Tesla Model 3 vs. Model Y: Which One Should You Buy in 2023?

Hey everyone, DennisCW here! Welcome back to another blog post where we dive deep into the world of Tesla and deal hacking. Today, we're tackling a hot topic that many of you have been asking about: Tesla Model 3 vs. Model Y. Both vehicles have been recently refreshed, and they’re fantastic choices, but which one is the best deal for you right now? Let’s break it down with all the details on pricing, financing, space, and more. Plus, I’ve got some insider tips on getting the best Tesla deals, a federal tax credit loophole, and some spicy Tesla news. Let’s get started!

Model 3 vs. Model Y: Key Differences

Both the Tesla Model 3 and Model Y are incredible electric vehicles, but they cater to slightly different needs. I’ve owned both the refreshed and older versions of these models, so I’m breaking down the real differences to help you decide.

Price and Deals

• Model 3: Currently, you can find some amazing discounts on the Model 3. For example, there’s a Long Range variant with $2,540 off, and even Model 3 Performance units with up to $5,600 off! Prices for the Model 3 Long Range range from $35,000 to $47,000 (after the $7,500 federal tax credit).
• Model Y: The Model Y Long Range starts at around $37,000 to $41,500 (after the tax credit). It’s about $2,000 more than the Model 3, but you’re getting more space for the price. However, discounts on the Model Y are less common right now.

Financing and Leasing

• Model 3 Financing: One huge perk for the Model 3 is the 0% financing offer for up to 60 months if you put 15% down. If not, the rate jumps to 0.99%.
• Model Y Financing: The Model Y offers 1.99% financing on the all-wheel-drive version, which is still decent but not as attractive as the Model 3’s rates.
• Leasing: If leasing is more your style, the Model 3 wins hands-down with lower interest rates (2.6-3.6% for Long Range variants) compared to the Model Y (9.5-10.32%). Check out my deals spreadsheet linked below for the latest rates directly from Tesla.

Space and Comfort

• Model 3: Ideal for singles or couples without kids. It’s a sporty sedan with a lower ride height, so you sink into the seat. It’s super fun to drive, especially the Performance variant, but space is limited compared to the Model Y.
• Model Y: Perfect for small families or pet owners. The Model Y offers significantly more cargo space and a higher ride height, making it easier to get in and out. It’s also more comfortable for longer drives with its SUV-like design.

Recommendation

If you’re looking for the best deal and don’t need extra space, the Model 3 is the way to go, especially with the current discounts and financing offers. However, if you’ve got a family, a dog, or just need more room, the Model Y is worth the slight price bump. My advice? Head to a Tesla store and test drive both. Some locations even offer overnight demos to help you decide.

Federal Tax Credit Loophole for High Earners

Here’s a game-changer for those who don’t qualify for the $7,500 federal tax credit due to high income (over $150K single or $300K married adjusted gross income). You can still get the credit through a leasing loophole. Here’s how it works:

• Lease a Tesla (Model 3, Y, S, X, or Cybertruck) through Tesla Trust or Chase Leasing.
• The tax credit is applied to the lease, reducing the overall cost.
• Plan for a lease buyout shortly after. Note that there’s a $350 buyout fee and a $695 acquisition fee, plus you’ll need external financing (Tesla doesn’t offer financing post-buyout).
• Be aware of high lease interest rates, especially for the Model Y (9-10%).

This workaround isn’t perfect due to the extra fees, but it’s a solid option if you’re above the income threshold. Let me know if you’ve used this method or if you’ve got questions!

Protect Your Credit Before Financing

If you’re financing a Tesla, protecting your credit is a must. Data breaches, like the recent one at Bank of America, can leave your personal info exposed for months before you’re notified. 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 in the description). Don’t wait until it’s too late—protect your credit before applying for financing!

Must-Have Tesla Accessories

Did you know a new Tesla comes with zero accessories? Not even a phone mount! Don’t worry, I’ve partnered with Joah to bring you some must-haves every Tesla owner needs:

• A phone mount to keep your device secure during acceleration.
• A center console organizer to avoid losing stuff.
• An underscreen station mount for storing sunglasses.

Joah also offers cool extras like a wireless game controller, portable air compressor, and even an electric scooter for cruising from chargers. Use my promo code below for a discount and free shipping on orders over $120. Check them out via the link in the description and support the channel!

Another essential? All-weather floor mats. My favorite set is from 3W Liners—I’ve got them in my Model 3, Y, X, and Cybertruck. They’re cheaper and better quality than OEM or other brands like 3D Maxpider or Tesmanian. Use my promo code for 25% off (under $100!) and support the channel. Link below!

Tesla News: Employee Backlash and Cybertruck Inventory

Disgruntled Tesla Employees?

There’s some drama brewing with a website created by Tesla employees (or possibly just one) titled “Tesla Employees Against Elon.” It claims weak Model Y demand and unsold inventory are leadership issues, not product problems. The alleged creator was reportedly fired and shared their story on LinkedIn. While it’s unclear how many employees are involved, it raises questions about internal morale. What do you think—legitimate concerns or just a vocal minority? Drop your thoughts in the comments!

$800 Million in Unsold Cybertrucks?

Media outlets are buzzing about Tesla having $800 million worth of Cybertrucks in stock. Despite nearly a million reservations, many haven’t converted to purchases. High prices ($70K-$90K+) for EVs might be a factor, especially in the current economy. Discounts of $8,500-$10,500 are already popping up on Cyber Beast and AWD variants. I predict even bigger incentives soon. If you’ve scored a great Cybertruck deal, DM me or tag me—I’d love to highlight it!

Final Thoughts and Community Questions

Thanks for sticking around! I love hearing from you, so let me know: Are you Team Model 3 or Model Y? Waiting for a better deal? What color are you eyeing? (Fun fact: Diamond Black and Blue seem to be either the least produced or most popular colors, with 1-3 week wait times!)

A quick shoutout to my Patreon group—join if you want to chat one-on-one about your Tesla situation or deal-hacking strategies. Link below!

And don’t forget to hit that like button, comment, and check out the links for Aura, Joah accessories, and 3W Liners. Got a deal or question? Drop it below or DM me. See you in the next one!

-DennisCW

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Disclaimer: Some links are affiliate links, and using them supports the channel at no extra cost to you. Thanks for your support!