Depreciation of the 2025 Taycan

[Brombaer1971]

For some the glas is half full and for some half empty.

Buying a car is no rational decision, has never been and never will be.

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[mutanthands]

For me you’d be nuts to ‘buy’ a Taycan cash. Especially a turbo! You should be protecting that money, investing it elsewhere and returning decent interest. This would offset much if not all of the interest of the finance / lease. That way you’d have a guaranteed final value after your term and threads like this would be irrelevant.

I miss the days of being able to balance the PCP / Lease against the cash in a fund or tracker!

 

[ODC]

I don't think it's only depreciation of the Taycan but just the whole EV-cars sector.

I have a own example that EV-cars do not retain their value at all. Before I got my Taycan ST I had an Audi Q4 ETRON sportback which costed 80K euros. I bought the ETRON as my 'personal company car'. I had this car for 2 years.
When I wanted to sell the ETRON, there I bought the Taycan, the bids were tremendously low around 35k. So in 2 years the car had more then 50% less value.
The only way I got a bigger amount of money (50k) was to sell the ETRON to the dealership where I bought it. They wanted to do it there my brother bought a new Etron.

I think one of the main problems of depreciation of EV-cars is that:

1. 90% of them are sold as company car and it's understandable because of the benefits.
2. Company cars are never kept long => so there comes a large amount of second-hand on the market which also does not help the value.

But with this experience my conclusion is:

1. I would never buy a EV-car as a personal car because of the huge depreciation
2. If you buy a EV car the best way to get the most amount of money is to buy a new car with the same dealership. So for me that would mean a new Taycan in couple of years.

Would I buy the Taycan again despite the depreciation? Yes! I'm happy with it and the quality compared to the ETRON is much better (and of course the car is better looking). But because the Taycan is much more sold, then 911, there's a more mass production and you see this in the quality of the Taycan. This isn't a 911 in quality control.

 

[Redhot2474]

I’ve already resigned to keeping my Taycan GTS. In fact, I’m sure I’m close to having negative equity at this point - the truth is I’ll never really NEED any more tech or any more range or performance for street driving - It’s a phenomenal car and will always be - I’ll just keep it as part of the stable , it’ll be a relic sooner than later

 

[violuma]

As a rule of thumb we should treat EVs as cell phone. Use it short term knowing there is a better one with better technology around the corner.

I guess about all I can say is that I really hope you are wrong, because if you're right, humanity is pretty much doomed. Treating something that uses up as many resources as an automobile as a disposable commodity just makes me nauseous.

 

[rim23]

I want to share my thoughts regarding depreciation of the updated Taycan. As I decided to swap my 2020 Taycan to the updated version, I've been thinking about this a bit.

First of all, there are obviously a multitude of reasons why the Taycan has depreciated significantly but to me there are a couple of key reasons that are not talked about enough:

1. It is a car model that was launched during the largest money printing episode in modern history. There was a lot of money in circulation and a lot of people could afford to buy a Taycan, or at least thought they could afford one.

2. Taycan is a mainstream luxury car. The amounts sold are massive. Someone countered my argument in Facebook saying "why doesn't the 911 depreciate like this?", well, the most important rule in economics is supply and demand. I looked at the amount of 2020+ Taycan's in sale in Finland and the amount of year model 2020+ 911s on sale in Finland and the current amounts are: Taycans on sale: 173, 911s on sale: 18. People bought a huge amount of Taycan's during the zero interest rate period but not a lot of 911s.

3. Now we live in a new economic reality. Every single mainstream luxury car is depreciating a lot because so many are selling them, and fewer are buying them. Model to model there are of course differences, but broadly speaking the same economic reality affects everything. Note that it is important to differentiate between mainstream luxury cars and niche luxury cars. Niche luxury cars are not necessarily hit in the same way, as they might not have experienced such a boom during the zero interest rate period.

Now with that being said, let's discuss the reality of the 2025 Taycan. It is more expensive, fairly competitive in its specs to rivals and it has been launched during a new tighter economic reality. Also there are other contributing factors such as some people being worried about Taycans reliability.

What all of this means is that the order amounts of the new Taycan will likely be significantly smaller than with the old Taycan and therefore I do not expect us to see boatloads of them on sale in a year or two. The used car market of the new Taycan will have a far smaller supply than what we currently see with the old Taycan. Also the specs of the new Taycan will probably hold up well to rivals in the next few years at least, which is a less of a factor but a factor nonetheless.

So to finalize my point, I believe the 2025 Taycan will depreciate a bit slower than the old Taycan, as it is launched during a tighter economic reality and the used car market for that car will have a significantly smaller supply than we are now seeing with the old one. I look forward to seeing stats of how many of these Porsche are selling, as I strongly believe the sales will be smaller than the Taycan sales in the past.

Off topic - given you’re also from Finland. There is a turbo s facelift in Espoo -

 

[mlambert890]

The notion that EVs are going to be like phones or laptops just because they have a battery is ridiculous, sorry.

