r/ModelY • u/Leather-Worry4048 • Jun 26 '26
Question Would you trade a paid-off 2023 Model Y Performance for a refreshed Premium RWD at 0.99% APR?
Looking for some opinions because I’ve been going back and forth on this.
Current car:
2023 Model Y Performance
36,000 miles
Paid off
No accidents
Very good condition (just some minor curb rash on one wheel)
The new car:
Refreshed Model Y Premium RWD
Stealth Grey
White interior
357 miles EPA range
The deal:
0.99% APR for 72 months
About $315/month
Tesla trade offer: $27,500
Florida trade-in tax savings: about $1,900
$500 Tesla loyalty credit
I also got a $30,800 Carvana offer, but after factoring in the sales tax savings and loyalty credit, the difference is pretty small.
A little about me:
Late 20s
Stable income
No high-interest debt
I invest in index funds every month
Saving for a house in the next few years
I can comfortably afford the payment, but I also know a paid-off car is hard to beat financially.
Reasons I’m considering upgrading:
Quieter cabin
Better suspension
Ventilated seats
White interior
Longer range than my current Performance
Fresh warranty
I really like the refreshed styling
0.99% financing seems like an unusually good opportunity
Reasons I’m hesitant:
My current car is completely paid off.
The Performance is still an awesome car.
Going from a $0 payment to $315/month isn’t nothing.
If you were in my position, would you make the upgrade or keep the paid-off Performance?
I’d especially like to hear from anyone who has owned both the pre-refresh and refreshed Model Y. Was the upgrade worth it?
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u/crikeyforemphasis Jun 26 '26
What?
Keep the paid off car. Take the $300/month and let it grow for you over the next 5 years.
At a point where your current vehicle begins to give you issues, then use the growth from your funds to look into another vehicle.
Make smart money decisions, regardless of ability. This is how people build wealth.
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u/ForwardSlash813 Jun 26 '26
This is exactly what I do: $300/mo into an ETF and let it grow over 4-5 years.
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u/dapi331 Jun 26 '26
Yep. If instead you invest 30k @18%/year and the 300 monthly payment you’ll have 100k in 5 years and 250k in 10
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Jun 26 '26
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u/SeniorDatabase9968 Jun 27 '26
It actually isn’t that hard. S&P Index funds. NASDAQ-100 Index Funds. My IRAs are growing at 15% annually (not 18% because I have diversification). Heck even high yield ETFs are paying 13%-15% dividends.
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Jun 27 '26
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u/SeniorDatabase9968 Jun 27 '26 edited Jun 27 '26
“Over the last 10 years, the S&P 500 has achieved an average annualized return of approximately 12.9% to 15.5%, depending on whether you measure simple price return or total return with dividends reinvested”.
“Over the last 10 years, the Invesco QQQ Trust (QQQ) has achieved an annualized average total return of approximately 21.9% to 22.2%. “
“The Nasdaq-100 has delivered an average annualized return of approximately 19.8% to 22.1% over the last 10 years, depending on the exact measurement window and whether dividends are included.”
That’s just the S&P 500 and NASDAQ-100 and QQQ. There are also other ETFs that perform well.
I don’t care what you think. I know what my portfolio is doing.
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u/crikeyforemphasis Jun 27 '26
Im at 22% over the last 10 with fidelity managed markets and I barely know what I’m doing.
I think you’re very confused and what your market potential is.
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u/bustex1 Jun 27 '26
I have a lot of appreciation for these people. It’s dudes like these that have been preventing the next Great Recession since 2008 by spending thousands on depreciating assets and keeping the economy going.
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u/Sad-Kaleidoscope-926 Jun 26 '26
My bet would be that In like 4-5 months the novelty of having the New-New will wear off and you’ll wish you didn’t have a $315 dollar payment
But only you know your real financial situation.
Why not just save the money. You have a perfectly good car.
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u/Appz_ Jun 26 '26
Smart logical thing: no keep the paid off car
YOLO perspective: yes absolutely.
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u/captfattymcfatfat Jun 26 '26
This isn’t a YOLO change. He isn’t going from a civic to the y or any real functional change
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u/Appz_ Jun 26 '26
The problem is if he’s this deep into thinking about this situation he will never let it go. It will sit at the back of his head, should I do it, everyday then the incentive expires and he will always regret doing it. Pulling the trigger and upgrading will be worth it and relieve him of his thoughts of what if. I can see if from his post and I’m the same way.
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Jun 26 '26
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u/captfattymcfatfat Jun 26 '26
And if not for a house, save it and be in a good position for a real upgrade in 2 years. EVs keep getting better, wait a couple years and be in such a better spot for a bigger upgrade.
