Tesla has added to the trade-in bonus which it offered on the Model 3 sedans to kickstart 2026, and now includes the Model Y SUV, Australia’s best-selling EV, with a $2,000 trade-in offer.
The company states that until March 31, interested buyers of a new or demo Model Y RWD or Long Range will receive $2,000 off the purchase price when trading in a used vehicle.
On Tesla’s website, it says: “$2,000 Trade-In Bonus Available Until 31 March 2026. Offer available when trading in an eligible vehicle towards the purchase of a new or demonstrator Model Y Rear-Wheel Drive or Model Y Long Range All-Wheel Drive vehicle. Order and take delivery by 31 March 2026 to be eligible.”
Another offer that Model Y buyers could also benefit from is the ability for existing owners of Tesla EVs with enhanced autopilot or full self-driving (FSD) supervised software to be able to transfer it to a new or demo Tesla.
This is also available to eligible owners if they take delivery of an eligible new Model Y by 31 March 2026.
At the time of writing, dozens of Model Y vehicles with Tesla’s full-self-driving (FSD) Supervised were available in inventory, with those cars having a further $1,770 price reduction on RWD models and $2,070 on AWD versions.
All new purchases of Model Y vehicles will also come with Tesla’s recently upgraded 5-year unlimited km warranty for any buyers who get into a car as of the start of 2026. This warranty is up from the earlier 4-year or 80,000 km warranty on offer.
In Australia, Tesla currently offers the Model Y in three variants, including RWD, AWD Long Range and the most recent addition, an AWD Long Range Performance.
Pricing of the RWD single-motor starts at $58,900 and delivers up to 520 km of range. The Long Range AWD variant starts at $68,900 before on-road costs.
Both these models are made at Tesla’s most productive factory in China, GigaShanghai, and are eligible for the current trade-in offer.
In January 2026, Tesla Model 3 and Y cars received best-in-class ANCAP awards, with the Model Y achieving the highest overall safety score of any vehicle ever assessed by ANCAP.
With overall competition increasing in global markets as well as here in Australia, the latest round of extended incentives is likely to drive sales of its most popular car this quarter.
More on how the brand has started off in 2026 will be revealed in the coming days as sales data is released, and we will be covering those sales volumes in more depth then, seeing the effectiveness of these active offers.
Riz is the founder of carloop based in Melbourne, specialising in Australian EV data, insight reports and trends. He is a mechanical engineer who spent the first 7 years of his career building transport infrastructure before starting carloop. He has a passion for cars, particularly EVs and wants to help reduce transport emissions in Australia. He currently drives a red Tesla Model 3.