Tesla quietly raised financing rates on several Model 3 and Model Y trims, moving the Model 3 Premium Rear-Wheel Drive and All-Wheel Drive to 1.99% from 1% and the Model 3 Performance to 1.99% from 0.99%. The base Model Y Rear-Wheel Drive also moved to 0.99% after previously sitting at 0%.
Why Tesla Made This Move
The changes simplify the lineup. Every Model 3 trim now carries the same 1.99% rate, while most Model Y variants sit at 0.99%. Sales teams no longer need to explain multiple tiers, and Tesla can still advertise strong promotional financing without the zero-percent headline. Demand data shows Model 3 inventory shrinking steadily while Model Y stock, especially Performance units, is rising, so the company is likely reallocating incentive dollars.
What This Means for Buyers
The new rates remain far better than Tesla’s standard 5.64–6.57% financing on non-promotional vehicles. A Tesla Model 3 1.99% financing deal still beats most bank loans, and the Model Y 0.99% APR increase keeps the vehicle competitive. Shoppers who plan to pay off early will feel the difference less than those stretching payments to 72 months.
Lease payments on the entry-level Model 3 remain attractive, so buyers who prefer lower monthly outlays may still lean that direction. For those financing, the Tesla referral — 3 months free FSD + low APR financing link can add three months of Full Self-Driving at no extra cost if attached before delivery.
Bottom Line on the Tesla Financing Rates Update
This Tesla financing rates increase Model 3 Y is a modest pullback that keeps rates well below market while giving Tesla room to test other incentives later. Check current numbers before ordering, because rates can shift again quickly.
For more context on how these rates compare after recent price moves, see the details in this post on Model Y financing deals.
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