This Luxury EV That Now Costs Less Than A New Corolla

Luxury electric vehicles suffer from a double depreciation hit—EVs already lose value faster than gas or hybrid cars, and luxury vehicles historically have poor resale values. When combined, these factors create steep depreciation curves that punish original buyers but benefit used car shoppers.

Wealthy early adopters absorb this financial hit to stay on technology’s cutting edge, while savvy buyers can score significant deals on the used market. The real question: are there hidden downsides to buying a heavily depreciated luxury EV?

Surprisingly few. When you consider that a used luxury EV can cost the same as a new Toyota Corolla ($22,725-$28,940), the value proposition becomes compelling—you’re getting advanced technology and premium features for economy car money.

2022 Polestar 2: Cutting-Edge Luxury For Less Than $26,000

Polestar

Wait, you know what, this luxury EV that we’re talking about has an average resale value that starts at $25,997 according to iSeeCars. So yes, for less than the price of a brand-new, mid-range Corolla, you can get a luxurious, tech-filled, and far more advanced 2022 Polster 2. The Polestar 2 is one of the first wave of Tesla fighters that arrived in the luxury EV scene in the early 2020s, and thanks to the magic of depreciation, they are impressibely affordable on the used market.

Easy To Find A 2021 Model For Under $20,000

Polestar

Take a look at the Polestar 2 listings at iSeeCars, and you’ll see that, while most are hovering in the $25,000-$30,000 range, it’s also pretty easy to find a 2021 model year vehicle for under $20,000. In fact, for that amount of coin, early model year Polestar 2s are pretty much fully loaded, since all came as the Launch Edition version for $61,200, though optional add-ons like 20-inch wheels (19s are standard) and Nappa Leather upholstery were available at the time.

Polestar

For an additional $5,000 when brand new, the Polestar 2 came with the Performance Package, which included Öhlins dampers, 20-inch forged wheels, and Brembo brakes. The Öhlins dampers, however, are more of a pain than a pleasure to own, because while these are track-focused dampers, you’ll have to manually adjust the damping firmness yourself from underneath the vehicle. Let’s be honest, at its price point, no one’s going to be willing to get their hands messy just to adjust a set of springs.

How Its Prices Fare Versus Other EVs

Polestar

For an accurate comparison, we’re examining percentage depreciation over five years rather than absolute dollar amounts—since a luxury EV’s segment and size directly impact its initial price. While a Polestar 2 naturally costs less than a BMW i7, the real story lies in which models hold their value better as a percentage of original price. Here’s where the Polestar 2 ranks among luxury electric sedans in 2025’s depreciation landscape.

The Various Updates To The Polestar 2

Polestar

The Polestar 2, like many luxury EVs, received incremental and huge updates over its lifecycle. The electric luxury crossover sedan debuted in 2021, while a 2024 mid-cycle facelift fundamentally made the Polestar 2 a compelling Model 3 rival, as it got more efficient EV drivetrains and new batteries to finally offer competitive range versus what Tesla is pumping out.

2021-2023 Updates

Polestar

When Polestar emerged as an independent EV brand rather than Volvo’s performance arm, the Polestar 2’s lineup remained straightforward. The 2022 model offered only dual-motor AWD configurations—Launch Edition or Performance Package—delivering 408 horsepower, 487 lb-ft of torque, and a 78 kWh battery. While this setup achieved 0-60 mph in 4.5 seconds, the EPA range suffered at just 233 miles, falling short of the Model 3’s 300+ mile capability.

The 2022 model year brought a game-changing FWD variant priced at $47,200, extending range to 270 miles through improved efficiency. Meanwhile, the Dual Motor dropped from $61,200 to $51,200. Polestar enhanced the Dual Motor through OTA updates—a paid upgrade boosted power to 476 hp and 502 lb-ft of torque, while a free update improved range from 233 to 249 miles. The 2023 refresh added another 11 miles, bringing the Dual Motor’s total range to 260 miles.

2024-Present Updates

Polestar

Newer Polestar 2 models command higher prices, especially after the 2024 refresh that brought significant changes. The FWD variant was replaced with a RWD configuration featuring a larger 82 kWh battery, enabling 295 horsepower and 320 miles of range. However, the Dual Motor AWD retained its 78 kWh pack, limiting range to 276 miles.

The 2025 lineup simplified everything into a single, fully-loaded Long Range with Performance Pack trim. Despite packing 469 horsepower and the larger 82 kWh battery, range drops to 254 miles. At $66,200 with every option included standard, it’s a tough sell for range-conscious EV buyers who prioritize miles over performance.

What You Get In A Polestar 2

Polestar

Regardless of which model year you choose, there’s something in common in every Polestar 2. Don’t overthink about packages and features too much, because whichever way the Polestar 2 is configured, you get a stylish electric luxury sedan with crossover proportions and a minimalist premium interior.

Sedan With Crossover Genes

Polestar

The Polestar 2 is underpinned by the CMA platform that is used in the Volvo XC40 and other Geely Group vehicles–most of which being crossover SUVs. As a result, this fastback sedan rides a bit taller than the Tesla Model 3, for instance, which somehow gives the Polestar 2 a unique character. Various color and wheel choices are available to suit your taste, though because earlier models only came in a fully-loaded Launch Edition variant, the amount of personalization is much more limited.

Step inside the Polestar 2, and you’ll be greeted by a premium yet sustainably-sourced interior. As standard, all models get a 12.3-inch infotainment that’s running Android Automotive, which means that the user interface is snappy and extremely easy to use. Optional extras range from stuff like colored seatbelts, Nappa Leather upholstery, a panoramic glass roof, a Bowers & Wilkins surround sound system, among other features, and also depending on the model year. Finally, the interior is also a practical one, thanks to the fastback tailgate that enables a wide cargo area. Passenger space, however, seems to be awkward in some places, with the front seats feeling a bit narrow and the rear seats being less spacious than rivals.

Comfort With A Degree Of Sportiness

Finally, as for the driving experience, though this is a newer model car, most of what we experienced here is carried over from older models. As an EV brand with a sporting history as Volvo’s performance sub-brand, the Polestar 2 blends comfort and refinement with a degree of athleticism. Models with the Performance Package’s Öhlins dampers definitely make the car feel sportier and corner flatter, but their manual adjustability is a hassle rather than a pleasure to have.

The technology is also very intuitive and easy to use, while the interior is a relaxing place to be in. However, unless you’re going for the FWD or RWD versions, the range of the Polestar 2 is okay rather than outstanding. Overall, though, especially as a used purchase, a Polestar 2 will be more emotionally appealing than a brand-new Toyota Corolla.