Key Takeaways
1. Tesla is offering a new 1.99% APR financing rate for the 2026 Model Y Long Range AWD, aimed at enhancing affordability.
2. Monthly payments for the AWD Model Y can start at $603 with a federal tax credit factored into the down payment.
3. The 1.99% APR financing is available for various loan terms but cannot be combined with Tesla’s $2,000 Loyalty Incentive.
4. A new Model Y RWD trim is introduced at $4,000 less than the AWD version, but it has a higher standard financing rate of 5.49%.
5. The RWD variant offers the longest range among Model Y options, and lower APR financing may be introduced for this model in the future.
After rolling out a 0% APR financing option for the Model 3, Tesla is now enhancing the affordability of the Model Y with a new interest rate offer.
Financing Details
While this offer isn’t as enticing as the zero APR available for the Model 3, it’s still significantly lower than the rates applied to the Model S, Model X, or even the Model Y RWD. The new deal features a 1.99% APR financing rate specifically for the 2026 Model Y Long Range AWD. This is available to eligible buyers who have a strong credit rating and requires a minimum down payment, which can be partially covered by the federal tax credit.
Payment Options
For the AWD trim of the Model Y, which starts at a price of $50,990 before tax credits, monthly payments can begin at $603 when utilizing the federal subsidy as part of the down payment. This option is available for the longest term of 6 years, but the 1.99% APR promotional rate is also applicable for 36-, 48-, and 60-month terms.
However, it’s worth noting that this financing offer cannot be combined with the $2,000 Loyalty Incentive that Tesla currently provides to existing Model Y owners. Other promotions or credits from Tesla’s Refer and Earn Program can still be used alongside this new interest rate offer.
New Model Y RWD Trim
Tesla has also launched a more affordable Model Y RWD trim, which is priced $4,000 less than the AWD version, but it does not qualify for the 1.99% APR financing rate. Instead, the RWD variant is financed at the standard 5.49% APR, which is why the monthly payment is nearly the same as that of the dual-motor Model Y.
The RWD trim remains a new offering that delivers the longest range amongst the Model Y options. It’s likely just a matter of time before Tesla decides to introduce lower APR financing options for this more economical Model Y as well.
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