Possible Taycan price cuts

[W1NGE]

Hopefully not! From what I’ve read and understand, the UK government is considering relaxing the mandate and has various mechanisms (loop-holes) so manufacturers can still meet targets.

The dealership I deal with — Porsche Centrum Gelderland, the largest in the Netherlands — has a stable rotation of 30-something new and old Taycans.

"considering" being the operative word - successive governments have been inept and our goal to zero is just nonsense.

The situation is stark IMHO and now forcing EU manufacturers to purchase credits from Chinese EV manufacturers in order to meet these punitive targets.

I read recently that Ford (for example) were potentially facing £100m fine for not meeting this year's target.

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[Fish Fingers]

"considering" being the operative word - successive governments have been inept and our goal to zero is just nonsense.

The situation is stark IMHO and now forcing EU manufacturers to purchase credits from Chinese EV manufacturers in order to meet these punitive targets.

I read recently that Ford (for example) were potentially facing £100m fine for not meeting this year's target.

The uk Government(s) have created an absolute 5hit show with EV pricing.

We start paying road tax in April iirc, at a time when private buyers need subsidies.

I watch with utter astonishment at the ever changing confused messages sent out from 10 Downing St the past few years.

 

[Fish Fingers]

It may not be all bad news for private owners though......

As long as you want to stay with an EV, you may have poor residuals - but you can make it back on your next cars discounts.

I px my Taycan in Nov (nearly 50% after 3+ years and 23k miles).

But I got nearly 40%/£30k off list for a lightly used BMW i4 M50 (2k miles / 6m old BMW car).

It worked out very well for me.

 

[A.Mayor]

"considering" being the operative word - successive governments have been inept and our goal to zero is just nonsense.

The situation is stark IMHO and now forcing EU manufacturers to purchase credits from Chinese EV manufacturers in order to meet these punitive targets.

I read recently that Ford (for example) were potentially facing £100m fine for not meeting this year's target.

I don’t follow the travails of Ford, but would the UK government incentivize Ford to do another round of (this time) deeper job cuts?

They might have some leverage.

 

[Grim]

One would hope that the equilibrium will be restored and prices will stabilise. The higher financing costs and the fear of massive depreciation will put off buyers, which while reducing demand (but also increasing exclusivity) will also reduce supply of second hand vehicles in the future. Even for corporate lease buyers costs have gone up significantly when higher base prices, interest rates, the additional depreciation as well as increase in BIK rates are factored in.

What is more difficult to predict is whether government policy (EV mandate) will continue to create additional incentives for manufacturers to increase supply and thus limit that exclusivity and future supply of second hand vehicles.

I guess it will all depend on the situation that Porsche finds itself in ... hopefully the expansion of the EV range (ramped up production of the Macan EV and launch of 718 EV) will be enough to reduce the incentive for Porsche over-supply Taycans through massive discounting.

What must be particularly annoying for traditional manufacturers is that their pain / fines are helping to fund new EV only entrants including Chinese manufacturers and Tesla. This may be good for supply of EVs in the short-run, helping governments to meet their targets, but clearly longer-term undermines and threatens an extremely important industry.

 

[Vim Schrotnock]

We’re talking about cars that are $150-$250K here, so I don’t see a lot of room for complaining about pricing/depreciation. Nobody that buys a car for this price should be thinking about the car as an investment as one of their primary criteria. I do see a lot of room for complaining about reliability.

I’ll also put forward the opinion that Porsche could have kept their price steady if they had taken the 15% of their redesign cost dedicated to ‘styling’, and used it to increase or maintain their profit margin at a fixed cost…

 

[W1NGE]

I don’t follow the travails of Ford, but would the UK government incentivize Ford to do another round of (this time) deeper job cuts?

They might have some leverage.

Look what the government didn't do with Vauxhall (van plant in Luton, ZEV mandate being the main reason) - shameful!

 

[W1NGE]

We’re talking about cars that are $150-$250K here, so I don’t see a lot of room for complaining about pricing/depreciation. Nobody that buys a car for this price should be thinking about the car as an investment as one of their primary criteria. I do see a lot of room for complaining about reliability.

