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Tesla Model S : True Cost of Ownership Including Depreciation - How Much Is Your Used Model S Worth? - YouTube
Channel: Ben Sullins
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hey guys thanks for joining me today I'm
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going to answer a question from you a
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question I received from a few folks and
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then one from Felix mercury who is an
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intern in Kenya trying to promote EB
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sales and this one really kind of
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touched me with his coming here
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explaining the story and how the
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depreciation of electric vehicles really
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matters to him and so I found some good
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data and I wanted to dig into it a
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little bit to talk about the Tesla Model
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S and its depreciation or its resale
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value are the first thing to think about
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are the different categories that really
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add up to the cost of a vehicle the
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first is the fuel cost the next would be
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insurance then you have your maintenance
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and repairs and the big one depreciation
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so there are a couple others of course
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but these are the big ones where I think
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the Tesla Model S stands out some of the
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other ones like financing really
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shouldn't make much of a difference
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because you're just talking about money
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they're not necessarily the how the car
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works or what the car does or anything
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like that so first off let's talk about
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fuel and Tesla just recently announced
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that they have a new pricing for the
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supercharger usage this is if you buy a
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new Tesla after January 15 to 2017 which
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is already past so unless you already
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have ordered it or have already received
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it you're kind of out of luck that is
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with the exception of any cars that were
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purchased certified pre-owned these cars
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which originally had the free super
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charging for life will retain it
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according to Tesla let's take a look at
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the supercharger map so I can point you
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it actually how you could do this so I
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built this tool for you to use and I
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have another video here I'll link up in
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the card for you to check out which
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shows the actual rates by state in the
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United States as well as provinces and
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States and Canada and then all the
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different countries in Europe so you can
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actually use this to calculate what a
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cost may be if you knew how many miles
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you drove per month per year or whatever
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it may be you could adjust this
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calculator and see what the cost may be
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while paying for the actual supercharger
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usage if you're doing that now you have
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another video where I looked at my cost
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the cost that I actually spent on my
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fueling my car over a year and this came
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from a question my wife asked me which
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actually led to this whole thing we're
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doing here with YouTube
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where a lot of folks just really
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resonated with them the thing that was
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interesting in my analysis was that I
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have found I was only saving about 40%
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over gas now that's because I live in
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Southern California where electricity is
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really high compared to the rest of the
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United States in fact we're about 50
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percent higher at our lowest than the
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national average
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now other parts of the world have much
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higher gas prices so they would be
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saving a ton more now Tesla factors in
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when you take a look at their calculator
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on their website when you go to buy a
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new Model S or Model X let's take a look
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at that so on the site where you
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actually design and get your Model S you
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can see that there are different options
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for pricing you have leased alone or
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cash now on the cash tab you can see
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that down here they estimate in the base
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model here that you would save about
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fifty five hundred dollars over five
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years that's compared to a gas car again
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this is hard to calculate because what
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is the price of electricity where you
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live and what is the price of gas how
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much do you drive so we click customize
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and here we can punch in something the
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number of miles per year and the price
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per gallon so for me where I live it's
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about three dollars per gallon on
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average and the miles i drive per year
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is probably seven thousand I don't drive
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a lot so for me I'm not saving a ton so
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see how much that dropped from fifty
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five hundred to thirty five hundred so
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you can go here and you can play with
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this if you drive say I don't know
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twenty thousand miles a year and it's
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three dollars then you save about 10
