Tesla Cuts Model Y Performance Rate, Raises Model 3 Lease Prices

American buyers eyeing the fastest version of Tesla’s popular crossover finally have access to a discounted loan offer. Tesla has officially added the Model Y Performance to its promotional financing program in the United States, offering an interest rate of 3.99% on loans lasting up to 72 months.

The move marks the first time the high-trim Performance model has received a reduced interest rate. Tesla outlined the new terms in a message sent to prospective buyers on Tuesday.

Up until now, customers purchasing the Performance trim had to pay standard financing rates. Meanwhile, other versions of the crossover received much lower promotional rates earlier this year. The Rear-Wheel Drive model qualified for 0% interest, while All-Wheel Drive options featured a 0.99% rate for 72-month terms.

Even with the new price break, the Performance trim remains more expensive to finance than standard models. By comparison, the new six-seat Model Y L carries a higher 5.64% interest rate in the US market. For comparisons, financing on the Performance variant in Canada currently sits at 4.76%.

To further entice buyers, Tesla continues to offer extra incentives. Customers who trade in a gas-powered vehicle receive 2,000 free Supercharging miles. New buyers also receive a free 30-day trial of Full Self-Driving and Premium Connectivity.

While the Model Y Performance gets a lower rate, Tesla has raised monthly lease rates across its entire Model 3 lineup in the United States, with price increases reaching as high as 15.2 percent.

The new rates move the entry-level Model 3 Rear-Wheel Drive up to $379 per month, reflecting a 15.2 percent increase. The Model 3 Premium RWD rises 14.3 percent to $399 per month, while the Model 3 Premium AWD goes up 6.7 percent to $479 per month. The top-tier Model 3 Performance sees a 5 percent bump, bringing its monthly lease price to $629.