Tesla Model Y vs Model 3 Refresh - Which One Should You Get??

The Tesla Model Y and Model 3 continue to be the largest volume vehicles at Tesla. With the recent roll out of the refresh Model 3 Highland, it begs the question, should you get the refresh Model 3 or the existing Model Y?

Earlier this year we heard from Tesla directly that there was no refresh Model Y (project Juniper) coming this year. Elon Musk just further reiterated this stating that on top of not coming this year, even just 6 months of time represents a better Model Y than before.

Although it is true that Tesla does make enhancements on the go rather than waiting on new model years, the bigger refresh like what we have seen in the Highland Model 3 Refresh, includes a lot more new features that we wont see in the Model Y until it too is refreshed.

So with that, and following a quarter with some pretty incredible deals on the Model Y, we are now looking at different incentives, which in general, are lower than what they were before. Which should you choose between the refresh Model 3 and the existing Model Y?

The Refresh Model 3 does come with some important upgrades that are not yet present in the Model Y. Some of the bigger items are cooled seats, rear screen, updated front and rear bumpers, new dash, updated screen with thinner bezel, and more. There are also some things that were taken away, including the turn signal and gear shift levers.

This month, Tesla has removed the financing incentives they were offering on the Model Y and has applied an interest rate incentive on the Model 3 instead. It is important to note that this incentive is for lower month terms and does not meet the offer that the Model y was given just last month.

The Model Y on the other hand returned to standard financing rates, which is significantly higher than what they were just last month. There is one other thing that is a big piece of this puzzle, and that is EV tax credits.

The Model Y in all configurations qualifies for the EV tax credit of $7,500. With the new rules allowing you to claim this credit at time of purchase, you can now get this immediately reducing the cost of the vehicle. If you transfer the credit to the dealer (Tesla in this case) AND you do not exceed the income caps, that full credit can be taken at time of purchase without penalty.

On the other hand, the refresh Model 3 is notably missing the tax credit on the 2 more affordable options. Only the recently returned Model 3 Performance is able to claim the full $7,500 tax credit, meaning that in reality for most buyers, the Model 3 performance is actually cheaper than the Long Range AWD Model 3!

Even crazier is when you compare the Model Y with the Model 3 Refresh by trim. The Model Y is cheaper than the Model 3 equivalent in all 3 trims. That said, the RWD Model Y now only comes as a Long Range while the RWD Model 3 remains a standard range vehicle. So even with significantly higher range, the Model Y RWD is still cheaper than the Model 3 RWD because of the tax credits.

So what should you do? Well, I believe that the Model Y is significantly more car on the whole. That said, the refresh Model 3 does come with significant upgrades in the refresh. Without tax credit qualification, it's hard to say the Model 3 is worth paying more than a Y at this time, of course the exception being the Performance model.

Join this channel to get access to perks:

Accessories

Filming Equipment

As an Amazon Associate I earn from qualifying purchases

[Lost_In_LA]

I test drove the '24 Model Y and the refreshed Model 3 on four separate occasions and voted with my wallet—the refreshed Model 3 Performance. On each test drive, the M3 was the more enjoyable ride. I've never felt more connected to the road in a car before. I very much enjoyed the luxury appointments such as Alcantara and vented seats. The Model 3 also has the more attractive silhouette. After a week, I love the steering wheel including the signal buttons (which I never would have anticipated).

I would have loved to have the hatchback for oversized cargo or car camping found in the Model Y but I already have a SUV in my personal fleet and it wasn't a must have. When the rebate friendly M3P was announced, it sealed the deal. For anyone in a similar situation, you can't go wrong with the Model 3.

[jiggytito]

LR M3 now qualifies for $7500 EV credit 😊

[juliannafromnevada]

Great video! I just purchased my first Tesla — a Model Y Performance in Quicksilver. I spent a lot of time debating a Model 3 Performance vs the Model Y Performance. While I loved the refresh Model 3 exterior styling, the ventilated sport seats, back screen and interior lighting — ultimately the extra space in the Model Y, lower price and the fact that it alredy has Hardware 4 was enough to make me select the Model Y. I can live without the refresh features for now. I love the Model Y and no buyers remorse for getting it prior to Juniper. Your analysis was spot on — if you don’t have a Tesla buy one! Choose which combo of features is most meaningful to you.

[carlosedgarcruzcorrea]

It depends where you are with your car needs, and of course your size needs. I personally have 2 cars and I can wait, but 2 years ago I got into a car accident and I needed a car asap so I couldn’t play the waiting game. So someone like myself I can wait and be patient because I have 2 cars I can drive around. Personally look at your circumstances and choose accordingly. If you can wait for the refresh model Y, then you will have the newest and latest. I have a feeling Tesla is going to add one cool feature in the model Y that the current refresh model 3 and model y don’t have. ❤

[seabicuit]

Outside of the lack of stalks, not having physical buttons or a gauge cluster, I like everything about the 3. However as someone who’s single with 1 car, it’s preferable to have a car with more storage space. I don’t care for the original 3 or Y’s current exterior design so I’ll wait for the Y refresh. Also while I’m not incredibly tall, it’s still nice not having to duck down so much to get into a car.

