10 Best Tesla Model 3 Alternatives for 2026: Comparison Guide
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The Tesla Model 3 has earned its reputation as one of the most popular electric cars on UK roads. It’s efficient, quick, packed with technology, and easy to live with. But heading into 2026, the EV market has moved on rapidly.
New rivals now offer:
Faster charging
More spacious interiors
Or simply better value through salary sacrifice
So, if you’re considering a Model 3, it’s worth asking: is there something that suits your lifestyle even better?
Below, we compare the 10 best Tesla Model 3 alternatives for 2026, breaking down how they drive, how practical they are, and how much you could save through The Electric Car Scheme.
BMW i4
UK guide price (new): from ~£51,000
Salary sacrifice: from ~£628 per month
Range: up to 365 miles (WLTP)
How Does The BMW i4 Compare To The Tesla Model 3?
The BMW i4 feels more traditional and luxurious than the Model 3. It trades Tesla’s minimalist cabin for a premium interior with higher perceived build quality.
Key Advantages
Sporty performance (0–62mph from 5.6s)
Excellent ride comfort
High-quality interior materials
Salary Sacrifice Savings
The table shows how much you would pay if you decided to lease a BMW i4 through The Electric Car Scheme. If you earn £40,000 per annum, you’d pay £697 per month, whereas if you earn £60,000, you’d pay less (£628).
| Savings breakdown - BMW i4 250kW eDrive40 Sport 83.9kWh | £40k Salary | £60k Salary |
|---|---|---|
| Average monthly salary sacrifice (inc VAT) | £897 | £897 |
| Employee income savings | -£179 | -£347 |
| Employee national insurance savings | -£72 | -£22 |
| Average benefit-in-kind tax over term | £51 | £99 |
| Net cost/You pay | £697 | £628 |
Volkswagen ID.7
UK guide price (new): from ~£51,500
Salary sacrifice: from ~£605
Range: up to 436 miles (WLTP)
How Does It Compare?
The Volkswagen ID.7 is noticeably larger than the Model 3. It’s one of the best options if you want maximum comfort and long-distance ability.
Key Advantages
Class-leading WLTP range
Large boot and rear legroom
Smooth, refined motorway driving
Salary Sacrifice Savings
Despite its size and range, competitive lease pricing makes the ID.7 one of the best long-range EVs on salary sacrifice.
| Savings breakdown - Volkswagen ID.7 210kW Match Pro Plus 77kWh | £40k Salary | £60k Salary |
|---|---|---|
| Average monthly salary sacrifice (inc VAT) | £884 | £884 |
| Employee income savings | -£177 | -£344 |
| Employee national insurance savings | -£71 | -£21 |
| Average benefit-in-kind tax over term | £44 | £85 |
| Net cost/You pay | £680 | £605 |
Tesla Model Y
UK guide price (new): from ~£44,990
Salary sacrifice: from ~£542
Range: up to 387 miles (WLTP)
How Does The Model Y Compare To The Model 3?
The Tesla Model Y shares much of the Model 3’s technology but adds SUV practicality and optional seven seats.
Key Advantages
Optional seven-seat layout
Tesla Supercharger access
Salary Sacrifice The Tesla Model Y
If you were to salary sacrifice the Tesla Model Y from The Electric Car Scheme, you could expect to save £324 (if you earn £60k per year) on income tax savings and £16 on National Insurance contributions.
You will have to pay a small amount in Benefit-in-Kind tax, but this is significantly less than the BiK tax on petrol or diesel cars!
| Savings breakdown - Tesla Model Y Standard RWD | £40k Salary | £60k Salary |
|---|---|---|
| Average monthly salary sacrifice (inc VAT) | £810 | £810 |
| Employee income savings | -£162 | -£324 |
| Employee national insurance savings | -£65 | -£16 |
| Average benefit-in-kind tax over term | £36 | £72 |
| Net cost/You pay | £619 | £542 |
Kia EV6
UK guide price (new): from ~£44,800
Salary sacrifice: from ~£525 per month
Range: up to 328 miles (WLTP)
The Kia EV6 stands out with its futuristic design, featuring a wide face and sloping roof for a sleek, sports car-like appearance.
How Does The EV6 Compare To The Tesla Model 3?
While the Model 3 excels in tech features like Autopilot and Tesla’s Supercharger network, the EV6 provides added practicality, fast-charging capability, and the unique V2L feature, making it a great choice for those seeking versatility and advanced functionality in an EV.
Key Advantages
350kW ultra-rapid charging
Vehicle-to-Load (V2L) capability
Eye-catching design
Salary Sacrifice Savings: Kia EV6
| Savings breakdown - Kia EV6 125kW Air SR 63kWh | £40k Salary | £60k Salary |
|---|---|---|
| Average monthly salary sacrifice (inc VAT) | £789 | £789 |
| Employee income savings | -£158 | -£316 |
| Employee national insurance savings | -£63 | -£16 |
| Average benefit-in-kind tax over term | £34 | £67 |
| Net cost/You pay | £602 | £525 |
BYD Seal
UK guide price (new): from ~£45,695
Salary sacrifice: from ~£400 per month
Range: up to 354 miles (WLTP)
The BYD Seal, launched in 2023 as the brand’s flagship model, offers a more premium option compared to its siblings, the BYD Atto 3 and BYD Dolphin.
