A Bigger Purchase, Fewer Trade-Offs: The Real Cost of Buying an Electric Car in Atlanta

The context for this story is that it happened during my deep Dave Ramsey era of personal finance decision making. You know the philosophy: “taking out a loan to buy a car is stupid” and “don’t invest until your mortgage is paid off.” I genuinely appreciate the simplicity of the first three baby steps he preaches: build an emergency fund, pay off debt, and continue to save. The rest starts to feel a little rigid for me.

At the time, I needed to buy a new car. My old faithful Nissan Rogue had reached the stage of life where it would cost more to fix than she was worth—the dreaded calculation every car owner eventually faces. I loved that car. She was fully paid off and carried me through some of my most formative years, from graduate school into my first career. I also took her everywhere, because gas was cheaper than plane tickets. In hindsight, those long road trips probably sped up her demise. She was also the first car I ever financed and paid off, back when you could still get a solid car for $17,000.

Economically speaking, my timing was oddly perfect for buying an electric car.

The country was still reeling from the pandemic, and interest rates were at historic lows—sub-3%. Still, the guilt-inducing voice of Dave Ramsey lingered in my subconscious: only buy a car if you can pay for it in full. Based on what I had saved and what cars were going for at the time, that would have meant wiping out our household savings, which didn’t sit right with me. 

I also knew I wanted a modest upgrade and lower maintenance costs. I was tired of going in for a routine oil change and leaving with a surprise $2,000 bill for a part I’d never heard of. That meant balancing a brand upgrade with reality. A Mercedes SUV sounded nice, but I also knew Mercedes cost far more to fix than a Honda. José at the local mechanic could fix a Honda. I wasn’t so sure about a Mercedes.

Electric cars weren’t even on my radar until a colleague suggested I look at the Tesla Model Y.

It was newer to the market and smaller—and cheaper—than the traditional Tesla SUVs. I scheduled a test drive, and while the car was fun to drive, what really sealed the deal was a conversation about maintenance. Tires and the cabin air filter were the main upkeep. Other than that, there wasn’t much. The car had remarkably few moving parts. Say less.

With interest rates at 2.4%, I financed the remaining balance after a $15,000 down payment. I ran the numbers and realized that if I paid the loan down aggressively, turning a six-year term into a four-year one, I’d pay less than $3,000 in total interest over the life of the loan. 

Five years later, I can honestly say this was one of the best financial decisions I’ve made.

I likely would have spent a similar amount on a non-electric, higher-end SUV, but the real savings showed up in gas and maintenance. Aside from two cabin filter replacements, new tires (thanks to the nails that blanket Atlanta highways), and a small battery replacement, maintenance has barely factored into ownership. Over the life of the Rogue, I spent nearly $12,000 on maintenance, I kept every receipt. On the Tesla, I’ve spent less than $2,500.

It reminded me that financial rules are tools, not commandments, and they work best when applied thoughtfully to real life.