You can lease a Polestar 2 for under $200/month
Source: Polestar
The Polestar 2 is a new sedan from Polestar, Volvo’s electric spin off brand. The brand us currently offering aggressive EV incentives along with a limited time incentive from Costco that could take your payment to as low as $190/month before tax. Let's dive in to how to get this deal.
Background on the Polestar 2
The Polestar 2 is a new electric sedan from Polestar, Volvo’s spin off EV brand. The car came out in 2020 and has a new refresh for 2024, mainly adding more range to the rear wheel drive model. The car has favorable reviews from car journalists, with Car and Driver currently ranking its 3rd best EV sedan option behind the Hyundai Ioniq 6 and the BMW i4. Notably, Car and Driver preferred the Polestar 2 to the Tesla Model 3.
Polestar 2 options
The options for the Polestar 2 are very simple, you have 2 core options between the Long Range rear wheel drive model and the All Wheel drive model, that sacrifices range but gets quicker acceleration and the stability of all wheel drive. In addition to those options buyers can get a sport option which adds 20 inch wheels and some improved chassis tuning and there is a Premium option which adds an improved sound system, panoramic roof, and premium seats. Base MSRP starts at just over $51,000 and a fully optioned model will cost just over $64,000.
Current lease deal
How to get a Polestar 2 deal
Right now Polestar is offering a $10,000 lease incentive, which will significantly reduce your monthly payment - the equivalent of $370/month over a 27 month period (this is the term that Polestar is offering, with 10,000 miles per year). In addition to the $10,000 incentive, dealers are willing to negotiate some savings off the MSRP. There is also a limited time Costco Auto program deal of $2,000 in the form of a Costco cash card until September 30th. When all these deals are combined, buyers can expect to see $15,000 - $17,000 off MSRP on the car. The cars also currently account for a 62% residual price. With that, you can expect lease payments of anywhere between $190 - $240/month before tax. The upper end of the range is for the more expensive AWD models that have MSRPs of over $60,000
Will this deal last?
We know that the Costco incentive will go away at the end of September, so that will add about $75 to your monthly payment. There is no sign that the EV market will pick up in the near future so car manufacturers will continue to have to discount cars to move them off the lot. However, we are starting to see car makers produce less EVs since they know demand is dropping. I expect 2025 to be a different market with supply of EVs dropping and starting to match demand closer - leading to less discounting by dealers. The aggressive discounting has also led to low used car prices. It is currently not rare to find a 3 year old Polestar 2 listed for ~$25,000, over 50% depreciation in a short period of time. This reality will also lead to a drop in residual value estimates on new car leases.
