Tesla Model Y financing deal puts price below Model 3 thanks to 0.99% APR

Tesla's ongoing war against the barrage of carmakers breaking into the EV space has resulted in yet another price shift — this time, though, it comes in the form of a 0.99 APR (annual percentage rate) loan.

The specifics of Tesla's new Model Y financing option are that buyers must make a down payment of 8–10% ($4,336 on all variants), and the 0.99% interest rate can be applied for loans of up to 72 months.

With the new 0.99% APR loan over a 72-month period, the Tesla Model Y Long Range RWD comes in at a starting price of $602 per month or $498 per month after applying the $7,500 federal tax credit but before any of Tesla's optimistic “probable savings” estimates or any tax or destination fees.

The Performance AWD, on the other hand, starts at a monthly payment of $695 or $591 after the $7,500 federal tax incentive.

For context, the best monthly payment currently available on a Model 3 through Tesla, given a similar down payment and 72-month financing period, is $607, and that cannot be brought down by federal tax incentives, since the Model 3 does not qualify for that program.

The promotional 0.99% APR loan rate will only be applicable for Tesla EVs ordered before May 31, 2024.

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