[JRRF]

Volvos have never kept their value very well so PS is likely following in their footsteps.

That will be a shock for any one hoping to trade up to a P3. It also means most of us still owe well more than our cars are worth.

The polestar will be a dinosaur in a couple of years lol

That's why leasing is a good idea, especially on a high-tech asset that could easily be obsolete in a few years. If the used price rises you can always buy out the lease. If it drops you hand over the keys.

Volvo Financial is going to be taking huge losses on the lease returns.

They make plenty regardless of the final car value 😂

I loved the loaded P2 I rented over the Christmas break but the car rental agency (Enterprise) basically told me there was zero demand for the P2. Nobody wanted it. I rented it for $190/week with my corporate rate. That location gets $188/day for a Grand Cherokee.

Enterprise will probably dump P2s from their fleet.

This is not that surprising. At 5% market penetration, the average person still doesn't know what to do with an EV. I think these rental agencies jumped too fast for their industry.

 

[JRRF]

I loved the loaded P2 I rented over the Christmas break but the car rental agency (Enterprise) basically told me there was zero demand for the P2. Nobody wanted it. I rented it for $190/week with my corporate rate. That location gets $188/day for a Grand Cherokee.

Enterprise will probably dump P2s from their fleet.

I wish I could rent a Kona (or similar -- like P2) for $190/week.

🙄

 

[JRRF]

Currently my car is appraised at about $2K above the buyout price. Although I have another 10 months left on my lease.

 

[JRRF]

This has been discussed before. Let's face it, EVs are not so much mechanical machines as they are computers on wheels. Just like the price of computers drop as their capabilities have risen over the last many decades, so may be the future of EVs. It will ultimately require a new pricing model and a new financing model compared to that of ICEs.

 

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I've spent a good portion of my career in vehicle valuation analysis/residual development. KBB, while having high consumer name recognition, is almost always far off in terms of its trade in values to what dealers might actually give you.

I highly doubt you can get a trade in value anywhere close to even $48K currently. Would be surprised if you can get significantly above $40K right now.

I don't know, they might give you 48 while they pad the price of the new car by 10k 😂

 

[JRRF]

Especially with fast developing tech like EV’s.

There is always going to be something new and exciting to buy in this arena for some time to come.

 

[JRRF]

stick with Polestar or move on to another brand.

I think the deltas going forward are unlikely to be very different. The market is readjusting and all brands are going to be impacted.

 

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Things have been so squirrelly lately with the supply chain shortages I think people quickly forgot what normal depreciation looks like

The way things have been for the last 2 years is not normal and any buying or selling transactions in that timeframe shouldn't be used to determine if a brand is good or bad for pricing. Anything you sold in recent didn't hold high value for any reason other than a shortage of new car availability.

And by the same token, new car deals should start the materialize again.

 

[JRRF]

For those who don’t lease and keep their cars for longer time, most of this anguish is largely in the background.

And of course this has always been the case for all types of cars. It's almost always more expensive to lease, the benefit being you're always driving a new car.

 

[JRRF]

Yup. It was an insane deal I couldn’t pass up. They truly did not want it. Said a Tesla owner whose car needed body work had it booked (the day I picked up the P2) via insurance and that person declined it. I rented it twice and received the same “get this car off the lot” attitude from multiple employees. I was happy to oblige,
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Something still smells fishy here. Because a buddy of mine runs the IT shop at Avis/Budget and he said he all EVs rent at their premium/elite level. He also said that the vast majority of them are in CA and a Polestar probably wound up in Texas because someone did a one way rental. Otherwise there's little EV rental demand there.

 

[JRRF]

I have been considering the economic mechanics involved when an original owner sells their car. Firstly they have to be willing to sell the car for the price a private buyer or dealer is willing to pay. If the valuation of the vehicle in their mind is too low they may choose to hold onto the car. If this decision is made by enough people the number of vehicles available in the used market would shrink and up would go the pricing.
Based on the current interest rates being offered for a new vehicle, cost increase of vehicles for many reasons including inflation, why buy a new vehicle if you don't need one. I did a "Build" on the BMW website for a new iX. I picked the middle option with the 111kW battery which is comparable to the Polestar 3. I really had a hard time understanding how the interest on the loan was calculated. Financing from BMW is 7.99% on the vehicle but the total borrowing cost for this $105,000 vehicle is $26,000 over the term. WTF?!! I guess BMW is taking 8% for every year? Why the **** would I ever take that deal?!

