The Tesla Model Y was the best-selling car in the world last year (not just EVs but cars in general) and it’s been the best-selling EV in the United States so far this year. And with this latest lease deal, it looks like Tesla wants to keep the status quo unchanged because the battery-powered crossover is actually cheaper to lease than the slightly smaller Model 3 sedan.

As far as value for money goes, this is a solid proposition. However, don’t let the model names fool you because you’ll be in for a surprise.

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All-wheel drive or no?

If you don't need an all-wheel drive car, this latest lease deal from Tesla could convince you to get an all-new Model Y Long Range for $1 per month less than the slightly smaller Model 3.

As first reported by Cars Direct, you can get a 2024 Tesla Model Y Long Range for $399 per month with a down payment of $4,093 for a three-year term, which comes out to an effective monthly fee of $513.

Meanwhile, a Tesla Model 3 Long Range is offered for $399 per month with $4,133 down, making it a $514/month affair for 36 months. That’s $1 more than the Model Y, in case you were keeping tabs.

Here comes the caveat, though. Even though both EVs are called “Long Range,” the Model 3 comes with dual-motor all-wheel drive, while the base Model Y is rear-wheel drive. So, even though it’s $1 less to lease per month, you get one less electric motor. Tesla also offers an all-wheel drive Model Y Long Range, but that’s more expensive and offers less driving range.

Tesla Model 3 (Highland)

Tesla Model 3

Tesla Model Y

Tesla Model Y

On paper, the Model Y Long Range Rear-Wheel Drive has an estimated range of 320 miles and can accelerate from zero to 60 miles per hour in 6.5 seconds, while the Long Range AWD drops the range to 308 miles and the 0-60 mph time to 4.8 seconds.

Meanwhile, the Model 3 Long Range AWD has an EPA-estimated range of 341 miles and a 0-60 mph time of 4.2 seconds. It’s also newer than its crossover sibling, thanks to a facelift that brought a better suspension setup, more sound deadening, ambient lighting and more.

That said, the Model Y is slightly more spacious inside and has a hatch at the rear, making loading large items easier. So do your homework. Check them out at a Tesla store to see which would suit your lifestyle better and do the math to make sure you can afford a three-year lease that won’t allow you to buy the car when the agreement expires.

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