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Electric vehicles are becoming more affordable and now bring significant savings to their owners, compared to gasoline cars. Despite their higher cost, savings in charging and maintenance costs ultimately translate into lower overall vehicle ownership costs. A higher priced Tesla Model 3 is a better buy in Israel than Skoda Octavia, local researchers concluded.
Israeli publication The Marker published research data that showed that over time, buying and owning a Tesla Model 3 becomes more affordable than buying and owning one of the most popular family cars in the country, the Skoda Octavia. The starting price for Model 3 is about NIS 170,000, while the Octavia is about NIS 135,000. However, if the owner drives 10,500 miles a year, which is the average mileage in Israel, then within five years Model 3 becomes more profitable to own.
The study examined the projected maintenance costs of the new Tesla Model 3 compared to a family car that costs 134,000 shekels. That amount can buy cars in Israel such as the Hyundai i30, Kia Oxide, or Skoda Octavia, among others.
Tesla's initial cost is much more expensive, plus the cost of purchasing and installing its own charger has been added. The cost of insurance is also more expensive at NIS 4,973 compared to NIS 3,471 for Skoda Octavia. The annual license is cheaper, though (NIS 540 for Model 3 compared to NIS 1,727 for cars like the Octavia). But the real savings will be reflected in the cost of charging. Thus, within five years of owning a Tesla Model 3, it becomes more economical. Another notable fact is that the more the owner drives, the greater the gap in the cost of ownership between a Tesla car and the gasoline car will be.
It is worth noting that in June, Tesla Model 3 became the second best-selling car in Israel, just 10 units behind the leader. This demonstrates that Israelis are well aware that owning a Tesla car is more economical than owning a gasoline car.
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