Tesla Model Y 1.99% Financing: A Game-Changer for Buyers

Hey everyone, DennisCW here! If you’ve been keeping an eye on Tesla’s latest offers, you’ll know the past couple of days have been a wild ride. From a mysterious 1.99% financing rate popping up and disappearing yesterday to it officially landing on Tesla’s website today, there’s a lot to unpack. I’m thrilled to dive into the details of this new 1.99% APR financing offer for the Tesla Model Y—just two months after its release and initial deliveries. Let’s break down what’s on the table, some surprises I’ve noticed, and what this means for potential buyers. Buckle up, because there’s plenty to cover!

The Roller Coaster of Tesla’s 1.99% Financing

Yesterday, we saw the 1.99% financing rate briefly appear on Tesla’s site before it vanished just as quickly. I’m glad I didn’t urge anyone to jump on it then, as it seems it was a glitch or premature posting. Tesla likely hadn’t updated their configurator yet. But today, it’s official—1.99% APR is live for the Tesla Model Y, and it’s an exciting deal for those looking to get behind the wheel of this electric SUV.

If you’re considering placing an order, don’t forget to use a Tesla referral code (like the one linked in my video description or bio) to snag three months of Full Self-Driving (FSD) with your purchase. Just click the link, head to Tesla’s website, build your Model Y however you like, and you’re good to go!

Digging Into the Details of the 1.99% Offer

Let’s talk specifics. You can find the financing details under the “Finance” tab on Tesla’s website by editing the terms and savings. Here’s what stands out:

• 1.99% APR is available for well-qualified buyers with excellent credit who order a new Model Y after May 2nd.
• The offer extends up to 72 months, which is a pleasant surprise. For comparison, the Model 3’s 0% financing maxes out at 60 months. Extending to 72 months at 1.99% makes monthly payments more manageable for many buyers.
• A minimum 15% down payment (plus taxes and fees) is required to qualify for the 1.99% rate. For example, a $4,000 down payment should suffice, though it seems Tesla may factor in the $7,500 federal tax credit toward this requirement—more on that below.
• Alternatively, there’s a zero down payment option at 2.99% APR, also up to 72 months, when qualified buyers apply the $7,500 tax credit at the point of sale.

However, if you stretch the loan to 84 months, the rate jumps to a steep 6.44%, which I wouldn’t recommend. Personally, I prefer 60 months for financing to minimize interest, but 72 months at 1.99% isn’t bad when you crunch the numbers. Compared to 0%, the total interest paid at 1.99% over six years is still quite reasonable.

Fine Print and Key Restrictions

As with any deal, there’s fine print to consider:

• Credit Requirements: This promotional rate is for well-qualified buyers with excellent credit. Not sure if you qualify? Tesla’s website offers a “Get Prequalified” button for a soft inquiry to check eligibility without dinging your credit score. You can also use tools like Credit Karma for a soft pull before committing to the $250 deposit and a hard inquiry with Tesla Financing.
• Federal Tax Credit: If you qualify for the $7,500 federal tax credit, it can be applied toward your down payment, which explains why even a $1,000 down payment might still get you the 1.99% rate.
• Loyalty Incentive Conflict: Here’s a bummer for some—the 1.99% offer cannot be combined with the $2,000 Model Y loyalty incentive. If you recently received a text or email about the loyalty discount as a current Tesla owner, you’ll have to choose between the two.
• Other Promotions: The good news? This financing offer can be combined with other Tesla promotions, including the Refer and Earn program. So, don’t forget to use that referral code for your three months of FSD!
• Inventory and Delivery: There are inventory Model Ys available for quick delivery, which could be a great option if you don’t want to wait for a custom build.
• No End Date: Interestingly, Tesla hasn’t specified an end date for this offer, whether for orders or deliveries. This suggests it might stick around for a while, but promotions can change without notice, so don’t wait too long if you’re interested.

What About 0% Financing?

The big question on everyone’s mind: When will Tesla offer 0% financing on the Model Y? My take is that 1.99% will likely hold through the end of this quarter. Tesla might revisit 0% in Q3 or definitely by Q4, but they’re playing this in stages. Dropping to 0% immediately didn’t make sense for them, and honestly, 1.99% is close enough to 0% or 0.99% that the difference in total interest over 5-6 years is negligible for most buyers. Patience remains key—if you can wait until Q3 or Q4, you might see even better deals, including potential inventory discounts on Model Ys.

Final Thoughts: Is This the Right Time to Buy?

This 1.99% financing offer is a fantastic opportunity for those who’ve been holding out for a deal on the Tesla Model Y. It’s especially appealing with the 72-month term, making payments more affordable while keeping interest low. However, if you’re banking on the $2,000 loyalty discount, you’ll need to weigh your options. And as always, the longer you wait, the better the deals might get—especially as we approach the end of the year.

One last tip before you apply for financing: Protect your credit. With recent data breaches like the one at Bank of America (where customers weren’t notified for a month), your personal info could be at risk without you even knowing. That’s why I use Aura, today’s sponsor, to monitor the dark web for my social security number, bank info, and more. Aura also helps reduce spam calls, removes personal data from sketchy broker sites, and offers up to $5 million in identity theft insurance—all in one easy 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. I’m doing it, and you should too.

What do you think of this 1.99% offer? Are you jumping on it now, or waiting for 0% financing later this year? Drop your thoughts in the comments, and don’t forget to use that referral code if you’re ordering a Model Y. Thanks for reading, and I’ll catch you in the next update!

-DennisCW