Tesla clears out its old Model Y with a 0.99% interest rate

This is the big clearance sale at Tesla, where two generations of Model Y still coexist in dealerships, which looks bad.

Buying a car has always been a matter of opportunism to get the best price. Historically, the transition between two generations of the same vehicle is always the best moment. Residual value collapses, customers want new features and not the old model.

At Tesla, a moment of opportunity, Elon Musk had the smart idea to add an unprecedented level of disdain, so much so that even the new generation struggles to sell. No other choice, based on this premise, but to rethink his commercial strategies, which the South African businessman mocked in his competitors in the past.

In this March 2025, this translates into a systematic discount of 4,000 euros on all available Model Y in stock, to which you can add the ecological bonus of 2,000 euros for eligible versions, and finally a last boost. Specifically, an interest rate dropping to 0.99% when it is 7.60% (fixed APR) on the new Model Y 2025. And that changes everything.

A Really Attractive Rate?

Despite its liquidity, Tesla is not a bank, unlike Renault for example. Therefore, its rates have always been very poor, as it aims to profit from this business. Strange, but that’s how it is, to the point that one often questions Tesla’s real willingness to offer financing options to its customers. A quick look at forums makes it clear that the solution is to be found elsewhere, especially for financial sense.

For the old Model Y, it’s the opposite: no bank will lend you money at such low rates. This means Tesla is compensating the bank for the difference in the rate. The effort is enormous and demonstrates the difficult situation faced by the American manufacturer.

Thus, stock units see their prices plummet. A Long Range Rear-Wheel Drive drops to €40,990 after all incentives. The magic of the Tesla France site is that this price disappears at the moment of simulating financing offers (see photo above). You need to play with the amount of the deposit (discount + bonus) to find the right monthly payment.

So, with a €6,000 deposit — meaning €0 for the buyer — and over 60 months, the Tesla Model Y “older generation” drops to €700 per month. With 59 payments, this totals €41,300, which is €300.01 more than the cost price. Over the duration, there’s no hesitation. Because with the currency devaluation over the next five years (probably 10%), you save money!

The Tesla Interest Rate Scam

Over 60 months, the additional cost is only €5 per month, without immobilizing your cash which can then work and generate interest for you.

For comparison, the new Model Y 2025 Long Range Rear-Wheel Drive, with only €2,000 ecological bonus deposit, rises to €898 per month over 60 months. The price and 7.60% rate make the total bill jump to €52,982 out of the customer’s pocket. The new purchase price is only €44,990, meaning €8,000 in extra interest. That’s insane!