Taycan finance broken in UK

[Ross]

Why are so many people on here so hung up on depreciation - buy it, use it, enjoy it - sure the EQC makes financial sense but I can't imagine seeing that parked outside in the morning and going WOW! that's a cool car - and you won't look at it and congratulate yourself on it's fiscal sense either - it's just a Merc school-run car - Taycan is a statement

Because depreciation is the single largest factor in buying a car and anybody apart from the super rich gives a large shit about losing £50,000 in 2 years.

We buy Porsches to minimise depreciation but it’s now gone stupid.

That comparison was between EQC and Macan (1/3)

The EQC would be 1/4 the price of a cheap Taycan, or 1/5 the price of a Taycan GTS that I had.

I stopped loving the Taycan when I realised it was costing me enormous sums of money. 50,000 in 2 years is a vulgar amount of money to lose on a car. 50,000 is the entire income for 2 years for some families.
To dismiss this can only be done by someone very rich or flippant or both.

The Taycan is gorgeous, but 2 problems as well as comedy depreciation.

Only the saloon is Porsche shaped and classically beautiful but it’s too small inside.
The estate is not for me.

I live in Bolton which isn’t posh but everybody with a tinpot tax dodging Ltd Company (like me!) does the school run in a Taycan to take their kids to the posh school near me (like me).

Their are more Taycans than Prius Ubers in Bolton

Also the 21 inch wheels were a massive pain in the arse for a daily driver. Constant chips and grazes even with the utmost care. Chocolate Pirelli tyres were so fast wearing.

And I do congratulate myself every morning on my fiscal sense.
I am from the north and I am not a man of limitless wealth. I love a bargain.

I never woke up in the morning and thought
‘WOW! That’s a cool car!’ because I am 58 years old, not 9.

It ain’t no Porsche but it ain’t no Nissan Leaf either.

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[Fish Fingers]

Because depreciation is the single largest factor in buying a car and anybody apart from the super rich gives a large shit about losing £50,000 in 2 years.

We buy Porsches to minimise depreciation but it’s now gone stupid.

That comparison was between EQC and Macan (1/3)

The EQC would be 1/4 the price of a cheap Taycan, or 1/5 the price of a Taycan GTS that I had.

I stopped loving the Taycan when I realised it was costing me enormous sums of money. 50,000 in 2 years is a vulgar amount of money to lose on a car. 50,000 is the entire income for 2 years for some families.
To dismiss this can only be done by someone very rich or flippant or both.

The Taycan is gorgeous, but 2 problems as well as comedy depreciation.

Only the saloon is Porsche shaped and classically beautiful but it’s too small inside.
The estate is not for me.

I live in Bolton which isn’t posh but everybody with a tinpot tax dodging Ltd Company (like me!) does the school run in a Taycan to take their kids to the posh school near me (like me).

Their are more Taycans than Prius Ubers in Bolton

Also the 21 inch wheels were a massive pain in the arse for a daily driver. Constant chips and grazes even with the utmost care. Chocolate Pirelli tyres were so fast wearing.

And I do congratulate myself every morning on my fiscal sense.
I am from the north and I am not a man of limitless wealth. I love a bargain.

I never woke up in the morning and thought
‘WOW! That’s a cool car!’ because I am 58 years old, not 9.

It ain’t no Porsche but it ain’t no Nissan Leaf either.

Same viewpoint as me.
Probably similar background?
Certainly no Trust Fund priveleged life where I grew up in Warrington.
Grafted for everything I own.....so money will always matter.

 

[MrB]

Why are so many people on here so hung up on depreciation - buy it, use it, enjoy it - sure the EQC makes financial sense but I can't imagine seeing that parked outside in the morning and going WOW! that's a cool car - and you won't look at it and congratulate yourself on it's fiscal sense either - it's just a Merc school-run car - Taycan is a statement

I don’t know you, obviously, so please excuse this observation if it’s incorrect but I’d wager that depreciation has a very different effect in your life than it does to me if you’ve the wherewithal to have a XK120 and a XKSS in your stable. I freely admit I’m very jealous, in the nicest possible way, of both of those beautiful machines. The XK120, in particular, has had a place at the top of my list since childhood.

Sometimes, in the less rarefied air I breathe, there is a tipping point and current pricing/depreciation means I won’t go again at round 2. I still hope that the Macan might just make the cut when the time comes but, if it doesn’t, and given that my 2.5 yr old Taycan is nudging 50k miles as it’s used as a regular commuting car to London, then I’ll happily jump into an EQC or whatever offers the right value for me at the time as I have need of a vehicle and will pile the miles on it.

