Let’s talk about depreciation (UK)!

[Sarah's dog chariot]

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?

Hi there. I am not surprised that you've started this thread. 30% loss in first 2 years surprises me. I appreciate depreciation curves flatten out with time, but still. Out of interest was this 30% when considering Porsche trade in/ part X. I saw a thread where someone was talking about selling it via a specialist Uk dealer and I wondered if that you be better for you... unhelpfully I ant find the link but will try to !! What did you decide in the end... accept and part X anyway?

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[W1NGE]

Hi there. I am not surprised that you've started this thread. 30% loss in first 2 years surprises me. I appreciate depreciation curves flatten out with time, but still. Out of interest was this 30% when considering Porsche trade in/ part X. I saw a thread where someone was talking about selling it via a specialist Uk dealer and I wondered if that you be better for you... unhelpfully I ant find the link but will try to !! What did you decide in the end... accept and part X anyway?

I will trade this week with my Porsche dealership of 20+ years when I pick up my GTS ST. To take the car anywhere else would lead to a worse outcome.

A car is not an appreciating asset (normally) and so it is what it is and had my car been delivered when originally planned (last November) I would have been part of the bubble where prices were inflated.

 

[mangobay]

Hi there. I am not surprised that you've started this thread. 30% loss in first 2 years surprises me. I appreciate depreciation curves flatten out with time, but still. Out of interest was this 30% when considering Porsche trade in/ part X. I saw a thread where someone was talking about selling it via a specialist Uk dealer and I wondered if that you be better for you... unhelpfully I ant find the link but will try to !! What did you decide in the end... accept and part X anyway?

it was possibly me who said about getting a better result asking an independent well know porsche dealer to sell on your behalf. I still find that is 100% correct on my experience but it does rely on a few things- knowing the right dealer, having a bit more time to organise it, being bothered in the first place and a bit of luck. I fully appreciate that many just prefer to hand in old car and drive off new one. But that comes at a bit of a premium when the dealers have a lot of stock as they do now.

 

[W1NGE]

it was possibly me who said about getting a better result asking an independent well know porsche dealer to sell on your behalf. I still find that is 100% correct on my experience but it does rely on a few things- knowing the right dealer, having a bit more time to organise it, being bothered in the first place and a bit of luck. I fully appreciate that many just prefer to hand in old car and drive off new one. But that comes at a bit of a premium when the dealers have a lot of stock as they do now.

My dealer has 2 x 4S cars similar spec (no other Taycans) and has reduced their prices. This is not an inventory issue in my view.

Mine will be sold for a 10K premium which is what I'd expect.

Many convenient variables at play here for dealerships to easily spin a line.

 

[FlyingPoint]

In the last 50 years of buying and leasing ubiquitous cars, I have only seen one time when the market materially exceeded lease residuals, that was during the pandemic related SC issues.
My RWD is leased and the residual is 50% of MSRP at 39 months. That is about what the market will be at that time. That puts depreciation at about 15% per year.
To the OP, your 30% seems spot on.

 

[Novaman]

In the last 50 years of buying and leasing ubiquitous cars, I have only seen one time when the market materially exceeded lease residuals, that was during the pandemic related SC issues.
My RWD is leased and the residual is 50% of MSRP at 39 months. That is about what the market will be at that time. That puts depreciation at about 15% per year.
To the OP, your 30% seems spot on.

Far better to buy a lightly used model and let someone else take the depreciation hit.

I bought a used 2013 911S carerra cabriolet CPO'd in 2015 that came in off a lease. It had only 14k miles on it and was flawless. The original sticker price on the car was 129K. I paid 83K for it. Today the car is valued at somewhere around 63K. Not bad for going on 8 years of ownership

 

[Gwaihir]

I will trade this week with my Porsche dealership of 20+ years when I pick up my GTS ST. To take the car anywhere else would lead to a worse outcome.

A car is not an appreciating asset (normally) and so it is what it is and had my car been delivered when originally planned (last November) I would have been part of the bubble where prices were inflated.

I wouldn’t feel too bad. If mine had been delivered when built in July I had been offered 93k for mine! So Porsche messing around did cost me. . . .

 

[JP_21]

My dealer has 2 x 4S cars similar spec (no other Taycans) and has reduced their prices. This is not an inventory issue in my view.

Mine will be sold for a 10K premium which is what I'd expect.

Many convenient variables at play here for dealerships to easily spin a line.

Pay to play!

It’s funny how people are quick to pick up Porsche dealers/ OPCs on service costs etc but when it comes to big ticket items like buy backs/trade in’s they seem to roll over.
If you want to minimise depreciation sell yourself (can be a hassle!) or use a good quality independent.
Depreciation will be probably be much closer to 15-20%…

 

[W1NGE]

Pay to play!