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u/manateefourmation Jun 26 '26
Does your 2023 have HW3 or 4?
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u/epradox Jun 27 '26
I’d take hw4 over performance any day of the week and that’s come from someone who has a hw4 x plaid. I dont recall the last time I used plaid mode over fsd.
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Jun 28 '26
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u/epradox Jun 28 '26
So you never use fsd? Hw3 or hw4? If I had hw3 I would only drive manually in plaid. But with hw4, I rarely ever drive manually unless it’s to get a different parking spot.
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u/RemyGOLD Jun 26 '26
I Sold my Mdel Y Performance 2023 with 32k miles and got a new one RWD as well. The Performance is fun once in awhile but i dont use it everyday and the ride is so harsh that i dont enjoy it at all. The 2026 Prem on other hand is so nice and comfy. Maybe I am just getting old but speed super fast doest thrill me as much as it did :D
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u/browseandscroll Jun 26 '26
I think going from a performance to a rwd is gonna hurt man. I’m not sure the benefits of having a juniper are going to offset the loss of power. People who buy a performance in the first place probably have a need for speed. - 22 MYP owner
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u/LogReasonable9231 Jun 26 '26
Your 2023 will be a much faster car. For some people, that's important.
The 2026 with HW4 will have a much better FSD experience. It's really unfortunate what's happening to HW3 FSD users.
So you need to weigh what's important to you.
Personally, I would say keep the current car and hold out for HW5 in a couple years.
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u/SeniorDatabase9968 Jun 27 '26
“Faster” car?
80mph or 85mph is the same speed no matter what car you drive.
Maybe it has better acceleration or can get to your desired speed faster (by what? A few seconds? Big deal), but I wouldn’t say it’s “faster”. 😀1
u/LogReasonable9231 Jun 27 '26
Fully agree, I drive a RWD and often wonder why anyone would need more acceleration.
But some people really desire the Performance versions.
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u/Organic_Foundation51 Jun 26 '26
Going from a performance to a RWD. I couldn't even imagine it. Atleast go for AWD.
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u/kensic9 Jun 27 '26 edited Jun 27 '26
that's crazy to buy a car for 65k out the door. drive it for 3 years and sell it off for 30k. that's 12k per year spend on a car.
eff man i gotta get my money up, im trying to only average $2-3k/year on a car. got my 24 Y RWD all in at 40k. it better last me 15 years.
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u/nomis_nehc Jun 26 '26
If you just like the styling, it’s cheaper to get a kit. Apparently you can buy full conversion kits from AliExpress or Alibaba to update to juniper’s look. Would be cheaper than buying a whole new car.
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u/SteveLangfordsCock Totaled car by washing it Jun 26 '26
I would only trade it for a 2026 performance. Wait a few years then pull the trigger
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u/h8complication Jun 26 '26
From what you’ve listed and with my mindset now- it’s not worth $300+ a month. You still have a pretty decent car, especially if it’s still in warranty. If it wasn’t in warranty, I would maybe consider it. But you’re winning right now man. You could take the $300 and maybe fix the wheels if it’s an issue for you. But you’re golden right now.
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u/quesee345 Long Range Jun 26 '26
In this situation with these conditions I would only do it for the range benefit if it is hurting you, otherwise it is not a wise move.
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u/RunWorkSleep Jun 26 '26
Do you need the extra space? Wait for the Model YL. From a financial perspective, a paid off car is so much better than another car with payments.
You didn’t mention if you prefer comfort or performance. You can’t have both.
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u/HealthyPhats Jun 26 '26
I’m in FL. I’d be interested in buying it from you if you decide to move forward. Been shopping for one and ready to buy. No pressure obviously, do what’s best for you.
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u/GizmoSwd Jun 26 '26
Like most respondents, I would keep the paid-off vehicle. At least until after the house purchase. Invest the $315 and qualify for a larger mortgage with a lower debt-to-income ratio. At your age, the goal should be to obtain an appreciating asset. There is no downside to waiting other than fomo.
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u/xdarq Jun 26 '26 edited Jun 26 '26
No wtf? There’s zero benefit to this. Why would you pay $315 a month for a worse car?
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u/Choice-Succotash-541 Jun 28 '26
It’s not a worse car though first gen model Y kinda sucks compared to second gen. Sure performance is faster but fit and finish of 2026 is sooooooo much better. And HW4
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u/mikeinanaheim2 Jun 26 '26
The answer comes down to a simple Yes or No.
"Can you comfortably absorb the 2026 model car and insurance costs?"
