Too many Taycans for sale??

[mcr21]

While I drive it, sure, but when it's in the shop for 3+ months with HV battery failure ... made me look what I can get for it. Gonna sell it, as soon it comes back from the shop.

That long in the shop sucks. I've had a few very minor repairs that each took <4 days and even that was disruptive.

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[WuffvonTrips]

Here’s how bad the depreciation is at present. I’m toying with the idea of upgrading to a Turbo.

I had two offers against my (highly spec’d) 4S. The first was 20k down on my buy price, the second was 30k down. I bought the 4S two months ago.

Shocking.

Did you buy new? That level of loss doesn't sound impossible on the day you drive away in a brand new £100k car at the moment.
I'd guess that the most likely way to win in a buyer's market would be to replace your over-spec'd 4S with an equally over-spec'd used Turbo.

 

[whitex]

Here’s how bad the depreciation is at present. I’m toying with the idea of upgrading to a Turbo.

I had two offers against my (highly spec’d) 4S. The first was 20k down on my buy price, the second was 30k down. I bought the 4S two months ago.

Shocking.

If you bought it brand new at MSRP, that's not a surprise (pre-pandemic normal). In Canada and USA, the rule of thumb always was when you drive off the lot, the car gets hit with 2yr depreciation vs. MSRP. Highly customized builds get hit with even more depreciation. It actually makes sense. Let's look at a simplified example - dealer gets a car from factory for $120K, they sell it at MSRP $140K. Obviously, if they can get another new one for $120K, they won't pay more than that for a used one, even if it was only 2 months old. If you were the dealer, would buy used custom build for more than a new one you could get from the factory? Not just that, for that $120K they can get whatever options the new buyer wants, vs. existing car they are stuck with the options the previous owner chose and the new owner might not care to pay for.

The crazy high residuals was a COVD-19 world pandemic phenomenon. This was caused by many factors, massive shortages of new cars, ultra-low interest rates, and massive spending by governments on various programs resulting in trillions of dollars in the public's hands. Today, cars are not flying off the dealer lots. Every Taycan a dealer has sitting on the lot is costing them $1,000+ per month in just interest, so now they need to make more money per car to recoup that, further driving the trade-in prices down.

I realize that is not what you want to hear. I am in a similar boat, except I bought a new Taycan first, and now I'm selling my old car. It's an 8 year old car, so I'm not even dealing with initial years of highest depreciation, yet the "instant-cash-offer" trade-in values halved since a year ago! Some places are not even making offers for cars anymore, because they have too much stock. I'm hoping to sell the car at 75% of what I could have gotten for it on the spot a year ago, might get even less.

 

[NJ-Taycan]

Let’s not forget that Taycan’s (along with any electric vehicle) are basically giant iPhones with 4 tires and a steering wheel. And we all know what happens to old technology equipment from a value standpoint. This, in addition to premium status, fuel prices coming down and current market conditions will impact long term value.

Now, on the positive side. Fun to drive, zero cost for gasoline, just about zero maintenance (e.g., oil changes, spark plugs, air filters and brakes), are on the positive side of the cost curve.

 

[f1eng]

Let’s not forget that Taycan’s (along with any electric vehicle) are basically giant iPhones with 4 tires and a steering wheel.

I think, or at least hope, this isn’t an accurate analogy.

It is true my old iPhone and even the old iMac I bought to use as a music server either don’t work well or aren’t supported by the current software, but it is because of deliberate software policy not an innate loss of performance. It is particularly annoying in the iMac which is now a crap music server compared to years ago and does absolutely zero that I need better. Apple don’t impress me any more (I started with a Mac II in 1987), poorer reliability and money grabbing subscription policy.

If I hadn’t updated the software both would work just as well as when new. None of the new features of iOS were ones I was crying out for so no loss to me if I hadn’t got them - though there is always the security risk of not updating.

I have digital cameras, the spec of which isn’t modern but they still work just as well as they did when new and, FWIW, produce A4 prints every bit as good as modern versions in practice.

So as long as Porsche continue to treat the Taycan as a car and don’t dump software or firmware on it to hobble its performance it will continue to be as good a car in 5 or 10 years as it is now, Just like my old petrol cars.

There is continued discussion about improvements in battery and motor technology but that shouldn’t make a Taycan worse, just its replacement better, and I am not expecting world shaking improvements in either, personally.

 

[W1NGE]

Here’s how bad the depreciation is at present. I’m toying with the idea of upgrading to a Turbo.

I had two offers against my (highly spec’d) 4S. The first was 20k down on my buy price, the second was 30k down. I bought the 4S two months ago.

Shocking.

Take off the VAT and then do the depreciation calc.

No point in flipping a car like this.

