Mind-blowing values/depreciation

[jkoya]

I ordered and purchased my Cross Turismo during the pandemic, sight unseen for a little less than MSRP. The dealer didn't have a Taycan to even sit in or see color choices in person. Since the Taycan is electric, I fully expected the car to depreciate. It is the best car I have purchased new, I ordered it the way I wanted it and I have no intentions of selling it. It's perfect for Costco, Home Depot and the garden centers. I still love driving it and also love the Mamba Green color.

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[whitex]

I ordered and purchased my Cross Turismo during the pandemic, sight unseen for a little less than MSRP. The dealer didn't have a Taycan to even sit in or see color choices in person. Since the Taycan is electric, I fully expected the car to depreciate. It is the best car I have purchased new, I ordered it the way I wanted it and I have no intentions of selling it. It's perfect for Costco, Home Depot and the garden centers. I still love driving it and also love the Mamba Green color.

Same here, except I did not expect depreciation because it is electric, I expected depreciation because it's a car. I don't think my Taycan depreciated any more than an equivalent ICE car - custom ordered 4 door sedan priced well into six digits.

 

[RGBArgee]

I’ve just jumped out of a 2 year old 4S CT the source of much frustration! £104k new - WBAC £50k - dealer asking nearly £70k - yes - company purchase and All those benefits and low BIK - but £4 a mile depreciation is bonkers - particularly given SOME dealers 2/10 customer service and Porsche GB offering £250 +vat ‘goodwill gesture’ when unusable for a month !

 

[Dabz]

WBAC is always going to be the worst option to sell surely? Even Motorway are better - every time I’ve done WBAC I’ve felt hard done by, every time I’ve used Motorway I’ve come away really happy.

Buy any 100k+ motor vehicle and it’s obvious that you’re going to lose 50k or more over the first couple of years. VAT alone is 20k of that. It baffles me how many folk on here purchased without realising that any premium 4/5 seat car will depreciate like crazy. It has nothing to do with being an EV

 

[whitex]

company purchase and All those benefits and low BIK

Typically all such benefits contribute to depreciation. Using a simple example, US had $7,500 credit for all new BEV with some min sized battery. Nissan Leaf was priced at $28K before rebate. After rebate it costed you $20,500. So if you bought it, drove 0 miles, no way anyone would buy it from you for any more than $20,500. So, instant $7,500 depreciation for zero miles, right?

Not just incentives. Imagine a car with MSRP $100K. There is obviously dealer profit in that, which means the dealer can buy this car for ~$80K. This means if you bought from them and want to trade it back in one second later, it's already lost $20K or more, since the dealer is not going to pay more any more money that they can get a new one from factory for, and the exact spec they want, not the spec you picked out, so yours may be worth even less. This means $100K car instantly loses $15K-25K as soon as you take delivery of it (assuming no incentives, tax benefits for new cars only, etc). Such is life, nothing new here.

 

[Electra Glide In Blue]

When I return my lease in six months I fully intend to take out the interest rate and depreciation on the dealer through residual value. PAG's residual is 30-40% higher than market value for a 2023 with 15K miles. The dealer can sell me the car or let it sit on the forecourt (Brits!) with the other 13 Taycans in stock.

This was my plan from the outset. I'd been monitoring the value curve for 3 years before building my decently-optioned base model.

The downside of course is I am unable to buy the car, and have sunk the lease payments into essentially a rental. I can then buy a less-personalized used model or lease a new one.

It is a great auto, but we see here there are other great ones out there, too.

 

[Travis]

At the time of purchase, I saved $6.16/mile off the sticker price for a car that was in like new condition.

 

[whitex]

At the time of purchase, I saved $6.16/mile off the sticker price for a car that was in like new condition.

Unfortunately this doesn't tell us much. How good of a deal this was depends on the mileage. Great deal if the car had 35,000 miles on the odometer (free Taycan!), not so great if it had 300 miles ($1,800 off MSRP).

 

[Travis]

Haha yeh you’re right. 13,300 miles. I noted earlier. 56% off msrp.

 

[RGBArgee]

Typically all such benefits contribute to depreciation. Using a simple example, US had $7,500 credit for all new BEV with some min sized battery. Nissan Leaf was priced at $28K before rebate. After rebate it costed you $20,500. So if you bought it, drove 0 miles, no way anyone would buy it from you for any more than $20,500. So, instant $7,500 depreciation for zero miles, right?

Not just incentives. Imagine a car with MSRP $100K. There is obviously dealer profit in that, which means the dealer can buy this car for ~$80K. This means if you bought from them and want to trade it back in one second later, it's already lost $20K or more, since the dealer is not going to pay more any more money that they can get a new one from factory for, and the exact spec they want, not the spec you picked out, so yours may be worth even less. This means $100K car instantly loses $15K-25K as soon as you take delivery of it (assuming no incentives, tax benefits for new cars only, etc). Such is life, nothing new here.

In the UK we have other possibilities as a company purchase - VAT offset - corporation tax offset. So $100k could easily become $60k

 

[whitex]

In the UK we have other possibilities as a company purchase - VAT offset - corporation tax offset. So $100k could easily become $60k

That probably contributes to higher than usual depreciation. If a new $100K car can be had for $60K, nobody will pay $60K or more for a used one. This could be why the UK is seeing higher depreciations than the rest of the world.

 

[f1eng]

In the UK we have other possibilities as a company purchase - VAT offset - corporation tax offset. So $100k could easily become $60k

That probably contributes to higher than usual depreciation. If a new $100K car can be had for $60K, nobody will pay $60K or more for a used one. This could be why the UK is seeing higher depreciations than the rest of the world.

Exactly, as long as UK has tax loopholes depreciation will be big on any car attractive to people "entitled" to the loopholes, particularly the more expensive models.

 

[RGBArgee]

Agreed but that doesn’t explain the MG crash or is that because they are naff?

 

[f1eng]

Agreed but that doesn’t explain the MG crash or is that because they are naff?

Hadn't noticed.
TBH I am only peripherally interested even in Taycan depreciation since I keep cars a long time.

 

[Bennachie]

Depreciation is only valid if/when you sell...................

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