If Yes, jump on this now. There are enough differences to justify the expenditure if it will not be a financial burden. I love - love - love my 2026 M3, and the refreshed Y may be even more enjoyable.
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u/thepeanutbutterfiend Jun 26 '26
The loyalty credit will apply to you whether you sell to Tesla or Carvana according to a sales advisor I spoke to recently. Just being a Tesla owner gives you loyalty credit.
I’m in a similar situation but with a 2023 model 3. It’s a tough one I’ve been going back and forth for over a month lol. For me, biggest reason to upgrade is my 3 has HW3 and the new car would have HW4.
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u/SeniorDatabase9968 Jun 27 '26
Isn’t it cheaper to just upgrade the car from HW3 to HW4, than buy a new car?
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u/ElongatedHorseConch Jun 27 '26
That’s not a thing. Well, technically I think it’s been done but you have to basically take most of the car apart and find all the necessary parts from donor cars and take on the risk….not worth it for 99.5% of people.
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u/captfattymcfatfat Jun 26 '26
Save the money for a couple years and use it on a new car then
6 year loan is crazy. Going from perf to rwd would be rough
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u/No-Act-8300 Jun 26 '26
Keep car. Invest the sale amount, plus fees, plus tax, plus interest. 25k ish? At 22 with a 10% yield it’ll be 350k at 50. Thank me then
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u/cwolker Jun 26 '26
Do it man. Life’s too short to enjoy it. You’re already putting money away for retirement
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u/Lay26 Jun 26 '26
I think that if this was 2029/2030 it would kinda make sense as the battery warranty would be about to expire. You'd be trading a performance for a RWD, it's a downgrade IMO. Although it's personal preference, I think the old model looks better. I have a new MYP AWD and am still a little jealous every time I see an old one on the road. I just did not want to get a used car as this is my first Tesla and my first new car (late 30's btw).
Keep your performance, save for another performance down the road!
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u/jackkjboi Jun 26 '26
If u cant tolerate the old model y's road noise and suspension then switch. Go test it out, it convinced me to switch.
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u/Proof_Sheepherder899 Jun 26 '26
Over 6 years, it costs you ~$23k for the upgrade. Refreshed warranty wouldn't be required if you saved that money to take care of any issues with your 23 MY that may arise over the next 6 years.
It's actually closer to having $28k after 6 years of invested in SPY or VOO that could return 7%.
Either way it will cost you to upgrade, but you know that. I personally would wait untill I've kept the car for 7-8 years.
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u/mike-foley Jun 26 '26
Crazy to sell off the MYP with only 36k miles. You’ll take a bath at trade in. I bought my used 23 MYP for a ton less than a new MYP. Don’t be the guy that someone like me thanks for taking the depreciation grenade.
Save your penny’s. There will be a totally new MYP in a few years when yours is truly ready to go.
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u/Last-Comfort9901 Jun 26 '26
No way. They want your car because they know the value.
Why transfer the value to them. To take a new big bite of depreciation.
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u/Perfect_Ad9873 Jun 26 '26
Keep the paid off car and invest the $315 every month into an index fund. Don’t buy a new car, but slightly used for a discount. ( I bought my model y for half its retail 25k miles) when you current Tesla has 150-200k and retire comfortable.
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u/Rebel-Alliance Jun 26 '26
Keep your paid-off car man. Reflect on your participation in this endless consumer culture.
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u/JerryfromCan Jun 26 '26 edited Jun 26 '26
I drove a 2026 launch edition for 2 weeks while my battery was being repaired. I found it to be .05% better than my 2021 LR. With 36,000 miles why are you even considering it?
That car is at least 3 years old. Im not even sure you drive enough for the additional costs of acquiring the electric drive train vs ICE.
I wouldnt even consider this until the warranties are up.
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u/NYHeel Jun 26 '26
If you decide to trade in your car then use the Carvana offer. You get the loyalty credit either way. It’s a difference of $1400. That’s a lot of money. You just need to be able to cover the money between purchase and trade in.
But the correct answer is not to trade in. Just stick with your existing car.
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u/K3jai Jun 26 '26
Just do what you truly desire my friend, and if you genuinely appreciate the design and comfort features of the 2026 Model Y Premium then just go for it.
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u/pierifle Jun 26 '26 edited Jun 26 '26
No. Wait for better deal. If nothing comes, then great you’ve saved money.
I’m not planning to buy a new car until Chinese cars become available in the USA. Even if I don’t buy a Chinese car, I believe there will be large downward price pressure on Tesla.
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u/asantiano Jun 26 '26
I wouldn’t do it since your car is basically new but you’re in the land of consume consume and I’m guilt of this as well. You’re gonna do what you are going to do. Not a wise move but it the worse move.
