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Lease Polestar 2 or finance?

  • Lease

    Votes: 5 83.3%
  • Finance

    Votes: 1 16.7%
  • Pay cash

    Votes: 0 0.0%

  • Total voters
    6
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Discussion Starter #1 (Edited)
Are you going to lease or finance your Polestar 2? Any reasons why I should consider one or the other?

I'm in the US and it's easier to get the full federal tax credit here through leasing, so I'm probably going to lease, but not if the money factor is too high and/or the quoted residual value is too low.

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Polestar is quoting $649 per month for lease...but does anyone know money factor and residual value for the lease?
 

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This is a good question.. can you in a nutshell explain this 'Money Factor'?

Im familiar with Residual.. How do they relate?
 

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Discussion Starter #3 (Edited)
This is a good question.. can you in a nutshell explain this 'Money Factor'?

Im familiar with Residual.. How do they relate?
For leases in the US, “money factor” is the interest rate. The residual value is the leasing company’s estimate of the value of the car at the end of the lease term.

In a US lease, you take the sales price minus the residual value. That difference is the cost of the lease. That difference represents exactly how much value the vehicle loses over the lease term. That’s why some people view leasing as renting a car — you only pay for how much value the vehicle loses. You divide that difference by the number of months in the lease to calculate the base monthly payment. Then add interest rate (“money factor”) and taxes.

In the US, dealers will disclose the residual value but they try not to disclose the money factor because it is legal here for the dealer to increase the money factor without disclosing this to you and the dealer gets to pocket the difference in the interest rate. Increasing the money factor and keeping the increase is a legal practice for cars but illegal for real estate. So when you negotiate a lease deal, you have to press strongly for the dealer to disclose the money factor and whether they are padding profit there.
 

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more details comparing the lease and finance deals for these models:

For comparison, you can lease a Tesla Model 3 for an estimated $371 per month for 36 months with $4,500 down. It covers 10,000 miles per year. This is for the Model 3 Standard Range Plus, which carries a starting price of $37,990. You can find this information on Tesla's website.


The Polestar 2 costs over $20,000 more ($59,990). To lease it, you'll pay an estimated $649 per month for 36 months with $4,000 down, and you'll get 10,000 miles per year.

For comparison, if you were to choose the most expensive Model 3 Performance ($54,990), the 10,000-mile lease comes in at $620 per month, with $4,500 due at signing.

If you'd rather finance, Polestar, like many other automakers, is currently offering 0% for 60 months. Tesla's current rate is 2.49%.


 

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The big unknown is the residual value of the car in 2 or 3 years when the lease ends, which has a big influence on the monthly cost. It's a new model, and there are a lot of new EV's coming along, balanced against a move away from fossil fuels to electric, etc.
Throw in Covid, and..... who knows?!
 
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