Depreciation and thinking of selling

[Dondurito 09]

I am looking for any input / advice , I know this is pretty subjective but I feel like I’ve made some mistakes in the past and now gathering others thoughts to help guide away from repeat fumbles.

I bought my 2021 base rwd + PBP and some little options used , 20k miles in September 2022 - rough time to be buying car , divide pricing was still a thing so I thought I was getting a deal on the taycan as I was trading in a Mercedes to a Mercedes dealership with a used Porsche - I over paid, but I did get a good finance rate 4%.

The previous decade I had 3 leases through merc-amg, and was of the school of thought that the luxury sports cars depreciate so much that leasing was the way the to go, and I like driving a new car every few years worry free of maintenance and all that.

This being my first p car I was also under the impression they held value ok - 911 excluded talking about the other non 911 models , and it seemed like taycan was even appreciating in some markets at the time. So I bought it with the idea it would hold decent value simalr
To what I’d lose in a 3 year lease. I chose to take a 5 year loan to keep the monthly low if in fact I did want to sell it early in the relationship
.

I freaking love the car , it’s amazing everyday I drive it I’m excited and stoked , it checks aot of boxes for my driving style- I love the car!

I also know my next car will likely be a 911, the best I can afford maybe a 991.2 mayyyyybe a used 992.

I live in a building where power installation is a act of , it’s alot, but I have a electrify American 2 blocks from my building and I have charging at my work which is subsidized - I was able to charge stress free for the first year of owning it, working it into my schedule and being free at EA and cheap at work / very nice! But holy cow , lately charging has been a nightmare , everywhere - it’s like the ev population quadrupled and 80% of the new ones were not the tech adapt early adopters but the lagging mass of the heard that can’t figure out a charging station for the life them - it’s insane I hope it’s just my region - but if I had to pay $$ all the sudden and put up with trying to getting a charge in , it’s stresses me out sometimes- not the mileage or anything , I drive maybe 6000 miles a year , it’s the process of getting the charge- I should t have to plan to wake up early on Saturday to hit the charger at the town over just to sit in my car for 45 minutes scrolling on the phone.

anyway , I dropped into the dealership to take a look at a couple of 991.2 , rwd pretty base models. Test drove and liked - was more swept up in the whole process - and said ok let’s runs the numbers with a $$ delta in my head I’d be willing to eat on depreciation on my trade in - was thinking , $15k - maybe $20k I could swing to bridge getting into the 911 , my car was only one year older and 5k miles wiser.

Doh! Trade in value came in at $53k , I bought for $106 a year prior. I was crushed , I had seen the thumbnails of YouTube videos saying taycan market crab and I tried to
Ignore them , I knew it was happening, but good lord ! I’ve only leased cars like this before so now owning a way upside down car sucks and reminded me why I did so.

I love the car enough that I’m not loosing sleep, it’s amazing to drive and still has a low operating cost with the free charging , well free of money , not headache Uhg. So I got that.

with all that said and prepped here is my request for input or guidance.

my thinking is - an the car depreciate any further ? Am I’m bleeding or is this the bulk?
- my free charging runs out next spring - electricity is not too expensive in my area , but would likely add $100 a month to operation. Battery technology is getting better ( solid state ) performance hybrids seem to be wave to stay , and these early era Li-ion battery cars might be obsolete like early 90’s laptops.

is there any chance things will change and maybe the market goes the other way , or at least stops going the bad way ?

is it best to take my lumps now? Trade it in / find a private buyer at a painfully depreciated value and pay the cash delta to get a 911 ?

I know this is a financial thing and work it varies on a lot of things - I’m by no means wealthy and try to get the best I can while still keeping a balanced budget , I am able to make financial extensions if it means I’m making a good long term decision - which again I also know is crazy to say about a car , a car that you drive as a commuter , I know it’s a depreciating asset the minute it leaves the lot, just trying to minimize risk in that large zone of depreciation and value. It doesn’t hurt the rise of the taycan at all , but it bugs the crap out of me I would be paying a substantial amount money less had I waited a year , or maybe buying a gts or turbo spec- and I’m paying that money now for my base , which I love !

thanks all !

