"Porsche’s EV Gamble: The Taycan Depreciation Crisis - Explained" - video

[Tooney]

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[Vercingetorix]

Crisis?

 

[Lazy]

Why are we acting like cars are assets?

 

[Murph7355]

Yawn. Clickbait.

 

[Dee]

You only have depreciation if you sell the car.
I don't have any depreciation but a lot of appreciation.
Still, after five+ years.
I just love it.

 

[DerekS]

Why are we acting like cars are assets?

Because we want to drive them a few years, trade them in for a reasonable amount, and buy another one?

Because every other Porsche doesn't have this problem?

Because most of us plan to recoup _some_ of what we put into them, and lighting 150K on fire is more than we want to do?

 

[whitex]

Why are we acting like cars are assets?

Porsche owners like to think all Porsches are rare collectibles. Such thinking is often necessary to rationalize buying one.

I've only owned 2 brand new Porsches, a 911C4 and Taycan Turbo CT, both dropped about the same (actually 911 might have dropped a little more because I sold it after only 2 years for about 50% MSRP, which was the most I could get for it after couple of months shopping it around - I am not selling my Taycan after 2 years, so don't have the exact value).

 

[whitex]

Because we want to drive them a few years, trade them in for a reasonable amount, and buy another one?

Because every other Porsche doesn't have this problem?

Because most of us plan to recoup _some_ of what we put into them, and lighting 150K on fire is more than we want to do?

The only way you can recoup any value from a car is to convince someone else to pay for it. Perhaps the customizability of Taycans is also hurting resale values. If someone is willing to spend $200K for a car, but could get the exact same car (all same options) but 2 years old for $150, they might go for it, as they'd still be getting the car they want, and could spend the saved $50K on something else fun. But, if the $50K discount means they have to drive a car in a color they don't like, or missing options they want, or with options they don't want, now they are not willing to do it. I suspect people who would spend $150K-$250K for a car, are willing to spend more to get exactly what they want, so they are out, meaning you have to sell to the next group who is probably topping out at $75K, hence the sudden drop for Taycans. My prediction is once the Taycan depreciates the first 50%, the depreciation will slow down significantly. I remember when I was selling my 911, talked with different dealers, they all offered less than 50% MSRP for a 2 year old 911, one of them joked that "six digit cars are like boats, the two happiest days in the owners life are the day they buy it, then the day they manage to sell it".

Then again, I usually assume new six digit priced car will almost always depreciate 50% in 3 years, as this has been the case with almost any expensive car I've owned - the only exception was a 2013 Model S (I had 3 more after than, they didn't hold their values as well).

 

[DerekS]

I remember when I was selling my 911, talked with different dealers, they all offered less than 50% MSRP for a 2 year old 911, one of them joked that "six digit cars are like boats, the two happiest days in the owners life are the day they buy it, then the day they manage to sell it".

Weird. Every 911 I’ve ever sold has 50-60k of my own miles on it, a ton of memories, and a touch of sadness.
Some I still miss like my Targa.

 

[whitex]

Weird. Every 911 I’ve ever sold has 50-60k of my own miles on it, a ton of memories, and a touch of sadness.
Some I still miss like my Targa.

I loved my 911. It was the best driving car I've owned to date. Put on a lot miles, did some fun driving too (chewed up through the first set of tires in ~5K miles of no-track driving, all the way to blowout) - great memories. Yet, I was still very relieved and happy when I sold it after 2 months of shopping it around, even though I actually had to give BoA a check after terminating the lease early (the sale price didn't cover the lease buyout - bought 2 cars to replace the 911 so I could melt the upside down position on the 911 into the 2 new car loans).

PS> I think age can have something to do with it too. Certain things are just more enjoyable at certain ages. While I loved the custom 911C4 I ordered in my later 20's, and thought it was the best driving car I've ever owned, it still didn't overshadow when I bought a used Toyota MR2 when I was 17. I only owned the MR2 for 10 months because the insurance was killing my budget (I spent more than half the money I made on insurance, nearly clean driving record, but a teenage male in a 2 seater sports car), but it's still the funnest ~25K miles I did in my life. I am older now, I love driving the Taycan today, but it still doesn't give me as much pleasure as the 911 did in my 20's or the MR2 in my teens. I don't think there exists a car that could.

 

[Crazymind]

I’ve just bought a Gen 1.2 Taycan despite all its downsides — the depreciation alone was brutal, with £45k lost in just 26 months.
In the UK, Taycans are almost exclusively sold to businesses — probably 99% of them. The big appeal is that 100% of the car’s value is tax-deductible. For a higher-rate taxpayer, the personal tax bill works out at around £180 a year, which makes it a no-brainer for a company director.
On top of that, corporation tax is now at 26%.
Here’s how the maths worked in my head:
• The £45k depreciation is made up of £37k + £8k VAT. The real cost to the company is £37k.
• If the company kept that £45k instead of spending it, it would pay around £12k in corporation tax, leaving a net £33k.
• If I keep the car for two years (as I did with my previous one), that £33k spread over 26 months works out to about £1,200 a month.

Yes, seeing the big depreciation figure isn’t fun — but when you look at it as £1,200 per month to drive a brand-new Taycan, it feels pretty reasonable

 

[Dee]

Could be worse though:
https://cars.usnews.com/cars-trucks/advice/cars-with-the-fastest-depreciation?slide=18

Those are all 2022 cars, ALL Tesla models have 50+% depreciation!
Taycan isn't even in that list.
Count your blessings and regret selling your Taycan.
I'm not.

 

[mutanthands]

Because every other Porsche doesn't have this problem?

Panamera, Macan and Cayenne would like to have a word..!

The only Porsche that truly keep their value are the very rare / limited edition ones, such as Speedsters, Dakar, S/T.etc
Regular 911's hold their value okay, but you'll still take a hit if bought new. I'm not sure on modern Boxsters / Caymans, they used to drop like stones, but I assume 718s do okay, but not quite as well as 911's.
Everything else plummets, and with the exception of the Covid years, always has.

 

[Bennachie]

Golly gosh. Common sense and life realism.
Not surprised really. Location: North Yorkshire - God's own........

 

[Vercingetorix]

I’ve always held the opinion that if you have to worry about resale, you can’t afford the car. I literally drive my cars into the ground so resale is not a thing for me.

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