How Does The BYD Seal Compare To The Tesla Model 3?
The BYD Seal offers similar range and performance, but with the added choice of all-wheel drive in its higher-powered models. While the Tesla Model 3 is well-known for its advanced tech and minimalist design, the BYD Seal positions itself as a more performance-focused alternative, appealing to those looking for a powerful yet practical EV in the premium segment.
Key advantages
Strong performance options (up to 530hp)
High equipment levels
Competitive range
Salary Sacrifice The BYD Seal
| Savings breakdown - BYD Seal 390kW Excellence AWD 83kWh | £40k Salary | £60k Salary |
|---|---|---|
| Average monthly salary sacrifice (inc VAT) | £545 | £545 |
| Employee income savings | -£109 | -£218 |
| Employee national insurance savings | -£44 | -£11 |
| Average benefit-in-kind tax over term | £42 | £83 |
| Net cost/You pay | £434 | £400 |
Polestar 2
UK guide price (new): from ~£48,950
Salary sacrifice: from ~£525 per month
Range: up to 406 miles (WLTP)
The Polestar 2 is a stylish and performance-oriented electric vehicle that serves as the flagship of Volvo’s electric sub-brand. Known for its clean, Scandinavian design, the Polestar 2 comes in both single-motor and dual-motor versions, offering ranges of up to 406 miles (WLTP) in the long-range single-motor model.
Tesla Model 3 vs Polestar 2: Comparison
The Polestar 2 offers a more refined and luxurious experience, with a focus on exceptional build quality and sustainability. The Tesla Model 3, on the other hand, offers more range in its long-range version and Tesla’s renowned Autopilot and Supercharger network. The Polestar 2 stands out for those who prefer a more understated, premium design, while the Model 3 appeals to those seeking cutting-edge technology and a sportier drive.
Key Advantages
Google-based infotainment
Excellent WLTP range
Scandinavian design
Polestar 2 Salary Sacrifice Cost Breakdown
| Savings breakdown - Polestar 2 200kW 70kWh Standard Range | £40k Salary | £60k Salary |
|---|---|---|
| Average monthly salary sacrifice (inc VAT) | £773 | £773 |
| Employee income savings | -£155 | -£309 |
| Employee national insurance savings | -£62 | -£15 |
| Average benefit-in-kind tax over term | £39 | £77 |
| Net cost/You pay | £595 | £525 |
Hyundai Ioniq 6
UK guide price (new): from ~£50,500
Salary sacrifice: from ~£397 per month
Range: up to 338 miles (WLTP)
The Hyundai Ioniq 6 is a sleek, futuristic electric sedan, known for its aerodynamic design and efficiency.
How Does It Compare?
Compared to the Tesla Model 3, the Ioniq 6 offers a similar range but distinguishes itself with its distinctive, streamlined design and focus on efficiency. While the Model 3 leans into minimalist interiors and Tesla’s advanced tech ecosystem, the Ioniq 6 prioritises comfort and aerodynamic efficiency, making it a great choice for drivers who want a stylish yet practical EV with competitive range and features.
Both cars excel in technology, but the Ioniq 6 stands out for its unique design and Hyundai’s emphasis on long-term reliability.
Key Advantages
Ultra-aerodynamic design
350kW rapid charging
Excellent value through salary sacrifice
How Much Can You Save On The Hyundai Ioniq 6?
If you choose to salary sacrifice the Hyundai Ioniq 6, you can save £150+ every month through income and national insurance savings.
| Savings breakdown - Hyundai Ioniq 6 168kW Premium 77kWh | £40k Salary | £60k Salary |
|---|---|---|
| Average monthly salary sacrifice (inc VAT) | £545 | £546 |
| Employee income savings | -£109 | -£219 |
| Employee national insurance savings | -£44 | -£11 |
| Average benefit-in-kind tax over term | £40 | £81 |
| Net cost/You pay | £434 | £397 |
Ford Mustang Mach-E
UK guide price (new): from ~£49,950
Salary sacrifice: from ~£384 per month
Range: up to 379 miles (WLTP)
The Ford Mustang Mach-E merges iconic Mustang styling with modern electric performance.
How Does The Ford Mustang Mach-E Compare To The Tesla Model 3?
In comparison to the Tesla Model 3, the Mach-E offers a sportier SUV design and a more spacious interior, making it ideal for families. While the Model 3 excels in minimalist tech and range, the Mach-E provides a unique blend of classic muscle car aesthetics and modern electric features. It also supports fast charging, reaching 80% in just 45 minutes with a DC charger, enhancing convenience for drivers on the go.
