Depreciated Value

rquinton

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Hi, just wondering what people are seeing on residual value as I was considering a lease vs buy outright and my local Porsche dealer said they are seeing that Porsche has pushed the residual values down into the low 40% after 36 months. I asked why a car that only makes 20,000+ units a year could depreciate that much over 3 years? Any thoughts are appreciated. If you are leasing, can you share your residual value calculation (residual value/MSRP)?

I bet most didn't know that Porsche sets a limit on any vehicle for leasing purposes with a max out front value so when you spec above that value all of those additional dollars are not coming back in residual.

Love to hear what others are seeing on this topic.
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mkerdman

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I was quoted 50%/36 Months at 10,000 Miles.
 

Miwa

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Large luxury sedans have terrible resale value to begin with, and I'd expect a first-run EV to be even worse. It's like buying a cell phone in 2010. Tech will be a lot better in 3 years. I expect to lose my ass in depreciation on this car. :p
 

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I'm not so sure that tech will be far far better in 3 years. Sure, the new version Taycan in 2023/24 may have a better range, PCM might work better, hud integrated to dash, better this, better that, those things will impact the value of a 2020 Taycan but I don't think in 3 years we will be looking to change because the tech is far superior or much more "better". Everyone on here is prepared to loose your trousers on this car, simple fact unfortunately. Just try not to bend over as they get hauled to the floor....
 

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Large luxury sedans have terrible resale value to begin with, and I'd expect a first-run EV to be even worse. It's like buying a cell phone in 2010. Tech will be a lot better in 3 years. I expect to lose my ass in depreciation on this car. :p
I thought the same thing initially but I'm not so sure anymore that's true.

The Model 3 and Model S actually have decent to good resale and the Taycan is much more desirable & harder to find than, say, a Panamera.

I would be shocked if there are any significant tech changes to the Taycan in the next 3 years other than software patches.

Now you'll lose everything in options, which will be very painful, but in terms of base price I think the Taycan will hold up well.
 


Gogs

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I thought the same thing initially but I'm not so sure anymore that's true.

The Model 3 and Model S actually have decent to good resale and the Taycan is much more desirable & harder to find than, say, a Panamera.

I would be shocked if there are any significant tech changes to the Taycan in the next 3 years other than software patches.

Now you'll lose everything in options, which will be very painful, but in terms of base price I think the Taycan will hold up well.
Yeah, options are written off day one. But every one of them is well worth it!!
 

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3 years is quite awhile. They will be working hard to compete with Tesla and other car manufacturers for expected performance and range and other features three years down the road. I doubt we will be seeing truly enormous improvements but there are several technologies that may appear in that period. I believe Rimac have dumped the gearbox and expect to get hypercar performance without it. Motors are improving, battery tech is constantly updating, computers will be more powerful and consume less power.

It will be interesting to see how the Audi e-tron GT will impact the Taycan. Same platform but potentially newer tech with it arriving later to the game.
 

Gubbjaevel

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I expect it will hold decent 2nd hand value.
They are (extemely) desireable, fun to drive, can be all-arounders.

Whenever next gen batteries (solid state, 1000km-ish range) comes along - this gen taycan will be old news. Until then... I'm keeping it (aiming for 10 years ownership!)
 


snstevens

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Robert - Happy to oblige.

Residual - 52% at end of 3 years assuming 12k miles/yr on average.
Difference in cost of Lease vs. Buy (2.49% for 5 years) at the end of 3 years = $4,553.

Now consider the likelihood that someone will rear-end me when texting while driving, lowering the value of the car considerably, and the decision to lease was a no-brainer.
 
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rquinton

rquinton

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Robert - Happy to oblige.

Residual - 52% at end of 3 years assuming 12k miles/yr on average.
Difference in cost of Lease vs. Buy (2.49% for 5 years) at the end of 3 years = $4,553.

Now consider the likelihood that someone will rear-end me when texting while driving, lowering the value of the car considerably, and the decision to lease was a no-brainer.
I guess the question becomes, if this is your second car and the miles would low when you turn it in, would you be better off buying it and hope you don't get rear ended to hopefully pick up value in the residual. I plan on driving this more than my 911 but I averaged only about 4,000 a year on the 911. I like not being responsible for the damage if it got in an accident but I proved, you can get a love tap and still get good value for your 911. I wonder if the same would hold true with the Taycan. We all want to drive it for fun but eventually, the next Taycan or what ever car will be on the horizon, it is just a question to lease or not to lease.
 

snstevens

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I think anyone talking about whether this is a good investment or not is sort of off base. Cars are not "investments", they are depreciating assets, and like all depreciating assets it is simply an emotional decision regarding whether to buy a new car (Taycan or otherwise), and a financial decision whether to buy or lease.

If you love the looks of the car; if you love the way the car drives; if you feel you want to have an EV that is at the leading edge of 800 V battery architecture (increasing charging speed); and if you are not buying/leasing a car outside of your financial comfort zone then this car is definitely for you - you'll simply love it.

Regarding bugs in a car with so much new technology: I don't find the bug level to be offensive in any way. There are a couple of things I find irritating (like the perspective view on the rear camera), but generally The Taycan performs as advertised.

I have a scheduled dealer visit this week on the battery recall, but haven't experienced any problem in that area. I'll be curious as to what the PCM changes are like.
 

PanameraFrank

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Robert - Happy to oblige.

Residual - 52% at end of 3 years assuming 12k miles/yr on average.
Difference in cost of Lease vs. Buy (2.49% for 5 years) at the end of 3 years = $4,553..
I'm sorry, what am I missing? Your math doesn't add up to me. Assuming a 4S at 137500 you're looking at a lease around $2,300/month. At 2.5%/5 years you're at $2,440. That means you've paid off roughly $82,800 after 36 months. Minus tax on the 52% which basically negates the +7,500 rebate (which is trimmed off the lease at above payment.)

That means you have a 3 year old MSRP $137,500 Porsche with 36k or less miles with $54,000 left on a loan. Assuming you get the 52% (or equivalent on a trade in w/ tax credit) you're looking at more like a savings of $17,000 by financing. Considering lease residuals are almost always worse than reality, see if you can find a 3 year old sub 40k mile Porsche below 60% MSRP, there's even more room on top. Even assuming decreased value for a fender bender, you're going to come out way ahead on financing.

Now a business write off lease is something else but a personal lease vs loan on these cars is rough.
 

Schlossj

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Robert - Happy to oblige.

Residual - 52% at end of 3 years assuming 12k miles/yr on average.
Difference in cost of Lease vs. Buy (2.49% for 5 years) at the end of 3 years = $4,553.

Now consider the likelihood that someone will rear-end me when texting while driving, lowering the value of the car considerably, and the decision to lease was a no-brainer.
Can you share the details of the lease including money down and monthly payment and term?
 

Miwa

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You also need to figure in sales tax implications when leasing. In CA, you only pay sales tax on lease payments, so that can be a significant benefit for leasing over buying.

I'm buying, and I'll just eat the depreciation. I have leased a number of cars, but I don't want to be on a schedule on when to sell the car any more.
 

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You also need to figure in sales tax implications when leasing. In CA, you only pay sales tax on lease payments, so that can be a significant benefit for leasing over buying.

I'm buying, and I'll just eat the depreciation. I have leased a number of cars, but I don't want to be on a schedule on when to sell the car any more.
With the HOV access only linked to the VIN for up to up to 42 months and the hole program set to sunset on Sept 2025 I leased as the car will not be able to drive in the HOV land after Jan 1st 2024 as this will be my daily driver
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