Tesla Offering A 0.99% APR To Further Boost Model Y Sales
Tesla’s latest discounts and incentives continue the industry trend of lowering the cost of entry for electric vehicles.
May 11, 2024 at 5:00pm ET
There has been a lot of negativity recently in the media regarding a “softening demand” for electric vehicles. Not even the mighty Tesla Model Y has been immune to this perceived slowdown in demand, despite being the best-selling vehicle in the world in 2023.
Of course, we’ve had temporary slowdowns in the EV market in the past and we will have them again. The electric vehicle market is often influenced by a complex mix of regulations, government incentives, tariffs and high interest rates. These factors and more all contribute to the regular demand fluctuations we’ve seen over the years. It doesn’t help that the market is dominated by only only a handful of big players. So when those sales leaders see a drop in demand, it can have a big impact that can’t be offset by rising sales for smaller players.
But rest assured, demand will eventually exceed supply again and automakers will be there to take advantage of the situation just like they did in 2021-2023. Which is why right now is one of the best times to make an EV purchase in years. The environment may be bad for the industry at large, but for consumers things could not be better.
Automakers have been lowering prices and offering major incentives for months now and are starting to see results. However, many of the best deals have been leasing incentives in North America. Especially for models that no longer qualify for the $7,500 federal rebate.
While the Tesla Model Y isn’t one of the vehicles that lost tax rebate eligibility, it too saw demand slump during Q1 in the United States. The automaker responded by lowering prices across the board, offering more attractive leases and adding great discounts on inventory vehicles for the past several months.
Between May 10th and May 31st, they are also now offering a competitive 0.99% APR when financing a Model Y. For buyers that qualify for the federal rebate and one of the many state rebates, Tesla’s electric crossover has suddenly become a very affordable option compared to just a year or two ago.
As usual, this incentive is only for “well-qualified buyers” of course and can be applied to 36, 48, 60 and 72-month financing terms. This low APR makes the 5 or 6-year financing option more affordable for buyers that need to keep monthly payments low. But if you were hoping to spread payments out with 84-month financing, the APR jumps to 2.99% financing.
So if you’ve already considered adding a Model Y to your garage, this might be the perfect time to pull the trigger. Just keep in mind that with a Model Y facelift likely on the way, and with Tesla confirming a more affordable model joining the lineup next year, you may be able to snag even better deals as the year goes on.
What do you think about the current offers? Is it a good time to take the plunge or would you wait it out for an even better deal? Let us know in the comments below.
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