Tesla unveils reduced financing rate of 1.99% APR for purchase of new Model Y Long Range AWD in the United States
Tesla Offers Significant Discounts on Model Y Long Range AWD in Select Markets
Tesla has announced a new promotion for its Model Y Long Range AWD in select European markets and the US, offering up to €4,000 off and various discounts as part of an effort to reverse its sales decline.
The promotion was announced by Tesla North America on their official X account on May 3, 2025, and the details for the Model Y Long Range AWD do not specify any major company backlash due to CEO Elon Musk's involvement in politics. The promotion link is available at https://t.co/N83kkkSWyp.
The promotion is not available in the Canadian market, but it is applicable only to well-qualified buyers. The promotion includes a 15% down payment clause, and customers can access zero deposit with 2.99% for 72 months by applying the $7,500 federal tax credit at the point of sale.
The promotion for the new Tesla Model Y Long Range AWD is available in the US market, and the current financing options for the Model Y Long Range AWD in the US market include leasing and financing offers. Leasing the 2025 Model Y Long Range AWD costs around $499 per month for 36 months with a $1,000 to $3,000 down payment option. A $3,000 down payment lowers the monthly payment but a $0 down option is available with higher monthly costs of about $582.
The financing offer features an APR of about 2.99% for up to 72 months, providing an option to buy with eventual ownership equity instead of merely leasing. Additional details of the promotion include eligibility for a $7,500 Tesla incentive, plus a $1,000 discount for specific groups such as military members, first responders, teachers, or students. Lyft drivers have extra $1,000 Tesla credits plus an additional $1,000 from Lyft, further improving affordability.
The offers require delivery by September 30, 2025, and may include standard mileage limits if leasing (usually 10,000 miles/year). Leasing offers provide lower monthly payments with mileage restrictions, while financing adds ownership equity with potentially higher monthly commitments but without end-of-lease fees. Local and federal incentives may further reduce effective costs.
Summary
| Option | Term | Monthly Payment | Down Payment | APR | Incentives | |--------|------|-----------------|--------------|-----|------------| | Lease (Long Range AWD) | 36 months | ~$499 ($582 with $0 down) | $1,000–$3,000 | N/A | $7,500 Tesla incentive, plus $1,000 discount for military/first responders/teachers/students, Lyft driver credits | | Finance (Long Range AWD) | Up to 72 months | N/A | N/A | ~2.99% | Same incentives apply |
These deals are among Tesla’s August 2025 nationwide promotions aiming to make the Model Y more accessible. The new 1.99% financing for the Tesla Model Y Long Range AWD cannot be combined with the $2,000 Model Y Loyalty Incentive. There is no mention of a time limit for the promotion or when the delivery must occur for the Model Y Long Range AWD. Tesla ran a similar promotion for the Model 3 in the US last year for only one month, and the referral link for three months of Full Self-Driving (FSD) is not applicable for the Model Y Long Range AWD promotion.
[1] Tesla Model Y Long Range AWD Financing & Leasing Deals
[2] Tesla Model Y Long Range AWD Incentives and Discounts
- The new financing and leasing offers for the Tesla Model Y Long Range AWD are part of the company's August 2025 nationwide promotions aimed at making the Model Y more accessible to a wider market.
- Businesses in the technology sector, such as Lyft, are offering additional incentives for the purchase of the Tesla Model Y Long Range AWD, with Lyft drivers receiving an extra $1,000 Tesla credit and an additional $1,000 from Lyft.
