June 20, 2025 (San Francisco, CA) – In a welcome move for cost-conscious EV shoppers, Tesla has quietly extended its highly attractive 1.99% Annual Percentage Rate (APR) financing promotion for the popular Model Y in the United States. Originally set to expire, the deal is now available for orders placed by June 30th, 2025.
This below-market financing rate, applicable for qualified buyers with excellent credit on terms up to 72 months, represents a significant discount compared to current average auto loan rates, which hover well above 6% for new vehicles. The extension comes as Tesla continues aggressive efforts to maintain sales momentum for its best-selling vehicle globally.
"Finding financing under 3% for any new car is nearly impossible right now, let alone under 2%," said automotive finance analyst, David Chen. "This makes the Model Y incredibly compelling on a monthly payment basis, especially when factoring in potential fuel savings and state incentives. Tesla is clearly leveraging its ability to offer in-house financing to drive volume."
The low-rate promo applies to both new Model Y inventory purchases and custom orders. It covers all variants of the compact SUV – Rear-Wheel Drive (RWD), Long Range AWD, and Performance. While the base Model Y RWD starts at $44,990 before potential federal tax credits and state incentives, the 1.99% APR significantly reduces the overall cost of borrowing compared to standard rates.
Check Availability & Configure Your Model Y:
Visit Tesla's Model Y Design Studio Here
Industry observers like Sawyer Merritt, a well-known Tesla commentator, noted the extension reflects Tesla's strategy to clear existing inventory and stimulate demand heading into the latter half of Q2. "This promo has been a major driver for Model Y sales the past few weeks," Merritt stated on social media platform X. "Extending it gives Tesla a strong push right up to the quarter's end."
See Sawyer Merritt's analysis on the extension here
Why the 1.99% Rate Stands Out:
- Market Beating: Current average new car loan rates are substantially higher.
- EV Competition: While some competitors offer occasional subsidized rates, 1.99% is exceptionally low for the EV segment.
- Total Cost Impact: Over the life of a loan, the difference between 1.99% and even 5% APR can save buyers thousands of dollars in interest.
Important Considerations:
- Credit Qualification: The 1.99% rate requires top-tier credit approval through Tesla Finance or its partner lenders.
- Limited Time: The offer is explicitly tied to orders placed by June 30th, 2025. Delivery timing may vary.
- Other Offers: Buyers cannot combine the 1.99% APR offer with other financing promotions, like the previously offered 0.99% on shorter terms, or leasing deals. Federal tax credits ($3,750 for qualifying Model Y trims) and state incentives still apply.
Tesla's extension of this aggressive financing deal signals its focus on maintaining the Model Y's dominance in the increasingly competitive electric SUV market. For buyers considering an EV and able to secure the financing qualification, the window to lock in this historically low rate has just gotten a little wider – but the clock is still ticking towards the June 30th deadline.
Interested buyers should visit Tesla's online design studio or contact their local Tesla store to confirm eligibility and place an order before the promotion ends.
NEWS: Tesla has extended the 1.99% APR promotion for the new Model Y AWD in the U.S. to June 30th (from June 16th).
— Sawyer Merritt (@SawyerMerritt) June 17, 2025
"Promotional rates valid for well-qualified buyers with excellent credit who order a new Model Y LR AWD and take delivery by June 30, 2025, with a minimum down… pic.twitter.com/tkb0HcWpLk
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