Tesla Model 3 vs. Honda Accord — 7 Scenarios
Update: See our new & improved Tesla Model 3 versus Honda Accord comparisons to look at cases where the buyer finances/gets a loan for the purchase.
Reporting on the Tesla Model 3 is weird. It’s a car that can smoke a BMW M3 on the track yet is cost competitive — or even cheaper than — a Toyota Camry or Honda Accord (seriously).
It almost doesn’t make sense to the brain. How can a car that is so much better than a Camry or Accord cost less over a few years? How can a car that is objectively better than a BMW 3 Series cost less than a normal, non-premium sedan?
That said, my previous cost comparisons of the Tesla Model 3 to the Camry, Accord, Altima, etc., have been pretty simple. I pulled Edmunds data for the non-Tesla models and put in some basic assumptions for the Model 3. After publishing some of these comparisons, seeing the feedback, and reading other total cost of ownership (TCO) articles, I figured it would be useful for people if I did some more nuanced comparisons. That’s what we’ve got here, kicking off with 7 comparisons of the Tesla Model 3 versus the Honda Accord.
One thing I wanted to start taking into consideration more was resale value. Resale value is probably the most influential factor in a cost comparison, but it’s also a tough factor to forecast. Luckily, I no longer have to base such an important assumption on my own thoughts. Kelley Blue Book, long the #1 resource for this matter in the US, has published 5 year resale value estimates for the Tesla Model 3 and the Honda Accord.
I also wanted to do 10 year comparisons, but the resale values of these cars after 10 years is a total wild card. I expect the Model 3 will hold up much better (for several reasons), but I don’t have any very objective evidence of that and also don’t have a crystal ball. Model 3 operational savings should also add up more and more over time, but, again, the Model 3 hasn’t been in the world long enough to prove that. So, while I decided to not do 10 year ownership comparisons, I believe the Model 3 will look even better under such a timeframe in all scenarios.
For this analysis, I compared the Model 3 Standard Range Plus (SR+) to four versions of the Honda Accord. For three of those versions, I did low-mileage and high-mileage comparisons (10,000 miles/year and 17,000 miles/year, respectively). For the last comparison, with the Honda Accord Sport 2.0T 10-Speed Automatic, I simply decided to use the US average (13,500 miles/year).
In all scenarios, standard assumptions were a $2.50 average price of gas, a $0.10 average price of electricity for charging, a 4.24 miles/kWh efficiency for the Model 3, use of the $3,750 US federal tax credit for the Model 3, no maintenance costs (which most likely benefits the Accord), and as noted above, Kelley Blue Book estimates for 60-month resale values. For the Model 3, the default black paint and black interior were chosen. Changing colors will add $1,000 or more — but any such changes probably just equal out Model 3 maintenance cost benefits. In any case, you are free to grab my sheet for these calculations and change assumptions as you see fit — everyone’s life is unique.
The bottom-line result is that the Model 3 is cheaper in every scenario, and much cheaper in several scenarios, despite being a much safer, quicker, more tech-advanced, more prestigious car.
It’s truly shocking. The Tesla Model 3 is beyond competitive with one of the USA’s and world’s top selling cars, the iconic Honda Accord.
Update: The tables below do not show correctly on mobile. If you want to view them, you have to do so on the desktop/laptop version of the site.
