The Luxury Car With The Lowest Maintenance Costs

Luxury cars have always carried a hidden tax: the one you pay long after you’ve left the dealership. Between premium parts, specialized labor, and the sheer complexity of high-end engineering, running costs can quietly dwarf the sticker price over time. But one brand is rewriting that equation in a way nobody saw coming. According to repair and maintenance aggregator CarEdge, Tesla is not only the cheapest luxury brand to own overall — the Tesla Model 3 specifically is the least expensive vehicle of any kind to maintain over a 10-year period, undercutting even the most frugal mass-market economy cars.

The Tesla Model 3 Is Cheaper To Run Than A Toyota Prius

Reliability & Maintenance Costs

• J.D. Power Quality & Reliability Rating: 74/100
• Est. Maintenance Cost During The First 10 Years: $3,587 (CarEdge)
• Est. Yearly Repair Cost: N/A (RepairPal)
• Total Recalls: 25 (NHTSA)
• KBB Consumer Rating: 4.6/5 (2021 – 2023)

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We’re sure your eyebrow is significantly raised looking at the title, but at least according to CarEdge, the Tesla Model 3 is actually cheaper to repair and maintain than a Toyota Prius. The aggregator’s estimated cost for a Tesla Model 3 over the first ten years of ownership is just $3,587 — a full $421 less than a Toyota Prius. That not only makes the Model 3 by far the least expensive luxury vehicle to run, but it also makes it the cheapest vehicle to run overall during that period.

It’s a similar, if slightly less headline-grabbing, story for the estimated five-year cost. The Tesla Model 3 is projected to cost only $1,115 over that span, with only the Toyota Yaris and Toyota Corolla coming in lower at $1,080 and $1,110, respectively.

The Prius, meanwhile, costs a whole $9 more over five years — saving you $1.80 per year. While we’re admittedly being a bit reductive with that stat, the fact that a Tesla costs the same or less to run than the most affordable mass-market vehicles available speaks volumes about how genuinely affordable the ownership experience really is.

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Tesla Sweeps The Top 3 Spots In Affordable Luxury Vehicle Ownership Costs

The Least Expensive Luxury Vehicles to Maintain after 10 Years

(Data courtesy of CarEdge)

While the Model 3 is the least expensive luxury vehicle to maintain over five and ten years, two more Teslas sit just below it. Second place goes to the Tesla Model S sedan, while the Tesla Model Y claims third for maintenance costs after 10 years. CarEdge estimates the Model S will cost around $4,566 over its first decade on the road, while the Model Y comes in at $4,732.

One of the primary reasons CarEdge’s estimates are so low for Tesla models is the relatively slim chance of needing a major repair in the first 10 years — just 8.64% for both the Model 3 and Model S. That’s 30.92% better than the luxury sedan industry average. The Model Y carries a slightly higher estimated probability of major repair at 11.68%, but that’s still a healthy 27.88% better than the luxury SUV industry average.

Interestingly, while the Model 3 and Model S are estimated to cost $8,374 and $7,395 less than the 10-year luxury sedan maintenance industry average, respectively, the Model Y actually outpaces both in relative savings — undercutting the luxury SUV industry average by $10,982. That said, other sources are less flattering when it comes to Tesla’s overall reliability.

Tesla’s Reliability Ratings Aren’t Great Despite Low Maintenance Costs

The J.D. Power 2024 U.S. Vehicle Dependability Study (VDS) measures 2021 model-year vehicle reliability. More than 30,000 independent owners provide feedback on their experiences after three years of ownership, with J.D. Power assigning each vehicle and brand a ‘problems per 100’ score (PP100) — lower is better. Tesla didn’t score particularly strongly compared to some other luxury brands, posting a PP100 of 252, which is 62 points worse than the industry average.