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grand over five years now there are also
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some assumptions here about the cost of
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electricity so you click on details
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it'll take you down to the bottom here
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and show you kind of their methodology
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about how it works but again this will
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be subjective and it won't be exact so
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take a look at my other video if you're
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interested on how I broke that down and
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how you could do the same thing for your
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own comparison so the next big cost is
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insurance now this is highly subjective
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I pay $100 a month for my 2013 Model S
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which is just about what my wife pays
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for her 2013 acura RDX which is the
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smaller SUV from Acura now that is
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because we bundle home life and two
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other cars all together so we get a big
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discount now it's going to vary for you
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based on your age based on your credit
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score based on whether or not you own a
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home all these things have insurance
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companies are doing this math all the
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time trying to figure out essentially
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what the right price is for the risk and
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all that but it will vary one thing to
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consider is that the Tesla really only
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accepts om parts and some insurers will
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ask for more insurance to cover that
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meaning higher end cars you only want
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them to be fixed by that manufacturer
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you don't want someone else to try to
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put in an engine in your car or some
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other part that may be really critical
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to it you know fender and bodywork is
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one thing but when you're talking about
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replacing suspension or in the case of a
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Tesla is something like the motor really
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no one else can do it so they may ask
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for more I declined mine but don't take
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my word for it I am NOT an insurance
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expert so make sure to ask about om
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parts whether or not that's included or
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if it's an additional charge when you're
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doing your research for your insurance
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there is one story though that came up
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on Tesla riding actually on ago about
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somebody that got into an accident it
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seemed relatively minor the cost was
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about thirty thousand dollars from the
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shop to fix which was not the Tesla so
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Tesla shop it was a different body shop
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and their insurance which was Costco
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insurance declined essentially to pay
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that and beam did an entire loss now the
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problem was that they paid over a
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hundred thousand dollars for this but
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because there was no Kelly Blue Book
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depreciation number to go off they
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calculated the value at about
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seventy-five thousand dollars which
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really doesn't cover the cost of a new
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vehicle so he was going to be on the
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hook for this big expense to try to just
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even recoup or you know get in another
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Tesla they actually went back on it
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eventually so it wasn't all bad but it
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turns out that when you're doing your
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research on insurance make sure you ask
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a lot of questions because the Tesla's
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aren't exactly like all the other cars I
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can't just go to a Honda dealer down the
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road to get something fixed
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I may need a specialty part that's
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ordered maybe back ordered I may need a
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rental all these other kind of things
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that go into the count so make sure you
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get really good insurance and makes you
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ask a lot of questions
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the other big thing are maintenance and
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repairs and this covers things like
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tires brakes oil changes on ice vehicles
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the gas powered antiquated ones that we
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don't drive and all that kind of stuff
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that you typically have to deal with
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with a car
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Tesla's are extremely low in fact I did
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a video on it you can go check it out in
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the card up above and you can see how I
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compare it to other high-end luxury cars
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remember if you're paying 75 to $100,000
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for a car you're buying a really
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high-end vehicle even if you know the
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inside doesn't have all the chrome and
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bells and whistles of some of the other
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ones so the technology that you're
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paying for and you're going to have to
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compare it to other cars in a similar
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price range so if you compare it to
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those Tesla is actually a great deal
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it's much closer to say an acura or
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infinity these kind of affordable luxury
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the just to step up from your Honda and
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Nissan and Toyotas now I did have my own
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issue though with a windshield wiper
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which you can go check out in that other
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video as well and I tell you the story