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[007]

You love the car. Do you love the 911 that much more?

The more you trade and exchange, the more you lose. You have good financing, just hold on to it for a few years and it’ll even out.

I personally love my car and do not see what I would upgrade it to. There is no other car at the moment that draws me to it. Not even a 911.

 

[f1eng]

I am looking for any input / advice , I know this is pretty subjective but I feel like I’ve made some mistakes in the past and now gathering others thoughts to help guide away from repeat fumbles.

I bought my 2021 base rwd + PBP and some little options used , 20k miles in September 2022 - rough time to be buying car , divide pricing was still a thing so I thought I was getting a deal on the taycan as I was trading in a Mercedes to a Mercedes dealership with a used Porsche - I over paid, but I did get a good finance rate 4%.

The previous decade I had 3 leases through merc-amg, and was of the school of thought that the luxury sports cars depreciate so much that leasing was the way the to go, and I like driving a new car every few years worry free of maintenance and all that.

This being my first p car I was also under the impression they held value ok - 911 excluded talking about the other non 911 models , and it seemed like taycan was even appreciating in some markets at the time. So I bought it with the idea it would hold decent value simalr
To what I’d lose in a 3 year lease. I chose to take a 5 year loan to keep the monthly low if in fact I did want to sell it early in the relationship
.

I freaking love the car , it’s amazing everyday I drive it I’m excited and stoked , it checks aot of boxes for my driving style- I love the car!

I also know my next car will likely be a 911, the best I can afford maybe a 991.2 mayyyyybe a used 992.

I live in a building where power installation is a act of , it’s alot, but I have a electrify American 2 blocks from my building and I have charging at my work which is subsidized - I was able to charge stress free for the first year of owning it, working it into my schedule and being free at EA and cheap at work / very nice! But holy cow , lately charging has been a nightmare , everywhere - it’s like the ev population quadrupled and 80% of the new ones were not the tech adapt early adopters but the lagging mass of the heard that can’t figure out a charging station for the life them - it’s insane I hope it’s just my region - but if I had to pay $$ all the sudden and put up with trying to getting a charge in , it’s stresses me out sometimes- not the mileage or anything , I drive maybe 6000 miles a year , it’s the process of getting the charge- I should t have to plan to wake up early on Saturday to hit the charger at the town over just to sit in my car for 45 minutes scrolling on the phone.

anyway , I dropped into the dealership to take a look at a couple of 991.2 , rwd pretty base models. Test drove and liked - was more swept up in the whole process - and said ok let’s runs the numbers with a $$ delta in my head I’d be willing to eat on depreciation on my trade in - was thinking , $15k - maybe $20k I could swing to bridge getting into the 911 , my car was only one year older and 5k miles wiser.

Doh! Trade in value came in at $53k , I bought for $106 a year prior. I was crushed , I had seen the thumbnails of YouTube videos saying taycan market crab and I tried to
Ignore them , I knew it was happening, but good lord ! I’ve only leased cars like this before so now owning a way upside down car sucks and reminded me why I did so.

I love the car enough that I’m not loosing sleep, it’s amazing to drive and still has a low operating cost with the free charging , well free of money , not headache Uhg. So I got that.

with all that said and prepped here is my request for input or guidance.

my thinking is - an the car depreciate any further ? Am I’m bleeding or is this the bulk?
- my free charging runs out next spring - electricity is not too expensive in my area , but would likely add $100 a month to operation. Battery technology is getting better ( solid state ) performance hybrids seem to be wave to stay , and these early era Li-ion battery cars might be obsolete like early 90’s laptops.

is there any chance things will change and maybe the market goes the other way , or at least stops going the bad way ?

is it best to take my lumps now? Trade it in / find a private buyer at a painfully depreciated value and pay the cash delta to get a 911 ?

I know this is a financial thing and work it varies on a lot of things - I’m by no means wealthy and try to get the best I can while still keeping a balanced budget , I am able to make financial extensions if it means I’m making a good long term decision - which again I also know is crazy to say about a car , a car that you drive as a commuter , I know it’s a depreciating asset the minute it leaves the lot, just trying to minimize risk in that large zone of depreciation and value. It doesn’t hurt the rise of the taycan at all , but it bugs the crap out of me I would be paying a substantial amount money less had I waited a year , or maybe buying a gts or turbo spec- and I’m paying that money now for my base , which I love !

thanks all !