I’ll also put forward the opinion that Porsche could have kept their price steady if they had taken the 15% of their redesign cost dedicated to ‘styling’, and used it to increase or maintain their profit margin at a fixed cost…

Plenty of room to complain!

Sink the same money into a 911 and still come out with 70% after 3 years - that is materially different.

Sink £200K into a Taycan Turbo GT and lose 50% in year 1.

We all know its a mugs game but that's not the point.

Nuts!

 

[tophamn]

as to dropping base prices - there will always be peeps prepared to pay sticker so by dropping prices across the board Porsche would probably be shooting themselves in the foot?

Reducing sticker prices has the knock-on effect of pushing all used car prices down, including those on guaranteed residual value leases; giving point-of-sale discounts protects the published prices, and also the perception of where these cars fit when compared with other marques (just look at all the comments in this forum starting "I got a huge discount on my Taycan" ).

 

[Tooney]

 

[asiviero]

this is a new technology and a new market; if porsche would make battery replacement with more range for older model(s) (J1, and J1.2-soon,J2 etc), software updates and improvements, like or better than Tesla, people will start to trust the new tech/VW, the value will be more stable and desire to keep buying new EV will increase. with current experience(s) like electric price increase (ehm, porsche charging "plus" rip) customers are running away from EVs.

 

[Lefty8235]

This is an amazing thread. I admire how informed some of you are.

Bear with me while I state the obvious.

In the US (I’m sure elsewhere as well), it amazes me how political division has made the EV products so polarizing. None of it makes any practical sense, but it’s certainly real. I think of it this way:

• EVs are exceptionally fun to drive. I don’t recall hearing anyone say the driving experience on any EV was bad unless you were scrutinizing high level performance attributes.
• Feels like they’ve been politicized as a replacement market rather than an emerging market. Perception is the government wants to take away your engines, your stoves, your guns, etc, so we have dug our heels in. If EVs were allowed to mature as an option (like stoves) organically then the market would find its natural balance and investment by manufacturers would be based on better data.
• Government investment in subsidies and mandates, etc, have creating an artificial marketplace before you consider the us vs them backlash this has caused.

If you have charging capability at home and don’t rely on long road trips, to me, an EV is a slam dunk at the average level of car. No one I know can’t wait to hear the roar of that Accord 4cyl engine in the morning, which is why they’re holding off on switching to an EV. Spend a few $$ to have at least a 240V outlet put in and you’ll never look back.

This is a baseline and I think suits many commuters and daily drivers.

If you are a traveler and would need to use the EV for road trips (like it seems many members here from Europe do) then you have to add deeper considerations, of course. But at the baseline daily use level, EVs seem far and away more desirable than a gas car. No service, no hassle, fun to drive. Almost always more powerful and peppy than their ICE counterparts.

So… this pricing and discounting experience we’re all seeing, as someone above mentioned, feels like manufacturers wrestling with an unprecedented marketplace, influenced by remarkable external factors, including the pandemic, which caused abnormal pressures in supply/demand. They are scrambling to find the market, but they will. It’s not a flaw with the vehicles as much as it’s a reflection of the times.

I got my ’24 TTS out of inventory at the end of ‘23, knowing full well the refresh was coming. Got a substantial discount off sticker, but at the same time (also as someone else mentioned), I never considered this an investment, and I made my deal with my eyes wide open so the depreciation factor is merely the cost of doing business. I didn’t buy it under false pretenses or with a misunderstanding of the value so I’d have nothing to complain about if it’s only worth 50% today.

 

[Tooney]

Blessed are the wannabe censors who protect us all from harm.

 

[jeffb]

I don’t know .. I was trying to buy a J1.2 to order and no one has allocations, a couple would submit a demand order with no discounts.. which isn’t of interest to me.

It doesn’t feel like Porsche is trying to sell very hard in my small view of the world..

It's common to offer discounts on prior year cars, especially if there was a model change. I've seen a lot of deals on cars already on the lots. I custom ordered my 2025 4S and got a decent discount but my experience over many years is that discounts on custom orders are more rare and smaller.

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