Tesla Model 3 SR+ vs. Honda Accord EX-L Hybrid E-CVT
10,000 Miles/Year, 5 Years
Tesla Model 3 SR+ = $17,693
Honda Accord EX-L Hybrid E-CVT = $22,687
Model | Tesla Model 3 | Honda Accord EX-L Hybrid E-CVT |
Purchase Price | $39,500 | $31,720 |
5 Year Resale Value (via KBB) | $19,236.50 | $12,117.04 |
Cash Cost after Resale | $20,263.50 | $19,602.96 |
Incentives | -$3,750.00 | $0.00 |
Cash Cost after Incentives & Resale | $16,513.50 | $19,602.96 |
Price of Gas | $0 | $2.50 |
Average Price of Electricity for Car | $0.10 | $0 |
Average Miles Per Year | 10,000 | 10,000 |
Maintenance Costs Per Mile | $0 | $0 |
Maintenance Costs Per Year | $0 | $0 |
Miles/kWh or MPG | 4.24 | 48 |
Average Gallons of Gas Per Year (Miles/MPG) | 0 | 208.33 |
Average kWh of Electricity Per Year for Car (Miles/4.24) | 2,358.49 | 0 |
Average Cost of Fuel Per Year | $235.85 | $520.83 |
5 Year Total Cost of Ownership | $17,693 | $22,687 |
Tesla Model 3 SR+ vs. Honda Accord EX-L Hybrid E-CVT
17,000 Miles/Year, 5 Years
Tesla Model 3 SR+ = $18,518
Honda Accord EX Hybrid E-CVT = $24,510
Model | Tesla Model 3 | Honda Accord EX-L Hybrid E-CVT |
Purchase Price | $39,500 | $31,720 |
5 Year Resale Value (via KBB) | $19,236.50 | $12,117.04 |
Cash Cost after Resale | $20,263.50 | $19,602.96 |
Incentives | -$3,750.00 | $0.00 |
Cash Cost after Incentives & Resale | $16,513.50 | $19,602.96 |
Price of Gas | $0 | $2.50 |
Average Price of Electricity for Car | $0.10 | $0 |
Average Miles Per Year | 17,000 | 17,000 |
Maintenance Costs Per Mile | $0 | $0 |
Maintenance Costs Per Year | $0 | $0 |
Miles/kWh or MPG | 4.24 | 48 |
Average Gallons of Gas Per Year (Miles/MPG) | 0 | 354.17 |
Average kWh of Electricity Per Year for Car (Miles/4.24) | 4,009.43 | 0 |
Average Cost of Fuel Per Year | $400.94 | $885.42 |
5 Year Total Cost of Ownership | $18,518 | $24,510 |
Tesla Model 3 SR+ vs. Honda Accord EX Hybrid E-CVT
10,000 Miles/Year, 5 Years
Tesla Model 3 SR+ = $17,693
Honda Accord EX Hybrid E-CVT = $21,142
Model | Tesla Model 3 | Honda Accord EX Hybrid E-CVT |
Purchase Price | $39,500 | $29,220 |
5 Year Resale Value (via KBB) | $19,236.50 | $11,162.04 |
Cash Cost after Resale | $20,263.50 | $18,057.96 |
Incentives | -$3,750.00 | $0.00 |
Cash Cost after Incentives & Resale | $16,513.50 | $18,057.96 |
Price of Gas | $0 | $2.50 |
Average Price of Electricity for Car | $0.10 | $0 |
Average miles Per Year | 10,000 | 10,000 |
Maintenance Costs Per mile | $0 | $0 |
Maintenance Costs Per Year | $0 | $0 |
Miles/kWh or MPG | 4.24 | 48 |
Average Gallons of Gas Per Year (Miles/MPG) | 0 | 208.33 |
Average kWh of Electricity Per Year for Car (Miles/(4.24) | 2,358.49 | 0 |
Average Cost of Fuel Per Year | $235.85 | $520.83 |
5 Year Total Cost of Ownership | $17,693 | $21,142 |
Tesla Model 3 SR+ vs. Honda Accord EX Hybrid E-CVT
17,000 Miles/Year, 5 Years
Tesla Model 3 SR+ = $18,518
Honda Accord EX Hybrid E-CVT = $23,514
Model | Tesla Model 3 | Honda Accord EX Hybrid E-CVT |
Purchase Price | $39,500 | $29,220 |
5 Year Resale Value (via KBB) | $19,236.50 | $11,162.04 |
Cash Cost after Resale | $20,263.50 | $18,057.96 |
Incentives | -$3,750.00 | $0.00 |
Cash Cost after Incentives & Resale | $16,513.50 | $18,057.96 |
Price of Gas | $0 | $2.50 |
Average Price of Electricity for Car | $0.10 | $0 |
Average Miles Per Year | 17,000 | 17,000 |
Maintenance Costs Per Mile | $0 | $0 |
