Taycan Values.

[Redhot2474]

I was being facetious about the CWM. It's an option like any other, which means it fully depreciates after 4-5 years. When looking at resale value of a 4-5 year old car, the dealer primarily looks at the VIN (which has the trim embedded), mileage, and condition. There may be some options like PB+ or leather interior, but they probably change the value very little. IMO white vs. CWM will make no difference in price in 4 years.

I fully agree about car ROI being enjoyment. With very few exceptions, all new cars have a negative monetary ROI, unless you are a dealer.

I have to admit (and had a different opinion 6 mo ago) there IS something OFF about Taycan depreciation in current market, OP's situation starkly demonstrates this.

Known contributing factors:

1- UK Depreciation in particular driven by ongoing tax benefits for businesses floods the market
2- US situation is less dire but still a lot of old owners who got the 7500 tax credit and paid a lower list price pressuring market with their willingness to accept lower trade-in prices.
3- The recent sudden Anti-EV narrative... i lost the number of articles that pop up online with the headline "Consumers don't want EVs", with no real new data or additional insight provided in the body of the article, other than generic explanations like "range anxiety" - and these started to pile up suddenly in the last 3 or so months. Almost feels like a coordinated effort..

Now setting these known factors aside I think there is still a difficult to explain element with regards to Taycan's record breaking depreciation levels.

Take the 911-Taycan discrepancy. Yes 911s known to depreciate generally less than most cars. But the discrepancy vs Taycan is reaching truly ridiculous/irrational levels, when you think about the significant overlap between the driver base & use case similarity for both models (Just look at this forum and check how many Taycan drivers are coming from 911s).

When I bought my Taycan I had an allocation for a base 911 and was ready to pull the trigger but switched to Taycan when one became available (as much as I love my Taycan, WHAT A MISTAKE, in hindsight, finanically speaking). My 911 build's MSRP was coming to ~$10K higher than the Taycan. After less than 2 years I am just looking at what I would get for my Taycan with 4K miles on it, and it is only ~50-60% of what I would get for the 911 today! How in the hell? It is sometimes truly difficult to understand consumer behavior. Why would one be willing to pay close to MSRP for a used 911 that is about to get out of warranty when they can simply order a new one but not willing to take massive discounts over MSRP for a CPO'd Taycan? 911 is not a rare car by any means unless you are talking about a GT3. Last year 10.000+! 911s were delivered in the US. That is 40% more than Taycan deliveries! Previous years were not any different. There is a massive 911 car park out there.

I do think some of this is truly self full-filling/circular logic, that should eventually unwind. It starts with the premise "911s don't depreciate" and based on that presumption a bunch of people drop ridiculous amounts of money to buy used 911s instead of just ordering a new one and then boom 911s really don't depreciate . And many people stick to their 911s because they are not worried about depreciation (which contributes to circularity). Circularity is exactly the opposite direction for Taycan. Even interested people are now scared of buying the car because of depreciation, or some are looking to sell prematurely nervously watching the depreciation horror film.

If you look at the "fundamental value" offered by the two cars over their useful life (like you would do when comparing two stocks) - it is impossible to imagine such a difference. A "perception" element going on right now that is comparatively undervaluing Taycans big time. I can’t really think of anything else other than an overblown fear around "it is an EV, it will brake down, battery will degrade", amplified by self-fulfilling depreciation cycle.

I think Porsche needs to do something about this. And trust me "luxury cars are not investments" mantra won't fly at these depreciation rates if they want to maintain reasonable volume of new car sales. Why not maybe offer a longer warranty for EVs? Once they are through the learning curve, EVs should truly have higher reliability with way less moving parts. Maybe offer an HQ underwritten standardized extended warranty program. Market widely with ability to sign-up online, just like connectivity subscriptions (as opposed to an opaque extended warranty process where you need to haggle with a shark that is dressed like a dealer finance manager in a small cubicle, fighting over a completely non-standardized/non-transparent pricing structure). Charge $1500-2000 per year (still less than what a 911 customer would pay for annual oil changes, brake-pad depreciation and premium gas cost over electricity bill). That could reliably take away 5-digit breakdown bill fear from customers and fix the perception issue.

some solid points…

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[ExTesla Driver]

hmm this is why I decided to lease mine for 24 months. Porsche’s residual was estimated at 65%.

