Hold or sell? CT4 2022

[BeTaycan]

Dear Taycan members November 23 bought my used Taycan CT4S for €115k.

Due to expanding family, I want to exchange the car with a Range Rover. Outstanding financial rent is €95k. Highest bidder currently gives €65k. Do I sell the car and take the loss now and avoid an even bigger loss? Or do I keep the car, pay the monthly repayment and will the depreciation be less rapid in the next 2 years?

I would like to hear your insights. Thank you

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[Caraholic]

That’s completely a personal decision. I wouldn’t sell the car for that much of a loss. I would much rather drive the vehicle until your exist costs at least matches your owe. While it may be a bigger number in the end you will at least get use of it during that time period. I wouldn’t pay someone to take the vehicle off my hands.

 

[4sCT21]

Dear Taycan members November 23 bought my used Taycan CT4S for €115k.

Due to expanding family, I want to exchange the car with a Range Rover. Outstanding financial rent is €95k. Highest bidder currently gives €65k. Do I sell the car and take the loss now and avoid an even bigger loss? Or do I keep the car, pay the monthly repayment and will the depreciation be less rapid in the next 2 years?

I would like to hear your insights. Thank you

Stealthy ?

 

[Zsport]

Everybody’s freaking out about the depreciation of the Taycan. I’ve owned 11 Porsches and they’ve all follow the same route. They go down for 5 years and then they stabilize for five years and then it starts to creep up for after that. My 996 GT 3 new $110,000, in 2015 it appraised that $65K now $125K. It’s not about making money. It’s about enjoying the ride..

 

[4sCT21]

If they ultimately allow battery warranty extensions (or similar), it would give these cars an extended life beyond 100k miles it would possibly fend off some of the depreciation imho.

 

[Zsport]

Everyone should educate themselves on EV car batteries, 100k miles is nothing, 100,000 mile failures are about the same ICE really rare. Also, there is an open recall for battery monitoring so I have a distinct feeling that when the recall is implemented, Porsche will extend the warranty on the batteries as part of the recall that’s normal operating procedure in the United States.

 

[4sCT21]

Everyone should educate themselves on EV car batteries, 100k miles is nothing, 100,000 mile failures are about the same ICE really rare. Also, there is an open recall for battery monitoring so I have a distinct feeling that when the recall is implemented, Porsche will extend the warranty on the batteries as part of the recall that’s normal operating procedure in the United States.

New batteries don't get a fresh warranty, but i remain hopeful something will change.

No reason these cars can't do proper high miles. They're not junk at 8 years (or younger).

 

[Persuader]

HOLD (without a doubt)

 

[McgR]

I returned my Taycan to the leasing company 2 years ago. So I have some experience on this.

I tried a second hand dealer and they just don’t want them. They have to give one year warranty and the risk is to high. They know by know what they potentially are getting into and why people want to sell theirs. So they offer a really low price to see if you are willing to take a loss and they can still make a profit.

I also tried online car dealers. Got a really fast and good deal for a 4 year old Mazda but they wouldn’t even make an offer for the Taycan.

my Porsche dealer didn’t want to take it back. Even let when buying a new one

second problem is that thinks are evolving really quickly. At this price point why would you spent 20 k less and have old technology and lower range and charge speed. A one year old J1.1 is worth much less than a 6 month old j1.2 in this point of view.

I had an operational leasing and the leasing company knew that after 2 year they would have to pay for the problems and saw what I already had. They offered me to end the lease for 1600 euro. Which was a better deal than selling it my self.

In your case. It is difficult. Don’t know how much it will decrease in value. Maybe it will be stable for the next year but you will still be paying the lease for a year. And will you drive it? Or will you postpone the purchase of the RR? For a PHEV it is still worth it for 2-3 years and a new EV should be purchased before 2027 for 100% tax profit in Belgium. I think I will switch back to Taycan end 2026. Probably a one year old 4 CT. Don’t think I will go for a new one.

 

[W1NGE]

Dear Taycan members November 23 bought my used Taycan CT4S for €115k.

Due to expanding family, I want to exchange the car with a Range Rover. Outstanding financial rent is €95k. Highest bidder currently gives €65k. Do I sell the car and take the loss now and avoid an even bigger loss? Or do I keep the car, pay the monthly repayment and will the depreciation be less rapid in the next 2 years?