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would actually send somebody to my house
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to fix it which was pretty cool and it
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was weird that it broke I mean that does
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raise an eyebrow but the durability of
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some of these things I've never heard of
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a the arm of a windshield wiper breaking
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and a three year old car that's only
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gone 15,000 miles so who knows what's
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going on with that but long story short
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they took care of the problem for free
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so I had a good experience but not to
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say that that's how it's going to go for
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you for everyone else out there now
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Consumer Reports originally rated the
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Tesla Model S is basically the best car
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ever it broke their scale I got a
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hundred and three out of a hundred they
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had to adjust the scale and then they
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did some more research and some more
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testing and they found that there were
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some reliability issues that they
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discovered and they downgraded it from
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its highest rating then they came back a
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few months later and actually realized
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that their methods that they did that
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wasn't perfect so they put it back into
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a recommended by however the Tesla Model
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X the SUV is still down on their lists
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are not not huge fans of that this gets
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it to the big one depreciation and
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depreciation is essentially the value of
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the vehicle that you're losing because
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the cars just wear out through normal
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wear and tear the faster wears out or
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the higher dollar amount it started at
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the more money you're going to be losing
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faster and so the big question is how
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does the Tesla Model S compare to some
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of the other cars well first let's take
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a look at this infographic and see how
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depreciation actually works and kind of
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what it looks like on some standard
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vehicles so in Kelley Blue Book you can
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see that they have this five year cost
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to own
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it's essentially all of your
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out-of-pocket expenses plus depreciation
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that's the loss in value so this isn't
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money that you're paying out but it's
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essentially money you're losing if you
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go to resell the car and that said if
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you don't want to resell it or it's 20
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years later you don't really have to
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worry too much about it it will play a
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factor but really most people keep their
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car around five years here in the United
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States so that's where you get this five
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year mark and what they're showing are
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huge losses they're essentially here's a
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couple examples where you have a sedan a
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and sedan B they both are purchased for
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the same price nineteen thousand two
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hundred and seventy two dollars there's
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out of pocket expenses which are a
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little bit different and then the
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depreciation on the model B was actually
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a lot more than Model A so this is where
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if you were comparing say sedans or EVs
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in this case with the Tesla you'd want
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to really think about this so if you're
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going to sell your Tesla in a couple
[590]
years maybe upgrade then this is
[592]
something to really think about because
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that loss in value is the single biggest
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expense that you'll actually lose all
[599]
the money that you're actually going to
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lose in owning a vehicle again it's not
[602]
money you're paying but it's money
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you're losing so you could be getting
[606]
that money back when you resell it but
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you won't be because it depreciated just
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one quick side note here for whatever
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reason Kelley Blue Book doesn't rate
[614]
Tesla's at all and I think that's really
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a Miss on their part I mean these cars
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been out for a while it's not like
[621]
they're brand new and there are other
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electric vehicles as you can see here
[625]
this is the 2016 highest best cars for
[629]
their cost to ownership for electric
[632]
vehicles and they're rating a bunch of
[634]
them here they have a bunch of
[635]
categories so why not what's up KBB how
[638]
come you don't rate the Tesla what's the
[640]
deal so the site Auto List did some
[643]
analysis where they actually looked at
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about 1.6 million data points to see
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what the depreciation of a Tesla Model S
[652]
would be compared to a lot of other cars
[653]
and thanks to them we have these
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beautiful charts to explain this to us
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so let's dive into the data as you can
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see in this chart here and as the title
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suggests Tesla is in a class of its own
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the green the light green is the Model S
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and you can see the depreciation curve
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so the way this works is it starts
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essentially after you've hit 10,000
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miles up to a hundred thousand miles and
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they had to do this because the Tesla's
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have a very different kind of wear and
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tear about them than more ice vehicles
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more gas-powered cars and as you can see
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as time goes on the depreciation curve
