Murph7355
Well-Known Member
- First Name
- Andy
- Joined
- Feb 1, 2022
- Threads
- 25
- Messages
- 1,782
- Reaction score
- 1,568
- Location
- UK
- Vehicles
- GTS ST; TVR Griffith 500; Caterham 7; Volvo XC90
Finance has always been "broken", IMO, but not in the way I think the original post/links mean.
Problems like this have been building and building over a long time in the UK market, with so many cars only being "affordable" on finance.
6-figure fast saloons and estates have always, and will always depreciate. Quite heavily. Because the demand for them is relatively limited, manufacturers like to pump volume and they are expensive to run. Finance just exacerbates some/all of these factors.
The Taycan was subject to a perfect storm...it was (and still is) the EV to beat from a quality/performance perspective. Demand grew (stoked in good part by the tax breaks available) just as Porsche's ability to meet demand dropped off a cliff.
So the stupid UK market results in large overs being paid and people assuming they were on a sure thing that would not depreciate. Some caught the window just right and no depreciation is what they found. But it wasn't real.
Supply caught up and reality struck, along with interest rates, business uncertainty etc.
Porsche has a dilemma on its hands now. It needs to seriously rethink volume expectations IMO. Financing tweaks would also help, but would likely exacerbate some of the current issues in many ways.
This isn't only a Porsche thing IMO. The number of cars listing at over 100k now is nuts. That used to be the preserve of special, low volume cars. But there's a ton of stuff hitting that marker now and I don't see it's sustainable.
Maybe the issue is that the cost of cars before was always artificially low. But finance doesn't suddenly make a 6-figure car "affordable". It just makes it feel that way.
(btw, to pick up on some of the notes from others...I'm not a multi-millionaire who chucks 50s on his fire over winter...I'm also a Northerner who very much appreciates the graft needed to keep your head above water
).
Problems like this have been building and building over a long time in the UK market, with so many cars only being "affordable" on finance.
6-figure fast saloons and estates have always, and will always depreciate. Quite heavily. Because the demand for them is relatively limited, manufacturers like to pump volume and they are expensive to run. Finance just exacerbates some/all of these factors.
The Taycan was subject to a perfect storm...it was (and still is) the EV to beat from a quality/performance perspective. Demand grew (stoked in good part by the tax breaks available) just as Porsche's ability to meet demand dropped off a cliff.
So the stupid UK market results in large overs being paid and people assuming they were on a sure thing that would not depreciate. Some caught the window just right and no depreciation is what they found. But it wasn't real.
Supply caught up and reality struck, along with interest rates, business uncertainty etc.
Porsche has a dilemma on its hands now. It needs to seriously rethink volume expectations IMO. Financing tweaks would also help, but would likely exacerbate some of the current issues in many ways.
This isn't only a Porsche thing IMO. The number of cars listing at over 100k now is nuts. That used to be the preserve of special, low volume cars. But there's a ton of stuff hitting that marker now and I don't see it's sustainable.
Maybe the issue is that the cost of cars before was always artificially low. But finance doesn't suddenly make a 6-figure car "affordable". It just makes it feel that way.
(btw, to pick up on some of the notes from others...I'm not a multi-millionaire who chucks 50s on his fire over winter...I'm also a Northerner who very much appreciates the graft needed to keep your head above water
).Sponsored