[darrelpeters]

Anyone who lives in the state of Florida or Arizona or any other hot climate state and buys a car that doesn’t offer ventilated seats is really doing themselves a disservice. All models of the 3 and Y should’ve had ventilated seats from the first day of production considering how much they cost. Ridiculous.

[BrawlBall-gvpy]

I have the 2024 Model 3 dual-motor. I drove this and also the Performance. For me, dollar for dollar, the dual-motor is enough- Car & Driver clocked it at 4 seconds 0-60. Upgrades from the single motor include a much better stereo (it is substantially better than my BMW upgraded stereo), floor mats provided, longer range, much quicker, just as efficient. And unlike the vid says I DID get the tax credit for this version- making it a bunch cheaper than the Performance. I love to drive- and the Performance, for the substantial extra money, doesn't have the ride quality-- and the heavily bolstered seats are a little tight for my middle aged body- however, if I lived someplace like Southern Cali with twisty roads, I'd likely have gotten that model, but I live in Vegas, and the roads are pretty much straight- stoplight to stoplight, the mid-priced "extended range" dual motor is for me the best choice.. I took the covers off the wheels and added lugnut covers and center wheel covers- the rims are great looking this way. Also added sunscreens for the glass roof, which make a big difference and fit perfectly- and a trunk organizer so my groceries don't spill across the trunk on the way home. Lots of people gripe about the turn signals- I got used to that in about 15 seconds, and have no issue with them. Would a stalk be better? Probably. So would a heads-up display with the speed and nav in the windshield- I'd pay extra for that. All in all, it is a fantastic sports sedan- I love driving it. And I gave up one of my BMW's for it- my beloved M. I don't miss it a bit....

[cesargomez]

I was debating between model YLR and M3LR both cars are really nice; However, I’m single no kids so I think model 3 suits me better, plus when I test drive model Y it feels stiff. Model 3 was so smooth.

[roncolson]

Have a 2020 Model 3 and am waiting on the refresh Y. Will also wait for the hype around the new Y to go away so the price may be a better deal.

[matthewkendall]

I believe the rear wheel drive model 3 has LFP batteries which can be charged to 100% daily. 100% of 272 seems better than 80% of 320

[daycare]

M3 LR ALL THE WAY. model Y feels so outdated. im not paying that premium price for a vehicle that looks exactly like tesla 2020. The new m3 is modern and you feel and see the improvements. it is actually the best car TESLA has ever assembly. just go to a delear/service center and test drive the model s, the y and the 3 and see for yourself.

[omarastacio]

I have a 2021 Model 3. The one thing that would make me wait for either is Hardware revisions. My model currently has the Intel processor and although still good, we are starting to see things that are not going to be available for older processors. Tesla is already looking into HW5.0 which may or may not include a revised processor. Being a computer on wheels, the HW (depending on how long you plan to keep the car) is the biggest factor to me.

[jamess.]

To be super clear, you should absolutely buy a model Y now, do not wait. South Florida and I have white seats but my car cools off for me so there is no need for ventilated seats. I have ventilated seats in my wife’s platinum Pathfinder 2024 and we do not use them at all.

, If you value comfort while you are driving, the 2024 model Y seats are 10 times more comfortable than the new sportier ventilated seats in the model three refresh. I drive about 200 miles per day so is everything to me. This is really important considering purchasing a model Y

[gregm]

With the $7500 coming to the LR Model 3 it’s really a game changer. If you don’t need the size the Model 3 is the play.

[MeezyPeezy]

This guy is a top tier professional bullshitter lol

This video could have been 5 min tops with everything covered

Well done sir, what a talent!

[abbyburdick]

We're waiting for Y right now. My husband was in an accident last month, and the financing deal was happening so we ordered. Just waiting to take delivery. Thankfully his grandma had a car that no one wants her to use, so hopefully within the next few weeks we get it!

[dtallornothing]

Don't have one yet, but I'd rather wait for the refresh. I like the new style more than the current interior as well as the more aggressive exterior. I'd prefer the double pane glass in the rear and on the remaining panels to help reduced road noise as well that they added to the 3. The suspension improvement is needed as well.

[januszkukulka]

Hi, I am currently driving Tesla model Y. I would like to upgrade to model X before I get cyber truck maybe in two years what do you think? I know model X is more comfortable, but is it worthy?
Thanks

Janusz

[EdwardRodriguez]

Cooled seats are literally a game changer. Keep your balls cool while driving in the summer heat. 😅 I was all in on the Model Y until I learned about cooled seats. lol.

[CarlitoswayDR]

That changed just today! Both the LR and performance 2024 Model 3 quality for the 7500! My stocks are flying! lol getting M3 LR very soon with profits