Despite the less-than-stellar J.D. Power result, owners appear to be happy with their Teslas. The Model 3 earns a Kelley Blue Book consumer score of 4.6 out of 5 based on 184 reviews. Low maintenance costs were among the most frequently cited positives, with owners also praising the Model 3’s comfort, electric range, and overall driving experience.

The absence of a traditional combustion drivetrain is the key reason maintenance costs stay so low. Tesla only recommends changing the tires, cabin air filter, and brake pads every 12,000 miles. And if something does go wrong with the powertrain, the AWD Model 3, Model Y, and Cybertruck all come with an 8-year/150,000-mile warranty on the battery and drive unit, substantially mitigating any potential repair costs.

The Lexus ES 350 Is The Cheapest Gas-Powered Luxury Vehicle To Run

Reliability & Maintenance Costs

• J.D. Power Quality & Reliability Rating: 85/100 (2023)
• Est. Maintenance Cost During The First 10 Years: $5,488 (CarEdge)
• Est. Yearly Repair Cost: $468 (RepairPal)
• Total Recalls: 1 (NHTSA)
• KBB Consumer Rating: 4.1/5 (2022)

Despite the EV revolution reshaping the market, there are still compelling luxury options for buyers who prefer a traditional internal combustion engine. While Tesla dominates the top three repair and maintenance spots after ten years, the picture shifts slightly at the five-year mark, where the Lexus ES 350 sneaks into third place.

With CarEdge estimating a maintenance cost of only $1,556 after five years, Toyota’s luxury sub-brand offers a viable alternative to the all-electric contingent. If you want a touch of electrification in the mix, the hybrid ES 350h is estimated to cost only around $90 more over the same period.

While CarEdge does put the Lexus sedans’ chance of needing a major repair over the first 10 years at around 15.13%, that’s still 24.43% lower than the luxury sedan average.

There’s also much less disagreement between reliability sources for Lexus. J.D. Power ranked Lexus as the single most reliable brand in its 2024 VDS, with a score of 135 PP100 — 55 points better than the industry average and 117 points ahead of Tesla. The Kelley Blue Book consumer reviews are admittedly not quite as glowing as those for the Tesla Model 3, averaging 4.1 out of 5 based on 62 reviews. Owners pointed to a relative lack of luxury features and average performance as the main disappointments, while build quality and reliability were consistently highlighted as the car’s strongest suits.

With Repair Costs Rising, Low Maintenance Costs Are More Important Than Ever

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Annual Average Repair Cost Increases Overview

(data courtesy of Mitchells via CNBC)

Unfortunately, the automotive industry is no more immune than any other to rising prices. The cost-of-living squeeze and post-pandemic inflation continue to take their toll, with the US Bureau of Labor Statistics reporting that new and used car repair costs rose by 49.8% from November 2013 to November 2023 — 18% more than the general inflation rate over the same period.

These rates have skyrocketed since the COVID-19 pandemic, with CNBC reporting that consumers have seen a 10% rise in average repair costs from 2022 to 2024 and a 20% increase in labor rates over the past five years.

There are a host of factors driving these increases beyond inflation. Shipping costs surged dramatically — rising around 900% for an average 40-foot container between 2020 and 2021 — and the global chip shortage continues to play its part.

This, combined with the volume of advanced semiconductors required by modern vehicles, compounds the cost problem further. The sophisticated technology also demands more expensive diagnostic tools and recalibration equipment, which in turn requires more highly trained technicians — a resource the industry remains short of, according to CNBC.

With all of this in mind, minimizing repair exposure is simply smart ownership strategy — and buying a Tesla appears to be the most effective way to do that. The Lexus ES 350 offers a similarly hassle-free experience for those who prefer a combustion engine. It also holds its value exceptionally well at resale, retaining more of its residual value than any other luxury vehicle after five years (91.73%), according to CarEdge.

sources: Tesla, CarEdge, J.D. Power, Kelley Blue Book, YouTube @ CNBC, US Bureau Of Labor Statistics, RepairPal