Tesla Model Y 1.99% Financing: What You Need to Know

Hey everyone, DennisCW here! Welcome back to another update on all things Tesla. Today, I’m diving deep into the newly released 1.99% financing offer for the Tesla Model Y. This is a game-changer for many potential buyers, but there are some crucial details you need to be aware of before jumping in. Plus, I’ll address concerns for those with pending orders and share some other exciting Tesla news. Let’s get started!

The Truth About Tesla Model Y 1.99% Financing

Tesla has just rolled out a promotional financing rate of 1.99% for the brand-new Model Y, and it’s only two months after the initial deliveries began in March. This is a significant drop from the previous 5.49% rate, making it an attractive deal for prospective buyers. Here are the four key things you need to know:

1. Loan Terms and Down Payment Requirements: You can opt for loan terms up to 72 months, which is fantastic for keeping monthly payments low. However, to qualify for the 1.99% rate, you need to put down at least 15% of the vehicle’s cost. Alternatively, if you can utilize the $7,500 federal tax credit as part of your down payment, you might only need to put down as little as $1,000 to $4,000, depending on your configuration.

2. Zero Down Option: If you prefer not to put any money down, you can still finance the Model Y, but the interest rate bumps up to 2.99%. Using rough math for a $50,000 Model Y over 72 months, the total interest at 1.99% is about $3,000, compared to nearly $9,000 at the old 5.59% rate. At 2.99% with zero down, the interest is roughly double, around $5,000, but you keep more cash in your pocket upfront.

3. Loyalty Offer Limitation: Unfortunately, if you have a $2,000 loyalty discount from Tesla, you cannot stack it with this financing offer. Tesla seems to be targeting a total incentive of around $2,000 to $3,000 per vehicle with this promotion, so you’ll have to choose between the loyalty discount or the low financing rate.

4. Pending Orders – Don’t Cancel Just Yet!: I’ve seen many of you in the comments mentioning that you’ve canceled your pending Model Y orders to reapply for this deal. I don’t think that’s necessary! Instead, message your Tesla advisor through the app and ask how you can qualify for the 1.99% rate. In many cases, Tesla can reapply your credit or adjust your existing order without the need for a new $250 deposit. If a new order is required, they’ve often been able to transfer the original deposit to the new one.

Is 0% Financing on the Horizon?

While 0% financing would be the ultimate deal (no interest at all!), I don’t see it happening in the near term. Tesla is likely testing the waters with this 1.99% offer to gauge demand for the Model Y. We might see 0% financing by Q4 or mid-Q3 at the earliest, depending on how this promotion performs. If you need a vehicle now or within the next few months, this 1.99% rate is still a fantastic opportunity compared to the higher rates we’ve seen recently.

Pro Tip: Protect Your Credit Before Applying

Before you apply for any financing, it’s critical to protect your credit. With recent data breaches like the one at Bank of America (where customers weren’t notified for a month), your personal information could already be at risk. That’s why I use Aura, today’s sponsor, to monitor the dark web for my personal data and reduce spam calls. Aura also offers tools to remove your data from shady broker sites and provides up to $5 million in identity theft insurance. Try it free for 14 days at aura.com/denniscw – link in the description below. Don’t wait until it’s too late to protect your identity!

Model Y Inventory Surge and Potential Discounts

On another note, Tesla’s inventory of Model Y vehicles is stacking up across the US, as seen on their website and reported by community members in places like Loveland, Colorado. With colors like Stealth Gray, Ultra Red, and Quicksilver readily available (though Space Black is still missing), this surplus could be a big reason for the 1.99% financing push. My prediction? We might see small inventory discounts by the end of this month or next, especially as test drive vehicles cycle into inventory for sale. If you’re looking to buy, check Tesla’s inventory first to confirm availability with a VIN and use a referral code (like mine below) for 3 months of Full Self-Driving!

Must-Have Tesla Accessories from Jowua

One thing to note: Tesla vehicles come with zero accessories – not even a phone mount! That’s why I’ve partnered with Jowua to bring you some must-have accessories every Tesla owner needs. From phone mounts to center console organizers and even a portable air compressor (which recently saved me from a flat tire!), Jowua has it all. Use my promo code in the description to save money and get free shipping on orders over $120. Check them out – I use their products myself and love them!

Community Questions and Other EV Updates

• Used Model Y Performance vs. New Model Y: A viewer asked whether to buy a used 2021 Model 3 or a new Model Y at 1.99% financing. Unless you’re a performance junkie who needs the speed of the older Model Y Performance, I’d lean toward the new Model Y for the warranty, latest tech, and improved suspension comfort.
• Lucid Gravity Hype: I’m super excited about the Lucid Gravity SUV, now available for test drives and showroom viewings across the US. Check out lucidmotors.com/events for tour dates. Our friend Sherwin got an early look and raved about the luxury and build quality – stay tuned for his videos!
• Cybertruck Prices Dropping: Cybertruck prices are crashing, with used Foundation Series models going for as low as $66,000 (16,000 miles, black wrap, tints, and light bar included). Auction prices are dipping into the high $60,000s, and this trend will likely continue as new incentives roll out.

Final Thoughts

The 1.99% financing on the Tesla Model Y is a fantastic deal for those ready to buy now, but make sure you understand the terms and reach out to your Tesla advisor if you have a pending order. Inventory is building, so keep an eye out for potential discounts soon. And as always, protect your credit with tools like Aura and enhance your Tesla experience with accessories from Jowua. What are your thoughts on this financing offer? Are you jumping on it, or waiting for something better? Drop your comments below, and don’t forget to use my Tesla referral code for 3 months of Full Self-Driving!

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

• DennisCW