Resale value, 4S vs Turbo?

Dave T

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After going hog wild adding options to my 4S build, the price is up to $149K from the starting $103K before options. Yikes! That's getting close to Turbo price territory. The same options on the Turbo "only" get me to $179K, from the base $151K. So my $46K of options on the 4S are only $26K on the Turbo, since many of my options are standard on the Turbo. (I actually didn't figure out which ones...) This makes me wonder, how much more resale value will the Turbo have? A key factor, obviously, is how long will I hold onto the car. I suspect I'll want a new Taycan when Porsche comes out with the next model - any idea when that will be? In any case, I wonder how much more the Turbo would actually cost me, after options, and taking into account the increased resale value.
 

Reg

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You should also consider the salability of a car, not just the resale value. I think you can sell a 4s faster than a Turbo just due to the size of the market for a "cheaper" car, and that people who will pay extra for a used turbo, may be more inclined to just buy a new one so they can get the customizations they want...so you may wind up giving bigger discounts to sell the turbo.

I looked at the same math since my 4s is similarly loaded as yours, but in general you don't get back dollar for dollar the upgrades you buy, including the upgrade from a 4s to a turbo.
 
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Dave T

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Hmmm. I gotta think that the turbo would have a resale value considerably higher than the 4S, that you’d make back a lot more of that price differential than you would on the cost of options. Do you disagree?
 

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They're both going to be terrible, but you'll be out more dollars in depreciation on the Turbo. I don't think I'd want to use that as much of a criteria for any large luxury sedan, EV or not, because as a group they all suck for depreciation.
 

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In the UK the GFV (Guaranteed future value) of my 4s and Turbo after 3yrs and 5,000miles per year are
Taycan 4s = £59,000
Taycan Turbo £77,000
 
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Dave T

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In the UK the GFV (Guaranteed future value) of my 4s and Turbo after 3yrs and 5,000miles per year are
Taycan 4s = £59,000
Taycan Turbo £77,000
That’s helpful, thanks! But 5000 miles a year is really low. How about 10k miles? And what is GFV, where are you getting that from? Is that something to do with leasing? Is there a website I could check out?
 

Lfcdan

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That’s helpful, thanks! But 5000 miles a year is really low. How about 10k miles? And what is GFV, where are you getting that from? Is that something to do with leasing? Is there a website I could check out?
In the UK a common way to purchase a new car in PCP (personal contract purchase)
You pay a deposit and monthly payments over a set term (in my case 3yrs) and then at the end of the term you can pay the Balloon payment and keep the car, part exchange or hand it back
The manufacturers basically predict what the car will be worth after 3yrs and my estimated milesage
The benefit of this is that you are provided with a GFV (guaranteed future value) this is the balloon you would need to pay to keep the car £77,000 for my Turbo

if after 3 yrs My turbo was worth more than £77,000 then I would part exchange for a newer car if it was worth less I hand the keys back to Porsche and they lose money

It’s a great way to buy a new model of car as it takes the risk away,
The reason I’ve done it over 5,000m per year is that if I did it for 15,000 per year it reduces the GFV by about £10,000 !!!!
But if I pay for 5,000 miles per ur and I do more I pay excess mileage at the end of the term and for the extra 30k miles (45k rather that 15k Miles) my excess miles cost is under £5,000
So about £5,000cheaper to underestimate and pay excess miles

the 4s is cheaper but has less value at the end than a turbo so the actual cost for me over 3yrs is only £10,000 more on a turbo as I’m only paying tye depriciation and I treat over the term

the same would go for the turbo S although it costs more it has more value after 3yrs BUT the waiting list in The uk for a Turbo S is so long I’m sticking with the Turbo

I hope this explains.
 
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Dave T

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Ah, ok thanks. Sounds like a leasing agreement here in the US. I’ve never leased a car and don’t know anything about it. But it sounds like it’s a good way to get an estimate of future value.
 

exav8tor

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Lfcdan

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You can lease in the UK too But this isn’t a lease

you are the registerd owner and can sell the car at anytime (you would obviously need to settle the finance)

It’s the most common way of buying a car in the UK as it keeps payments low, you know exactly what the car will be worth at the end of the term and also most people in the UK get new cars every 2-4yrs so at then end of the term you just swap for a new one

The worry with the Taycan if other manufacturers bring out better more efficient cars that compete with it!
Ie Bentley, Ferrari, Lambo etc
The Taycan value may drop but with PCP there is no worry
 

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That is an interesting calculation you have for the leasing in the UK! Why would anyone state more than 5000 miles as per your example.
Another question, what is the percentage of the GFV against the original price?
I would have assumed that the 4S would have be better value at the end because Porsche dealer would find it easie4 to sell after the leasing period? More demand for lower priced cars???
 

Lfcdan

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there will be a lot more Taycan 4s available so won’t have as high residual value

When buying a 4s and adding options it gets closer to the Turbo price as some of the options I would have on the 4s are standard on the Turbo
Ie Metallic paint, bigger wheels, bigger battery, full leather etc

Options add nothing to the GFV!
Hence why there is not much cost difference for me between them
 

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For most cars you retain the best resale value on the base price of the car and options depreciate significantly. There are some exceptions with “must have” options but in general that is the case. My experience with Porsche definitely bears that out. A highly optioned 4S will suffer more than a lightly optioned turbo so if you are getting close to turbo pricing then consider upgrading the model. Same for turbo to turbo S. The depreciation on the Taycan is still a complete unknown. There is significant demand right now and I suspect there will be for the first year or more. I have not owned an EV before so I don’t have any experience there. What happens after that first year or two might be a bigger drop, especially if technology advances rapidly. Porsche leases in the US are usually very unfavorable so there isn’t the a large number of cars coming off lease hitting the market at any one time. That usually helps the resale flavors the brand. It’s going to be interesting to see how it plays out.
 

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In the UK the GFV is only affected when you add the performance battery. All other options make no difference.
 
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Dave T

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I started seriously thinking about moving up to the Turbo, but it now seems like it’s a moot point. I asked my dealer, and they said they had no Turbo build slots left. Oh well.
 

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