I accept that I’m one of those horrible salary sacrifice sorts who’s access to these things has likely contributed to the marked oversupply in the second-hand market and, subsequently, the attendant depreciation issues, whilst being personally fortunate to not bear the pain of it this time round, with that pleasure falling to the lease company for getting their forecasting wrong.

But, with the inevitable change in pricing of such things due to the leasing companies learning from the beating they’ll have taken, allied to waiting to see what the tax landscape might look like for EVs for people in my situation, means it’s currently a non-starter.

Will I miss it though? Gosh, yes.

PS, I’m a Yorkshireman by birth, perhaps the cliches are there for a reason…..

 

[f1eng]

that the turbo would be faster than my taycan

Only in a straight line.

 

[f1eng]

I am retired and it wouldn't make sense for me to use finance to buy a car.
I admit it was an impulse purchase.
My biggest concern is reliability, in my 50+ years as a car owner I have never had an unreliable car and only getting fed up with it if it breaks down would make me sell, then any depreciation would be annoying. I fully intend for it to be my last car and keep it until I don't drive any more.

 

[XKSS]

My point was that if anyone wants to drive a nice £100k+, 4 seat, sporting, luxury car ( similar to BMW, Merc, Bentley etc.) then they all depreciate heavily and when I joined this forum 3 years ago with my first Taycan it discussed the pride, aesthetics , pleasures of the ownership experience and also the problems people had too. Members thought then Taycans were an investment and post COVID they were - I sold my first one for 0% loss after 12 months - times have changed.
My infrequent forum visits now seem to find a plethora of depreciation topics and way less discussion on product enjoyment .
Many of those in the UK who took a new EV through their company enjoyed the 100% WDA and low BIK and those who leased can just hand their cars back - so if we factor in tax benefits and then look at fuel amount saved the journey hasn't been that bad in my opinion. Nobody wants to lose large amounts but it's a luxury product and that's what happens.
Ask anyone who bought the other luxury big cars listed above and they've lost substantial sums too - just like with bricks and mortar our generation has become fixated on things always making fiscal sense and with most cars that simply isn't the case - as for the EQC comment - subjective

 

[WuffvonTrips]

My infrequent forum visits now seem to find a plethora of depreciation topics and way less discussion on product enjoyment .

I think that's because it's now well-established that the Taycan is a great car, whereas it's only now becoming apparent how ridiculously costly it has become. I (retired, no business) bought mine cash after qetting finance quotes to validate my assumption of expected future value, 2 years later the delta is too big for me to ignore, even though I always intended keeping the car longer and it's still a great car.
I get the impression from forum traffic that demand for the refresh model has tailed off dramatically.

...just like with bricks and mortar our generation has become fixated on things always making fiscal sense and with most cars that simply isn't the case - as for the EQC comment - subjective

Without limitless financial resources I can't force myself to be willfully careless with money- whatever I spend on X correspondingly reduces my ability to spend on anything else, even when both those items are within my "frivolous expenditure" category

 

[alexsas]

My point was that if anyone wants to drive a nice £100k+, 4 seat, sporting, luxury car ( similar to BMW, Merc, Bentley etc.) then they all depreciate heavily and when I joined this forum 3 years ago with my first Taycan it discussed the pride, aesthetics , pleasures of the ownership experience and also the problems people had too. Members thought then Taycans were an investment and post COVID they were - I sold my first one for 0% loss after 12 months - times have changed.
My infrequent forum visits now seem to find a plethora of depreciation topics and way less discussion on product enjoyment .
Many of those in the UK who took a new EV through their company enjoyed the 100% WDA and low BIK and those who leased can just hand their cars back - so if we factor in tax benefits and then look at fuel amount saved the journey hasn't been that bad in my opinion. Nobody wants to lose large amounts but it's a luxury product and that's what happens.
Ask anyone who bought the other luxury big cars listed above and they've lost substantial sums too - just like with bricks and mortar our generation has become fixated on things always making fiscal sense and with most cars that simply isn't the case - as for the EQC comment - subjective

I was reflecting on the enjoyment aspect of this. I bought used, and then the value dropped another 20K in a few months.
I had less than fortunate experience with my car (for many reasons) - and whilst I love the car, I feel a prisoner with the depreciation that high.

Probably - if I knew that I could flog it back without losing huge amounts of money - I would have felt differently, and was into laidback discussions about features and how it drives, etc - but it is difficult to be objective - that is at least the deconstruction of my "feelings".

