Not My 911 vs. My Tesla
What happens when you overthink which car to buy…. again
My Tesla Model 3 vs. the Porsche 911 I could have had…
For some of us who are in the middle part of middle aged, an internal crisis starts to bubble up and out into the real world. For me this was highlighted when I started to search my next car (now my current one).
As a reasonable place to start - I’m going to detail each one of my cars as a way to free you from going down the various rabbit holes as you ponder the age-old Porsche vs. XYZ OR might still go down those holes (but at least you’re not alone!). I’m going to work back from current to first in my car collection so you can see the true chaos. I’ll quickly touch on some of the vehicles I’ve had for short stints as well as those I had in the roster for a while.
Current car: 2021 Tesla Model 3 Standard Range.
from 0kms to now over 150,000kms on the clock, my current Tesla M3 has done a pretty solid job of keeping me going up and down the road. For context, I’ve spent the past decade regularly racking up 220km/day. COVID did open up some WFH options for a hot second but that was relatively short lived and I was back on the road. I think I’ve earned the ‘super commuter’ badge, but all that to say I spend a meaningful amount of time in the car.
My head was certainly involved in my last car decision. At the start of 2021 I kicked off the search and quickly landed in a head to head; a new 2021Tesla Model 3 vs. a 1999 Porsche 911 996 - at that point the ‘sticker price’ was essentially the same so I kept up with the head work and ignored all else.
In early 2021, new MY21 Tesla M3: $68,500.
(drive away price = total cost to get car on the road)
In early 2021, MY03 Porsche 911, 996: $64,000.
(easy to assume around $4K worth of stuff to ‘sort’)
So the ‘sticker price’ for the two cars is off the table - so now we get into the deeper math.
FINANCE COST: Winner - Tesla
The cost to finance (borrow the cash to secure the car) based on the age and type of car was the hurdle. Tesla doesn’t finance vehicles here in Australia like they do in other countries and leasing isn’t really a thing but one of the more reputable lenders got me to $215/wk (due to the way the world was at the time, this is essentially a 2.9% finance rate!)
Financing the Porsche was a slightly different matter - older cars attract a higher rate, at the time this was around 6% and for a more restricted term to reduce their risk. That placed the weekly cost for the Porsche at $285/wk. Tesla wins that math battle.
OPERATING COST: Winner - Tesla
Layering on the operating cost of the cars (Tesla with no real maintenance to speak and nominal cost for ‘fuel’) the Tesla won hands-down at the time and that math has held up pretty well. Over 150,000kms if we assume an electricity cost of 34.1¢/kWh and a fuel cost of about $1.80/L then I have spent around $7,500 on electricity vs. $29,700 if that had been fuel. If we assume I’d have used up tyres and alike at the same rate, the only other thing is regular servicing. That’s nearly nothing for the Tesla (I’ve put in about $2K of services and repairs) but the Porsche with its 7 minor and 3 major services in that period would have cost $9,500, assuming nothing major was required. That’s a total cost of $9,500 for the Tesla vs. $39,200 for the Porsche over 150,000kms.
RESALE VALUE: Winner - Porsche
So now we are in the theoretical ‘future’ where both the Tesla and Porsche have clocked up the 150,000kms getting me around and we’ve put electrons and fuel as well as all the other bits and pieces into the respective efforts… does the math… math?
Tesla Model 3 (2021 SR)
Finance paid (4 yrs): $44,700
Running costs: $9,500
Subtotal outlay: $54,200
Less resale value: −$25,000
Net cost = $29,220
Porsche 911 (2003 997 Carrera 3.6 manual)
Finance paid (4 yrs): $59,100
Running costs: $39,200
Subtotal outlay: $98,300
Less resale value: −$80,000
Net cost = $18,272
Honestly, this one has landed as a bit of a shock. I couldn’t have anticipated the destruction in value associated with Elon’s exploits (“I bought it before I knew Elon was a jerk” bumperstickers resonate) and while that’s likely only a small part of the depreciation I’ve experienced, if people are now looking at EVs the same way they look at iPhones then it’s just a data-point.
Now, this assumes that after four or five years you sell and step into something else - so what if we keep going? Assuming we keep driving like we’ve been driving and the financing for each car runs out at the natural points (8yrs / 5yrs)… what then? Turns out… Porsche for a staggering 13yrs… WTF!!
SO… how long does it take?
4 yrs: Porsche cheaper by ~$11k
10 yrs: Porsche still cheaper by ~$21k
13 yrs: Breakeven → Tesla and Porsche total costs are about the same
15 yrs: Tesla pulls ahead, cheaper by ~$12k
Math shocker…
At the 13yr mark, the Tesla pulls ahead