Leaving aside that people have been keeping laptops longer and longer for years now, and people are keeping phones longer and longer as well, there’s just no comparison with a car.

It’s crazy how irrational people are with EVs (even people that like them and own them!)

A car is a massive purchase. It’s still completely functional even when a new one comes out. ICE innovation, and perceived obsolescence, has been non stop as well, but people have decided to now pretend that’s not true.

The depreciation of premium performance ICE cars with four doors from Germany has been horrible for 30 years, but again people pretend that’s not true.

ICE takes a huge efficiency hit in winter, but no one ever cared. Somehow now people are obsessed with winter efficiency. Same with “range”. Everyone now has a “need” to drive 300 miles plus, with only 3 minutes of stopping, even though data proves 90% of people do that once a year at most.

Most of the bullshit around EVs today, pumped endlessly by the media, is massively exaggerated. Sure EVs are depreciating a bit more than similar ICE (which in the case of the Taycan is the Panny, so please stop comparing to the 911), but the difference is nominal and that nominal difference can easily be explained by the various tax incentives on new leases and on the insane level of FUD that for sure influences people.

As for batteries and battery life, batteries last ages, are warrantied for ages, rarely just “completely die”, and individual cells can absolutely get repaired. Just like engines and transmissions, two huge ticket ICE components that people now pretend last forever. Taycan batteries aren’t magically different. Indy shops will pave the way here. Does anyone get their 993 rebuild done by Porsche?

TLDR is: Anyone buying a four door Porsche sedan needs to be ready to pay to play. ICE vs EV doesn’t really matter, and “new model vs old” is unlikely to make a giant difference either way.

 

[whitex]

The notion that EVs are going to be like phones or laptops just because they have a battery is ridiculous, sorry.

While I don't quite subscribe to the disposable car theory myself, I think you missed the point - it's not because EVs have a battery, it's be cause their technology is moving very fast right now due to it being an emerging tech. EV cars are improved much faster from generation to generation than ICE cars.

Leaving aside that people have been keeping laptops longer and longer for years now, and people are keeping phones longer and longer as well, there’s just no comparison with a car.

People used to swap phones and laptops a lot more often when the technology moved fast. Once the newest phone or computer doesn't offer much visible benefit, people stick with the old one longer. Same happens to all tech. Cars costing more than phones of course will make swapping to the latest a lot more expensive, so it will occur less, but it will happen to some degree. Think back to 1980's when ICE cars were improving quicker - a car with 100K miles or 10 years old was considered ready for a junkyard. Today, you can still get some money for a 10 year old ICE car with 100K miles. My guess is similar thing might happen to early EV's, their life might not be as long as their successors. There is a flip side to this however, if EV's drop in price and charging infrastructure expands quickly, ICE cars may suddenly experience huge depreciations (think how quickly people switched to color TV's once the stations started transmitting in color, even though the transmission was 100% backwards compatible with black and white TVs).

To clarify, I personally don't think Taycans today are depreciating any faster than other luxury sedans in the same price range. I think people are comparing prices to a car pricing bubble during the pandemic, which was an extreme market anomaly due to a confluence of a number of factors, the biggest one being a world pandemic shutting down supply chains. I think the depreciation difference will happen around year 8, once the battery warranty will expire. Will you be able to rebuild a battery for a 10 year old Tacyan, sure, but it will be a custom job like rebuilding any low volume discontinued ICE car today. There will also be be people tinkering, like some who will take an old V6 car, disable 2 cylinders and drive on 4 remaining cylinders, there will be people who will take an old EV, disable part of the battery, drive on less cells. Etc, etc.

None of this deterred me from buying a Taycan. Nobody buys (or at least should be buying) a Taycan because it's an investment on cheap transportation. If you're looking for cheapest, most practical transportation, there are much, much less expensive options on the market today (even EV if that is an important consideration for you).

 

[Mr.Smith]

The notion that EVs are going to be like phones or laptops just because they have a battery is ridiculous, sorry.

Leaving aside that people have been keeping laptops longer and longer for years now, and people are keeping phones longer and longer as well, there’s just no comparison with a car.

It’s crazy how irrational people are with EVs (even people that like them and own them!)

A car is a massive purchase. It’s still completely functional even when a new one comes out. ICE innovation, and perceived obsolescence, has been non stop as well, but people have decided to now pretend that’s not true.

The depreciation of premium performance ICE cars with four doors from Germany has been horrible for 30 years, but again people pretend that’s not true.

ICE takes a huge efficiency hit in winter, but no one ever cared. Somehow now people are obsessed with winter efficiency. Same with “range”. Everyone now has a “need” to drive 300 miles plus, with only 3 minutes of stopping, even though data proves 90% of people do that once a year at most.

Most of the bullshit around EVs today, pumped endlessly by the media, is massively exaggerated. Sure EVs are depreciating a bit more than similar ICE (which in the case of the Taycan is the Panny, so please stop comparing to the 911), but the difference is nominal and that nominal difference can easily be explained by the various tax incentives on new leases and on the insane level of FUD that for sure influences people.

