Is the $399 Model Y Lease Deal Worth It? Unpacking Tesla's Latest Offers

Hey everyone, DennisCW here! Welcome back to another deep dive into the world of Tesla deal hacking. In today’s post, I’m breaking down the much-talked-about $399/month lease deal on the brand new Tesla Model Y Long Range Rear-Wheel Drive. Spoiler alert: it’s not as great as it seems. I’ve got the numbers to show you why, plus a bunch of other Tesla updates and insights. Let’s get into it!

The $399 Model Y Lease Deal: What’s the Catch?

Tesla recently rolled out a shiny new lease offer for the Model Y Long Range Rear-Wheel Drive at just $399 per month. At first glance, this looks like an amazing deal, especially for those who don’t qualify for the $7,500 federal tax credit (since leasing allows you to get the full credit). However, when you dig into the fine print, things start to look less appealing.

High Interest Rates (Money Factor)

The biggest red flag with this lease is the interest rate, or "money factor," which comes in at a whopping 9.53% for the Rear-Wheel Drive Model Y. Compare that to the All-Wheel Drive version at 10.32%, and it’s clear Tesla isn’t exactly offering a bargain here. For context, only a couple of Tesla models have lease rates that make sense right now:

• Model Y Long Range Rear-Wheel Drive: 2.74% (the best option for leasing)
• Model Y Long Range All-Wheel Drive: 3.66% (still respectable)

Other models, like the Model 3 Performance (8.93%) and Cybertruck variants (ranging from 7.46% to 11.14%), have similarly high rates that make leasing a questionable choice unless you’re planning a buyout to snag the tax credit.

Other Lease Components to Consider

Beyond the interest rate, there are other factors that make this deal less attractive:

• Residual Value (Buyout Price): For the Model Y Rear-Wheel Drive, the buyout price after a 3-year lease is around $31,075, compared to a starting purchase price of $37,490 (before taxes and fees). The math just doesn’t add up in your favor.
• Additional Fees: You’ve got a $695 acquisition fee upfront and a disposition fee at the end if you don’t lease another vehicle.

When Does Leasing Make Sense?

I used to say never lease a Tesla because buyouts weren’t allowed. Now that Tesla permits buyouts, leasing can make sense if you don’t qualify for the $7,500 tax credit and plan to buy out the car after securing the credit. Otherwise, financing at low rates like the 1.99% for the Model Y All-Wheel Drive or even 0% for the Model 3 is a much better move.

If you’re curious about the full breakdown of Tesla lease and finance rates, check out my deal spreadsheet linked in the description of my latest video!

Other Tesla Updates: Inventory Discounts and More

As we approach the end of the month and quarter, I’m expecting to see a surge of Model Ys in inventory, which could mean inventory discounts. Recently, someone messaged me saying their new Model Y was ready for pickup just 10 minutes after ordering. That’s a clear sign of high inventory, so keep an eye out for deals!

Model 3 Lease Deal: A Hidden Gem

If you’re looking for a low-risk, low-commitment option, the Model 3 Rear-Wheel Drive lease at $349/month with a 2.76% interest rate (24 months, zero down) is a fantastic deal. It’s a great way to “get your feet wet” with Tesla without a long-term commitment.

Cybertruck Deals: Wait for Better Offers

For Cybertruck enthusiasts, the current lease and finance rates are high (8.38% for All-Wheel Drive, for example). However, there are some 2024 inventory units with discounts up to $8,000 in places like California. If you can lease one of these, snag the $7,500 tax credit, and buy it out quickly to avoid the high interest, that’s a solid move. Otherwise, I’d hold off—more incentives are likely coming as inventory builds.

Tesla Website Update and Supercharging News

Tesla quietly updated their website with a fresh layout, prominently featuring the 1.99% financing for the Model Y All-Wheel Drive and 0% financing for all Model 3 trims. They’ve also added a Supercharging map on the homepage to showcase their extensive network. What do you think of the new design? Is it easier to navigate? Let me know in the comments!

Additionally, Tesla is rolling out updates to Supercharging with on-peak and off-peak pricing at pilot sites, especially in California. Keep an eye on these locations if you’re in the area.

Protect Your Credit Before Financing

If you’re planning to finance or lease a Tesla, protecting your credit is a must. Data breaches, like the recent one at Bank of America (where customers weren’t notified for a month), are a real threat. That’s why I use Aura, today’s sponsor, to monitor the dark web for my personal info and reduce spam calls. Aura also offers tools to remove your data from sketchy broker sites and includes $5 million in identity theft insurance—all in one app. Try it free for 14 days at aura.com/denniscw (link in the video description). Don’t wait until it’s too late to protect your data!

Tesla Accessories: Must-Haves for New Owners

Did you know Tesla vehicles come with zero accessories? Not even a phone mount! I’ve partnered with Jowua to bring you some must-have accessories:

• Phone Mount: Keep your phone secure during acceleration.
• Center Console Organizer: Avoid losing items in the chaos.
• Underscreen Station Mount: Perfect for storing sunglasses.

Jowua also offers cool extras like a wireless game controller, portable air compressor, and even an electric scooter for those long walks from chargers. Use my promo code in the video description to save money and support the channel. Free shipping on orders over $120!

I’ve also been loving 3W Liners all-weather floor mats for my Tesla fleet (Model X, 3, Y, and Cybertruck). They’re the best I’ve tried, and you can save 25% with my promo code (check the video description).

Community Q&A: Your Tesla Questions Answered

I love hearing from you all! Here are a few questions from the livestream:

• Tesla54: Any updates on Model 3 Performance deals? Unfortunately, lease deals are still underwhelming, but financing at 0% might be a better bet. Wait another month to see if rates drop.
• Jean: Thoughts on leasing a 2024 Cybertruck? Unless you get an inventory discount and plan a quick buyout, I’d hold off due to high interest rates.
• Just a Viewer: Trading a 2024 Model 3 for a 2026 Model Y? If you’re not losing much in equity, it could be a nice upgrade.

Got more questions? Drop them in the comments or join my Patreon group for personalized advice (link in the video description).

Cool Tesla Hacks: Matrix Headlights Retrofit

For those with older Teslas (like 2018-2021 Model 3s or Ys) without matrix headlights, Winston shared an awesome step-by-step guide to retrofit them on the cheap. He sourced headlights from eBay for under $200 total and had Tesla flip the configuration for just $8.75. This upgrade improves nighttime safety by bending light around the road. Total cost? Around $221. Worth it for the safety boost! Check out Winston’s full guide for details.

Off-Topic Highlight: Starlink on United Airlines

A quick shoutout to Starlink, which is launching on United Airlines this month (starting May 15th). I recently experienced Starlink on Hawaiian Airlines, and it was incredible—free, with download speeds up to 217 Mbps. If you’ve tried Starlink on a flight, let me know how it was!

Final Thoughts

The $399 Model Y lease deal might look tempting, but with a 9.53% interest rate and unfavorable buyout terms, it’s not the steal it appears to be. If you’re set on leasing, go for the Model Y Long Range Rear-Wheel Drive at 2.74% or the Model 3 deal at $349/month. Otherwise, financing at 0% (Model 3) or 1.99% (Model Y AWD) is the smarter play. And don’t forget to protect your credit with Aura before applying!

What are your thoughts on these Tesla deals? Are you eyeing a lease, finance, or waiting for inventory discounts? Let me know in the comments! If you’re buying a Tesla, use my referral code in the video description for 3 months of Full Self-Driving. Thanks for reading, and I’ll see you in the next post!

-DennisCW