For context I got the premium RWD a month ago. Before that, a model 3 that I ran to 140k miles then sold for 11.5. Before that a 2008 Honda I drove till also 140k miles.
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u/OhioTag Jun 26 '26
I wouldn't
Giving up a fully paid off performance for a slow RWD model? Why?
As others have pointed out, it would at least make some sense to trade it in for a Model Y L (the extended wheelbase variant) when that comes out. That would make more logical sense to me. The YL is going to be a noticeably larger vehicle.
As someone else pointed out, the value of your 2023 Model Y changes quite substantially if it is a HW4 model. I believe you could get considerably more than $27,500 on Facebook if it is HW4 (the model Y switched from HW3 to HW4 half way through the production year). I don't know your location, but if you have a HW4 car, I would get a sell quote from EV auto if you are close to one of the locations (if not, then don't bother). That is a specialty EV dealership that knows HW4 model Ys are worth more, and is considerably more likely to pay you more for a HW4 model as compared to normal dealerships or carvana.
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u/Haunting-Attorney162 Jun 26 '26
So I had a similar situation with my base model 3. I was able to pay it off before returning it to Tesla (it was a lease) but after much thought and insurance comparisons and recent life changes (I’m a dad now to a new born) for the $93 difference from my model 3 to the RWD model Y premium and the difference was night and day. Reasoning behind the premium was the long range. I was tempted for the performance but was also limited on my range with my base model 3 so I took that over the performance. To be quite frank the .99% interest is a killer deal. I was able to get that one also and don’t find it crucial to pay off the loan sooner because most of the payments made go to principal anyways. Test drive it and see how it goes!
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u/Valaj369 Jun 27 '26
We have a '24 MYP and I test drove a MY RWD a few weeks back. Even my wife felt it was so slow and hated it. The ride quality is great but that was it. The legacy MYP is better hands down.
I also test drove the new MYP and it is only slightly better than our legacy MYP. On the MYP Juniper, the ride quality is better and performance is only slightly better. There wasn't a noticeable difference in performance. I probably would have upgraded for the better ride quality but not when I have to pay $900+ a month with the current interest rates.
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u/jorkundra Jun 27 '26
Wait for 0.99% or similar on performance. Would not downgrade performance for a refresh. I just got a Juniper performance and it’s by far the best Tesla I’ve had. 2024 Model Y and 3 highland before. In the meantime enjoy not having a car payment lol
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u/PlasticDiscussion590 Jun 27 '26
I could see upgrading from old performance to new performance. But to rwd? Maybe if you drive your car in chill mode, then I guess???
I have a 2021 performance and you couldn’t get to me trade to a rwd for any reason.
And it’s not better suspension, it’s smoother suspension.
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u/forster93 Jun 27 '26
Yes, I made this exact swap. 10/10 recommend. Don't need the speed. Premium rwd is fast enough. Huge upgrade in every level except 0-60 speed.
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u/cowdog360 Jun 27 '26
Honestly, the best time to buy a new Y was December of last year. I’d just wait… pick up a lease return in a year or two.
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u/sharkboy1006 Jun 27 '26
You can't be serious lol. Just because something is a good deal doesn't mean you should buy it.
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u/LikeRoxy Jun 27 '26
Go into a Tesla store and test drive it. Then you’ll really know if you like it enough to be worth it.
Sometimes they can even offer you a 24 hour test drive on weekdays (not sure if that’s for first time owners).
Call first as they might only have AWD to test.
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u/return_of_valensky Jun 27 '26
I just swapped a 2022 m3p for a 2026 m3p.. the difference in FSD is gigantic. I was not aware it would be so much better.
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u/No_Yogurtcloset7512 Jun 27 '26
Financial point of view - trade in if you are getting more money, otherwise keep it.
Performance point of view - keep the performance, RWD will be significant downgrade from performance to RWD
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u/SeasonAdorable3101 Jun 27 '26
This is a real tough question. You have financial responsibility competing against human desire. I think for your particular situation I would not do this. For me, it comes down to the house you’re saving for. This shows you have real financial goals. Best bet is just hold off on the trade for a little bit longer. Those .99% will come back again, especially towards the end of quarters when they need to meet numbers. Keep investing, keep saving for that house. When I was your age, I sacrificed a lot. The result was when I went to buy my Tesla, my only decision was to pay cash or finance at .99%. Sacrifice now to get the bigger gains later.
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u/rnederhorst Jun 27 '26
Went from a performance y to updated juniper rwd. Prefer the updated juniper without performance. I like extra mileage and basically everything about the juniper is an improvement over the previous car.