As interest rates rise, there will be more "deals" to be had at dealerships. For the moment though, lots of people who want and can afford new cars have been putting it off due to supply constraints, so it make take a while.

 

[JRRF]

Hertz Austin had numerous Teslas that were $100ish a day. Turo also had a few Tesla available around where I stayed.

As for Enterprise, they had two P2s at that location. I saw about 5 Polestars (might have been the same 2-3) while driving around and almost no other EVs other than Teslas. I think Polestar has a location in Austin too.

I was generally surprised at the low number of EVs in Austin. In Florida, my guess is 2% of all cars. Every minute you will see an EV.

I'm not sure where your "receipt" came from, or how, but rent-a-wreck doesn't rent cars for $200/week.

 

[JRRF]

but they didn’t want the Polestar 2 on the lot so they gave that to me.

Yes, I'm sure it was an eyesore that was ruining their business 🙄

More likely they were happy for you to have it because they don't rent many $100/day cars and would rather keep the Nissans around because they need more of them to support daily demand.

 

[JRRF]

So ICE cars depreciate 20-25% in 3 years

This is insane. If it were really the case historically I'd be a lot richer today as I've been leasing cars for a long, long time and 3 year residuals are no where near 75% even for MBs. 60% residuals are considered very good.

 

[JRRF]

Maybe.

So a Redditor also rented it for sub $200/week (he says he messed up the title in a comment)

https://www.reddit.com/r/electricvehicles/comments/10iuu8f
I’m not the only one with the great deal. Cheap EV rentals may spur renters to buy or consider an EV.

Next time I need a rental I'll make sure to ask for your help.

 

[JRRF]

My advice would be to create a new profile and then delete when finished.

I can't imagine another scenario.

 

[JRRF]

I was quoted 62% for the depreciation value on a 39-month Polestar 2 lease. It was a higher value than I expected.

And that sounds right about where it should be for the lease of a Volvo product.

 

[JRRF]

You should have leased and any other way to purchase this emerging technology is a ridiculous proposition.

I've always contended this. Although at lease end, if they are going to put my car on the lot for $25K (as opposed to wholesaling it), I might offer them that at lease turn-in time. They won't even have to wash it, just do the paper work.

 

[JRRF]

I still don’t get the benefit of the lease. You can always sell a car at anytime, and with a lease the rapid depreciation is already figured in to your monthly cost. All other things being equal it’s just like a loan. I’m sure folks will correct my miscommunication—

.

There is little question that leasing costs more. But in my lifetime I'd like to drive more than another 3 or so cars that I keep for 8-10 years each. And as others have mentioned, you can benefit. On 2 of my leases, when I turned in the car, I "bought" the car for the buyout price. The dealer then "bought" the car back from me at a profit. Then the dealer put it on the lot and sold it for a tidy profit. So I had additional money to put into my next lease. On the flip side of that, if the car is worth much less than the buyout price (or maybe it's been in an accident, or had some weird noise they couldn't fix) I hand it over and walk away. Other benefits are I never have to worry about out of warranty costs. And I never have to deal with individual buyers to try and maximize any future sale price. I'm not going to risk taking someone's 20K/30K check, or worse have them steal the car from me at gunpoint. When I sold cars for 2K it was a much different story.

My life experience is that finance and insurance companies are usually more right than wrong in this type of calculation otherwise they’d be out of business especially when interest rates are so low. Are you suggesting that this is often not the case with car leases. I find it hard to believe that the norm.

Dealers and the manufacturer's finance arm are almost always involved in the lease process, so they have lots of leeway on price/incentives, and they want to push cars. There was a time when private banks and CUs would do leasing as well and you could do even better, but that doesn't happen anymore.

 

[JRRF]

It is obvious from current wholesale trends that the car will be worth far less in two years than the residual, so buyout (which rarely makes sense anyway) or trade in will be out of the question. I will be turning it in.

If they put your car on the lot after you turn it in, you can be the first buyer in line. Literally within minutes. That would keep you in your car for a whole lot less than the buy out price. If on the other hand they wholesale the car, then you are SOL.