The thing that eats money is changing your car and the more often you do it the more you lose.

The most important financial decision is making a good choice in the first place! I plan on keeping a car 6 years at least, less is always a waste of money IMO.

If you like the Taycan keep it a long time, any extra cost due to the end of free charging, for example, totally pales into insignificance compared to the loss in getting another car.
May be worth looking into extended waranty since the parts cost and the poor accesibility for mechanics means any repair is very, very expensive.

 

[Grayblack]

It sounds like you really enjoy the car. You've already taken a large depreciation hit. You'd be better off financially to keep the Taycan for longer.

 

[Murph7355]

Yes it will depreciate more. So will a 911 - call another dealer and ask for a rough trade in value of a similar 911 to the one you're looking at.

You take a hit buying from and selling to dealers. Less hassle, but there's a price to pay. A big one on premium brands.

You said you'd be happy with a 15k to 20k cost to change to the 911, but then talk about the trade in price of the Taycan. What was the cost to change?

Ultimately if the cost to change is too great, there's only one answer ?

 

[Donlam]

I keep cars I like for over 30 years. Most of them 10-13 years. I have sold 4 EV from 2014-2021 those cars I didn't like. The Taycan I have own at present is a much better car from my ev experience.
The air suspension memorize where I go daily if it is necessary to rasie the car or come home for the underground carpark as well as the comfort ride. For those owners who don't like it I think mainly because they didn't spec'd it well to suit them. I have 360 degree camera, PB+, air suspension. Three things I need 100% a must. I paid what I can afford for this Taycan. Only thinking what will my next car be after 10 years. (P.S my smart phone is over 6 years old)

 

[Redhot2474]

I am looking for any input / advice , I know this is pretty subjective but I feel like I’ve made some mistakes in the past and now gathering others thoughts to help guide away from repeat fumbles.

I bought my 2021 base rwd + PBP and some little options used , 20k miles in September 2022 - rough time to be buying car , divide pricing was still a thing so I thought I was getting a deal on the taycan as I was trading in a Mercedes to a Mercedes dealership with a used Porsche - I over paid, but I did get a good finance rate 4%.

The previous decade I had 3 leases through merc-amg, and was of the school of thought that the luxury sports cars depreciate so much that leasing was the way the to go, and I like driving a new car every few years worry free of maintenance and all that.

This being my first p car I was also under the impression they held value ok - 911 excluded talking about the other non 911 models , and it seemed like taycan was even appreciating in some markets at the time. So I bought it with the idea it would hold decent value simalr
To what I’d lose in a 3 year lease. I chose to take a 5 year loan to keep the monthly low if in fact I did want to sell it early in the relationship
.

I freaking love the car , it’s amazing everyday I drive it I’m excited and stoked , it checks aot of boxes for my driving style- I love the car!

I also know my next car will likely be a 911, the best I can afford maybe a 991.2 mayyyyybe a used 992.

I live in a building where power installation is a act of , it’s alot, but I have a electrify American 2 blocks from my building and I have charging at my work which is subsidized - I was able to charge stress free for the first year of owning it, working it into my schedule and being free at EA and cheap at work / very nice! But holy cow , lately charging has been a nightmare , everywhere - it’s like the ev population quadrupled and 80% of the new ones were not the tech adapt early adopters but the lagging mass of the heard that can’t figure out a charging station for the life them - it’s insane I hope it’s just my region - but if I had to pay $$ all the sudden and put up with trying to getting a charge in , it’s stresses me out sometimes- not the mileage or anything , I drive maybe 6000 miles a year , it’s the process of getting the charge- I should t have to plan to wake up early on Saturday to hit the charger at the town over just to sit in my car for 45 minutes scrolling on the phone.

anyway , I dropped into the dealership to take a look at a couple of 991.2 , rwd pretty base models. Test drove and liked - was more swept up in the whole process - and said ok let’s runs the numbers with a $$ delta in my head I’d be willing to eat on depreciation on my trade in - was thinking , $15k - maybe $20k I could swing to bridge getting into the 911 , my car was only one year older and 5k miles wiser.