Keep it 2 years the trade.

Never over spec a car is another tip.

 

[W1NGE]

Let’s not forget that Taycan’s (along with any electric vehicle) are basically giant iPhones with 4 tires and a steering wheel. And we all know what happens to old technology equipment from a value standpoint. This, in addition to premium status, fuel prices coming down and current market conditions will impact long term value.

Now, on the positive side. Fun to drive, zero cost for gasoline, just about zero maintenance (e.g., oil changes, spark plugs, air filters and brakes), are on the positive side of the cost curve.

This logic doesn't quite apply here. The tech in an MY20 Taycan is as current as an MY23 and will continue to be so for a few more years.

Porsche are not stupid and they will ultimately control the 2nd hand market factoring key technological changes which might upset residuals. Brand protection is key.

 

[Mac_Gaz]

Take off the VAT and then do the depreciation calc.

No point in flipping a car like this.

Keep it 2 years the trade.

Never over spec a car is another tip.

VAT doesn’t make any difference to the amount of personal loss. Whether you include VAT or not, it’s still a ridiculous amount of money to lose in two months.

I didn’t over-spec it, it was a used car. Plus, I didn’t plan to “flip” the car, when I bought it, I just had my head turned after driving a turbo, but yes, given the market conditions and excessive dealer greed, it looks like two years with a toyed-up 4S which is no hardship.

 

[NJ-Taycan]

As someone who built their business in the IT industry, you can update software on a 2020 all you want, but the hardware will always be the limiting factor. The new Macan EV will have over 300 miles of range and other EV’s will push over 400 on a single charge. You can’t stop the evolution of technology, and it’s that evolution which will impact the Taycan and long term value.

 

[BigBob]

Used.

Is one of those bids from the dealer you bought it from? If so maybe it's time for https://www.sendshit.co.uk/

 

[W1NGE]

VAT doesn’t make any difference to the amount of personal loss. Whether you include VAT or not, it’s still a ridiculous amount of money to lose in two months.

I didn’t over-spec it, it was a used car. Plus, I didn’t plan to “flip” the car, when I bought it, I just had my head turned after driving a turbo, but yes, given the market conditions and excessive dealer greed, it looks like two years with a toyed-up 4S which is no hardship.

It makes a.20% difference as soon as you drive off the forecourt. Therefore your starting point is not the retail price that you just paid but more likely the price less VAT.

 

[Mac_Gaz]

It makes a.20% difference as soon as you drive off the forecourt. Therefore your starting point is not the retail price that you just paid but more likely the price less VAT.

I think you are missing my point. The loss I’m referring to is how much money I spent less how much money I’d receive back. Regardless of VAT, dealer extras, or any other fees. The two amounts I quoted in my original post reflect how much I’d be personally losing if I upgraded my 4S.

In any case, as it was a used car, VAT is usually handled in a different way to the usual standard 20%. The VAT is applied to the profit the dealer makes on the car, I believe the rate is something like one sixth of the total profit made on the transaction but I may be wrong. But whatever way you look at it, it has no bearing on the amount of hard cash I’d be losing in two short months of ownership.

 

[FrozenBerries]

As someone who built their business in the IT industry, you can update software on a 2020 all you want, but the hardware will always be the limiting factor. The new Macan EV will have over 300 miles of range and other EV’s will push over 400 on a single charge. You can’t stop the evolution of technology, and it’s that evolution which will impact the Taycan and long term value.

I think this is true regarding the advancements in EV tech from a depreciation perspective. In my opinion, this is why one shouldn’t be looking at the Taycan as some sort of investment, but rather “given the current landscape, is this the EV I’d live to drive most or not?”

if there’s decent residual, then great, but don’t expect much especially if you keep your car a few years.

 

[whitex]

I bought it used - 2 months ago.

Then the depreciation you see if the difference between trade-in and dealer price, which includes a few thousand it will cost them in interest while the car sits on the lot. Last but not least, I’m assuming when you calculate your depreciation don’t forget to exclude taxes and registration. Not sure how it works where you are, but if I bought a used car for $100K and sold it back at 0% depreciation the next day, I would be out about $11K - taxes and registration, not depreciation.

 

[Archimedes]

Reading this thread, I lol at the folks who think that their car shouldn’t depreciate and forgot that in normal times, dealer offers are wholesale prices. For all you young’uns, or people who just have short memories, the minute you drive a new car off the lot, you should assume that:

1. Your TT&L payment is gone,

2. Your new car is worth 10-15 percent less than you paid for it (excluding TT&L, which is gone) assuming you paid market price for it, and

3. It’s worth even less if sold back to a dealer, who will pay you wholesale and then resell it at 10-15 percent below sticker.

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