Key advantages
Spacious interior
Strong performance options
Distinctive design
Salary Sacrifice Savings
If you want to calculate how much you can save through a salary sacrifice scheme, like The Electric Car Scheme, use our quote tool! All you have to do is input your salary, pick your dream car and see how much you can save!
| Savings breakdown - Ford Mustang Mach-e 198kW Select 72kWh RWD | £40k Salary | £60k Salary |
|---|---|---|
| Average monthly salary sacrifice (inc VAT) | £511 | £511 |
| Employee income savings | -£102 | -£204 |
| Employee national insurance savings | -£41 | -£10 |
| Average benefit-in-kind tax over term | £44 | £87 |
| Net cost/You pay | £411 | £384 |
Peugeot E-308
UK guide price (new): from ~£31,795
Salary sacrifice: from ~£526 per month
Range: up to 267 miles (WLTP)
The Peugeot E-308, like its smaller sibling the E-208, builds on the success of the petrol and plug-in hybrid versions of the 308. As the most expensive option of the trio, the E-308 offers a stylish design and an inviting cabin that makes it a pleasure to spend time in.
How Does It Compare?
Compared to the Tesla Model 3, the e-308 is more compact and offers a unique blend of European styling and comfort, appealing to those who prefer a more traditional hatchback design. While the Model 3 emphasises performance and advanced technology, the e-308 focuses on everyday usability and aesthetic appeal, making it a strong choice for drivers living in a town or city!
Key Advantages
Compact and stylish
Comfortable interior
Lower upfront price
Salary Sacrifice The Peugeot E-308
| Savings breakdown - Peugeot e-308 115kW Allure 54kWh | £40k Salary | £60k Salary |
|---|---|---|
| Average monthly salary sacrifice (inc VAT) | £800 | £800 |
| Employee income savings | -£160 | -£320 |
| Employee national insurance savings | -£64 | -£16 |
| Average benefit-in-kind tax over term | £31 | £62 |
| Net cost/You pay | £607 | £526 |
Used Tesla Model 3
A used Tesla Model 3 remains one of the smartest ways to go electric. You still benefit from Tesla technology, strong range, and over-the-air updates - but at a much lower monthly cost.
Salary Sacrifice Cost Breakdown
| Savings breakdown - Tesla Model 3 RWD 2022 | £40k Salary | £60k Salary |
|---|---|---|
| Average monthly salary sacrifice (inc VAT) | £497 | £497 |
| Employee income savings | -£99 | -£199 |
| Employee national insurance savings | -£40 | -£10 |
| Average benefit-in-kind tax over term | £41 | £81 |
| Net cost/You pay | £399 | £370 |
Which Alternative Is Right For You?
Best value: Hyundai Ioniq 6, Used Tesla Model 3
Best range: Volkswagen ID.7, Polestar 2
Best performance: BMW i4 M50, BYD Seal AWD
Best for families: Tesla Model Y, Ford Mustang Mach-E
Fastest charging: Kia EV6, Hyundai Ioniq 6
Best build quality: BMW i4, Polestar 2
Frequently Asked Questions About Tesla Model 3 Alternatives
Which Tesla Model 3 alternative offers the best value for money?
The Hyundai Ioniq 6 and used Tesla Model 3 deliver the strongest balance of range, technology, and low monthly cost through salary sacrifice.
Do any alternatives use Tesla Superchargers?
Some UK Supercharger sites are open to non-Tesla EVs, but access and pricing vary.
Which alternative is best for long-distance driving?
The Volkswagen ID.7 leads with up to 436 miles (WLTP).
Which alternatives are best for families?
The Tesla Model Y and Ford Mustang Mach-E offer more space and flexibility than the Model 3.
Which alternative charges the fastest?
The Kia EV6 and Hyundai Ioniq 6 support up to 350kW charging.
Will BiK rates change?
Yes. EV BiK is 3% in early 2026, increasing to 4% from April 2026.
The Tesla Model 3 is still an excellent electric car - but in 2026, it’s no longer the only smart option. Whether you want more space, longer range, faster charging, or simply the lowest possible monthly cost, there’s now a strong alternative to suit you.
Through salary sacrifice, you can drive a brand-new or used EV while benefiting from low BiK, reduced tax, insurance included, and no upfront costs.
Use our quote calculator to compare the Tesla Model 3 with its best alternatives and see how much you could save.
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Our pricing is based on data collected from The Electric Car Scheme quote tool. All final pricing is inclusive of VAT. All prices above are based on the following lease terms; 10,000 miles pa, 36 months, and are inclusive of Maintenance and Breakdown Cover. The Electric Car Scheme's terms and conditions apply. All deals are subject to credit approval and availability. All deals are subject to excess mileage and damage charges. Prices are calculated based on the following tax saving assumptions; England & Wales, 40% tax rate. The above prices were calculated using a flat payment profile. The Electric Car Scheme Limited provides services for the administration of your salary sacrifice employee benefits. The Electric Car Scheme Holdings Limited is a member of the BVRLA (10608), is authorised and regulated by the FCA under FRN 968270, is an Appointed Representative of Marshall Management Services Ltd under FRN 667174, and is a credit broker and not a lender or insurance provider.
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