Why You Should Skip the Tesla Model Y Rear-Wheel Drive for All-Wheel Drive
Hey everyone, DennisCW here! If you’re in the market for a Tesla Model Y, you might be tempted to go for the Rear-Wheel Drive (RWD) version due to its lower price tag. However, I’m here to tell you why I believe the All-Wheel Drive (AWD) trim is the better deal right now. Let’s dive into the reasons why you might want to reconsider the RWD and opt for the AWD instead.
1. Inventory Discounts Favor All-Wheel Drive
One of the biggest reasons to choose the AWD over the RWD is the current inventory situation. While there were some great discounts on RWD Model Ys in the past, most of those deals have disappeared. I’ve scoured inventory across the country—from Maryland to California—and the heavily discounted RWD units are nearly impossible to find. On the other hand, AWD Model Ys are plentiful in Tesla’s inventory, often with significant option credits and discounts ranging from $2,000 to $3,000.
For example, I’ve spotted AWD units with demo mileage (2,000 miles or less) discounted by up to $3,000. When you factor in the base price difference of $4,000 between the RWD and AWD, these discounts can bring the effective price gap down to just $1,000 or $2,000. That’s a small premium to pay for the added benefits of AWD, which I’ll get into next.
Pro Tip: If you’re planning to order a Tesla, don’t forget to use a Tesla referral code (like the one in the description of my video) to get 3 months of Full Self-Driving (FSD) added to your vehicle. Place your order ASAP with a $250 deposit to get in the queue, especially with the federal tax credit deadline looming!
2. The Federal Tax Credit Deadline
Speaking of the federal tax credit, the $7,500 incentive is set to expire soon, and you must take delivery by September 30th to qualify. This deadline has created a rush to snag a Tesla before it’s too late. If you’re set on an RWD to save money, you’ll need to act fast and place an order now to ensure delivery in time. However, with more AWD inventory available and better discounts, you might find an AWD unit that’s nearly as affordable as an RWD after the discount, making it a smarter choice.
3. All-Wheel Drive Offers Better Resale Value
Another key advantage of the AWD Model Y is its resale value. Across the country, more buyers are looking for AWD vehicles, especially in areas with inclement weather. Markets like California, Texas, and Florida might be fine for RWD due to milder climates, but even in California, AWD can be a game-changer if you’re heading to the mountains or on snowboarding trips. I have a friend who snowboards every weekend, and AWD is a must for those conditions. Opting for AWD now could mean a higher resale value down the line when you’re ready to upgrade.
4. Potential Insurance Savings with AWD
Here’s something you might not have considered: AWD vehicles could be cheaper to insure. Insurance companies often view AWD as a safer option due to better traction and control, reducing the risk of accidents compared to RWD. While the exact savings vary—maybe $10, $50, or even $100 a month—it’s worth checking with your provider. Every little bit helps, right?
5. Price vs. Value: Is RWD Really Worth It?
Yes, the RWD Model Y is $4,000 cheaper upfront than the AWD version. If you’re leasing, that translates to about $100 less per month, or $3,600 over a 36-month lease. For cash buyers or those financing, that $4,000 difference is significant. However, when you factor in the inventory discounts on AWD units, the price gap shrinks. Plus, the added benefits of AWD—like better handling, safety, and resale value—make it a worthwhile investment for just a couple thousand more.
If you’re flexible on colors, wheels, or interior options, keep an eye on Tesla’s inventory as we approach the end of September. Tesla might get more aggressive with AWD discounts, potentially offering some “Hail Mary” deals. So, if you see pages of AWD builds in your area, it might be worth waiting a bit longer for an even better price.
Final Thoughts: Should You Buy RWD or AWD?
At the end of the day, the decision comes down to your priorities. If you’re laser-focused on saving money upfront and live in a mild climate, the RWD might still make sense—but act fast to secure one before the tax credit deadline. However, if you value long-term benefits like resale value, safety, and potential insurance savings, the AWD is the way to go, especially with the current inventory discounts.
If you’re ready to pull the trigger, don’t forget to use a Tesla referral code (check the link in my video description) for 3 months of FSD. And keep monitoring Tesla’s inventory for AWD deals—there’s plenty of stock out there with endless colors and configurations to choose from.
Bonus Tesla Updates
- Tesla Diner News: The Hollywood Tesla Diner has added a new fried chicken sandwich to the menu. Exciting to see them expanding their offerings!
- High Praise for Model Y: Venture capitalist Chamath Palihapitiya recently called the Tesla Model Y the best car he’s ever owned, surpassing luxury brands like Range Rover, Mercedes, Bentley, and Ferrari. I have to agree—it’s a fantastic daily driver with unmatched comfort and FSD capabilities.
- Unplugged Performance Open House: I’ll be at the Unplugged Performance Open House this Saturday. It’s a free event, and the first 50 attendees get free swag. RSVP using the link in my video description, and I hope to see you there!
Maximize Your Trade-In Value
One last tip: If you’re trading in your current vehicle, don’t do it through Tesla. They often offer the lowest value. Instead, check out our partner, GiveTheVin.com, to get the maximum value for your trade-in. Link in the video description!
Must-Have Tesla Accessories
Did you know your Tesla comes with zero accessories? Not even a phone mount! Don’t worry—I’ve partnered with Jowua to bring you some must-haves for every Tesla owner:
- 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 new favorite!).
Jowua also offers cool extras like a wireless game controller, a portable air compressor, and even an electric scooter for those long walks from Superchargers. Use my promo code (in the video description) to save money and get free shipping on orders over $120. Thanks to Jowua for partnering with the channel!
Let’s Hear From You!
What do you think? Are you leaning toward RWD or AWD for your Tesla Model Y? Have you already purchased one? Drop your thoughts in the comments below, and let’s keep the conversation going. Don’t forget to like, subscribe, and hit the notification bell for more Tesla tips and updates!
Until next time, this is DennisCW signing off!
