New Tesla Model Y Long Range Rear Wheel Drive: A Cheaper Option, But Is It the Best Deal?

Hey everyone, DennisCW here! Welcome back to another exciting update on Tesla news and deal hacking. In today’s blog post, I’m diving deep into the newly released Tesla Model Y Long Range Rear Wheel Drive (RWD). This cheaper trim has finally hit the market, but there are a few things I’ve noticed that might make you think twice before jumping on this deal. Plus, I’m addressing concerns about whether Tesla has stripped features from this model. Let’s break it all down, along with some other hot topics from my latest live stream. If you’re new here, don’t forget to check out my Tesla Buying Guide on Patreon (link below) and use my Tesla referral code for three months of Full Self-Driving (FSD) with your purchase!

Breaking News: Model Y Long Range RWD Now Available

Tesla has just dropped the new Model Y Long Range RWD, priced at $37,490 after the $7,500 federal tax credit. On the surface, this looks like a fantastic deal, especially with a lease option of $399/month (with $2,000–$3,000 down). However, there’s a catch—unlike other trims, this model does not qualify for the attractive 1.99% financing rate. Instead, you’re looking at a steep 5.49% interest rate, which could negate the cost savings over time compared to the All-Wheel Drive (AWD) version.

For comparison, the Model 3 lease is $349/month with zero down, so the Model Y’s lease terms aren’t as competitive as they seem. If you’re planning to finance, I’d recommend holding off for a month or two to see if Tesla adjusts the rates. For cash buyers or those leasing, this could still be an appealing option, especially if you don’t need AWD (more on that later).

Delivery Timeline

If you’re eager to get your hands on this new trim, be prepared to wait. Tesla’s website currently shows a delivery window of 3–5 weeks, indicating a soft launch with availability likely in June. This applies across various color options, including the cheaper Stealth Gray.

Is the Model Y Long Range RWD Decontented?

One of my biggest concerns with cheaper trims is whether Tesla removes features to cut costs, as seen with the Model 3 RWD. However, after digging into the specs and getting confirmation from community members (shoutout to Bearded Tesla for the screenshot!), it looks like Tesla has kept the Model Y Long Range RWD on par with the AWD version in terms of features.

Here’s what we found:

• Range: An impressive 357 miles for the RWD compared to 327 miles for the AWD. This could potentially push close to 380–400 miles under ideal conditions.
• Performance: 0–60 mph in 5.4 seconds (RWD) vs. 4.6 seconds (AWD).
• Audio System: Both trims boast 15 speakers and 1 subwoofer, ensuring an immersive soundscape with no compromises.
• Screens: Both include the center and rear touchscreens.

It’s refreshing to see Tesla not cheapening the experience with this trim. Nothing appears to be removed, making it a pound-for-pound competitor to the AWD, especially for those in milder climates like California, Texas, or Florida where AWD isn’t necessary.

Financing and Leasing: Why You Might Want to Wait

As mentioned earlier, the 5.49% interest rate on financing is a significant drawback. When you crunch the numbers, the interest over the loan term could cost you around $4,000—roughly the price difference between the RWD and AWD trims. In contrast, the AWD qualifies for 1.99% financing, making it a better long-term deal for financed purchases.

Leasing at $399/month with a substantial down payment also doesn’t stack up well against the Model 3’s terms. I suspect the lease interest rate might be high (potentially 9–10% like other Tesla leases), and I’ll be digging deeper into this in the coming days. For now, if financing or leasing is your plan, patience might pay off as Tesla could adjust rates once inventory builds up.

Who Should Buy the Model Y Long Range RWD?

This trim is a hot seller in the making for specific buyers:

• Cash Buyers: If you’re paying upfront, the $37,490 price tag after tax credit is attractive.
• Leasers: If you don’t qualify for the federal tax credit directly, leasing through Tesla Trust or Chase could still net you the $7,500 credit.
• Mild Climate Drivers: With no need for AWD, the RWD’s impressive 357-mile range and lighter build make it a compelling choice.

If you’re in a snowy or rugged area, the AWD might still be worth the extra cost for better traction. I’m curious to hear from you—drop a comment below! Are you jumping on this RWD trim, or are you holding out for the Performance or rumored 7-seater Model Y?

Other Tesla Tidbits from the Live Stream

Tesla Gift Card Down Payment Trick

Here’s a potential loophole for deal hackers: using Tesla gift cards to cover part of your down payment with a credit card. Tesla’s site allows custom amounts (up to a rumored $5,000 limit), and the fine print suggests gift cards can be applied to vehicle purchases. Pair this with a credit card sign-up bonus (like the Chase Sapphire Preferred’s 100,000 points for $5,000 spent—link below), and you could score big on points while reducing your out-of-pocket cost. Has anyone tried this? Let me know in the comments!

Rivian R2 Updates

Switching gears, the Rivian R2 is making progress with pilot production photos surfacing. Slated for release in the first half of 2026, this Model Y competitor is generating buzz, though launch editions may be pricey, and tax credits could be unavailable until 2027 due to non-domestic battery production. Are you excited for the R2? Share your thoughts!

Tesla Supercharging Price Changes

Tesla is rolling out more dynamic pricing for Superchargers, with rates fluctuating based on demand (e.g., 27–59 cents/kWh in Davis, CA). While transparency is nice, relying on Superchargers as your primary power source is costly—equivalent to hybrid gas costs in some areas. I strongly recommend a home or workplace Level 2 charger like the Tesla Wall Connector. If you’re in SoCal, hit up my friend Mario, a Tesla-authorized installer, for deals and incentives (contact info below).

Must-Have Tesla Accessories

New Tesla owners, heads up—your car comes with zero accessories. I’ve partnered with Jowua to bring you essentials like phone mounts, console organizers, and my favorite underscreen storage mount. Use my promo code below for savings and free shipping on orders over $120. Also, check out 3W Liners for all-weather floor mats—my top pick for Model 3, Y, X, and Cybertruck. Save 25% with my code and support the channel!

Protect Your Credit with Aura

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Final Thoughts

The Tesla Model Y Long Range RWD is an exciting addition with a tempting price and uncompromised features. However, the high financing rate is a dealbreaker for many, so weigh your options carefully. I predict better deals by next month or Q4 as inventory grows. What do you think? Are you buying now, or waiting for a lower rate or the Performance trim? Let me know in the comments, and don’t forget to use my Tesla referral code for three months of FSD (link below).

Thanks for reading, and I’ll see you in the next update!

• DennisCW

Links & Resources:

• Tesla Referral Code: [Link in description]
• Tesla Buying Guide: [Patreon Link]
• Aura 14-Day Free Trial: aura.com/denniscw
• Jowua Accessories Promo Code: [Link in description]
• 3W Liners Floor Mats (25% Off): [Link in description]
• Chase Sapphire Preferred Bonus: [Link in description]
• Mario (Tesla-Authorized Installer): [Contact in description]