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Luxury cars have a time-honored reputation for sizable price tags and eye-watering maintenance bills. However, not every posh ride will cripple you with ownership costs. Instead, these five luxury cars boast some of the lowest five-year ownership costs on the market– and the Tesla Model 3 leads the way. 

The Tesla Model 3 leads three premium badge rivals in affordable ownership costs

A pair of 2024 Tesla Model 3 luxury cars cruise a snowy road.
2024 Tesla Model 3s | Tesla

With segment-leading value retention, no need for stops at the pump, and government incentives, the Tesla Model 3 leads the top four luxury cars in terms of affordable five-year ownership.

Make and modelAverage depreciation5-year ownership cost
Tesla Model 3$25,191$39,253
Polestar 2$35,686$59,188
Jaguar XF$33,709$61,277
Audi TT$30,889$61,571

To arrive at the five-year ownership values, Kelley Blue Book (KBB) weighed the average cost of fuel, maintenance, insurance, repairs, financing, state fees, and out-of-pocket expenses. Granted, the Tesla Model 3 and Polestar 2 don’t consume gasoline as part of the running process. 

However, electric vehicles (EVs) require access to the grid to replenish their battery charges. That said, charging at home can cost homeowners money in household energy consumption. Beyond fuel, the depreciation difference between the Model 3 and Polestar 2 is over $10,000. Paired with out-of-pocket expenses, the Polestar costs around $20,000 more than the base Tesla EV over five years.  

Of course, the Tesla Model 3’s status as a “luxury car” is up for debate. After all, the Model 3 is the marque’s entry-level, budget-friendly offering. Even the dual-motor, all-wheel drive (AWD) Long Range trim starts at well below the $50,000 mark. Still, some definitions of interior luxury include light, space, and elegant simplicity. Check, check, and check.

From the gas-powered side of the segment, the Jaguar XF and Audi TT take the No. 3 and No. 4 spots. The Jaguar XF, Coventry’s flagship sedan, depreciated an average of $33,709 in five years, around $1,977 less than the Volvo-affiliated Polestar 2. 

Interestingly enough, the Jaguar has the lowest average maintenance costs of all four segment leaders. At $2,351, the Jag was around $1,212 less than Audi’s posh drop-top. Still, the Audi TT had the lowest five-year depreciation of all four luxury models.

Source: Kelley Blue Book


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