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actually flattens out more and more for
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the Tesla Model S and this is compared
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to some pretty high-end cars here at the
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LS 460 and s-class Mercedes these are
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all very high-end vehicles and the Tesla
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beating them is pretty impressive but
[701]
some of those cars are extremely
[702]
expensive so it does make sense that
[704]
they would drop in more value quicker
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but really who's going to be buying a
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car with a hundred thousand miles for
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$70,000 I mean that seems like pretty
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insane to me with the exception of a
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vehicle that's rated to go five hundred
[717]
thousand miles or more and when you
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compare other V's to other gas-powered
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equivalents you can see that they
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actually depreciate really really
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dramatically compared to a Tesla the
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Tesla is paying actually pretty well
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with these cheaper cars you know the
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Prius here which after a hundred
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thousand miles looks like it's just
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about between 40 and 50 percent that's
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pretty close to what the Tesla is so the
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Tesla is actually doing really well
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compared to even cheaper cars which
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remember if you're starting out at maybe
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25 30 thousand dollars there's not a
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whole lot of money there to lose before
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you sell the vehicle unlike a car that
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starts out at 75 or $100,000 where
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there's a lot of kind of room in there
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for to really drop in value and when you
[760]
look at Tesla compared to other EVs in
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their resale value this is the percent
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variation from the expected price so
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this is essentially are they doing
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better than they were expected to or
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worse you can see all of them are
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negative with the exception of Tesla's
[774]
up to 5% higher which is pretty high
[776]
considering how these charts work and
[778]
how to relative percentage even Elon
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tweeted a while ago that the Tesla Model
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S is the highest value retention after
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three years and they compared it to cars
[788]
that really are a lot cheaper the rav4
[791]
evie the Focus Electric the Volt and you
[794]
can really just assume that now with the
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free super charging for
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life the Tesla Model S is going to
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retain its value for a long while into
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the future the one thing I will say
[804]
about the MA older Model S is like I
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have is that you're missing some of the
[809]
bells and whistles so for example my car
[810]
doesn't have autopilot it can't really
[812]
get autopilot on the site spend maybe 20
[814]
grand or something if they'd even do it
[816]
other things like the mirrors folding in
[818]
or the parking sensors those can be
[820]
added for a couple thousand dollars here
[822]
and there but that is really going to be
[824]
the main difference the autopilot is the
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big one that's when you actually saw a
[828]
surge in certified pre-owned vehicles on
[830]
the Tesla website but beyond that
[832]
they're going to hold their value
[833]
because they're just great cars they're
[836]
well-built at least in my experience and
[838]
from everyone I know that has one and
[840]
they drive like nothing else they are
[842]
really a blast
[843]
I mean it's turn my whole family to a
[845]
roadtrip family so there you have it
[847]
Tesla Model S is depreciate generally
[850]
better than almost all the other
[852]
vehicles out there that you can compare
[853]
them to with the exception of the really
[855]
cheap gas-powered cars so if you're
[857]
really just looking for the cheapest
[859]
thing yeah Tesla's not the right answer
[861]
for you however if you're in the market
[862]
for maybe say a higher-end BMW even if
[865]
it looks like a 5 Series or an Audi a6
[867]
or something like that these are going
[869]
to actually hold their value really well
[871]
I mean it's going to be a little bit
[872]
better and maybe a lot better depending
[874]
on how these things go in the future
[876]
whatever Tesla announced is next that
[878]
over there updates remember these things
[879]
are always getting better and getting
[881]
new features in my car even though it's
[883]
already three years old so if you're in
[885]
the market for a new Tesla I would like
[887]
to offer you something something that
[888]
gets me exactly zero dollars but gets
[891]
you a thousand dollars off this isn't
[893]
some scam or some BS kind of thing it's
[895]
essentially the Tesla referral program
[897]
so all owners of Tesla's can offer you
[899]
this so you can use the code on the
[901]
screen here or down in the description
[903]
below and you can use that to get $1,000
[905]
off if I get three of them then my son
[907]
will get one of the many electric come
[909]
Model S's that he can drive around so if
[911]
you'd love to help him out and maybe you
[913]
know see some photos of him down the
[915]
road drive on one consider sharing that
[917]
link or using it yourself and if we get
[919]
eight people to do it then you will
[922]
actually send me to the model 3 delivery
[925]
ceremony I think they call it event I'm
[927]
calling it the ceremony because that is
[929]
a special moment in our
[930]
Street and if you'd like to either have
[932]
my son riding around in style and a
[934]
little mini Model S or me at the model 3
[937]
event sharing everything I knew
[938]
recording being the whole YouTube thing
[940]
there please consider using that link
[943]
down below or sharing with anyone else
[945]
you know again no out-of-pocket cost to
[948]
you there's nothing
[948]
catchy here about it it's just a
[951]
referral code that all tells the owners
[953]
have to share with other folks so check
[956]
that out on the screen again or down in
[958]
the description below and I really
[960]
really do appreciate it in fact if you
[962]
do buy one using that I'd be happy to do
[964]
behind the scenes chat with you show you
[966]
kind of how the studio is set up what I
[968]
do or really just ask me anything you
[971]
want for 30 minutes so consider that and
[973]
shoot me a note if you actually take me
[976]
up on it alright and thanks for joining
[977]
me I really do love sharing these videos
[979]
with you and doing all the research
[981]
digging into the data trying to see what
[983]
the real meaning of these things are
[985]
without all the speculation and all the
[987]
kind of punditry that happens out in the
[989]
media just really trying to understand
[990]
the data I think there's something that
[991]
we share and so I love that you guys
[994]
continue to give me feedback in the
[995]
comments below whether it's about how
[997]
the music sucks or how my lighting is
[999]
bad or how my date is off or how great
[1002]
it is or how much it inspired you or how
[1004]
helpful it was whatever the case may be
[1006]
I love all the feedback and if you are
[1008]
new to the family here I would love for
[1010]
you to join us I post new videos every
[1011]
single week on topics related to Tesla
[1014]
electric vehicles solar energy all the
[1017]
kind of stuff around sustainability so
[1019]
if you if you'd like to go ahead and
[1020]
subscribe down below and if you are
[1022]
already part of the family hi please
[1024]
like this video and share it with
[1025]
someone you know share it with someone
[1027]
that might find this informative or
[1028]
maybe he's on the edge and not sure
[1030]
about joining the Evie family so thanks
[1032]
again for watching and I'll see you back
[1034]
here next time
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