The Truth About Tesla Model Y's 1.99% Financing Offer

Hey everyone, DennisCW here! Today, I’m diving into the hot topic of Tesla’s newly released 1.99% financing offer for the Model Y. If you’re considering placing an order or already have a pending one, there are four key things you need to know about this promotional deal. Plus, I’ve got some tips for those of you with existing orders so you don’t rush into canceling them unnecessarily. Let’s break it all down!

1. Tesla’s 1.99% Financing: A Game-Changer

Just two months after the Tesla Model Y started deliveries in March (following its January announcement), Tesla has rolled out an incredible 1.99% financing rate. This is a significant drop from the previous 5.49% rate, making the Model Y much more affordable for buyers. What’s even better? This rate applies to loan terms up to 72 months, giving you flexibility with 60-month or shorter terms as well. Compared to the old rate, which would cost you nearly $9,000 in interest on a $50,000 loan over 72 months, the 1.99% rate cuts that down to just $3,000. That’s almost half the interest—a huge saving!

2. Down Payment Details and Flexibility

To qualify for the 1.99% rate, Tesla requires a minimum down payment of 15%. However, you can also use the federal tax credit of $7,500 as part of your down payment, which means you might only need to put down as little as $1,000-$4,000 out of pocket. If you prefer zero down payment, you can still finance, but the rate bumps up to 2.99%. Keep in mind that taxes and fees may still need to be paid upfront. Still, even at 2.99%, this is a fantastic deal compared to typical auto loan rates.

Here’s a quick example: On a $50,000 Model Y with 1.99% financing over 72 months, your total interest is just $3,000. That’s roughly $500-$600 per year—an amount you could likely outpace with smart investments over the same period.

3. Fine Print: Loyalty Discounts and 0% Financing

Before you get too excited, there’s a catch. If you’re eligible for Tesla’s $2,000 loyalty discount, you cannot stack it with this 1.99% financing offer. Tesla seems to be balancing their incentives, as the $3,000 in saved interest roughly aligns with the value of other discounts they’ve offered. So, you’ll need to choose which deal works best for you. My advice? Opt for a shorter loan term if possible and pay it off quickly to minimize interest costs.

As for 0% financing, don’t hold your breath just yet. I don’t expect it in the near term—maybe mid-Q3 at the earliest, or more likely Q4. Tesla is likely testing the waters with this 1.99% offer to see how it impacts Model Y sales.

4. Existing Orders: Don’t Cancel Just Yet!

I’ve seen a lot of comments from people saying they’ve canceled their Model Y orders to re-place them under the new financing terms. Hold off on that! Canceling means forfeiting your $250 deposit and placing a new one, which might not be necessary. Instead, reach out to your Tesla advisor through the app or website and ask about applying the 1.99% rate to your existing order. In the past, Tesla has allowed customers to reapply for credit or adjust orders without losing their original deposit. Worst case, if a new order is needed, advisors can often transfer the credit from your initial deposit. Save yourself the hassle and communicate first!

Bonus Tips for Tesla Buyers

• Use a Referral Code: If you’re ready to order a Tesla (Model Y or otherwise), don’t forget to use a referral code like the one in my video description. It’ll snag you 3 months of Full Self-Driving for free. Just click the link, head to Tesla’s site, build your car or check inventory, and place your $250 non-refundable deposit.
• Get Pre-Qualified: Worried about approval? Tesla offers a soft credit inquiry (barely a ding on your score) to pre-qualify. It’s a quick way to check your eligibility before committing.

Protect Your Credit Before Financing

Speaking of credit, if you’re planning to finance a Tesla—or anything else—protecting your financial info is critical. Did you know Bank of America recently had a data breach and didn’t notify customers for a month? On average, companies take 277 days (9 months!) to report breaches, leaving your identity exposed. That’s why I use Aura, today’s sponsor, to safeguard my data. Aura scans the dark web for my info, reduces spam calls, removes my data from sketchy broker sites, and even offers $5 million in identity theft insurance—all in one easy app. Try it free for 14 days at a.com/denniscw (link in the description). Don’t wait until it’s too late—protect your credit before you apply for financing. I’m doing it, and you should too!

Final Thoughts

Tesla’s 1.99% financing on the Model Y is a fantastic opportunity, especially with the flexibility of long loan terms and low down payments. Just be mindful of the fine print, like the inability to stack loyalty discounts, and don’t rush to cancel existing orders without talking to an advisor. I’m curious to hear from you—what do you think of this offer? Are you moving forward with the 1.99% financing, or holding out for something better? Drop your thoughts in the comments!

Thanks for reading, and I’ll catch you in the next post!

-DennisCW