The 1st quarter of a year is generally the slowest for automotive sales globally. Tesla (TSLA) is trying to keep the momentum despite CEO Elon Musk forecasting slower growth in 2024.
This is the best time of the year for buying a Tesla Model Y midsized electric SUV in the US. Tesla Model Y Long Range AWD vehicles listed on the automaker’s inventory website have become significantly cheaper.
A large number of Model Y Long Range AWD variants present in Tesla inventory are qualified for the full $7,500 federal tax credit. As the new Tesla Model 3 Highland is not eligible for this tax incentive, an inventory Model Y becomes a more attractive choice with prices even lower than a Model 3.
We even found a Tesla Model Y in the inventory which was priced at just $36,650 after the federal tax credit. Interestingly, Tesla now directly deducts the $7,500 from the price of the vehicle at the time of purchase (for eligible customers).
A brand new Tesla Model Y Long Range AWD with the same options costs $40,450 after the $7,500 federal tax credit deduction. The only difference in both vehicles is the stock paint option, Tesla discontinued Midnight Silver Metallic last year in favor of the new Stealth Grey color.
The only downside of an inventory Tesla vehicle is that it’s pre-configured. You have to settle with the existing paint, interior, and wheel options. But with the large number of vehicles in the existing Tesla inventory, you might just be able to find a perfect match with your choices.
As we can see in Screenshot 2 above, a new Rear-Wheel Drive Model Y base variant can cost you only $35,490 if you qualify for the federal tax credit. It costs $3,500 less than the base variant of the new Model 3 Highland (Screenshot 3 below for prices).
Tesla has also reduced new Tesla Model Y prices by $1,000. This discount will end on 29th February.
Now let’s compare the cheapest inventory Tesla Model Y Long Range to a brand-new Tesla Model 3 Long Range. A new Model 3 Long Range AWD is priced at $47,490 and it does not qualify for the federal tax credit. So, the inventory Model Y Long Range we showed in Screenshot 1 above is $10,840 cheaper than a new Model 3 Long Range.
The most expensive Model Y Long Range in Tesla’s inventory costs $46,640 after the deduction of the federal tax credit. Still cheaper than a new Model 3 Highland compact luxury sedan. Model Y being a crossover SUV has more room and a bigger road presence.
Tesla Model 3 Highland has an edge with its newly-refreshed design. However, it has been confirmed that Tesla is not launching a design-refreshed Model Y this year at least. So, buying the older design Model Y is a good choice with prices dropping significantly.
Let us know in the comments box below if you still prefer a new Tesla Model 3 over an inventory Model Y Long Range with a significantly lower price.
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Good analysis. The only thing to be careful of is that the 2023 RWD Model Y is *not* eligible for the $7500 tax credit if purchased in 2024. It’s hard to tell the difference between 2023 and 2024 Model Y RWD in inventory as the rated mileage is the same. If it’s a “Stealth Grey” model like the one in your example, it definitely qualifies for the tax credit as they only started offering that color in 2024. If it’s a Midnight Silver Metallic color RWD, then it definitely isn’t eligible for the tax credit as that would have been made prior to 2024. Note: this only applies to the RWD model Y. The AWD and performance both qualifiy whether they were manufactured in 2023 or 2024.
Your right, I traded in my 2019 dual motor And got a new Y Dual Motor with the new ultra red, tow, 20 inch wheels. Best thing is they let my transfer over my Model S free lifetime Supercharging, and FSD.
So, I got the $7500 fed off at purchase, got $3700 off because I got in inventory, and used the referral credits they gave me for buying a second Tesla to get the 2k optional power boost for free. Really like the Y and with power boost it flies.
I went over to the tesla service center the other day with my granddaughter. There was a new red highland and a new red model y In the showroom. After going over both thoroughly I have to say that the y felt old compared to the 3. They have done so much with the three that I am going to have to go with it. All I can say is WOW. I just wish they would hurry up with the performance. I still don’t want to give up the 1.2 sec I have with my current model 3 performance. But the improvements to incorporated into the highland are fantastic! They made the y feel like old news.
IQTIDAR ALI, I hope you read this. I bought a new Model Y because if this article. Thank you. I’m pleased with my purchase.
Hi,
Congrats on your new Model Y. Hope you enjoy your new electric SUV to the fullest. I am happy that I helped you make a good decision in your next car purchase.