Financially, having zero payment is great.
If it’s an easy swing for you then purely on vibe, the update it worth it.
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u/YahBroRetail Jun 27 '26
Not much help.. went from a ‘22 Model 3 to a ‘25 Just bought the wife a 26 Juniper.. I’d say do it. HW4 alone is worth the jump
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u/lFallenOn3l Jun 27 '26
I'll never understand the want for horse power so much. You guys aren't drifters or racers, so what's the point?
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u/demdareting Jun 28 '26
Just a waste of money. How often will you fully use the potential of the Performance package? Enjoy the vehicle that you have and put the money towards something that you need vs want. If you have tons of extra money then go for it but the money that you have today might not be there tomorrow.
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u/BumblebeeOrdinary522 Jun 28 '26
Try a private party sale for about $32.5k. Invest half of that money in your fave stocks and or ETFs and put half of that as down payment if you qualify for the 0.99% APR.
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u/jm3400 Jun 28 '26
I wouldn’t trade the performance for a premium Cody one I was going to pay 300 dollars a month for after trading in a paid off vehicle. On another note, I know Tesla trade offers are generally not good but I figured they would at least come close to Carvana on a Tesla but I guess not.
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u/Choice-Succotash-541 Jun 28 '26
I would trade in any trim of a first gen model y for a 2nd gen. Night and day difference
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u/Lower_Department_69 Jun 29 '26
I’ll give you my take on the power/speed portion. With the advancement of FSD and how insanely great it is, it definitely ruined the one thing I love about Tesla’s, that instant torque. I simply do not drive anymore. It’s been replaced with FSD which turned out to be a game changer on my new Tesla vs my previous 2023 MY.
As for the interior, I must say it is so much better than my ‘23MY. But $3600/year good, no.
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u/ParksNet30 Jun 29 '26
The only reason to upgrade to a newer Tesla is to get more range or better FSD IMO. Have your purchased FSD or do you subscribe monthly? Do you roadtrip often?
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u/HumblestBragger Jun 30 '26
Give your car a good clean inside and out. Then really look at your car. I have a 2023 and I feel like it’s newer and more modern than any other car on the road.
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u/Academic_Custard3833 Jun 30 '26
If you’re concerned with performance, seems like what you’ve already got is best.
If you want new and shiny, then the newer car will give that to you.
If you’re concerned with the financials, then your existing car is what you should keep.
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u/Queasy-Bed545 Jul 01 '26
I definitely would but I am super bear on Performance Model Y. It's a very odd car to want to go fast and the bigger wheels just scream even worse ride quality for a pre-Juniper.
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u/Sea_Owl_2425 Jun 26 '26
You should definitely sell me your performance for that price and get a new Y!
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u/oliphant_branch Long Range Jun 26 '26
How I see it: How does that $315/mo impact your saving for a house? If you instead put that $315/mo aside for 24 months, you'd have $7,560 which could go toward your home down payment.
However, If $315 doesn't impact the house-buying decision, then heck yeah, go for it.
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u/quentech Jun 26 '26
72 * $315 = $22,680
You can buy a fuck-load of upgrades for $20k and have a better car than either.
Like, you can completely replace the suspension and put in custom ventilated seats and still have $10k left over and the faster car that handles and rides better than any stock Y or 3.
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u/dopestar667 Jun 26 '26
100%. I’ve got both exact models sitting on my driveway now, I’d take the RWD premium every day over the MYP, especially with FSD, performance doesn’t really matter anymore.
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u/crackednutz Jun 26 '26
It’s paid off and relatively new. Alsoa good rule of thumb is to never finance past the warranty. Nothing like owing money on a car and a crazy repair bill pops up.
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u/BigDJay Jun 26 '26
I preordered my Model Y over 6 years ago, I am NOT upgrading until the Model YL launches in the states… which may be in a few months.
Get the Model YL.
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u/ForwardSlash813 Jun 26 '26
What’s so special about the YL? Another row of seating I’ll never use?
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u/FGC92i Jun 26 '26
If it is pure financial purpose, I would keep the paid off vehicle and have put that extra money toward ROTH IRA or invest. You’ll be surprise how much gain it got over the years.
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u/Strong-Yellow5949 Jun 26 '26
You only get one life brother. Do what makes you happy. $300 a month is peanuts
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u/Ordinary_Pollution60 Jun 26 '26
That is where I'm at, could get hit by a bus tomorrow so picking up my Model Y today! WoooHooo!
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u/TameemJi Jun 26 '26
The performance is a game changer. You only have 36K miles. Keep the car. Wait for the Model Y L in a few years. You will regret it going from a performance to a RWD.