Why You Should Avoid the Tesla Model Y Rear-Wheel Drive Right Now

Why You Should Avoid the Tesla Model Y Rear-Wheel Drive Right Now

Hey everyone, DennisCW here! Welcome back to another deep dive into the world of Tesla deal hacking. Today, I’m going to share my thoughts on why you might want to skip the Tesla Model Y Rear-Wheel Drive (RWD) for now and opt for the All-Wheel Drive (AWD) instead. I’ve got a variety of reasons backed by current market trends, inventory insights, and long-term value considerations. Plus, I’ll touch on some other Tesla news and updates. Let’s get into it!

The Case Against the Tesla Model Y Rear-Wheel Drive

If you’re in the market for a Tesla Model Y, you might be tempted by the lower price tag of the RWD version. After all, it’s about $4,000 cheaper than the AWD, and if you’re leasing, it’s $100 less per month (saving you around $3,600 over a 36-month lease). However, I believe the AWD offers better value for most buyers right now. Here’s why:

1. Inventory Discounts Are Better on AWD

One of the biggest reasons to skip the RWD is the lack of significant discounts in Tesla’s inventory. I’ve scoured listings across the country—Maryland, California, you name it—and the heavily discounted RWD units have largely disappeared. The few that remain aren’t offering the deep cuts we saw earlier. On the other hand, AWD Model Ys in inventory often come with option credits and discounts ranging from $2,000 to $3,000. Some even have low demo mileage (2,000 miles or less) and are priced close to RWD levels after discounts. For example, I found a repaired AWD with just 1,000 miles for $3,000 off—making the price difference negligible.

2. The Federal Tax Credit Deadline Looms

The $7,500 federal tax credit for Tesla vehicles is set to expire soon, and you must take delivery by September 30th to qualify. This deadline has created a rush for RWD units since they’re the cheapest entry point to snag the credit. However, with inventory drying up, you might miss out on both the credit and a good deal if you wait too long for an RWD. AWD inventory, on the other hand, is still plentiful with pages of builds, colors, and discounts to choose from. If you’re flexible on color and specs, you might even see “Hail Mary” deals on AWDs as the deadline approaches.

3. Better Resale Value with AWD

AWD vehicles generally hold better resale value, especially in markets with inclement weather. While RWD might suffice in warmer states like California, Texas, or Florida, AWD is a safer bet for most of the country. Even in California, if you frequent mountainous areas or take snowboarding trips, AWD provides added safety and versatility. More buyers seek AWD for these reasons, making it easier to sell down the line.

4. Potential Insurance Savings

Here’s something you might not have considered: AWD Model Ys could be cheaper to insure. Insurance companies often view AWD as a safer option due to better traction and stability, potentially reducing the risk of accidents. While I can’t pinpoint exact savings (could be $10, $50, or even $100 a month), it’s worth factoring into your decision.

5. My Recommendation: Act Now or Wait Strategically

If you’re set on an RWD to save upfront costs and don’t need AWD for your climate, place your order ASAP with a $250 deposit to get in line before the tax credit expires. Don’t forget to use a Tesla referral code (like the one in my video description) to get three months of Full Self-Driving (FSD) added to your order. However, if you’re flexible and live near a Tesla factory or in an area with lots of AWD inventory, consider waiting until closer to the end of September for potential last-minute deals on AWD units.

Other Tesla News and Updates

• Tesla Diner Menu Expansion: The Hollywood Tesla Diner has added a fried chicken sandwich to its menu. It’s cool to see Tesla experimenting with new offerings at this unique location!
• 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 swag. RSVP via the link in my video description if you’re in the area—I’d love to meet you!
• New Tesla Features: Tesla rolled out a “Light Sync” update for interior LED lights that sync to music. It’s accessible via the Toy Box but likely won’t work while driving. I haven’t received the update yet on my vehicles—have you?
• Smaller Cybertruck in the Works?: A Tesla executive hinted at a smaller Cybertruck for future markets, possibly for goods delivery alongside robotaxis. Could this bring us closer to the originally promised $40,000 price point? Let me know your thoughts!

Maximize Your Tesla Deal

• Don’t Trade-In to Tesla: Tesla often offers the lowest trade-in value. Instead, check out partners like givethevin.com to get the maximum value for your current vehicle.
• Tesla Accessories from Jowua: New Tesla owners, remember your car comes with zero accessories—not even a phone mount! My partner Jowua offers must-haves like phone mounts, center console organizers, and an underscreen storage mount. Use my promo code in the video description for savings and free shipping on orders over $120.
• Floor Mats from 3W Liners: Protect your Tesla with all-weather floor mats from 3W Liners, my top pick after testing many brands. Use promo code “Dennis35” for 35% off—a channel-exclusive deal!

Final Thoughts

While the Tesla Model Y RWD might seem like the budget-friendly choice, the AWD offers better discounts, resale value, and versatility for most buyers right now. With the $7,500 tax credit deadline approaching, inventory dynamics are shifting fast. Whether you order now or wait for a last-minute AWD deal, make sure to use a referral code to maximize perks like free FSD months.

What do you think? Are you team RWD or AWD? Drop your thoughts in the comments, and let me know if you’ve snagged any great Tesla deals lately. Don’t forget to join my free email newsletter (link in the video description) for more Tesla tips and deal hacks. Thanks for reading, and I’ll catch you in the next one!

-DennisCW