How New Model Y Loan Rate Compares To Model 3

How New Model Y Loan Rate Compares To Model 3

Tesla’s new sales pitch for a Model Y is pretty enticing. How does it stack up against the Model 3?

Model Y loan (new RWD Long Range variant): Tesla is now offering 0.99% APR financing if you order any new Model Y by May 31. The deal is available for qualified buyers with term lengths up to 72 months. Sounds like a good deal, right?

Well, let’s see what the real numbers are. In the small print attached to the ad, Tesla states that the Model Y starts at $44,990 before incentives. Note that this is the new variant of the rear-wheel-drive Model Y with an EPA estimated range of 320 miles, up from 260 miles. Drilling down more on Tesla’s order details page and we get hard figures — the monthly payment with taxes and fees comes to $668 a month. After the $7,500 federal tax credit, that drops to $564/month. For this deal, Tesla needs a $5,084 down payment. Even with taxes and fees, that’s not a bad deal considering the average monthly car payment in the U.S. is over $700 for new vehicles, according to figures released by Nerd Wallet in February. The monthly payments jump to $711/month if you order the AWD (dual motor) Model Y with a down payment of $5,388. After applying the $7,500 federal tax credit, it drops to $607 a month. (Note that this is calculated for Los Angeles and that taxes and fees will vary by region.)

Model Y lease: If you lease a Model Y, it can get less expensive. Of course, you don’t own the car and have to return it to Tesla after the lease term but leases are an increasingly attractive option for Tesla consumers. With $0 (zero) down and including taxes and fees, a 36-month lease (10,000 miles/year) is $547/month for the RWD Long Range Model Y with $2,674 due at signing. That increases to $2,727 due at signing and $580 a month for the Model Y AWD Long Range version.

Model 3 loan (updated 2024 model): Tesla’s loan terms on the updated 2024 Model 3 are more conventional compared to the current Model Y offer. The loan rate is an estimated 6.49% APR with excellent credit. Including taxes and fees, for a 272-mile range RWD Model 3 with a $4,500 down payment (that’s the full payment due at signing), it comes to $684 a month. For the Long Range AWD Model 3 rated at an EPA 341 miles of range, with $5,364 down, it comes to $832 a month.

Model 3 lease: Like the Model Y, the Model 3 lease can be a better deal. Tesla is promoting a $299/month deal right now for the RWD Model 3. But that does not include taxes and fees. Drilling down to include taxes and fees, with $2,999 down and an estimated $5,708 due at signing, the lease comes to $336/month. Move up to the Long Range AWD Model 3 with an estimated $5,919 due at signing and the estimated lease payment is $490/month. You can also choose the $0 down option for both Model 3 variants. That increases the monthly payments but it does decrease the amount due at signing significantly, almost cutting that number in half.

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