As for batteries and battery life, batteries last ages, are warrantied for ages, rarely just “completely die”, and individual cells can absolutely get repaired. Just like engines and transmissions, two huge ticket ICE components that people now pretend last forever. Taycan batteries aren’t magically different. Indy shops will pave the way here. Does anyone get their 993 rebuild done by Porsche?

TLDR is: Anyone buying a four door Porsche sedan needs to be ready to pay to play. ICE vs EV doesn’t really matter, and “new model vs old” is unlikely to make a giant difference either way.

Ive had EVs since 2000, I know the wholesale market, I know many dealers.

EVs have very little maintenance and nothing really goes wrong with them, but if something goes wrong, you're toast.
Your point of failure in any EV can be astronomical compared to an ICE.


Here's a test:
Go try and repair a Taycans battery pack
Go try and sell a Taycan
FYI my RS E-Tron GT was $169,850 and is worth $80k after 20 months.

 

[whitex]

Ive had EVs since 2000, I know the wholesale market, I know many dealers.

EVs have very little maintenance and nothing really goes wrong with them, but if something goes wrong, you're toast.
Your point of failure in any EV can astronomical compared to an ICE.


Here's a test:
Go try and repair a Taycans battery pack
Go try and sell a Taycan
FYI my RS E-Tron GT was $169,850 and is worth $80k after 20 months.

Ok, now go try to repair a 911 GT3 RS after a fender bender where you accidentally rear end an Escalade in traffic, no frame damage.

 

[BJCanadaMax]

I want to share my thoughts regarding depreciation of the updated Taycan. As I decided to swap my 2020 Taycan to the updated version, I've been thinking about this a bit.

First of all, there are obviously a multitude of reasons why the Taycan has depreciated significantly but to me there are a couple of key reasons that are not talked about enough:

1. It is a car model that was launched during the largest money printing episode in modern history. There was a lot of money in circulation and a lot of people could afford to buy a Taycan, or at least thought they could afford one.

2. Taycan is a mainstream luxury car. The amounts sold are massive. Someone countered my argument in Facebook saying "why doesn't the 911 depreciate like this?", well, the most important rule in economics is supply and demand. I looked at the amount of 2020+ Taycan's in sale in Finland and the amount of year model 2020+ 911s on sale in Finland and the current amounts are: Taycans on sale: 173, 911s on sale: 18. People bought a huge amount of Taycan's during the zero interest rate period but not a lot of 911s.

3. Now we live in a new economic reality. Every single mainstream luxury car is depreciating a lot because so many are selling them, and fewer are buying them. Model to model there are of course differences, but broadly speaking the same economic reality affects everything. Note that it is important to differentiate between mainstream luxury cars and niche luxury cars. Niche luxury cars are not necessarily hit in the same way, as they might not have experienced such a boom during the zero interest rate period.

Now with that being said, let's discuss the reality of the 2025 Taycan. It is more expensive, fairly competitive in its specs to rivals and it has been launched during a new tighter economic reality. Also there are other contributing factors such as some people being worried about Taycans reliability.

What all of this means is that the order amounts of the new Taycan will likely be significantly smaller than with the old Taycan and therefore I do not expect us to see boatloads of them on sale in a year or two. The used car market of the new Taycan will have a far smaller supply than what we currently see with the old Taycan. Also the specs of the new Taycan will probably hold up well to rivals in the next few years at least, which is a less of a factor but a factor nonetheless.

So to finalize my point, I believe the 2025 Taycan will depreciate a bit slower than the old Taycan, as it is launched during a tighter economic reality and the used car market for that car will have a significantly smaller supply than we are now seeing with the old one. I look forward to seeing stats of how many of these Porsche are selling, as I strongly believe the sales will be smaller than the Taycan sales in the past.

##%@#%@#%!%%@#%@# hahhaah. just funny that someone put so much thought into it.

 

[Mr.Smith]

Ok, now go try to repair a 911 GT3 RS after a fender bender where you accidentally rear end an Escalade in traffic, no frame damage.

It's a ratio of repair cost vs depreciation.
Yes, GT3RS parts are expensive, but the value increases for the car in time.
How much is a GT3RS compared to 6 years ago?

The worst scenario is expensive parts and falling values.

 

[JimBob]

FYI my RS E-Tron GT was $169,850 and is worth $80k after 20 months.

Perfect metaphor for owning a Porsche. It's vanity. Can't conflate vanity with economics.

 

[Mr.Smith]

Perfect metaphor for owning a Porsche. It's vanity. Can't conflate vanity with economics.

Correct. That's why I leased at a 62% residual compared to 46% residual of a Turbo.
The buy out is at the end of lease is $102k so that's Audis problem.

For me an EV is a vanity play, for 3 years, and I'm paying a monthly fun fee for it. I don't expect anything more than that

 

[JimBob]

Love it. Should come with the purchase of every new car. The cost of fun. Financing extra.

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