Reviewing the Polestar 2 EV

The Polestar 2 EV review

Until 2020 many UK customers were under the presumption that the Tesla Model 3 would be the only brand of saloon / fastback available to lease or buy. And while Tesla has been the dominant, and best-selling, EV brand in the world, it is fair to say that customers do appreciate choice and alternatives.

A litmus test for what constitutes a good or bad electric car, the Tesla car manufacturer has been tremendous for pushing this segment of the automotive industry and we are all indebted to Elon Musk and his design/engineering team. But there are now equally capable alternatives for personal and business lease customers alike, with the Polestar brand being one such option. In early to mid-2020, their 5 door “fastback” - the Polestar 2 - was launched as a direct competitor. With the familiarity and practicality of Volvo coupled with the strong Polestar design touches, it is unsurprising just how popular this all-electric car has become.

And should we lease or buy the Polestar 2?

But one of the initial hurdles for many businesses and fleets pertains to the funding and finance routes - which is best? Should we own or lease our EVs? With a growing EV market, the options available to a customer are also increasing - cash, hire purchase, finance lease, contract hire and subscription are just a few of the popular methods.

Polestar 2 Fastback 170KW 78kwh Long Range Single Motor 5 door Auto Electric Car Lease Best Deals

As e-car lease are NOT accountants, this blog and any assistance we provide is for information only and does not constitute financial advice - any business looking to procure a vehicle should discuss this with their accountants too. But without getting too detailed, it is also important for business owners and fleet managers to consider their own attitudes to risk - are you looking for control and ownership? Or do you need the flexibility of usership?

When you pursue a purchase route, you are undertaking the risks of depreciation and also the degradation of the car / battery. In contrast, a usership product, like contact hire, is more centred around risk being allocated to your designated finance company for the transaction. Quite simply, do you need to use and return or are you looking to buy/sell vehicles more flexibly?

With purchase products, like cash and hire purchase, this is very much for businesses who have a secure control of the fleet and who are cash rich. Or this is generally used for those with high-use vehicles which incur damage and therefore do not wish to be returned to the finance company at contract cessation, where they are subject to inspections and charges.

With a purchase product, a business will be utilising “Capital Allowances” which for electric vehicles is now a first year allowance of 100% against corporation tax. So long as you are the owner of the vehicle, you can write down the complete costs; for non-EVs this is not possible and must be done on a phased scheme. It was thought that the 130% super-deduction for plant and machinery may include the electric car but this was not the case - it will only apply to any charge points you install.

For VAT registered businesses, check with your accountant as to the amount of VAT you can claim as this relates to the business-use of the EV. For commercial vehicles, where the annual investment allowance is utilised, 100% of the VAT can be reclaimed. For any company car drivers using the EV via a cash or HP scheme, the company car tax provision under Benefit in Kind (BiK) still applies.

For rental and usership products, like contract hire and subscription, the vehicle is owned and registered to the finance company. As such, the capital allowances cannot be adopted for this method of finance. Businesses using contract hire will instead offset the initial rental and any monthly rentals made during the relevant finance year.

Because a zero-emission car literally emits 0g/km of CO2, 100% of the rentals are allowable against tax; for non-EVs the CO2 emitted will limit the percentage of rentals allowable against tax. And like a purchase product, the VAT reclaimable is contingent on the use of the vehicle. For example, unless there is business-use only, only 50% of the VAT on the finance rental can be reclaimed but 100% of the VAT on the maintenance can be recovered.

Company car tax and BiK is equally relevant on a contract hire or subscription vehicle. For contract hire, or leasing as it is normally referred, one of the main advantages for company car and salary sacrifice schemes is the ability to minimise capital outlay by “no deposit deals” while apportioning the risks of deprecation, service, maintenance and tyres to the finance company.