Doh! Trade in value came in at $53k , I bought for $106 a year prior. I was crushed , I had seen the thumbnails of YouTube videos saying taycan market crab and I tried to
Ignore them , I knew it was happening, but good lord ! I’ve only leased cars like this before so now owning a way upside down car sucks and reminded me why I did so.

I love the car enough that I’m not loosing sleep, it’s amazing to drive and still has a low operating cost with the free charging , well free of money , not headache Uhg. So I got that.

with all that said and prepped here is my request for input or guidance.

my thinking is - an the car depreciate any further ? Am I’m bleeding or is this the bulk?
- my free charging runs out next spring - electricity is not too expensive in my area , but would likely add $100 a month to operation. Battery technology is getting better ( solid state ) performance hybrids seem to be wave to stay , and these early era Li-ion battery cars might be obsolete like early 90’s laptops.

is there any chance things will change and maybe the market goes the other way , or at least stops going the bad way ?

is it best to take my lumps now? Trade it in / find a private buyer at a painfully depreciated value and pay the cash delta to get a 911 ?

I know this is a financial thing and work it varies on a lot of things - I’m by no means wealthy and try to get the best I can while still keeping a balanced budget , I am able to make financial extensions if it means I’m making a good long term decision - which again I also know is crazy to say about a car , a car that you drive as a commuter , I know it’s a depreciating asset the minute it leaves the lot, just trying to minimize risk in that large zone of depreciation and value. It doesn’t hurt the rise of the taycan at all , but it bugs the crap out of me I would be paying a substantial amount money less had I waited a year , or maybe buying a gts or turbo spec- and I’m paying that money now for my base , which I love !

thanks all !

here’s what you do, you make a plan to become “wealthy” . You stop buying depreciating assets that are “above” you financially. Trust me, we’ve all done this, but now is the time to stop the bleeding so you can get ahead. You keep the car, it’s a phenomenal car on every level and will continue to be in the next 5 years. Depreciation will flatten out on this vehicle the longer you hold it., theres nothing more rewarding than being able to buy the car and having depreciation be the last thing on list to worry about. If you’re not there, plot your way to 6 figure savings and then 7 figure savings , create a plan, put your $ to work for you and you’ll be able to enjoy any Porsche u want worry free. Best of luck, keep the car ?‍

PS the car will never depreciate so much that you pay someone to drive it

 

[Hirschaj]

here’s what you do, you make a plan to become “wealthy” . You stop buying depreciating assets that are “above” you financially. Trust me, we’ve all done this, but now is the time to stop the bleeding so you can get ahead. You keep the car, it’s a phenomenal car on every level and will continue to be in the next 5 years. Depreciation will flatten out on this vehicle the longer you hold it., theres nothing more rewarding than being able to buy the car and having depreciation be the last thing on list to worry about. If you’re not there, plot your way to 6 figure savings and then 7 figure savings , create a plan, put your $ to work for you and you’ll be able to enjoy any Porsche u want worry free. Best of luck, keep the car ?‍

PS the car will never depreciate so much that you pay someone to drive it

Well said. I was thinking something similar but struggling with how to put it into words without sounding negative. This is great advice.

 

[Dondurito 09]

Thank you everyone, that does help steer me to what I know is the right move on all fronts.

it’s a psychological thing in my head but knowing others been there and through it let’s me know it’s ok haha.

thanks again and happy holidays !

 

[irrelevant]

here’s what you do, you make a plan to become “wealthy” . You stop buying depreciating assets that are “above” you financially. Trust me, we’ve all done this, but now is the time to stop the bleeding so you can get ahead. You keep the car, it’s a phenomenal car on every level and will continue to be in the next 5 years. Depreciation will flatten out on this vehicle the longer you hold it., theres nothing more rewarding than being able to buy the car and having depreciation be the last thing on list to worry about. If you’re not there, plot your way to 6 figure savings and then 7 figure savings , create a plan, put your $ to work for you and you’ll be able to enjoy any Porsche u want worry free. Best of luck, keep the car ?‍

PS the car will never depreciate so much that you pay someone to drive it

Well said. In addition I'll add that, beyond a balance sheet, depreciation doesn't matter unless you sell/trade the car, or total it in an accident. Until either of those events, it's an unrealized expense.

