Depreciation

[annieland]

I ended up getting an Audi RS E-Tron GT instead of a Taycan Turbo. Taycan is a better car, but budget was a factor for me.

My car was $169k, 63% residual, same spec with Porsche would have been $189k, 44% residual, an MRM, limited allocation and prick Porsche dealers.

Congrats! That is actually the car on my husband's radar when he goes EV... I keep telling him, "Not this year!!" Enjoy

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[whitex]

Looking at the 2021 wholesale data, I'm seeing TTS with under 10k miles are trading at around $110k. That is an incredible amount of depreciation!
2021 RWD models are trading at around $70k, this is good.

As a rule of thumb when you have a car with variants from $85k to $225k, it's best to go with the lowest end models if value preservation is your goal.
Wholesale will always have price discovery around the lowest of of the price spectrum.
This is why RWD are holding up fairly well.

I discovered that when I was a teenager, and used to to flip new cars every 2 years - buy a base model, no options, when there are incentives towards the end of MY, then swap it for a new one a couple of years. I'd buy a brand new an almost base Civic for $11K, drive it 2 years, trade it in for $9K towards a new one at $11K - I could afford that from my part time job while in high school. Back then base model meant not even a stereo included - the only options I got was A/C and air-bags, both because I wanted them and also made the trade more attractive to dealers. I always put in my own stereo, but took it out for the trade.

When I was looking at to get a Taycan the TTS lease Porsche Financial Services gave the TTS a residual of 38% on 36/12k lease, the RWD was 58%. Even Porsche knew where these values were headed.

If you optioned the RWD with a lot of options you'd see a lower residual too, as options depreciate much faster than base trim. The value of 0-60mph for higher trims is diminishing fast too, since all EV's are getting fast. Even today, a soccer mom in an MX Plaid full of kids will blow away a TTS (with 2x+ MSRP) at any red light, with or without launch mode. A Model 3/Y Performance or machE GT blows away a Turbo S at the light unless you engage launch mode. When everything is fast, people are not as willing to pay that much extra for more power in used cars. Taycan handles way better than the competition, but you can get the same handling from a RWD as the Turbo (actually RWD might handle better due to lower weight). Porsche knows it, so TTS depreciates faster. In an era where minivans will do 0-60 in 2.x seconds, 0-60 loses a lot of value. I actually wonder what Porsche lineup differentiator will end up being in the future, as today they definitely base it on hp and 0-60.

Porsche was smart about CT models, they did not release a RWD, as that car is more about practicality, so an AWD trim will always be more desired, a RWD would just unnecessarily drag resale values down (less people willing to buy used RWD CT, their used prices go down, that causes CT4 prices to go down since the initial price difference would not have been that great).

 

[whitex]

I ended up getting an Audi RS E-Tron GT instead of a Taycan Turbo. Taycan is a better car, but budget was a factor for me.

My car was $169k, 63% residual, same spec with Porsche would have been $189k, 44% residual, an MRM, limited allocation and prick Porsche dealers.

When did you buy it? I was buying an Audi earlier this month, saw eTron GT's have a $12K factory incentive on right now. Apparently a number of young sales people leased etron GT's, since between the $12K, $7500 lease rebate, employee discount, and decent residuals, it is a great deal for them.

 

[Mr.Smith]

When did you buy it? I was buying an Audi earlier this month, saw eTron GT's have a $12K factory incentive on right now. Apparently a number of young sales people leased etron GT's, since between the $12K, $7500 lease rebate, employee discount, and decent residuals, it is a great deal for them.

I got mine exactly a year ago. Dealers were asking for $50k over MSRP, now you can get them for almost $50k off MSRP when looking at a lease.
I paid MSRP or $169k, it's worth about $100k now

 

[magnitude]

If you optioned the RWD with a lot of options you'd see a lower residual too, as options depreciate much faster than base trim.

That's basically how I justified the Burmester in my used Turbo, hehe...

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