 

[Longy_UK]

I'd say finance on a Taycan is a far from broken. Got mine nearly 40k under list and the GFV is only 30k less than the number I paid after 4 years. It wont be worth that but that's not my problem.

£7.5k a year depreciation on a £140k leccy car? its exceptional!

 

[neilj007]

I'd say finance on a Taycan is a far from broken. Got mine nearly 40k under list and the GFV is only 30k less than the number I paid after 4 years. It wont be worth that but that's not my problem.

£7.5k a year depreciation on a £140k leccy car? its exceptional!

Not just *any* leccy car, but a high performance leccy car

Same with my Turbo - £30k over 4 years

 

[Longy_UK]

Not just *any* leccy car, but a high performance leccy car

True!

Absolutely no sense to buy a car cash. Finance does nothing but protect against depreciation, you literally know the very worst case scenario before you buy the car.

Yes interest is something to consider but you will get far larger discounts from your dealer when finance is involved (they get commission) often covering the majority of the interest. Oh and lets not forget you'll be getting 5 - 7% on the tens of thousands you didn't spend in the first place....

Simple. Isn't it?

 

[Ross]

I'd say finance on a Taycan is a far from broken. Got mine nearly 40k under list and the GFV is only 30k less than the number I paid after 4 years. It wont be worth that but that's not my problem.

£7.5k a year depreciation on a £140k leccy car? its exceptional!

Your figures prove the finance price IS broken.
You only got a great deal on a nearly new because of a FORTY GRAND discount and artificial GFV.
Of course it won’t be worth that.
You probably got a better rate of finance than 10.9% too.
Same for Neil.

Well done getting great deals both of you but not the point. I got a great deal in 2022. No discount but 5.9% and 65% GFV. Not the point either.

We are talking about NOW.
The old run out Taycans had artificially high GFV and HUGE discounts to clear the showrooms for the new model.

The new Taycan is about as in demand as herpes so it will be discounted soon, if not already, but if you pay £150k list now on a new Taycan the GFV after 4 years will be less than £40k.
VW finance have sucked up millions of pounds of losses with keys chucked back at them recently.
They are being much more conservative now.
So, £110 depreciation and 10% APR over 4 years will cost you £140k
£35k a year. That is not just broken. It’s totally shit.

COMPLETELY UNSUSTAINABLE.

That’s the dilemma facing new Taycan buyers today. That’s why there aren’t any.

I genuinely feel sorry for the dealers. Porsche UK are chucking cars at them with no customers in sight.

Discounts coming soon to a dealer near you.

 

[matchboy1976]

A lot of sense being written in this thread. As with others, I’ll hand back my Taycan Turbo S at the end of its term, Porsche can suck up the £30k loss. I was “lucky” then when I bought mine (second hand) that the GFV was only £35k less than what I paid - so £5k down and financed £30k at 8.9%. If I went to buy the same second hand car today I wouldn’t be able to afford it, because A. The interest rate is far too high and B. The GFV is now £30k less than what it was before. So that’s £60k to finance at a higher interest rate, simply unaffordable for me.

Contrary to popular belief, most Porsches are bought on finance - so unless you’re a millionaire paying cash (or just have that kind of money to burn) the Taycan is simply just not affordable anymore. A brand new TTS with the same spec as mine would be £182k - the GFV after 4 years would be £60k. So I’d have to finance £120k at 10-11% - no chance Porsche UK are really going to struggle to sell the gen 2, that’s pretty clear to me. Don’t forget as well for those that will say yes but company car buyers - there’s a lot more choice now than there was 3-4 years ago so many directors will be thinking buy another Taycan that yes has better range but looks the same or maybe buy something else eg an i5 Touring M60 - yes it’s not a Porsche but it’s miles cheaper and still is a lovely car.

Im afraid Porsche are going to have to rethink they’re pricing and interest rates - or both - to even entice people with the gen 2. A real shame as I’ve had 3 Taycans and they are fantastic cars.

 

[WuffvonTrips]

Im afraid Porsche are going to have to rethink they’re pricing and interest rates - or both - to even entice people with the gen 2. A real shame as I’ve had 3 Taycans and they are fantastic cars.

I think that dealership contribution to finance deposits might be coming (not that that would sway me).

 

[matchboy1976]

I think that dealership contribution to finance deposits might be coming (not that that would sway me).

They’ll have to, but even if they knock £20-30k off it still won’t be affordable (for me anyway). I have my name down for the Cayman EV but at this rate I’ll have to cancel & wait for a used one, which will annoy me immensely as that’s the car I’m most excited about - first world problems though!

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