 

[MAPC]

Cars depreciate at different rates. EV's seem to depreciate fastest---I attribute that to our friend Mr. Musk constantly dropping the price of Teslas which pulls down the used market for all EV's (or at least all 'comparable' EV's). Example: I leased a Model S P100D. MSRP was $151K.....back in 2016! Today, you could buy a new Model S Plaid for slightly more than HALF that amount!

What is relatively consistent, though, is the shape of the depriciation curve.
Year 1- VERY HIGH
Year 2- HIGH
Year 3- REASONABLE
Years 2-5- NEGLIGIBLE
After Year 5- more dependent on mileage and condition that anything

 

[Rik_CT4s]

Keep the car, not the time to trade in now in my opinion.

For example, I traded in my 4s CT MY23 back last summer and I bought back a fully loaded MY22 CT TS, both similar milage. The difference back then was less than 30k€ (including a fresh 3 year warranty), but obviously I went down a MY (from MY23 to MY22). The retail price new of the CT TS was approx. 240k€. The 4S CT in the Netherlands was (NEW) approx. 150k€ (however I bought it new in Germany saving quite a bit).

When I would like to upgrade today, the 4s CT would trade in (dealer) at about 85k€ only, they are selling at around 100k€ at the dealership for a MY23. The Turbo S CT is to depreciated less after the initial 1.5-2 years (but of course the depreciation was very steep in the first 1.5 yrs on someone else account, -90k€ in my case here. There are considerably less TS CT for sale at the moment.
In short, I would have to top up around 50k€ right now to make a similar upgrade assuming I still had the 4SCT.
That tells me, trading in currently is very costly, let the market stabilize first. Having said that, without any trade in, it is a great time to buy a Taycan.

I plan to keep the CT TS as it does the job for me, while having almost all the options one may ever need. Whatever it depreciates on paper now, I accept.

Happy driving.

 

[EXOTIC3]

Looking for a 2020 turbo
Pvt party…… if anyone is selling
Had a deal fall thru.

 

[whitex]

@Dondurito 09
You bought at the absolute peak of the car market, during which some new cars were actually an appreciating investment (in summer of 2022 you could trade in a 1 year old Taycan at above MSRP). Market corrected and is approaching pre-pandemic levels of depreciation. Yes, your Taycan will depreciate further, more than likely less that that a brand new 911 will depreciate over the same time. Of course, you never know for sure - if you could predict the market, you'd be driving both a new Taycan Turbo S and a new 911 GT3 RS, and we wouldn't be having this discussion.

You already lost the depreciation money from buying at the highest car market peak in history. That is what is called a "sunk cost", money is gone, it should not be affecting your future financial decisions today (other than the fact that you have less money today because of your loss). Another way to look at it, if you had no car today, would you buy your Taycan today for $53K with no taxes/registration and a 4% loan, or would you buy a new 911 at whatever the interest rate they are at right now? For accuracy also consider that for either car, you will also be financing a bet you lost on the market (i.e. the money you lost on your Taycan bet) at the rate of the car you pick, as you will be borrowing for the new car plus the lost bet. If the answer is Taycan, keep your car. If the answer is 911, sell the Taycan and buy the 911.

PS> If considering selling privately, consider any sales tax credit implications (which will depend on where you live) - for example where I live, I get ~10% sales tax credit on any trade-in value to be used on the new car, which means if I sell privately for 10% higher price than my trade-in, I break even vs. trading it in.

 

[Bobrae99]

I live in a building where power installation is a act of , it’s alot,

I don't know what this means. Can you install a L2 charger in your building? If you can, just do so and charge at home. If you can't you made two bad choices. (1) you overpaid for the car - (there is depreciation and then there is depreciation) and (2) You bought an EV without a charge at home option (?)

If you can install a charger at home, it doesn't really matter what you paid for the car if you drive it until the wheels fall off. And as you point out, it is an awesome car. So, Can you charge at home?

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