LOA: Tesla Model 3 cheaper than a Peugeot 508 diesel

Clash of generations between the star of electric sedans versus the queen of diesel family cars. But the shock is brutal.

The world of yesterday against the world of tomorrow? Those stuck in the past who believe that electric cars are more expensive than thermal ones have clearly missed an episode. Or several. The demonstration is striking between the Tesla Model 3 Propulsion and the entry-level Peugeot 508. Power, modernity, features, performance… and price, everything is going wrong for thermal sedans.

The reading of the technical sheets is troubling, because aside from the question of autonomy (who travels 1000 kilometers without stopping?). It should be noted that the entry-level price of the Peugeot 508 requires the use of a 130-horsepower HDi diesel block with a penalty of 330 euros.

TECHNICAL SPECS

Cheaper rents… and kilometer costs too

To compare the Tesla Model 3 Propulsion and Peugeot 508 diesel, we must base our analysis on the conditions for the lion-branded sedan. The Lease with Purchase Option (LOA) requires a duration of 48 months + a first payment of 8700 euros! By applying this specification limiting the distance to 10,000 km annually (for a diesel, of no interest…), we arrive at 48 payments of 450 euros. At the end of the lease, the purchase option can be exercised for 21,227 euros, resulting in a total cost of €51,505.

In the case of the Tesla Model 3 Propulsion, the duration is 48 months and the payments are 416 euros applying the same first payment of 8700 euros. The final purchase option is 18,795 euros, bringing the total acquisition cost to 47,055 euros.

However, the difference will also occur in the duration between maintenance costs (higher for a thermal vehicle) and energy costs. With a liter of diesel averaging 1.8 euros in June 2024, traveling the allowed 40,000 kilometers with a real consumption of 6.5 liters per 100 km will cost approximately 4680 euros for the Peugeot 508.

For the Tesla Model 3 Propulsion, with a kWh priced at 0.23 euros and a consumption of around 18 kWh/100 km, the 40,000 kilometers will impose an energy cost of 1660 euros. This results in a gap of 3020 euros.

When reported to a monthly cost, the surcharge is therefore 97.5 euros / month for the Peugeot 508 (i.e., 547.5 euros / month), and 34.5 euros / month for the Tesla Model 3 Propulsion (i.e., 450 euros / month). Ultimately, the financial advantage of driving an electric sedan with 280 horsepower amounts to 4680 euros over the 4 years of leasing.

Is the match settled? It’s worth seeing if the increase in customs tariffs, applied from July 1, 2024, to cars produced in China, will rebalance the match since the Tesla Model 3 is expected to see its price increase. But with Tesla, there are always many surprises…

READ ALSO: Match Renault Scenic vs Skoda Enyaq, two SUVs at €35,000