Trade in value on 2022 Taycan Turbo S

[Sean4510]

Hey everyone, figured I'd post this here in case people are considering trading in their Taycans for something else. While I absolutely love my Taycan turbo s, I'm itching to get a 911. My Taycan was a $210k car 11 months ago when I bought it new. 6,800 miles and it's in mint condition. I was offered $105k as a trade in value -- less than 12 months of ownership and it depreciated 50%!

Curious what others are getting for trade in values. For now I'll be keeping it..

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[slothinker]

It seems the number of folks wanting a premium EV is more limited than thought. Once this fact manifests it tends to become self-fulfilling as the inventory piles up. Also, if you can _easily_ pay $200K for a vehicle, do you really want it used for $40K less?

Someone might try selling one of these used Turbo STs on EBay. That would show what the market is really willing to pay for an low mileage premium EV.

 

[Archimedes]

While you‘re going to take a big hit either way, I’ll bet you could get a slightly better trade in value if you shopped around a little to other dealers. My guess is that you could get $110-115k, as the dealer will probably CPO and ask $135k and try to get $130k for the car. While your car is 11 months old, if it’s a ’22 that means you bought a leftover/end of year ‘22 and so they’ll be looking at it like a low mileage two year old car, rather than a one year old car, as they have ’24s on the lot.

 

[seattlefox]

105k sounds about right given the current market condition. There are a few 120 - 130k TS on the market. Then consider the cost of polishing, CPO, and other labor, 105k is not far off.

 

[whitex]

According to Edmunds.com the mid-market retail value for a 2022 Turbo S sedan is $143,626, some sell above this value, some at, some below. I know we all feel our options set is unique and extra valuable, but the market is what really determines the trade-in value of your car, and the market usually doesn't care about options. Additionally you are facing some headwinds:

1. Generally when driving a car off the lot, assume you just incurred 2 year depreciation, especially highly customized cars like the Taycan.
2. It's a sports car in winter, so will dealer needs to consider that it will sit till spring. Today's price is really next spring price minus storage, interest costs, and risk costs (what if the market tanks).
3. Every month the dealer sits on the car, they are paying ~$1K per $100K they shelled out for the car (interest, insurance, showroom/storage space)
4. Interests rates are high, causing people to be able to afford less, pushing prices down.
5. Given the almost infinite customization of Taycan, anyone who can afford a $200K car, would likely probably rather do a custom order, reducing the pool of used Taycan buyers - less demand, lower prices
6. It is a top trim with ~$30K in options. Top trims depreciate the fastest (of all trims), options even faster.
7. 2022 Taycan is the same as 2021 and mostly the same as 2020, which compete directly with your car and add to the pool of available cars (increased supply, lower prices)
8. There are more EV's on the market today, which were not available back in 2022
9. Turbo S performance advantage over Turbo is only in Launch Mode, which means important only to the crowd who loves to drag race. However, if that is someone's top priority, they can have a 1000hp Model S Plaid for $89,900 which will blow away a Taycan Turbo S in a drag race without trying much. If one's budget is north of $200K, there is a Lucid Air Sapphire which will leave a Plaid in the dust with its 1234hp.

In other words, your car has taken the lion share of it's 3 year depreciation. The current market is not favorable for expensive luxury cars. In 2 years, when it will be 3 years old, you will probably be able to trade it for ~$84K (which would have been the 3 year residual when you got it). Perhaps a good reason to consider driving your Taycan for another couple of years? I suspect of you keep it till the spring, you might get a higher trade-in value than today (since you pay for keeping the car over the winter).

On the other hand, if you truly believe the car is worth much more today (remember, the car is only worth what someone else is willing to pay for), sell it privately - either do the work yourself, or put it up for consignment (i.e. pay someone to sell it).

Full disclosure, I own a 2023 Taycan Turbo CT. I am not kidding myself about depreciation (even if CT's are keeping their values slightly better). It does not prevent me from appreciating my car every day. Of course I am not planning to sell it either, but then I know that selling the car before 2-3 years is eating the largest share of depreciation - the biggest bath I ever took was selling a 2 year old Porsche 911 C4. A year after I sold that car by the way, I could have gotten almost the same trade-in value. That taught me that swapping new high end cars every year or two is very expensive, so I avoid doing it. If you really want to do this, lease, at least you will know up front what it will cost you. Yes, you can do 1 year leases, but of course, very expensive.

 

[andix]

Not sure about the US, but worst thing you can financially do is to give your car to the dealer where you're buying the next one. You will get around 150k+ if you sell privately. Takes longer, more effort.

