Singularity
Well-Known Member
- Joined
- Jun 21, 2019
- Threads
- 3
- Messages
- 258
- Reaction score
- 382
- Location
- Finland
- Vehicles
- MY 2020 Taycan 4S, MY 2022 Audi Q7 60 TFSIe
- Thread starter
- #1
I want to share my thoughts regarding depreciation of the updated Taycan. As I decided to swap my 2020 Taycan to the updated version, I've been thinking about this a bit.
First of all, there are obviously a multitude of reasons why the Taycan has depreciated significantly but to me there are a couple of key reasons that are not talked about enough:
1. It is a car model that was launched during the largest money printing episode in modern history. There was a lot of money in circulation and a lot of people could afford to buy a Taycan, or at least thought they could afford one.
2. Taycan is a mainstream luxury car. The amounts sold are massive. Someone countered my argument in Facebook saying "why doesn't the 911 depreciate like this?", well, the most important rule in economics is supply and demand. I looked at the amount of 2020+ Taycan's in sale in Finland and the amount of year model 2020+ 911s on sale in Finland and the current amounts are: Taycans on sale: 173, 911s on sale: 18. People bought a huge amount of Taycan's during the zero interest rate period but not a lot of 911s.
3. Now we live in a new economic reality. Every single mainstream luxury car is depreciating a lot because so many are selling them, and fewer are buying them. Model to model there are of course differences, but broadly speaking the same economic reality affects everything. Note that it is important to differentiate between mainstream luxury cars and niche luxury cars. Niche luxury cars are not necessarily hit in the same way, as they might not have experienced such a boom during the zero interest rate period.
Now with that being said, let's discuss the reality of the 2025 Taycan. It is more expensive, fairly competitive in its specs to rivals and it has been launched during a new tighter economic reality. Also there are other contributing factors such as some people being worried about Taycans reliability.
What all of this means is that the order amounts of the new Taycan will likely be significantly smaller than with the old Taycan and therefore I do not expect us to see boatloads of them on sale in a year or two. The used car market of the new Taycan will have a far smaller supply than what we currently see with the old Taycan. Also the specs of the new Taycan will probably hold up well to rivals in the next few years at least, which is a less of a factor but a factor nonetheless.
So to finalize my point, I believe the 2025 Taycan will depreciate a bit slower than the old Taycan, as it is launched during a tighter economic reality and the used car market for that car will have a significantly smaller supply than we are now seeing with the old one. I look forward to seeing stats of how many of these Porsche are selling, as I strongly believe the sales will be smaller than the Taycan sales in the past.
First of all, there are obviously a multitude of reasons why the Taycan has depreciated significantly but to me there are a couple of key reasons that are not talked about enough:
1. It is a car model that was launched during the largest money printing episode in modern history. There was a lot of money in circulation and a lot of people could afford to buy a Taycan, or at least thought they could afford one.
2. Taycan is a mainstream luxury car. The amounts sold are massive. Someone countered my argument in Facebook saying "why doesn't the 911 depreciate like this?", well, the most important rule in economics is supply and demand. I looked at the amount of 2020+ Taycan's in sale in Finland and the amount of year model 2020+ 911s on sale in Finland and the current amounts are: Taycans on sale: 173, 911s on sale: 18. People bought a huge amount of Taycan's during the zero interest rate period but not a lot of 911s.
3. Now we live in a new economic reality. Every single mainstream luxury car is depreciating a lot because so many are selling them, and fewer are buying them. Model to model there are of course differences, but broadly speaking the same economic reality affects everything. Note that it is important to differentiate between mainstream luxury cars and niche luxury cars. Niche luxury cars are not necessarily hit in the same way, as they might not have experienced such a boom during the zero interest rate period.
Now with that being said, let's discuss the reality of the 2025 Taycan. It is more expensive, fairly competitive in its specs to rivals and it has been launched during a new tighter economic reality. Also there are other contributing factors such as some people being worried about Taycans reliability.
What all of this means is that the order amounts of the new Taycan will likely be significantly smaller than with the old Taycan and therefore I do not expect us to see boatloads of them on sale in a year or two. The used car market of the new Taycan will have a far smaller supply than what we currently see with the old Taycan. Also the specs of the new Taycan will probably hold up well to rivals in the next few years at least, which is a less of a factor but a factor nonetheless.
So to finalize my point, I believe the 2025 Taycan will depreciate a bit slower than the old Taycan, as it is launched during a tighter economic reality and the used car market for that car will have a significantly smaller supply than we are now seeing with the old one. I look forward to seeing stats of how many of these Porsche are selling, as I strongly believe the sales will be smaller than the Taycan sales in the past.
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