Like a previous poster said, you can buy it out if your buyout is lower than market value. Or let them eat the cost if the buyout is higher.

I got a fully loaded base at 120k, so I’m just viewing it as a fun car rental for 2 years.

The only porsche that’s worth financing/owning is the 911 or any special edition Cayman. Every other ride will always be a joke for maintaining value.

I presume the lease will cost you £36000 over 2 years with restrictions on how many miles you can do ? This money is just wasted.
If you bought it through business your tax benefit be 25% depreciation over 2 years approximately 40% you still be better off buying a car in the end it’s yours. IMO

 

[WuffvonTrips]

I would buy again right now, knowing everything I know, with two caveats. One, I would push the Mrs for a turbo. Two, I would be more inclined to look at CPO, although spec’ing and ordering a car is always fun, so I don’t know which I’d do. But there weren’t many CPO Taycans in 2021 when we bought, so not much of an option at the time.

That somewhat aligns with my own thoughts- my justification for ordering the Turbo was that I wanted to avoid coveting another car for at least 5 years, so exceeding my original requirement for a 4S seemed like a good idea, as did adding everything I might possibly want* (made easier by the higher standard spec of the Turbo). Only one non-PTS colour combo (Froz Blue over Black/Bordeaux) gets me excited, its rarity/unpopularity makes it highly unlikely that any Used Approved satisfying all my requirements would ever be an option.
(*I was- and still am- curious about PDCC and 21" wheels, which I've only experienced on test drives and track experiences and have yet to feel a compelling need for either, so they'd be more of a bonus if buying used rather than items I'd pay the extra for on a new order).

 

[Lofty]

I have to agree on the taycan and depreciation. I got out of mine in November last year. £60k in two years was my loss.... Thats horrendous and now over 700 for sale on autotrder. I guess when something so great is possible to purchase via government incentives which means it ends up a great success and if like me you own your cars... I have learnt to stay away in future. 73 Audi RS6 as a replacement and will stick with ICE for a few more years while the pricing settles. Would i buy another taycan - yes but only when they can be purchased without tax incentives etc, exclusitivity keeps the price high.

 

[MarkR]

This is an interesting thread. I am really sorry for those of you that have lost so much on your purchases based on the current market. A car like this simply doesn't deserve such a harsh market loss. I do agree that in reality, we have a car that is the best electric car you can currently get, and makes us smile every time we drive it. I can't think of another car I would want to drive at the moment. I have leased mine through a Salary Sacrifice, which was the best option for me. Circa £35.5k over 3 years, with an option to buy at the end. It is mileage limited, but the excess mileage cost is pretty low meaning I am happy to pay the extra if needed. However, whichever way I would have funded it, I would still be delighted with it, and would probably just keep it longer if I purchased it, in order to level out the depreciation. I hope the market recovers for those of you that have the current dilemma of whether to sell or not.

 

[achaudh]

50% depreciation in just a year is horrendous no matter how we look at it. But then again, that's what the dealer quoted which will almost always be bad. I will add though that I reached out to several Porche dealers over this holiday season to purchase a MY22 or MY23 RWD Taycan and none of them seem too keen to drop their prices from what they listed their cars for. I did offer 10% lower than their listed prices but none of them budge.

Will be interesting to see if we will see further depreciation with refresh soon coming. Early Macan EV reports are suggesting 310-320 mile range with the battery pack which is lighter and denser. I would assume that will make its way to Taycan MY25 too. What will that do to current Taycan pricing? Will Porsche provide any retrofit options if battery improvements are significant? Will know in next few months.

 

[whitex]

50% depreciation in just a year is horrendous no matter how we look at it.

It was a dealer quote probably based on the dealer prediction that it is winter now, sports cars don't sell as well as in spring/summer, so they will have to sit on the car meaning they will lose at least interest+storage+insurance on it for few months, then the car will depreciate because a new refresh model year will be out - so another risk. Given all that the dealer wants to have a good potential upside (high risk requires high reward), so they priced it at 2-3 year depreciation. I don't think they were planning to list the car close to 50% MSRP. Do you see any 1 year old low mileage Taycans without accidents and such listed anywhere near 50% MSRP?

