Is 0% Financing Coming for the Tesla Model Y? What You Need to Know

Hey everyone, DennisCW here! I know so many of you have been eagerly waiting for news on 0% financing for the Tesla Model Y. I've been reading through all your comments on my videos, and it's clear that a lot of you are on the sidelines, hoping for this game-changing offer. So, let’s dive into when this might happen, what steps you can take to prepare, and the signs I’m watching for that could indicate a 0% financing deal is on the horizon.

Current Financing Landscape for Tesla Model Y

Right now, if you're looking to get a brand-new Tesla Model Y, here are your options:

• Paying Cash: Straightforward, but not feasible for everyone.
• Leasing: The interest rate (money factor) on a lease is pretty high—last I checked, it was around 10.73%. However, you can get a payment as low as $499/month if leasing works for you, especially if you don’t qualify for the $7,500 federal tax credit.
• Financing through Tesla: The lowest rate is 5.49%, which jumps to 6.49% if you extend the term to 84 months.

If you're looking for better rates, outside financing or credit unions are the way to go. I’ve compiled a full list of the best credit unions offering rates lower than Tesla’s 5.49% in my Tesla Buying Guide, available to members of our Patreon group. This guide includes everything you need to know about securing a better deal, so check it out if you’re serious about saving on interest.

Watching Inventory: A Key Indicator for Incentives

One of the biggest variables I track to predict incentives like 0% financing is inventory levels. Right now, Tesla’s inventory for the Model Y is a bit tricky to gauge. On the Tesla website, under the inventory section, they’re only showing a handful of vehicles—around 107 according to recent trackers. However, we’re starting to see some movement. Initially, only gray and white models were popping up, but now we’re also seeing Ultra Red in stock.

If inventory continues to climb, Tesla may be forced to introduce incentives to move these cars. Historically, we’ve seen this play out before. Back in November, Tesla offered 0% financing on both the Model 3 and Model Y. However, keep in mind that during certain phases, the 0% offer on the Model 3 was limited to shorter terms like 36 months. So, even if 0% financing returns for the Model Y, it might not be for the 60 or 72-month terms many of you are hoping for. It could be a shorter 2-4 year term, or Tesla might offer something like 2.99% or 3.99% instead of going all the way to 0%. They could also save the 0% offer for a big push in Q4.

Inventory Breakdown by Color

Let’s take a closer look at what’s in stock right now (based on the Tesla builder page in California):

• Stealth Gray: Available today (the “cheap” color option).
• White: Available today.
• Blue: Available in 1-3 weeks.
• Diamond Black (the stunning new color for Model 3 and Y): Available in 1-3 weeks.
• Quicksilver and Ultra Red: Available today.

It seems there’s still strong demand for newer colors like Blue and Diamond Black, which aren’t immediately available. This suggests Tesla has inventory to clear for certain colors, but not across the board. If the less popular colors start piling up, we might see targeted incentives.

Model 3 vs. Model Y: Where’s Tesla Focusing?

Currently, the Model 3 is getting all the love. Tesla is offering 0% APR on the Model 3 for up to 60 months, along with a low lease payment of $349/month with zero down. This indicates Tesla’s focus is on pushing Model 3 sales right now. However, this could shift to the Model Y in the coming months—possibly as early as May or June, or more likely in Q3 or Q4.

I ran a poll on my channel asking when you think 0% APR will come to the Model Y. The results so far:

• 39% said May to June.
• 17% said Q3 (July-September).
• A significant portion also voted for Q4, which aligns with Tesla’s historical pattern of big year-end incentives.

Industry Headwinds and Financing Challenges

There are broader market factors to consider as well. According to a recent post by Unusual Whales on X, US auto loan applications are being denied at the highest rate in over a decade. If you’re waiting for 0% financing, now might be a good time to explore the current Model 3 offer and understand its terms. For instance, to qualify for 0% on the Model 3, you need to put down 15% (roughly $5,000-$7,000). If you can’t, the rate jumps to 0.99%. Additionally, you’ll need good credit, minimal debt, and ideally a solid auto loan history. First-time buyers might face higher rates (1.99% or 2.99%) or even denial for the 0% offer.

Tesla’s website has a pre-qualification button for every vehicle. It’s a soft inquiry that doesn’t impact your credit, so it’s a great first step to see if you’d qualify for 0% financing when it becomes available for the Model Y.

Preparing for the Deal

Here are a few actionable steps to get ready for a potential 0% financing offer:

1. Check Your Credit: Ensure your credit score is in good shape. Pay down debts if possible and avoid new credit inquiries.
2. Save for a Down Payment: If the Model Y 0% offer mirrors the Model 3’s terms, you’ll likely need 15% down to qualify.
3. Consider Trade-In Value: Used car values are on the rise (per CarGurus’ index), especially for non-EVs, due to tariffs and market dynamics. Holding onto your current vehicle a bit longer could net you a better trade-in value.
4. Explore Credit Unions: As I mentioned earlier, my Tesla Buying Guide on Patreon has a list of credit unions with rates better than Tesla’s standard financing.

Other Tesla Updates and Cool Stuff

• Cybertruck Production: Drone footage from Joe at Giga Texas shows Cybertruck production in full swing. If you’re in Southern California or LA and taking delivery of a rear-wheel-drive Cybertruck, hit me up! I’d love to join you for the delivery and check it out together.
• Diamond Black Model 3/Y: I’m obsessed with this new color. If you’re picking one up in the area, let me know—I’d love to inspect it with you.
• Unplugged Performance Build: Shoutout to Unplugged Performance for an incredible Ultra Red Model Y with bronze rims. It’s the ultimate Iron Man Tesla! Check out their performance parts via the link in my video description.
• Tesla Safety Feature: Did you know Tesla vehicles automatically open all doors if submerged in water? This is a fantastic safety feature I recently learned about.

Must-Have Tesla Accessories

Once you’ve got your Tesla, you’ll quickly realize it comes with zero accessories—not even a phone mount! Don’t worry, though; 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 prevent losing small items.
• An underscreen station mount for storing sunglasses (my newest favorite).

Joah also offers cool extras like a wireless game controller, a portable air compressor, and even an electric scooter for zipping around from Superchargers. Use my promo code in the video description to save money and get free shipping on orders over $120. Thanks to Joah for partnering with the channel!

Final Thoughts

While we don’t know exactly when 0% financing will hit the Tesla Model Y, the signs are there—rising inventory, historical patterns, and Tesla’s current focus on the Model 3. Stay prepared by checking your credit, saving for a down payment, and keeping an eye on inventory trends. I’ll keep you updated as soon as I hear anything concrete.

What are your thoughts? When do you think we’ll see 0% financing for the Model Y? Drop a comment below, and let me know if you’re picking up a Tesla soon—I’d love to join you for the delivery if you’re in SoCal! Don’t forget to check out my latest podcast episode of The Breakdown with Chip on Spotify and YouTube for insider tips on buying a Tesla.

Thanks for reading, everyone. Hit that like button, and I’ll see you in the next post!

-DennisCW