Other than that: you really go back? I couldn't ;-)

 

[alevek]

We got 48% trade in on a 3 year old , 6400 mi 2020 4S, with basically all turbo options except for the smaller front motor.

 

[whitex]

We got 48% trade in on a 3 year old , 6400 mi 2020 4S, with basically all turbo options except for the smaller front motor.

Which implies that a 2020 Turbo would be worth however much more people are willing to pay for a larger motor, with everything else being the same. 48% of a 4S is a lower percentage of the Turbo S price, hence larger percentage depreciation for the higher trim. The lowest depreciating Taycan right now I think is a 4CT.

 

[Basebull7]

Sounds about right. I have a 2020 Turbo with 30k miles. Sticker was $185,900. Every option on the car. I’ve been getting trade in values and I’m getting hammered. $72k to $78k. I guess it depends, if you’re trading at a dealer and buying a more expensive car they’ll give you more but really you’re back in the same situation.

sucks how much these depreciate.

 

[alevek]

I should have added, that came out to $71,649.

 

[Tucson_Jim]

Not sure about the US, but worst thing you can financially do is to give your car to the dealer where you're buying the next one. You will get around 150k+ if you sell privately. Takes longer, more effort.

Other than that: you really go back? I couldn't ;-)

Totally agree. A basic dealer trade-in tactic is a lowball trade in price leveraged against the reduction in net sales tax on the difference in new vs trade values. Unfortunately, the math doesn't lie. If you sell to a private party, make sure you get enough on the increased price to cover the increased sales tax on your new vehicle.

 

[MHC]

I had a similar experience trying to sell my lucid Air GT. Dealers did not want a really expensive EV unless they could get it with a huge margin for resale . I was offered 68-78k for a 140 k car in great condition with 5k miles. I sold it myself on cars.com or Car gurus - I forget which. It cost me about 100 dollars but I ended up selling it with 30 days for 94k . First time ever I did not trade in my used car but couldn’t stomach a low ball offer.

 

[bluesky]

There is so much talk on this bboard about trade-ins. Trade-in is the lowest price you can get for a car. I get that people may not like to do the work of showing a car to prospective buyers, but there are also auto brokers who can do that work for you and take a cut at perhaps still a better deal than a dealership trade-in.

I have always sold my cars private sale, and though the experience has varied from (listing in club magazine, first person who came bought it at higher than used market price) to (sitting around for months with just a few window shoppers) I still got the price I wanted which is well above trade-in values.

If you really want to minimize the loss, you need to do private sale.

 

[whitex]

I had a similar experience trying to sell my lucid Air GT. Dealers did not want a really expensive EV unless they could get it with a huge margin for resale . I was offered 68-78k for a 140 k car in great condition with 5k miles. I sold it myself on cars.com or Car gurus - I forget which. It cost me about 100 dollars but I ended up selling it with 30 days for 94k . First time ever I did not trade in my used car but couldn’t stomach a low ball offer.

It was a 94K car, not a 140K car then. The 30 days it took to sell also costed you interest on the value, insurance for a month, your time (whatever you think your time is worth) so your cost was significantly higher than $100. Remember that a dealer is a business with investors so it must make money after all their costs, which include paying quite high interest nowadays (probably around $1,000 per $100K trade value per month), property costs, employees, taxes, insurance, etc. They also need to balance risk of some cars not selling at what they thought they would sell.

In the end, as with almost anything else, you can do the work yourself, and take your own associated risks, or you can pay someone else to do it. Doing it yourself will likely (still not guaranteed to) be cheaper if your time is free, your money is free, insurance is free, etc.

There is also an option in between - consignment. You carry the money and insurance costs, but you pay the dealer for parking and sales staff, in a form of a fee (either fixed or percentage of sales).

I have used all of the above options with cars I have owned in the past. I try to choose whichever one is most beneficial for me at the time, which depends on tax benefits as well as on my costs and most importantly risk that it will not sell as I would like. I sold 2 cars this year, one of them I tried selling myself for a month, then sold it to a used car dealer who sat on it for another few months and last had it listed at almost what they paid me for it, so they lost money on it. That is the risk dealer is always taking on when trading in cars, hopefully offset by more profit they make on other trade-ins.

 

[SergeyIndy]

I was just looking on a finder and this came up as a data point for your trade-in curiosity, which is almost exactly what @Archimedes stated in post #3 of this thread:

2022 Turbo S $213k retail build for sale at $139k with 21k miles

if you open this build in the configurator, the retail price shows as $221,600, appreciating very nicely there .

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