Taycan depreciation

[Redhot2474]

I agree with you that I didn't purchase this as an investment, but to enjoy it. Coming up on 2 years of ownership of a '21 4S I am faced with a decision: It seems like either sell the car now for over 1/3 less than purchase price, or hold on to it and keep driving. It has low cost of ownership (other than tires ?); I guess the question I'm asking my self is: Will the depreciation curve flatten at all? Porsche is raising prices on new Taycans, but also there will be a model refresh in '24 and it seems generally most EVs aren't holding value the same as ICE vehicles.

If you sold and bought something else new you would be faced with a significant depreciation again. Keep it, enjoy it - it will flatten soon, especially with recent price increases

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[Fish Fingers]

If you sold and bought something else new you would be faced with a significant depreciation again. Keep it, enjoy it - it will flatten soon, especially with recent price increases

I agree.
I think to understand future residuals you need to think of desireability for potential future owners.
I think it's 3 fold:

1. Used EV v used ICE?

2. Used premium EV v new budget EV?

3. Used Taycan v Used other premium EV?

I think on all these matrix the Taycan will look like a good choice going forward.

We are in a strange place for used car prices now - especially EVs (negative) as opposed to just last year (positive) due to a whole host of reasons.
It will all level out shortly.

 

[f1eng]

Long term the modular servicable battery will probably turn out to make the Taycan a good buy depreciation wise.

I usually keep a car at least 6 years if I like it which makes depreciation less of a concern.
The one car I sold early, because I couldn't get comfortable, had depreciated hugely, I suppose it effectively loses the 20% VAT the day you pay for it.

 

[mcr21]

UK is a particular market given that it arguably has one of the most favorable tax regimes for EVs purchased by companies, but at the same time Taycan seems to (as of recent) have the steepest depreciation curve here.

 

[DrMoo]

Ultimately it is pure economics, supply and demand, as it shifts we all know what happens.

 

[amazing]

If you sold and bought something else new you would be faced with a significant depreciation again. Keep it, enjoy it - it will flatten soon, especially with recent price increases

I pretty much agree. The only counter-example I can maybe thinking of selling a heavily-option '21 4S with low mileage gets one pretty close to the price that used 918 GT4, which seem to be holding value much better than any Taycan.

 

[mjw930]

All GT products retain value better than ANY other Porsche, always have, always will, you can’t use those as a yardstick. Heck, I sold my 718 Spyder after 2 years for 20% more than I paid for it.

 

[WindsurfUS1111]

Paid MSRP, but they turned it into a CPO (even though it had 25 miles on it) which gave me a 6-year warranty, and threw in 2 years of tire/wheel warranty.

That was because I was willing to accept an existing build.

I had placed an order with a deposit, but it was pushed back because they had no Bose or Burmester's at the time - wasn't going to accept the change to crappy base audio system.
Within one month of ownership, Bose and Burmester were back on spec list

 

[Moonstone]

UK is a particular market given that it arguably has one of the most favorable tax regimes for EVs purchased by companies, but at the same time Taycan seems to (as of recent) have the steepest depreciation curve here.

Its the favourable tax regime for EVs that is the very cause of the steep depreciation that you describe.

The market for used Taycan's does not have the tax incentive to create the same demand.

 

[RGBArgee]

Exactly so which is why nearly new Taycan and Audi Eton GT are taking a long time to sell. Dealer put my last CT4S 8k miles on the market in January for £107k still for sale and dropped to £93k.. I had most of the issues with it but these are now sorted but lost faith in it. New one (virtually identical ) is fine. Superb cars and I intend running for 3 years and hopefully recover 50% of RRP and benefit from mall the tax savings on the way.

 

[mjw930]

Exactly what happens when the government subverts the free market in the name of driving an agenda.

 

[Chas1]

I agree with you that I didn't purchase this as an investment, but to enjoy it. Coming up on 2 years of ownership of a '21 4S I am faced with a decision: It seems like either sell the car now for over 1/3 less than purchase price, or hold on to it and keep driving. It has low cost of ownership (other than tires ?); I guess the question I'm asking my self is: Will the depreciation curve flatten at all? Porsche is raising prices on new Taycans, but also there will be a model refresh in '24 and it seems generally most EVs aren't holding value the same as ICE vehicles.

Ev and battery tech is moving fast. That’s why government offer massive discounts to corporates to power ev market. Generally ev values have tanked as tech improves but I see no reason to dispose of a Taycan for 7 years or so. I expect depreciation will be heavy, similar to Cayenne. For private buyers used low mileage Taycans will look like a great buy vs Tesla model S or similar. It will be interesting to see how maintenance costs work out over time.

 

[R Benny Waered]

Its the favourable tax regime for EVs that is the very cause of the steep depreciation that you describe.

The market for used Taycan's does not have the tax incentive to create the same demand.

I'm sure you are right, but its funny how no one saw it coming - it was all about battery tech improvements giving it a hit!

Much of the upside of buying via your company now seems to be being ported straight over to the next owner rather than those that risked an EV purchase or/and took a big company cashflow hit for a seemingly good deal!

I guess I feel a bit of a mug as my £103k turned to £59k in 18 months. I'll ride it out with optimism and a superb car! The tax benefit "saves" me £8.8k of that £44k hit. Or caused it LOL!

Anyway, just look at my gorgeous burden, fuelled by the Hydro Electric dam!

 

[f1eng]

I am retired and not eligible for any tax benefits and paid list for a spec I wanted.
I did consider used but never saw one in a spec I was prepared to pay the asking price for.
Of course I would consider a non optimum spec if the price was right, but while I was waiting for mine there wasn’t one.
There are a couple I would have gone for for sale now, but not then.

 

[CxM]

In my province where there is tax on new and used cars, there is now an exemption for used EV's. I haven't checked markets, but this likely will help keep prices of used EV's up.

A new Taycan from a dealer at $130k would have 33k+ in taxes,
Vs. buy used one from private seller and its tax exempt.

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