New Tesla Model Y Long Range Rear Wheel Drive: Is It Worth the Hype?

Hey everyone, DennisCW here! Welcome back to another exciting update on all things Tesla. Today, I’m thrilled to dive into the breaking news about the newly released Tesla Model Y Long Range Rear Wheel Drive (RWD). Priced at a tempting $37,490 after the $7,500 federal tax credit, with a lease option of $399 per month, it seems like a fantastic deal on the surface. But is it really? Let’s break it down, explore the details, and see if this new trim lives up to the hype—or if it’s been stripped down to cut costs.

If you’re new here, I’m all about Tesla deal hacking—finding the best ways to save money and maximize value when buying or leasing a Tesla. Don’t forget to check out my Tesla buying guide on Patreon (link below) and use my referral code for 3 months of Full Self-Driving (FSD) with your Tesla purchase. Let’s get into it!

The Basics: What’s New with the Model Y Long Range RWD?

Tesla just dropped the cheapest Long Range Rear Wheel Drive version of the Model Y, and it’s already stirring up a lot of buzz. Here are the key specs and pricing details:

• Price: $37,490 after the $7,500 federal tax credit.
• Lease Option: $399 per month with $2,000-$3,000 down for a 36-month term.
• Range: An impressive 357 miles, compared to 327 miles on the All-Wheel Drive (AWD) version.
• Performance: 0-60 mph in 5.4 seconds (vs. 4.6 seconds for AWD).
• Delivery Timeline: 3-5 weeks, likely hitting showrooms in June.

On paper, this looks like a steal, especially for those in warmer climates like California, Texas, or Florida, where AWD isn’t necessary. But there are some catches that might make you think twice before hitting that “order” button.

The Financing Catch: Why You Might Want to Wait

Here’s the biggest red flag I noticed right away: the financing rate for this new Model Y RWD is a steep 5.49%, compared to the incredibly low 1.99% offered on the Long Range AWD model. Doing the math, the interest on the RWD over the loan term could easily wipe out the $4,000 price difference between the two trims. If you’re planning to finance, this is not a good deal right now. My advice? Hold off for a month or two. Tesla might adjust the rate once initial demand cools and inventory builds up.

If you’re paying cash or leasing, however, this could still be a solid option. Leasing through Tesla Trust or Chase also allows you to capture the $7,500 tax credit even if you don’t qualify for it directly, which is a nice workaround.

Is It Decontented? Let’s Compare Features

One of my biggest concerns was whether Tesla stripped features from this cheaper Model Y RWD to cut costs, as they’ve done with the Model 3 RWD in the past. After digging into the specs on Tesla’s website and comparing it to the AWD version, I’m happy to report some good news:

• No features removed! Both the RWD and AWD trims come with the same 15-speaker audio system, including a subwoofer, and both have the center and rear touchscreens.
• Range Advantage: The RWD actually offers more range (357 miles) than the AWD (327 miles), likely due to its lighter weight and single motor.

Kudos to Tesla for not cheapening the experience on their most popular vehicle. This makes the RWD a compelling choice for anyone prioritizing range and cost over the extra traction of AWD.

Who Should Buy the Model Y Long Range RWD?

This trim isn’t for everyone, but it’s a fantastic fit for certain buyers:

• Warm Climate Drivers: If you live in a place where snow and ice aren’t a concern, the RWD’s single motor will serve you just fine.
• Range Seekers: With 357 miles of range, this Model Y could realistically hit close to 380-400 miles under ideal conditions—a game-changer for long trips.
• Cash Buyers or Lessees: If you’re not financing, the higher interest rate won’t impact you, making this a potentially great deal.

However, if you’re in a snowy region or need to finance, I’d recommend sticking with the Long Range AWD for now, especially with its 1.99% financing rate.

What’s Next for Model Y Trims?

The release of the Long Range RWD is just the beginning. I’m crossing my fingers for a Model Y Performance trim to drop in Q3, and there’s also talk of a seven-seater and an even cheaper “affordable” Model Y in the pipeline. Tesla’s knocking these trims off the list fast, so stay tuned for more updates. What are you waiting for—Performance, third-row seating, or something else? Let me know in the comments!

Bonus Tip: Protect Your Credit Before Financing

If you’re planning to finance any Tesla, protecting your credit is a must. With data breaches like the recent one at Bank of America (where customers weren’t notified for a month), your personal info could be at risk without you even knowing. That’s why I use Aura, today’s sponsor, to monitor the dark web for my data and reduce spam calls. Aura also offers tools to remove your info 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 below). Don’t wait until it’s too late—protect your credit before applying for financing.

Final Thoughts: Hot Seller or Hold Off?

The Tesla Model Y Long Range Rear Wheel Drive is shaping up to be a hot seller, especially with no features removed and an impressive range of 357 miles. However, the 5.49% financing rate is a major downside for those not paying cash or leasing. I suspect Tesla will sweeten the deal in the coming months as inventory grows, so patience might pay off.

What do you think? Are you jumping on this new trim, or are you holding out for better financing or a different Model Y variant like the Performance? Drop your thoughts in the comments—I’d love to hear from you. And if you’re ordering, don’t forget to use my Tesla referral code below for 3 months of Full Self-Driving!

Thanks for joining me on this deep dive. Be sure to check out my latest podcast episode where I respond to your comments, and stay tuned for more Tesla deal hacking tips. Catch you in the next one!

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Links & Resources:

• Get my Tesla Buying Guide on Patreon
• Use my Tesla Referral Code for 3 months of FSD (link in description)
• Protect your credit with Aura: aura.com/denniscw
• Tesla Accessories from Jowua (use promo code for discount): (link in description)
• 3W Liners Floor Mats (25% off with promo code): (link in description)