Whether one is looking for a Model 3, or a Model Y, the recent price cuts to Tesla’s least expensive models might prove to be enticing to buyers, but an expensive reality of ownership might sour such a bargain.
Data from Mitchell, a provider of collision repair management software, reveals that average repair costs for a Tesla (TSLA) -) are significantly higher than not only gas and diesel powered cars, but other EVs.
Related: Here's why Tesla's third-quarter earnings were a 'mini disaster'
As per their data, in the third quarter of this year, average repair costs for a Tesla was $5,552, $4,474 for non-Tesla electric cars and $4,205 for traditional engine cars. Doing the math, repairing a Tesla after a crash costs $1,347 more than a traditional gas or diesel car, while other brands were just $269 higher.
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Tesla’s technology and safety features may put them at the forefront of automotive technology, but all the sensors and cameras that Elon Musk’s machines use for said features makes post-crash repairs very expensive.
Ryan Mandell, the director of claims performance for auto physical damage at Mitchell said that the complications of new technology play a role when these vehicles are involved in a collision.
"You could have a left-front corner impact that somehow has disrupted your right rear lane-departure warning sensor," Mandell said. "Maybe that part needs to be replaced, maybe it needs to be recalibrated."
According to a report by MarketWatch, Tesla drivers pay significantly higher for insurance than other drivers. Using data from Quadrant Information Services, they found that the annual cost of full coverage insurance on a 2023 Tesla Model for a 35-year-old driver with good credit and a clean license is $4,762, more than double the average annual cost of $2,008.
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Mandell also stated that new vehicles in general are being transformed with new parts, as well as parts being made out of more advanced materials, which require higher-skilled technicians and more labor hours in the shop.
"When you look at the average number of parts being replaced, it's increasing every year. You look at the frequency of calibration work — that's increasing by the day. You look at the number of parts that are other than mild steel, that increases continually," he said. "All of these trends are leading us toward more expensive collision repair."
Data from Mitchell also showed that repair costs for EVs as a whole have dropped since the same time in 2022. The average repair cost of an EV as of recent is $5,155, compared to $6,270 about a year ago. The increase of sales of EVs by mainstream brands, as well as price cuts to Tesla vehicles may have played a role in the drop.
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