Let’s talk about depreciation (UK)!

[W1NGE]

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?

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[kempez]

Isn’t the general position 10-12% (ish) per year, depending on mileage? I think it will flatten out at about 10%

 

[Fish Fingers]

I always think anything better than 50% retained over 3 years / 10k miles pa is doing ok.

The last 2 years have been an anomoly and normality is now back.

However, I have got a feeling I may keep my Taycan longer term, as there is nothing I currently want to replace it with. Its the ideal car for me.
In which case the depreciation curve should slow down over time.

I am also looking at total cost of ownership, which so far has been very good compared to most ICE cars.

The other thing is buying a new one now.....
It would be on much higher interest rates than previously, or using savings up, which I think may perform well in 2023.

Add in tax increases on EVs and rising electricity costs and its all going to be more costly going forward.

If I had sold this time last year, I would have been in profit.

The halcyon days are drawing to a close, but Im glad I've got a Taycan over any other EV.
Hopefully Porsche residuals will count for something. But I won't be rushing to change.

 

[B61]

IMO, -30% is quite realistic expectation, but i can’t see any reason why to sell mine at all.
It’s perfect for me, so i’ll keep it for a while… even if i’m awared that -70% is quite possible in about additional four years.

 

[XKSS]

I sold my 11 month old CT4 in October 22 with 6500 miles on it and got back 100% of the purchase cost from Nov.2021 - I was slotted into an immediate build slot for a replacement @ RRP and waited just 10 weeks for my new CT4.
I honestly think I was one of the last few to get a strong trade-in as the quoted buy in prices now seem much more soft. Supply of new cars is reasonable and I hear there's a slow trickle on cancelled orders enabling willing buyers the opportunity to pay RRP not premiums.
All makes sense I guess

 

[W1NGE]

Isn’t the general position 10-12% (ish) per year, depending on mileage? I think it will flatten out at about 10%

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.

 

[W1NGE]

I sold my 11 month old CT4 in October 22 with 6500 miles on it and got back 100% of the purchase cost from Nov.2021 - I was slotted into an immediate build slot for a replacement @ RRP and waited just 10 weeks for my new CT4.
I honestly think I was one of the last few to get a strong trade-in as the quoted buy in prices now seem much more soft. Supply of new cars is reasonable and I hear there's a slow trickle on cancelled orders enabling willing buyers the opportunity to pay RRP not premiums.
All makes sense I guess

That's impressive indeed.

 

[Ross]

I bought a 4S 2020
Rough figures
83+10 extras - 3 govt grant
£90,000
Sold Jan 22 to Webuyanycar
£96,000

Bought GTS May 2022
104+8 extras
£112,000

Things have CHANGED
I am keeping mine for the moment……..

 

[WuffvonTrips]

I didn't expect "typical" Porsche depreciation to apply in the case of an EV- the rate of technical advancement is more comparable with smartphones, TVs and such, where the latest versions make their 5 year old versions antiquated and obsolete. In some ways that'll be even worse as applied to EVs, as the advancements in range and/or weight are of more practical benefit in key performance areas than in the case of a phone becoming more powerful.
The other factor is that all car manufacturers need to start offering EVs, so the market is becoming more competitive which will also impact residuals. Power and range can already be got much more cheaply than at Porsche prices.
My consolation is that I can enjoy this great car now, the alternative was to wait maybe 5 years for the market (offerings and prices) to settle down a bit- but I'm not sure I'd be in a position to enjoy that then.

 

[W1NGE]

I bought a 4S 2020
Rough figures
83+10 extras - 3 govt grant
£90,000
Sold Jan 22 to Webuyanycar
£96,000

Bought GTS May 2022
104+8 extras
£112,000

Things have CHANGED
I am keeping mine for the moment……..

Blimey, you scored first time around!

 

[W1NGE]

I didn't expect "typical" Porsche depreciation to apply in the case of an EV- the rate of technical advancement is more comparable with smartphones, TVs and such, where the latest versions make their 5 year old versions antiquated and obsolete. In some ways that'll be even worse as applied to EVs, as the advancements in range and/or weight are of more practical benefit in key performance areas than in the case of a phone becoming more powerful.
The other factor is that all car manufacturers need to start offering EVs, so the market is becoming more competitive which will also impact residuals. Power and range can already be got much more cheaply than at Porsche prices.
My consolation is that I can enjoy this great car now, the alternative was to wait maybe 5 years for the market (offerings and prices) to settle down a bit- but I'm not sure I'd be in a position to enjoy that then.

Don't forget that the Taycan you buy today is the same techwise as it was at launch and so the analogy is not quite correct.

 

[Midlifecrisis]

4S bough January 22, sold 10 months later (November) at 4.7% depreciation. In the last 3 months I think the same car (Autotrader valuation) has fallen at least another 5%. If Liz Truss hadn’t destroyed the economy when she did I don’t think the depreciation would have cost anything. I traded in.
The differential to the new car (Turbo) remains the same today as when I bought it and traded in the 4S. I am expecting 10%/year - but we will see.

 

[WuffvonTrips]

Don't forget that the Taycan you buy today is the same techwise as it was at launch and so the analogy is not quite correct.

Yes, to date Porsche have managed (intentionally or not) to not devalue older Taycans by incrementing power or range (thankfully the range improvements so far have been software which can be updated)- but I doubt they can stay competitive without doing so in future. Once they start upgrading hardware, the only way to preserve residuals of older versions would be to significantly raise new prices, which would make them even less competitive with other manufacturers' offerings.
On a more optimistic note- once the charging infrastructure ramps up, there should be less market emphasis on range.

 

[Rob70]

Sold my 4s nov with 20k miles. £105k purchase achieved £88k at 2 years old.
Residuals definitely sliding since.

 

[Rob********]

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.

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