[bazzac]

I was just wondering what people thought the used Polestar market might be like? Since there are no Polestar dealers will Volvo be the main source of used do you think or mostly private sales? I want a P2 badly but can't afford brand new so would like one with a few thousand miles on it after they become available.

Also is depreciation of EVs generally a concern with reduced battery life uncertainty and prohibitive costs of battery replacement.

Thanks

 

[14Ringer]

My guess is there is going to be more private sales or sales from used car dealers than from Volvo. Volvo dealers don't seem to want anything to do with Polestar.

 

[Darius]

I think its critical that Polestar launches a Certified Pre-Owned program, modeled after Volvo's.

Certified by Volvo Pre-Owned Program | Volvo Car USA

Learn about the Certified by Volvo program for pre-owned Volvos. Also, explore the current inventory of used vehicles.

www.volvocars.com

 

[St00k]

My guess is there is going to be more private sales or sales from used car dealers than from Volvo. Volvo dealers don't seem to want anything to do with Polestar.

Yea... that situation is so messed up.

 

[St00k]

As for buying used, there's good news for the 2nd hand market. EVs tend to depreciate fast. However, that's been improving over recent years.... I suspect as people realize the batteries don't wear down in 4 years.

Beyond Tesla, electric cars lose value faster than other vehicles

The list of some electric vehicles with the most pronounced loss in value over the first three years is made up of short-range models.

www.greencarreports.com

 

[polerad]

Do you know if those with leases will be able to buy out their car at the end of the lease?

If so, that price will effectively set the used price, and the cars that aren't bought out will be the source of a CPO program.

If not, and Polestar is really following the Tesla model, then Polestar will basically own the used market and can set the supply of used cars, artificially setting the price to what it wants depending on the rate of depreciation it wants to be out there.

If anyone could get and post more specific details about what the lease arrangements will look like from a Polestar Space/PopUp rep that would be awesome!

 

[14Ringer]

Do you know if those with leases will be able to buy out their car at the end of the lease?

If so, that price will effectively set the used price, and the cars that aren't bought out will be the source of a CPO program.

If not, and Polestar is really following the Tesla model, then Polestar will basically own the used market and can set the supply of used cars, artificially setting the price to what it wants depending on the rate of depreciation it wants to be out there.

If anyone could get and post more specific details about what the lease arrangements will look like from a Polestar Space/PopUp rep that would be awesome!

I don't see why you wouldn't be able to but out the car at the end of the lease.

 

[gtquan]

The lease buyout for the Ipace is 48.5% of the original cost. I'm paying a lot for the depreciation in the first 3 yrs.

 

[GDank]

The lease buyout for the Ipace is 48.5% of the original cost. I'm paying a lot for the depreciation in the first 3 yrs.

Around 50% for 3 years is about right for most cars ... unless they have a prancing horse on the bonnet.

 

[gtquan]

I recall some article about the used Tesla market and their cars keeping 90% of their value at 3yrs . I somehow doubt it.

 

[GDank]

I recall some article about the used Tesla market and their cars keeping 90% of their value at 3yrs . I somehow doubt it.

They are keeping very high rates compared to the rest of the car market. Normally low end brands (and JLR / Aston's for some reason) can be as low as 60% loss ... German Cars generally get 40-50% loss. But a good rule of thumb is 50% every 3 years. So a £60k car in 3 Years costs £30k, and in another 3 years it costs 15k, and after 9 total years it costs £7.5k ... and so forth.

There are always exceptions ... Some are limited editions ... some just become desirable ... some due to high demand and low supply.

Tesla's are one of those rare cases. They are getting as low as 30-40% lose in 3 years, however there is a very big BUT there ... it's very rare to see a used Tesla outside of Tesla. You might find the odd S or X ... but it's very rare. So as all used Tesla's go back to Tesla they can dictate the price. However if people are paying those prices for a used Tesla then they would be mad not to charge that much. Also Tesla want you to buy a new car over a 2nd hand one .. so keeping prices high means you might consider it more as the gap is smaller.
But they are not getting 10% lose in 3 years ... maybe in 1 year. It is also true you can buy a Tesla Model 3 and take delivery, do 1k miles in it ... then sell it for the same cost as a new one - this is because some people don't want to wait 3 months for delivery.

However, in the long term as there are more and more competition to Tesla's and the EV's revolution takes off, used Telsa's won't be in such demand and therefore their depreciation will fall in line with other manufactures - well that's my guess anyway.

 

[boakham]

I don’t know what the leases are like in other countries, but having seen the agreement here in the UK, there is no option to buy at the end. No, that doesn’t stop you negotiating with the leasing company near the end of your term but the fact that it’s technically not an option means most people won’t.

 

[polerad]

Do they specifically say no option to buy or is it that they don't discuss it as an omission?
Tesla specifically says no option to buy at the end their model 3 (and presumably model y) leases.

 

[boakham]

Do they specifically say no option to buy or is it that they don't discuss it as an omission?
Tesla specifically says no option to buy at the end their model 3 (and presumably model y) leases.

I’ve checked this morning and there’s no mention. It doesn’t specifically say you can’t, but it also doesn’t mention it as an option.

 

[JFC]

Do they specifically say no option to buy or is it that they don't discuss it as an omission?
Tesla specifically says no option to buy at the end their model 3 (and presumably model y) leases.

It quite clearly says that the car will have to be handed back to the leasing company at the end of the agreement and there's no option to purchase too.
Details are in their website under read more about financing.

 

[JFC]

It quite clearly says that the car will have to be handed back to the leasing company at the end of the agreement and there's no option to purchase too.
Details are in their website under read more about financing.

Link below

Financing options

Passion and emotion drive us, electricity and innovation drive our cars. We are all in, guiding our industry forward through pure, progressive, performance.

www.polestar.com

 

[boakham]

It quite clearly says that the car will have to be handed back to the leasing company at the end of the agreement and there's no option to purchase too.
Details are in their website under read more about financing.

yep though obviously it’s only the actual legal document that has any force in law and there’s nothing in there either way to prevent you offering to buy it at the end. Whether they’d allow it or not is another matter.

 

[polerad]

yep though obviously it’s only the actual legal document that has any force in law and there’s nothing in there either way to prevent you offering to buy it at the end. Whether they’d allow it or not is another matter.

I mentioned this to a friend who knows this stuff and they noted that the UK has a fairly different leasing legal structure compared to the US. Are lease buyouts common across the pond?

 

[boakham]

I mentioned this to a friend who knows this stuff and they noted that the UK has a fairly different leasing legal structure compared to the US. Are lease buyouts common across the pond?

I’ve never leased before so to be honest I don’t know. I opted for leasing because EV tech is moving so quickly that I didn’t want to be stuck owning something that looks obsolete in a few years’ time so I’m unlikely to want to buy it at the end anyway!

 

[GDank]

Normally in the UK you will get the cost to buy out the car at the end.

I know some people can't afford to just buy or a simple loan, but IMHO leasing is a mugs game. I did it on my Mini Copper S in 2003 and have never done it again since.

BTW people in the UK, The AA have really good car loans - especially if you are a member - so check them out if you are looking for a loan.