It’s funny how people are quick to pick up Porsche dealers/ OPCs on service costs etc but when it comes to big ticket items like buy backs/trade in’s they seem to roll over.
If you want to minimise depreciation sell yourself (can be a hassle!) or use a good quality independent.
Depreciation will be probably be much closer to 15-20%…

Care to try in this market which is different to the one that existed last month?

No indies in Aberdeen or likely Scotland and even fewer who are equipped to maintain and prepare a Taycan within UK.

 

[Ross]

Update!
The risible Webuyanycar offer of £76,760 (see page 1 of thread) for my May 22 GTS has been comfortably beaten by Car Wow and Motorway.
Webuyanycar was the best by miles when I sold my 4S for a premium in Jan 2022.
Always worth shopping around.
The cheapest GTS saloon/sedan for sale in UK is £111,000 at Porsche South Lakes. Even with Porsche mark up of 8-10,000 mine must be worth 100,000 even in this crazy market with a little patience.
I don’t like messing around with the general public. Too risky when selling £100,000 of anything. There is usually a dealer who wants it who will pay what a punter would pay if you sniff around.

 

[W1NGE]

Update!
The risible Webuyanycar offer of £76,760 (see page 1 of thread) for my May 22 GTS has been comfortably beaten by Car Wow and Motorway.
Webuyanycar was the best by miles when I sold my 4S for a premium in Jan 2022.
Always worth shopping around.
The cheapest GTS saloon/sedan for sale in UK is £111,000 at Porsche South Lakes. Even with Porsche mark up of 8-10,000 mine must be worth 100,000 even in this crazy market with a little patience.
I don’t like messing around with the general public. Too risky when selling £100,000 of anything. There is usually a dealer who wants it who will pay what a punter would pay if you sniff around.

Carwow are offering £5.4K less than Porsche.

So it is a lottery!

 

[Ross]

Carwow are offering £5.4K less than Porsche.

So it is a lottery!

When Webuyanycar offered me £96,000 in Jan 2002 for my old 4S my car was at Porsche on Sale or Return for £99,995 with me standing to get £93,000 if car sold for full price. This is how I know they work on £7k margin which they are quite open about.
If it didn’t sell after a few weeks they would approach me to accept a lower offer. They were very kind, fair and honest with me and understood that I couldn’t turn down £96,000 (guaranteed) from Webuyanycar and they let me drive the car out of the Porsche showroom 150yds down the road to Webuyanycar who cashed me in 24hrs.
At the time the independents were driving the premium cost market outbidding each other at the Auctions.
My car went to Auto 100 in Nottinghamshire from the auction.
Now it’s all calmed down I am not surprised Porsche are offering better prices for honest, one owner cars they have full knowledge and provenance of. ‘Supplied and serviced by us” etc
Good luck.
Enjoy the GTS.
We need your exact spec. then we can pick it apart of course.

 

[tutis]

Taycan depreciation is very disappointing after having driven a few 911 for a while (and adding mega mileage to them) and getting used to experiencing depreciation amounts similar to a Golf.

Fearing the worst for Taycan, I thankfully took out a lease at a sub 2% interest rate which effectively floors depreciation at 52% RV after 3y and 60k km, and a purchase option at that level.

The way things are going it seems the leasing company will be left with a write down at that point.

the pronounced unreliability in first year of acquisition has further discouraged me to hold the car after the lease ends.

 

[Domy69]

Actually this is not the best time to value the car in my opinion that will be different in the near future.

Question is to know how much manufacturers will value the purchase of old batteries IF lithium technology remains.

Either reselling the car at the start of a new, more efficient, battery technology or keeping the car as long as possible should, in my opinion, be the best deal in the event of resale.

There is more and more information that announces life of battery are much higher than those announced. This should boost the market for second-hand electric vehicles to the same extent as bans on the sale of motor vehicles and restrictions on circulation in cities. No worries about it. Since my purchase order there have already been 2 price increases this also helps to minimize the gap on second hand market.

Enjoy your car Taycan is the best sport elec car in the market. There is no doubt that the second hand market will be profitable. It's just a bit too early for that! IMO

 

[TaycanHero]

2022 was the year when used prices went above average.

2023 is when used prices will go below average.

2024 is when used prices will normalise.

If you sold your Taycan in 2022, you were lucky.

If you must sell your Taycan in 2023, you will probably be unlucky (and disappointed).

If you sell your Taycan in 2024, you'll accept the standard 10% pa depreciation has returned.

For those on a two year ownership cycle, leasing was the best option in 2021.

2022 cash was the best option.

2023 waiting is the best option.

2024 cash or lease, depends on interest rates. Probably the former.

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