I would like to hear your insights. Thank you

It has further to fall - check the market for 2020 models from official Porsche dealers then take €10K of that to get close to what they probably purchased the car for from the prior owner.

Tough call as the grass is always greener but riding it out is probably the prudent financial path.

At some point the market for EVs will change - tricky part is knowing when and will vary by country. In UK (for example) I'd expect things to improve on the 2nd hand market as we get closer to 2030 when buyers will have little option but to move away from ICE if wanting new. Porsche EVs will be even more expensive by then which my guess is that this will pull up the 2nd hand market.

At current rates of depreciation these vehicles will be worth nothing after 4 years which we know to be 'nonsense'.

 

[bob66hall]

Having bought a new 2021 4S, I share your pain. But "past" is past! Question now is, would I buy my [now used] Taycan today (with just 9K miles on it), at today's value of say 50% of what I paid for it new? For me, the answer is "yes." And as "W1INGE" wisely opined, looking ahead to 2030, some depreciation relief may be in sight. I've chosen to just enjoy my 4S travels, and file away my loss. On a side note, just bought a lightly USED BMW iX (EV SUV) to fill the "SUV space" in my garage. And you guessed it, paid 50% of sticker for it! Live and learn.....

 

[GrayA73]

Having bought a new 2021 4S, I share your pain. But "past" is past! Question now is, would I buy my [now used] Taycan today (with just 9K miles on it), at today's value of say 50% of what I paid for it new? For me, the answer is "yes." And as "W1INGE" wisely opined, looking ahead to 2030, some depreciation relief may be in sight. I've chosen to just enjoy my 4S travels, and file away my loss. On a side note, just bought a lightly USED BMW iX (EV SUV) to fill the "SUV space" in my garage. And you guessed it, paid 50% of sticker for it! Live and learn.....

Are you concerned about owning a Taycan and iX out of warranty?

 

[whitex]

Dear Taycan members November 23 bought my used Taycan CT4S for €115k.

Due to expanding family, I want to exchange the car with a Range Rover. Outstanding financial rent is €95k. Highest bidder currently gives €65k. Do I sell the car and take the loss now and avoid an even bigger loss? Or do I keep the car, pay the monthly repayment and will the depreciation be less rapid in the next 2 years?

I would like to hear your insights. Thank you

When you say "outstanding financial rent" do you mean lease payment, i.e. at the end this you have to give the car back, or do you own the car free and clear? This may change your decision a little bit, however, in either case, I suggest you use the principle of sunk cost. The facts are as follows:

1. You have you ask yourself, if you didn't have this car, but it became available at the local dealer for the financial rent of €65K, would you go for it? If the answer is yes, keep this car. If the answer is no, trade it in.
2. You owe €30K for the pleasure of past driving - that is the sunk cost, that money is already spent/gone. It's a debt you have to take care of, whether by paying it in cash or financing it. If keeping the car, you're paying whatever interest rate you got in Nov 23. If that rate is lower than what you can borrow at today (or take out of savings/investments), you can count the difference in interest against the €65K cost of keeping the car (e.g. if you had to pay 8% on the 30K over the next 2 years, but your current car loan/lease was a 1%, then by keeping the car you're getting 7% discount on the interest of the €30K)

I had a similar situation when I started a family in the early 2000's. I had a less than 2 year old 911C4. With a kid on the way, it was impractical. I also had new expenses on the horizon. The 911 value dropped like a stone, at the time it was worth less than the residual value at the end of 4 years. In other words, if I kept the car for another 2+ years I had a guaranteed trade value higher than the current value of the car. However, to get there, I would have had to pay 2 years of lease payments which were at a decently high interest too. So I did a similar decision process as I described above, ended up trading in the 911 with a negative balance, then buying a more family-suitable car and just merged the negative balance from the Porsche the new car loan (banks let you borrow up to some percentage over MSRP, I negotiated under MSRP price, but the negative tradein value pushed the loan over MSRP). The new car loan was at 0.9%, which was great considering my lease was ~7% IIRC, so that was a great way for me to finance the sunk cost of 911 depreciation.

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