If you’re financing a new Model Y, the interest rate just got a little more expensive. Tesla raised its promotional APR on the Model Y’s base and Premium trims from 1.49% to 1.99% in late September, and it’s still in effect.
What actually changed
According to Tesla’s published financing rates, the Model Y RWD, AWD, and Premium trims now carry a 1.99% APR, up from 1.49% earlier in September. The Performance trim’s rate wasn’t touched and stays at 3.99%. It’s the latest step down from the 0% APR promotion Tesla ran through much of 2025 and into 2026, which it has been walking back gradually since August.
Why Tesla is doing this now
Zero and near-zero financing isn’t free for Tesla — the company absorbs the difference between the promotional rate and market rates, which shows up as a cost rather than revenue. Raising the rate ahead of Tesla’s Q3 earnings report trims that subsidy and presents a healthier margin to investors, which is also why these adjustments tend to cluster around quarter-end.
What it actually costs you
The difference sounds small, but on a typical 72-month loan it adds up to roughly $800 to $1,000 more in total interest over the life of the loan, depending on how much you finance. If you’re ordering now, it’s worth running the math on your own loan amount before you sign, and checking whether your bank or credit union can beat 1.99% — Tesla’s in-house rate isn’t always the cheapest option available.
Ryan Shaw covered the rate change and what it means for buyers currently ordering in a video published October 2:
Financing offers change often and vary by credit profile and state, so confirm your actual rate on Tesla’s order page rather than assuming the figures above still apply by the time you order.
Photo by RDNE Stock project.