Let’s talk about depreciation (UK)!

[Jhenson29]

secondhand ev market is going to be like the secondhand mobile phone market

because ev's are so tech heavy and tech moves on so quickly.

I have yet to see EV tech move at any pace I would call quick. I keep hearing about it. Don’t really see it.

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[Rob********]

I have yet to see EV tech move at any pace I would call quick. I keep hearing about it. Don’t really see it.

Fair point. I was thinking though that between lease deals or whatever financial package people buy via, it could be 3 or 4 years and that could allow various brands to all release new cars/tech

 

[f1eng]

This is a query i have had for a while and the views above that the secondhand ev market is going to be like the secondhand mobile phone market (i.e. none existent) are the same views i have had for years, hence I'm likely to lease mine. I don't think secondhand ev's will be thrown into the back of a drawer and forgotten about once the initial deal is over, but as the market becomes more saturated they can't hold traditional secondhand values like ICE cars have because ev's are so tech heavy and tech moves on so quickly.

I have some DSP active loudspeakers which are 7 years old and hardware incompatible with the latest firmware/software BUT they still work just as well as they ever did so I, personally, don’t consider them obsolete.

As long as my car isn’t screwed over like my iMac has been by unnecessary software updates so it doesn’t work anything like as well as it did when new I will be content with it because I love it now.

I hope EVs won’t be anything like phones or computers obsolescence wise, they certainly don’t need to be, but then neither do phones or PCs, so we will see.

If there are new functions on offer I am not sure I want them and certainly don’t need them.

I went through the list of “important“ upgrades in the latest version of iOS and didn’t see a single one I will use, so not important to me at all, and certainly will be bigger and slower as usual in the continued con of getting people to need something new.

 

[Jhenson29]

Fair point. I was thinking though that between lease deals or whatever financial package people buy via, it could be 3 or 4 years and that could allow various brands to all release new cars/tech

No doubt there will be updates over a 3-4 year period, but that’s true with any car. I don’t think they’ll be “game changers” to a point that they make prior EVs worth significantly less as a result. At least not at any constant or frequent pace. There are a few areas where there are large gains to be made (battery weight and charging power) but outside of that, I don’t think it’s as different to ICE as some make it out.

And everything has more tech and electronics now. It’s not an “EV” thing. It’s an “everything” thing.

i.e., I don’t think EVs are inherently more tech heavy than ICE as much as modern cars are inherently more tech heavy than previously.

To be marginally on topic (at best), I don’t consider resale when purchasing or my car’s value while I own it. When I buy, I consider that money spent and gone. When I go to buy again, if I’m going to trade a car in, I consider its value at that time; but not before.

 

[Skilly]

I think we are still in uncharted territory....and the Taycan resell market in the US is showing us that.

Just 6 months ago, if you could find a fairly low miles 2020 TTS for $165K USD that was a fair/good price. Today, its $135 to $144K. Manheim and BaT are showing us the new norm would be in the mid 130s. Thats for a car that was 210K USD on average. And, the market isn't done correcting. 2021s are following behind as comparable too.

These arent like 911s - they may have all of the characteristics of one (a fat one), but they are electric and have only held value because of the market conditions.

Depreciation is catching up now to look like 40% to 50% of value over a 3 year range. It sucks for those of you that paid ADMs or thought they were going to defy the gravity of the typical depreciation profile. They wont....in fact, my guess is that as they drop into the 4th year and the warranty disappears, they are going to face another unfriendly dip.

 

[Dabz]

It also depends how you buy. If buying through a ltd company then you can also factor in corporation tax savings (now 25%) so any depreciation is really only 75% of the absolute figure.

then add in fuel saving, Road tax savings..even if depreciation rises it’s still no worse than an ICE car

 

[andix]

Well, especially with EVs a lot depends on politics.
I made profit when I sold my 991.1S (kinda regret selling it), I don't expect to repeat this (or anywhere near) with the Taycan. Especially electricity price rose to insane amounts in Germany.
So, I enjoy the ride and forget about it.

 

[B61]

Exactly….that’s all about it: enjoy the ride!

 

[Redhot2474]

A perfect storm - pandemic, semi-conductor shortages and supply chain issues due to various conflicts - now it really starts to drive home when we look at the not insignificant depreciation heading our way (and for some already arrived). EVs seem to be experiencing a ‘kicking’ in the market not helped by genius Musk dropping prices with significant reductions in values.

Interested in what the real life experiences are out there having personally gone through the “here’s what your car’s worth” discussion at my dealers last week. Please don’t rush to webuyanycar.com as you will be utterly depressed!

My own position is a 30% loss in 2 years, 20K miles, excellent condition. I’m kinda glad I had planned on a 2 year ownership cycle but had hoped for a little more or am I being greedy?

What model do you have ?

 

[kempez]

I’m not sweating it. Prices will also settle down too. I can’t see anything that is gonna depreciate the cars by massive amount until at least 2026+, given current battery lifecycles and development. I am enjoying the car very much though!

 

[W1NGE]

What model do you have ?

As per my profile - 4S - Pano roof, performance battery plus, extended leather, comfort, rear axle steering, 360 Pano, matrix, air suspension and Bose.

 

[Gwaihir]

In normal times but right now these aren't they.

I'm primarily interested in hearing from folk who are trading their Taycans currently or have just done so.

Traded my 4S at Christmas and got 80k. Cost 100k. 2.5 years old.

 

[DoctorLife]

I think the key is the premium brand which Porsche is. Demand for EV’s will have to rise as political considerations dictate the switch off from petrol. There will be more EV’s but it is plausible that demand for second hand premium brands like Porsche for those who do not wish to buy a new non premium brand, will hold off significant depreciation. Isn’t that why Porsche’s hold their value in the first place?

I cannot believe Rolls Royce are producing the EV Spectre believing it will tank in value when the next one arrives. They, like Porsche, (I hope) know their market very well indeed. Of course there will be depreciation, but I don’t think the Taycan will be an exception to the general rule that Porsche’s hold their value better than most other cars.

 

[Raphie]

In NL the Taycan prices at dealerships are only going up.
there is an understream of 2nd hand Taycans sold by lease companies and non dealers. But these are typically low spec barebone RWD’s in order to fit company car budget. These go <100k€ but are not the ones you want. I would not buy a 2nd hand Taycan from a non official dealer, way to many quirks and things that can go wrong.

 

[Fish Fingers]

You have to put yourself in the mind of a 2nd hand car buyer.

Would you want a 2nd hand EV over a similar 2nd hand ICE car or new cheaper car?

I would still want the Taycan (as long as it had a Porsche warranty and the battery was still good).

The artificial post covid bump in used cars was just that, and now it's back to normal. Great if you sold a used Taycan and got a new one at retail last year. Otherwise irrelevant now.

..... But in fact it is actually worse now for EVs as electricity prices have skyrocketed and every consumer knows it.

But energy prices are forecast to come sharply back down this year.
And oil prices are on the way back up again.

So it's back to the first sentence...

And the Taycan is an amazing electric Porsche!

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