85,000
    • The Model X starts at £90,000
       Note: The Long Range Model X comes at a premium due to its range capabilities and more luxurious, spacious interior.
  • Insurance: Insurance for Teslas can be more expensive than traditional petrol or diesel powered cars, due to the blistering performance and high upfront cost of purchasing Tesla vehicles.
  • Charging: Home charging stations costs around £800 – £1500 to install and setup.
  • Maintenance: Although electric vehicles (EVs) usually have lower maintenance cost, repairs, particularly once out of warranty can be quite expensive.

Considering this, let’s look into ways you can drive away in a Tesla without overspending.

1. Take Advantage of Government Incentives and Grants

The UK has multiple incentives available to help lower the purchase price of a Tesla, and other electric cars:

  • Plug-in Car Grant: This offers up to £2,500 off new EVs, including Teslas.
  • Electric Vehicle Homecharge Scheme (EVHS): Covers up to 75% of the cost of installing a home charging point, capped at £350.
  • Tax Benefits: EVs are exempt from road tax and benefit from reduced company car tax rates.

2. Explore Leasing and Subscription Services

Leasing or subscribing to a Tesla can be more affordable than purchasing outright:

  • Leasing: Pay a fixed monthly fee over a set period and return the car at the end of the term. This avoids depreciation costs and includes maintenance. It’s worth noting that some lease deals allow you to purchase the car at the end of term, we’ll explore this later.
  • Car Subscription Services: Services like mycardirect offer all-inclusive packages that covers maintenance, optional insurance, and the flexibility to switch vehicles, making them an excellent option for those who don’t want long-term commitments and costs.

3. Financing Options with Monthly Payments

Financing can spread the cost and make owning a Tesla more manageable:

  • Personal Contract Purchase (PCP): Lower monthly payments with an option to buy the car at the end of the term. This incorporates the concept of guaranteed future value to provide flexibility at the end of the finance term.
  • Hire Purchase (HP): Pay off the car in monthly instalments and own it outright at the end of the term.
  • Tesla Finance: Tesla offers competitive financing options, sometimes with special deals or lower interest rates.

When considering financing options, always look for a reputable finance company.

4. Buy Second-Hand

Purchasing a used Tesla can significantly lower the initial cost:

  • Certified Pre-Owned (CPO): Tesla’s CPO program offers used Teslas with warranties.
  • Third-Party Dealers: Many dealers and online platforms sell used Teslas. Ensure the vehicle has a full service history and consider an independent inspection before making a purchase.

5. Seasonal Promotions and Discounts

Tesla occasionally offers promotions and discounts:

  • End of Quarter Sales: Tesla has been known to offer discounts to meet quarterly sales targets.
  • Referral Programs: Using referral codes can provide benefits like free Supercharging credits.

Additionally, trading in a current vehicle can be a viable payment method, or cost reduction method, when purchasing a Tesla.

6. Trade-In Your Current Vehicle

Trading in your current vehicle can reduce the purchase price of a new Tesla. Tesla’s trade-in program allows you to use the trade-in value towards your down payment.

7. Reduce Charging Costs

Optimising charging habits can save money:

  • Home Charging: Charging at home, especially during off-peak hours, can be cheaper than using public chargers.
  • Public Charging Networks: Utilise discounted charging networks.
  • Solar Panels: Installing solar panels can further reduce electricity costs for home charging.

8. Special Energy Tariffs for EV Owners

Many UK energy providers offer tariffs specifically for EV owners:

  • Off-Peak Tariffs: Cheaper rates during off-peak hours.
  • Dedicated EV Tariffs: Providers like Octopus Energy offer tariffs designed for EV owners, which can include benefits like discounted rates for overnight charging.

9. Join EV Communities and Forums

Engaging with Tesla and EV communities can provide valuable insights and savings tips:

  • Group Buys: Members sometimes organise group buys for discounts on accessories or services.
  • Maintenance Tips: Experienced owners share cost-effective maintenance tips.

10. Alternative Ownership Models

Consider alternatives:

  • Peer-to-Peer Car Sharing: Platforms like Turo allow you to rent a Tesla from private owners.
  • Ride-Sharing Services: Using ride-sharing services might be more economical if you drive infrequently.
  • Car Subscriptions: Use a car subscription service, like mycardirect, to get behind the wheel of a Tesla with low monthly costs, maintenance included and many other benefits.

Long-term Financial Benefits of Owning A Tesla

Lower Maintenance Costs

One of the most significant advantages of owning a Tesla is the lower maintenance costs compared to traditional internal combustion engine (ICE) vehicles. Electric vehicles (EVs) have fewer moving parts, which means less wear and tear. Here’s how this translates to savings:

  • No Oil Changes: Unlike ICE vehicles, Teslas don’t require oil changes, saving you money on regular maintenance.
  • Simplified Drivetrain: The electric drivetrain has fewer components than an ICE drivetrain, resulting in fewer parts that can break down or need replacement.

Fuel Savings

Charging a Tesla is significantly cheaper than fuelling a petrol or diesel car. Here’s a breakdown of the potential savings:

  • Home Charging: Charging your Tesla at home, especially with off-peak electricity rates, can cost as little as £5-£7 for a full charge, providing around 250-300 miles of range.
  • Supercharging: While Tesla’s Supercharger network charges higher rates than home charging, it is still generally cheaper than filling up a petrol tank. Plus, occasional free Supercharging promotions can further reduce costs.
  • Energy Tariffs: Many energy providers offer special tariffs for EV owners, such as Octopus Energy’s Go tariff, which provides cheap overnight rates specifically for EV charging.

Potential Earnings with Tesla’s Full Self-Driving (FSD) Capability

Tesla’s vision for the future includes a fleet of autonomous vehicles operating as “robo-taxis.” While this feature is still in development, it holds the promise of turning your Tesla into an income-generating asset:

  • Robo-Taxi Network: Once regulatory approvals are in place, Tesla owners could potentially earn income by allowing their vehicles to operate as autonomous taxis. Estimates suggest that a Tesla could generate substantial annual income through this network.
  • Car Sharing Platforms: In the meantime, platforms like Turo allow Tesla owners to rent out their vehicles when not in use, providing an additional revenue stream.

Reduced Depreciation

Teslas tend to hold their value better than many ICE vehicles. Factors contributing to this include:

  • High Demand: The growing demand for EVs, coupled with Tesla’s strong brand reputation, helps maintain resale values.
  • Over-the-Air Updates: Tesla’s ability to improve vehicle performance and add features through over-the-air software updates can

Environmental and Health Benefits

While not directly financial, the environmental and health benefits of owning a Tesla can lead to broader societal savings:

  • Reduced Emissions: Driving a Tesla reduces your carbon footprint, contributing to cleaner air and less pollution.
  • Incentives and Recognition: Owners of electric vehicles often enjoy benefits such as lower congestion charges, access to low emission zones, and preferential parking, which can save time and money.

Conclusion

Buying a Tesla in the UK doesn’t have to be expensive, or off-putting . By utilising government incentives, exploring financing and leasing options, car subscription services and implementing smart purchasing strategies, you can significantly reduce the cost.

Car subscription services like mycardirect offer a flexible, cost-effective way to drive a Tesla without the hefty upfront costs or a large deposit. For more information on affordable Tesla ownership and car subscription services, visit mycardrect.

By following these tips and strategies, you can enjoy the benefits of driving a Tesla while keeping your expenses in check. Before taking the leap, why not check out some Tesla review? Here’s one we did on the model Y.  Happy driving!

Browse Tesla