Maintenance Costs Per Year | $0.00 | $0.00 |
Miles/kWh or MPG | 4.24 | 48 |
Average Gallons of Gas Per Year (Miles/MPG) | 0 | 354.17 |
Average kWh of Electricity Per Year for Car (Miles/4.24) | 4,009.43 | 0 |
Average Cost of Fuel Per Year | $400.94 | $885.42 |
5 Year Total Cost of Ownership | $18,518 | $22,965 |
Tesla Model 3 SR+ vs. Honda Accord Sport CVT
10,000 Miles/Year, 5 Years
Tesla Model 3 SR+ = $17,693
Honda Accord EX Hybrid E-CVT = $20,691
Model | Tesla Model 3 | Honda Accord Sport CVT |
Purchase Price | $39,500 | $26,180 |
5 Year Resale Value (via KBB) | $19,236.50 | $10,000.76 |
Cash Cost after Resale | $20,263.50 | $16,179.24 |
Incentives | -$3,750.00 | $0.00 |
Cash Cost after Incentives & Resale | $16,513.50 | $16,179.24 |
Price of Gas | $2.50 | $2.50 |
Average Price of Electricity for Car | $0.10 | $0 |
Average Miles Per Year | 10,000 | 10,000 |
Maintenance Costs Per Mile | $0 | $0 |
Maintenance Costs Per Year | $0 | $0 |
Miles/kWh or MPG | 4.24 | 31 |
Average Gallons of Gas Per Year (Miles/MPG) | 0 | 322.58 |
Average kWh of Electricity Per Year for Car (Miles/4.24) | 2,358.49 | 0 |
Average Cost of Fuel Per Year | $235.85 | $806.45 |
5 Year Total Cost of Ownership | $17,693 | $20,691 |
Tesla Model 3 SR+ vs. Honda Accord Sport CVT
17,000 Miles/Year, 5 Years
Tesla Model 3 SR+ = $18,518
Honda Accord EX Hybrid E-CVT = $23,514
Model | Tesla Model 3 | Honda Accord Sport CVT |
Purchase Price | $39,500 | $26,180 |
5 Year Resale Value (via KBB) | $19,236.50 | $10,000.76 |
Cash Cost after Resale | $20,263.50 | $16,179.24 |
Incentives | -$3,750.00 | $0.00 |
Cash Cost after Incentives & Resale | $16,513.50 | $16,179.24 |
Price of Gas | $0 | $2.50 |
Average Price of Electricity for Car | $0.10 | $0 |
Average Miles Per Year | 17,000 | 17,000 |
Maintenance Costs Per Mile | $0 | $0 |
Maintenance Costs Per Year | $0 | $0 |
Miles/kWh or MPG | 4.24 | 31 |
Average Gallons of Gas Per Year (Miles/MPG) | 0 | 548.39 |
Average kWh of Electricity Per Year for Car (Miles/4.24) | 4,009.43 | 0 |
Average Cost of Fuel Per Year | $400.94 | $1,370.97 |
5 Year Total Cost of Ownership | $18,518 | $23,514 |
Tesla Model 3 SR+ vs. Honda Accord Sport 2.0T 10-Speed Automatic
13,500 Miles/Year, 5 Years
Tesla Model 3 SR+ = $18,105
Honda Accord EX Hybrid E-CVT = $23,150
Model | Tesla Model 3 |
Honda Accord Sport 2.0T 10-Speed Automatic
|
Purchase Price | $39,500 | $26,180 |
5 Year Resale Value (via KBB) | $19,236.50 | $10,000.76 |
Cash Cost after Resale | $20,263.50 | $16,179.24 |
Incentives | -$3,750.00 | $0.00 |
Cash Cost after Incentives & Resale | $16,513.50 | $16,179.24 |
Price of Gas | $0 | $2.50 |
Average Price of Electricity for Car | $0.10 | $0 |
Average Miles Per Year | 13,500 | 13,500 |
Maintenance Costs Per Mile | $0 | $0 |
Maintenance Costs Per Year | $0 | $0 |
Miles/kWh or MPG | 4.24 | 26 |
Average Gallons of Gas Per Year (Miles/MPG) | 0 | 519.23 |
Average kWh of Electricity Per Year for Car (Miles/4.24) | 3,183.96 | 0 |
Average Cost of Fuel Per Year | $318.40 | $1,298.08 |
5 Year Total Cost of Ownership | $18,105 | $23,150 |
Looking at these comparisons, which would you choose?
Interested in buying a Tesla Model 3, Model S, or Model X? Need a referral code to get 1,000 miles of free Supercharging? Use ours: http://ts.la/tomasz7234 (or not).
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