Expected depreciation?

[tmrqs]

We all know cars devaluate the minute they leave the dealer’s lot, but EV in particular have it worse.

Based on your experience with other EV you’ve owned, what was the drop in value after 24 or 36/39 months?

Feel free to add details below!

 

[PanameraFrank]

My Taycan Turbo S (I bought as a CPO) sold for 45% MSRP (inc 8k of tax credit, 39% without taxes) at just over 3 years old and 18k miles. The worst part is Porsche dealerships wouldn't touch it.

I've come to the conclusion that leasing, even with mileage overage, is superior to purchasing EVs. Even with Porsche's horrible lease rates I think it's the way to go.

I've always been anti-Porsche lease but the EV market is dreadful and I think the Macan will follow a similar route to the Taycan.

 

[TomekGnomek]

Question is if you plan to keep the car for ~5 years what then. EVs tend to have much lower maintenance costs, people doing 150k+ kms without doing anything besides tire changes. I've done 100k on BMW M340 and all the brake replacements alone was crazy expensive.

 

[ColdCase]

Carvana will buy my well optioned near 4 year old mini for $14000. I paid $30,000 less 7500 in tax credit. A fun little car for $22500. There has been zero maintenance cost. Fuel cost much less but they do hit me well with additional EV registration fees.

If you are not going to drive it till the wheels fall off (which I typically do) leasing an EV will take the risk out of it. Then, of course, you should consider that buying any new car does not make financial sense. But then it is only money. Sweet spot seems to be to buy three year old models just coming off a lease. So if you can live with a 3 year old EV, most of the depreciation has already hit and you still have 5 years of battery warranty.

 

[tmrqs]

Question is if you plan to keep the car for ~5 years what then. EVs tend to have much lower maintenance costs, people doing 150k+ kms without doing anything besides tire changes. I've done 100k on BMW M340 and all the brake replacements alone was crazy expensive.

Very true, maintenance is a factor to consider - and I’m including there brakes and tires, which can add up especially with Porsche. Anything after the initial 4 years warranty gives me pause.

 

[tmrqs]

Carvana will buy my well optioned near 4 year old mini for $14000. I paid $30,000 less 7500 in tax credit. A fun little car for $22500. There has been zero maintenance cost. Fuel cost much less but they do hit me well with additional EV registration fees.

If you are not going to drive it till the wheels fall off (which I typically do) leasing an EV will take the risk out of it. Then, of course, you should consider that buying any new car does not make financial sense. But then it is only money. Sweet spot seems to be to buy three year old models just coming off a lease. So if you can live with a 3 year old EV, most of the depreciation has already hit and you still have 5 years of battery warranty.

Counter point: my Mustang Mach-e lost half its value ($7.5k credit included) in 19 months - I bought it and sold it within 2 years to make room for the Macan.

Arguably the MME had a higher price point (nearly double) than the Mini.
Looking at the current Ioniq 5 my partner leased 7 months ago, its current valuation right now is right around 70% - lost 30% in seven months.

As I’m deciding whether to buy or lease, the data points collected here will be helpful.

To answer your question/comment, I do not think I’ll be keeping the Macan until its wheels fall off… unless they start falling off after a few years.

 

[krissrock]

i'm keeping mine...no plan to sell or trade.

but evaluating the used car data, it shows that EV's depreciate 3% more than non-EV's... 6% vs 9% on avg...
not a huge difference, but if you're not planning to keep the car, it adds up.

 

[gregb]

Then, of course, you should consider that buying any new car does not make financial sense. But then it is only money

I 100% agree. When looking purely at depreciation, a brand new macan ev is not a good investment.

I am in the bucket of people who will keep the macan until the wheels fall off. To me this car checks a lot of the boxes - whether it's the performance, the size or the technology. I can definitely see the battery capacity/charging technology improving over the next 3 years - but as for the rest of the car, it's already so refined for a compact SUV that I don't think I would need anything else. Also, 99% of my trips are within 80 miles of where I live so even the battery range/aspect of it is not that important.

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