For risk-averse customers who want to use and return their vehicles, this is the main route. The only small difference is between leasing and subscription - while leasing is cheaper, it is a long-term and fixed contract. For a company looking to swap their EVs more frequently and who do not wish to insure the risks of early termination (the cost for returning a contract hire vehicle before contract end) then this route should be adopted for the fleet.

But having understood the key finance products, the next decision is which is the best electric company car? Moving to BMW, Tesla or Polestar will often be a subjective decision on aesthetics and branding because none of the aforementioned are poor vehicles. Indeed, it is fair to say that all of these represent the epitome of quality electric motoring.

Many businesses, and employees, will review range, charging times, performance, cost and availability as part of the decision-making process. Because cars are now in more short supply, you may be limited on what EV you can now order within your allotted time frame! And with the Polestar 2 you and the company are offered a healthy battery selection including:

Standard Range Single Motor - a 67 kWh usable battery which offers 170 kW (or 228 hp), 0 - 62 times of 7.4 seconds and 99 mph. The combined cold weather range is around 200 miles and the warmer weather range is around 275 miles. For charging times, the 11 kW AC max enables 7 hour and 15 minute 0 - 100% charging times with the 136 kW DC allowing for 26 minute 10 - 80 % rapid charge times. This model has a fuel equivalent of 145 mpg and can tow up to 1500kg (braked);
Long Range Single Motor - a 75 kWh usable battery which offers 170 kW (or 228 hp), 0 - 62 times of 7.4 seconds and 99 mph. The combined cold weather range is around 220 miles and the warmer weather range is around 305 miles. For charging times, the 11 kW AC max enables 8 hour and 15 minute 0 - 100% charging times with the 149 kW DC allowing for 31 minute 10 - 80 % rapid charge times. This model has a fuel equivalent of 143 mpg and can tow up to 1500kg (braked); and
Long Range Dual Motor - a 75 kWh usable battery which offers 300 kW (or 402 hp), 0 - 62 times of 4.7 seconds and 127 mph. The combined cold weather range is around 210 miles and the warmer weather range is around 280 miles. For charging times, the 11 kW AC max enables 8 hour and 15 minute 0 - 100% charging times with the 149 kW DC allowing for 31 minute 10 - 80 % rapid charge times. This model has a fuel equivalent of 132 mpg and can tow up to 1500kg (braked).

And Polestar are not just about functional and impressive battery production, they also allow UK customers to create bespoke experiences with their vehicles. Key packs like the Pilot Lite (£2,150 - adds LED fog lights, automatically dimming exterior mirrors, 360 degree camera, adaptive cruise control, emergency stop and cross traffic assist, park assist and rear collision warning), the Plus (for £4,000 - adds fixed panoramic sunroof, Harmon Kardon premium sound, air quality, fully electric seats including lumbar support, heated rear seats, heated steering wheel, heat pump, tinted rear windows and wireless phone charge) and the Performance (£5000 - this upgrades the dual motor to 350 kW (or 469bhp) and includes 20” alloys, gold Brembo front calipers, drilled ventilated break discs, Ohlins dual flow adjustable shock absorbers, dynamic chassis and gold seat belts).

You can also add a semi-electric towbar for £1,100 which allows towing capacity of up to 1500kg and towing unbraked at 750kg. Not to mention a host of dealer fit extras like rubbers mats, charging cables and load carrying accessories.

But what do the UK automotive press think about the Polestar 2? Scoring well across the board, the Volvo-produced EV received 8/10 from Top Gear, 4/5 from Auto Express, 4/5 from Car Magazine and 8/10 from CarWow. Will UK customers choose this over the Tesla and is it better? Keep your eyes on the statistics from the team at SMMT and find out for yourself!

Polestar 2 Fastback 170KW 78kwh Long Range Single Motor 5 door Auto Pure Electric Vehicle

In terms of the car shown, the Polestar 2 Fastback 170KW 78kwh Long Range Single Motor 5 door Auto Pure Electric Vehicle, this is based on the following configuration: