New Tesla Model Y Long Range RWD: Cheaper Price, But Is It a Good Deal?

Hey everyone, DennisCW here! I'm thrilled to bring you some breaking news about Tesla's latest offering: the new Model Y Long Range Rear Wheel Drive (RWD). This cheaper trim has finally hit the market at an attractive price of $37,490 after the $7,500 federal tax credit, with a lease option of $399 per month. But before you rush to place your order, there are a few things I've noticed that might make you think twice. Is this really the best deal out there, or has Tesla stripped down some features to hit this price point? Let’s dive into the details and break it all down for you.

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

Tesla just dropped the Model Y Long Range RWD, making it one of the most affordable options in their lineup. Here are the key highlights:

• Price: $37,490 after the federal tax credit.
• Lease: $399/month with $2,000-$3,000 down for a 36-month term.
• Range: An impressive 357 miles, compared to 327 miles for the All-Wheel Drive (AWD) version.
• Performance: 0-60 mph in 5.4 seconds (vs. 4.6 seconds for AWD).
• Availability: Currently showing a 3-5 week delivery window on Tesla’s website.

At first glance, this looks like a fantastic deal, especially for those in warmer climates like California, Texas, or Florida, where AWD isn’t necessary. However, there are some caveats that could impact your buying decision.

Financing Concerns: No 1.99% APR for This Trim

One of the biggest disappointments with this new trim is the lack of Tesla’s attractive 1.99% financing offer, which is available on the Long Range AWD model. Instead, the Model Y Long Range RWD comes with a 5.49% interest rate, regardless of the loan term (I checked both 48 and 72 months, and it didn’t budge).

Let’s put this into perspective: the price difference between the RWD and AWD trims is about $4,000. However, at 5.49% interest, you could end up paying around $4,000 in interest alone over the life of the loan. This effectively negates the upfront savings of choosing the cheaper RWD model if you’re financing. My advice? If you’re planning to finance, hold off for a month or two to see if Tesla introduces better rates for this trim. If you’re paying cash or leasing, this might still be a viable option.

Leasing Details: Not as Competitive as Model 3

Speaking of leasing, the $399/month payment sounds enticing, but it comes with a catch: you need to put down $2,000-$3,000 to get that rate. Compare this to the Model 3, which offers a lease for $349/month with zero down. Additionally, I suspect the lease interest rate for the Model Y RWD might be less favorable (potentially around 9-10%, based on past Tesla lease structures for other trims). I’m working on getting the exact numbers and will update you soon, so stay tuned!

One upside to leasing, though, is that it can be a workaround if you don’t qualify for the $7,500 federal tax credit. By leasing through Tesla Trust or Chase, you can still benefit from the credit being applied to the deal structure.

Is It Decontented? Features Compared to AWD

Whenever Tesla releases a cheaper trim, the big question is: did they strip out features to cut costs? I dug into the specs on Tesla’s website and compared the Model Y Long Range RWD to the AWD version. The good news? It doesn’t appear to be “decontented” at all! Here’s what I found:

• Audio System: Both trims come with 15 speakers and 1 subwoofer, delivering the same immersive soundscape.
• Screens: The center and rear touchscreens are present in both models.
• Range Boost: The RWD actually offers more range (357 miles) compared to the AWD (327 miles). In a real-world range test, I wouldn’t be surprised if this trim gets close to 380-400 miles under ideal conditions.

Unlike the Model 3, where the RWD trim often lacks features like premium audio compared to higher trims, Tesla seems to have kept the Model Y RWD on par with the AWD in terms of features. Kudos to Tesla for not cheapening the experience on their most popular vehicle! This makes the RWD a compelling choice if you don’t need AWD and are looking for maximum range and value.

Who Should Buy the Model Y Long Range RWD?

This trim is ideal for specific buyers:

• Cash Buyers or Lessees: If you’re not financing, the upfront savings make this a great deal.
• Warm Climate Drivers: If you live in a state where AWD isn’t necessary (think California, Texas, or Florida), this could be a hot seller.
• Range Seekers: With 357 miles of range, it’s only 6 miles shy of the Model 3 Long Range RWD (363 miles), making the Model Y a better overall package for just a bit more money.

However, if you’re planning to finance, I’d recommend waiting for better rates or considering the AWD trim with the 1.99% APR. The interest cost on the RWD could wipe out any savings.

What’s Next for Model Y Trims?

Now that the Long Range RWD is here, I’m crossing my fingers for the Model Y Performance to drop soon—hopefully in Q3. There’s also talk of a third-row option and even a more affordable standard range Model Y down the line. Tesla is clearly expanding their lineup to cater to a broader audience, and I can’t wait to see what’s coming next. What do you think—will you be picking up the new RWD trim, or are you holding out for Performance or other variants? Let me know in the comments!

Quick Tip: Use a Tesla Referral Code

If you’re ready to order, don’t forget to use a Tesla referral code (like mine in the description below) to get 3 months of Full Self-Driving (FSD) added to your vehicle. It’s a nice perk that adds value to your purchase, whether you’re getting a Model 3, Y, S, X, or even a Cybertruck.

Bonus: Protect Your Credit Before Financing

Before you apply for financing, make sure to protect your credit. Data breaches are more common than you think—Bank of America recently had one and didn’t notify customers for a month! 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 up to $5 million in identity theft insurance. Try it free for 14 days at aura.com/denniscw (link in the description). Don’t wait until it’s too late—protect your credit before you apply for that Tesla loan!

Final Thoughts

The Tesla Model Y Long Range RWD is an exciting addition to the lineup with its lower price point and impressive range. However, the high financing rate of 5.49% is a significant drawback for those not paying cash or leasing. If Tesla adjusts the rates in the coming months (which I think they might), this could become a no-brainer for many buyers. For now, it’s a fantastic option for specific markets and budgets, but do the math before committing.

What are your thoughts on this new trim? Are you jumping on this deal, or are you waiting for better financing or other trims like the Performance? Drop your comments below, and don’t forget to check out my Tesla buying guide on Patreon (link in the description) for more tips and tricks on getting the best deal. Thanks for joining me, and I’ll see you in the next one!

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