Tesla Drops Prices Up to 30%
If you're in the market for a new electric vehicle, now looks like the best time to purchase a Tesla, especially the Model Y. Earlier this month, Tesla reduced prices by up to 20% (30% including EV tax credit) in order to help vehicles qualify for federal tax credits and also increase demand as they ramp up their factories.
These reduced prices may not last long because of a current loophole in the federal EV tax credit, which allows all vehicles meeting a price threshold to qualify for the full $7,500 rebate. In March, many vehicles including Teslas may not qualify for the full credit once battery sourcing requirements take effect. Therefore, there is a good chance Tesla may increase prices and/or the federal tax rebates may be reduced.
On January 12th, Tesla cut the price of the Model Y Long Range from $65,990 to $52,990, a whopping $13,000. When you include the $7,500 tax credit the Model Y now qualifies for, you're looking at a 30% discount off MSRP compared to just a month ago. (Note: Tesla just raised the price of this Model Y by $500 this week, further proof that prices may rise as time goes on).
New Tesla Discounts
|Model||Old Price||Current Price||Total Discount||% Discount||Discount With Tax Credit|
|Model 3 RWD||$46,990||$43,990||$3,000||6.4%||22.3%|
|Model 3 Performance||$62,990||$53,990||$9,000||14.2%||26.2%|
|Model Y Long Range||$65,990||$53,490||$12,500||19%||30.0%|
|Model Y Performance||$69,990||$56,990||$13,000||18.5%||N/A|
In my opinion, Teslas are by far the best electric vehicles in their class. I've owned a Model 3 for almost 5 years now and can honestly say it's the best car I've ever owned.
There is basically zero maintenance, the vehicle software and user interface is the best on the market, autopilot is awesome, Tesla's charging network is far better than any other network (long road trips in any other EV are terrible), and best of all, you can buy the vehicles online, no scammy dealers - everyone pays the same price! And now with the reduced prices, there's really no reason to consider the competitors, check out the prices and comparison table below:
Tesla Compared to the Competition
|Brand||Model||Battery||Form||Range||0-60||Drivetrain||Seats||Price||After EV Credit||$ per Range|
|Tesla||Model 3||Long Range||Sedan||358||4.2||AWD||5||$49,990||$42,490||$119|
|Tesla||Model Y||Long Range||SUV||330||4.8||AWD||5||$53,490||$45,990||$139|
|Hyundai||loniq 5||Long Range||SUV||303||7||RWD||5||$45,500||$45,500||$150|
|Hyundai||loniq 5||Long Range||SUV||266||5.2||AWD||5||$50,295||$50,295||$189|
3 Steps Every Car Buyer Needs to Take to Save Maximum MoneyThe key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:
Step 1 Get Prices From My Trusted NetworkSelect the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Step 2 Get Prices From TrueCar / CarsDirectTrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.
Step 3 Complete my ChecklistFollow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid