Depreciated Value

snstevens

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@Schlossj asked me earlier about the Lease computation so I thought I'd share that with you folks. This applies to a general Taycan 4S and is a standard Lease computation.

Porsche Taycan Depreciated Value Porsched Lease Image


If at the end of the lease you want to buy the car the cost is the Residual + tax.

UPDATE: The last two [F] designations on Money Factor should be [G]'s.
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Schlossj

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@Schlossj asked me earlier about the Lease computation so I thought I'd share that with you folks. This applies to a general Taycan 4S and is a standard Lease computation.

Porsched Lease Image.png


If at the end of the lease you want to buy the car the cost is the Residual + tax.
Well...even more reason to use my margin account which is collateralized by my brokerage positions - it’s currently .75% plus floating fed funds (which is .25%) - so 1% total. Pretty cheap option. Surprised more folks don’t tap this source.
 

LovinTaycan

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I think I am in big trouble... and my car coming next week may be going down the tubes. I have been leasing Mercedes S class for 20 plus years, and no matter what I put on the car, it was part of the residualized value. I have a custom 4S coming with an MSRP of $166,000. If I am only residualizing $138,000 of that, then we are in big trouble and my car is for someone else.

I won't buy a first year electric car, I will get killed when I go to sell it in two years.

Thoughts?
 

LovinTaycan

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I personally plan to keep the car for 2 years and move on and I don't anticipate it loosing half of it's value in this time. The car is fantastic, whoever drives one loves it, motoring press love it, enthusiasts on forums love it, instagrammers love it.

Technology may move on slightly but I don't expect to see a 500 mile plus Taycan with 1000BHP in the near future. I guess these are the only 2 things that would render our cars being redundant! New headlights, cosmetic updates and interior changes etc will not hit values that hard. A replacement model will be at least 4-5 years away. What's there to worry about!?

Not worried at all and will enjoy it without worrying about depreciation. It's a car of course it will depreciate!
I think the problem here is going to be the competition. Mercedes is coming up with the EQS that will have a range of 350 plus miles, the charging will be faster, and who know what else. The other major companies will also have a competitive car.

I am in trouble because I built a 4S with a MSRP of $166,000 and if the residual is maxed at $138,200, and I pay 100% over that, my 2 year lease number will be in big trouble. That is not how Mercedes does it. They always residualize 100% of whatever the MSRP is. In 2015 I did a custom $30,000 interior upgrade and they even residualized that.

True, I could buy the car, but I am very concerned about the hit in two years when I will sell the car, like you. I could easily see us taking a hit well over 50%, although I really don't know with Porsche as this is my first Porsche. The problem is, with electric cars, I don't think anyone knows.
 

wmras

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I think I am in big trouble... and my car coming next week may be going down the tubes. I have been leasing Mercedes S class for 20 plus years, and no matter what I put on the car, it was part of the residualized value. I have a custom 4S coming with an MSRP of $166,000. If I am only residualizing $138,000 of that, then we are in big trouble and my car is for someone else.

I won't buy a first year electric car, I will get killed when I go to sell it in two years.

Thoughts?
Switch to a Turbo with no more than 25% extra in options then you will have a higher residual.
 


PanameraFrank

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@LovinTaycan You specc'd a 4S to $166k and the dealership didn't take a non refundable deposit? Yikes.

It's not the car that's the issue there it's the options and that you want to lease a Porsche. MB has decent leases, Porsche does not.

In terms of base price, I'd be surprised if the Taycan didn't hold a better residual than an S class. But with $60k in options you're pretty toast.
 

Mouse House

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I was planning on leasing my next car but the deal at Porsche really didn't work for me (I'm not in the US). 3.9% interest isn't too bad, but the residual was only 39% at 3 years.

Also despite what I had discussed with the sales manager at the dealership there was no right to purchase at the end of the lease in the contract. Eating 61% of a CHF 163000 purchase and then not being able to make use of that low residual feels like a bad use of money. No lease for me, going to pay half upfront and finance the rest.
 

LovinTaycan

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@LovinTaycan You specc'd a 4S to $166k and the dealership didn't take a non refundable deposit? Yikes.

It's not the car that's the issue there it's the options and that you want to lease a Porsche. MB has decent leases, Porsche does not.

In terms of base price, I'd be surprised if the Taycan didn't hold a better residual than an S class. But with $60k in options you're pretty toast.
I find it hard to believe that the dealer did not explain this all to me knowing I was going to lease my car.

I originally specified a Turbo with an MSRP of $193,000, but when the 4S was announced, I went to that car because it would be just as nice, and I didn't need all the power. How much is the maximum lease amount allowed with a Turbo and Turbo S.

Also, if I am concerned about buying and getting hurt after I sell in 2 years, isn't the fact that I have a $166,000 4S even more of a problem in terms of loosing a lot of value. I would think the lower the cost of the 4S, the less you would get hurt.
 


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Main reason I got a turbo s in the end (uk bases pcp). The higher residuals at monthly costs lower than a 4s that doesn't even have all the options I have on my turbo s
 

LovinTaycan

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Main reason I got a turbo s in the end (uk bases pcp). The higher residuals at monthly costs lower than a 4s that doesn't even have all the options I have on my turbo s
Exactly. That should have been explained to me. My guess, which I think is what you are saying, is that on a lease, the Turbo or Turbo S will actually cost less per month. Is this correct?
 

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How much is the maximum lease amount allowed with a Turbo and Turbo S.
The last Porsche Financial bulletin I saw in July 2020 had these values:
MRM on a 4S is $138200
MRM on a turbo is $183600
MRM on a turbo S is $213500

I did end up switching to a turbo for similar reasons as I had over-optioned my 4S from the dealer’s perspective. If you’re buying the car and holding it for a while it probably doesn’t matter as much, but if you’re leasing, over-optioning can cause some pain.
 

LovinTaycan

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The last Porsche Financial bulletin I saw in July 2020 had these values:
MRM on a 4S is $138200
MRM on a turbo is $183600
MRM on a turbo S is $213500

I did end up switching to a turbo for similar reasons as I had over-optioned my 4S from the dealer’s perspective. If you’re buying the car and holding it for a while it probably doesn’t matter as much, but if you’re leasing, over-optioning can cause some pain.
Many thanks for the information. Do you know if the buy rate is still .002?

Also, do you have any idea for a 24 and 36 month lease, what is the residual at 7,500 and 10,000 miles?
 

T-Fury

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Many thanks for the information. Do you know if the buy rate is still .002?

Also, do you have any idea for a 24 and 36 month lease, what is the residual at 7,500 and 10,000 miles?
No problem! I do believe the base money factor is still 0.002, but someone please correct me if I'm wrong.

Residuals quoted back in July at 12,000 miles were:
4S - 57% @ 24 months and 50% at 36 months
Turbo - 51% @ 24 months and 44% at 36 months
Turbo S - 48% @ 24 months and 41% at 36 months

For each of those add 1% to the residual @ 10,000 miles and 2% @ 7,500 miles.
 

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If you specifically told your dealer you were going to lease, and they let you option up a 4S to $163k without telling you about MRM, then they totally dropped the ball.

You should be in contact with your dealer now, because you know you aren't going to accept that car, and you can find out what your options are with that dealer.
 

LovinTaycan

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If you specifically told your dealer you were going to lease, and they let you option up a 4S to $163k without telling you about MRM, then they totally dropped the ball.

You should be in contact with your dealer now, because you know you aren't going to accept that car, and you can find out what your options are with that dealer.
I have written and called them and asked for all the numbers to start the discussion. I am waiting for them to respond.
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