Tesla has introduced a promotional financing offer with a fixed rate of 0.99% APR across the United States, significantly reducing monthly payments for new Model Y purchases.
To benefit from the offer, buyers must place their Model Y orders by May 31, 2024, and meet the conditions of a minimum down payment of $4,250. The promotional rate is applicable to finance terms ranging from 36 to 72 months, though it excludes 84-month terms.
Under this new scheme, the monthly payments for Tesla’s Model Y variants show a reduction of approximately 15% compared to rates prior to the promotion.
For instance, the monthly payment for the Model Y Long Range Rear-Wheel Drive (RWD) has decreased from $706 to $600, the All-Wheel Drive (AWD) version from $756 to $643, and the Performance model from $815 to $693. These figures do not account for potential savings from the $7,500 Federal EV credit or from reduced fuel and maintenance costs, notes @SawyerMerritt.
In comparison, the updated Model 3 Long Range, which does not qualify for the same financing deal nor the Federal EV credit, has a substantially higher monthly payment of $752 under similar terms. This rate is approximately 40% higher than that of the financed Model Y Long Range, which stands at $539 per month.
With high interest rates ongoing still, seeing a 0.99% APR financing rate is pretty impressive, and will likely drive further Model Y sales. We know a new Model Y refresh is coming at some point and those holding out for that and seeing this promotional finance rate might change their minds to buy a car sooner.