 

[WasserGKuehlt]

Would i buy another taycan - yes but only when they can be purchased without tax incentives etc, exclusitivity keeps the price high.

A car built at a rate of 40k units per year is not “exclusive”. If anything, people swapping cars every couple of years does more to depreciation than a fee thousand in government incentives. (It is worse when the government incentivizes short-term ownership, as it appears to be the case in the UK.)

 

[whitex]

(It is worse when the government incentivizes short-term ownership, as it appears to be the case in the UK.)

EV's are still more for now expensive than ICE cars, so what better way to increase EV adoption that to incentivize people who can afford it to swap often, creating a market for more affordable, used EV's.

 

[WasserGKuehlt]

EV's are still more for now expensive than ICE cars, so what better way to increase EV adoption that to incentivize people who can afford it to swap often, creating a market for more affordable, used EV's.

Oh I do agree with that, I thought it was a weird take to advocate for more exclusivity.

My point re UK government incentives is that it seems not to encourage private acquisitions, but rather short-term business leases. That may have the trickle effect of accelerating depreciation (and thus drive 2nd hand adoption), but as a principle it seems wrong (“keep on buying new”, and it doesn't even benefit UK’s economy). (I am swimming far from the shore on this one.)

 

[fenland]

I’m currently in the market for a preowned Taycan, and the market does seem to be flooded. I’ve spoken to 4 different OPCs who have cars in stock for 4+ months but are unwilling to discuss discounts.

One specifically have tens of Taycans parked up at the back of their car park, none have been prepared for sale, and some have been there 4+ months.

Makes me wonder how long this can carry on before they have to start discounting to shift them!

 

[McgR]

I’m currently in the market for a preowned Taycan, and the market does seem to be flooded. I’ve spoken to 4 different OPCs who have cars in stock for 4+ months but are unwilling to discuss discounts.

One specifically have tens of Taycans parked up at the back of their car park, none have been prepared for sale, and some have been there 4+ months.

Makes me wonder how long this can carry on before they have to start discounting to shift them!

Same in Belgium. Porsche Belgium has many Taycans waiting in Brussels waiting to be sold.

More than 300 used ones on Autoscout in Belgium. And lots of them private sellers which isn’t a good sign. You can do a great deal right now just make sure you buy one with Porsche warranty at an official dealer.

 

[fenland]

Same in Belgium. Porsche Belgium has many Taycans waiting in Brussels waiting to be sold.

More than 300 used ones on Autoscout in Belgium. And lots of them private sellers which isn’t a good sign. You can do a great deal right now just make sure you buy one with Porsche warranty at an official dealer.

Yes, buying approved from OPC with warranty. I’ve found some in my ideal spec, but I think are still over priced by 5-7% from where the market is.

I’ve made offers on two cars, one at 5% under listed price and one at 4% under. Both cars have been at OPCs for 3+ months and have already come down 7% from where they were listed originally.

Feels like Porsche think the market is as low as it will go

 

[McgR]

In general the difficulty with EV is that technology is changing so quickly. Better battery technology. Longer range. Faster computers.

Repairs can only be done by the dealer.

Also the difference in high end EV models is very artificial. Are the two more powerful engines of the Turbo S worth 100 K more than the less powerful ones on the 4. The difference between the 4 and the 4S is only software voor 18 k. In ICE cars the difference between a 4 cylinder and a V8 was obvious and mechanically different. BWM and Merceds sell their top versions as M / AMG with specific settings and components that can’t be ordered in base models. That may be a better selling strategy.

 

[McgR]

Yes, buying approved from OPC with warranty. I’ve found some in my ideal spec, but I think are still over priced by 5-7% from where the market is.

I’ve made offers on two cars, one at 5% under listed price and one at 4% under. Both cars have been at OPCs for 3+ months and have already come down 7% from where they were listed originally.

Feels like Porsche think the market is as low as it will go

Just walk away and wait. If they want to sell they will contact you. Good luck.

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