Tesla Model Y: running costs & insurance
An average warranty and high insurance premiums dampen what is otherwise a relatively affordable electric SUV to buy and run
| Insurance group | Warranty | Service interval | Annual company-car tax cost (20%/40%) |
|---|---|---|---|
| 46-50 | 4yrs/50,000 miles | Variable | From £180/£359 |
Pricing for the Tesla Model Y starts from around £45,000 for the Rear-Wheel Drive model, and it’s fairly common to see Tesla’s SUV being offered at some very tempting monthly rates if you decide to lease instead. Whichever route you decide to take, you’ll enjoy zero VED road tax until April 2025. If you’re a company car user, the ever-attractive 2% Benefit-in-Kind tax rate applies here, too.
Tesla Model Y insurance group
As with the rest of the Tesla line-up, the Model Y incurs some hefty insurance premiums. Even the base Rear-Wheel Drive variant occupies group 46 out of 50, making it far more expensive to cover than the range-topping Audi Q4 e-tron Black Edition (group 37). Long Range and Performance Model Ys are pricier still, sitting in groups 48 and 50 respectively.
Warranty
Tesla offers a standard four-year/50,000-mile warranty, which can’t quite match the length of Hyundai or Kia’s coverage, but it is at least longer than the three-year warranties offered by BMW, Mercedes or Polestar. The Model Y's batteries get an eight-year/100,000-mile warranty, too, and will be refurbished or replaced by Tesla if they fall below 70% of their as-new performance within that time. That’s unlikely to happen, though, given Tesla’s excellent reputation for battery longevity.
Servicing
Tesla doesn’t state specific servicing intervals – the car will inform you if it needs attention. However, Tesla recommends checking the interior air filter and brake fluid every couple of years. Tesla has service centres dotted around the country, and offers a mobile service where a technician will come to you.
Road tax
Thanks to its zero-emissions status, you currently don’t have to pay any road tax (VED) or the London Congestion Charge with the Model Y. However, these exemptions will come to an end in 2025.
Depreciation
Most people choosing the Tesla Model Y are likely to be company car drivers, although private buyers will certainly be interested in the electric SUV’s residuals. Thankfully, the Model Y fares pretty well in that department; the latest industry figures suggest it’ll retain between 49-56% of its initial value over three years and 36,000 miles of ownership, with the Rear Wheel Drive version being the best performer.
