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.

 

[tmrqs]

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.

6% or 9% over what period? Per year?

 

[Salmonfisher]

Leasing does take the risk out but you are paying the lease companies running costs and profits. Assuming they get their sums right leasing will always cost more but be safer. Depends if you like a risk but also if you can accurately estimate your mileage. I regularly do 18k a year but during Covid and lock down in UK it was less than 3k so I would have been paying well over the odds Ona lease

 

[krissrock]

6% or 9% over what period? Per year?

Yeah per year

 

[ExVolt]

We picked up our car up Oct 19 and didn’t drive it until Oct 29 (went out of town). Since then, it has been in for service 3 times (9 days cumulative in the shop).

Our last car, a Chevy Volt, required exactly 1 maintenance service in 14 years. We were very early adopters on a car with a unique and complex drivetrain. We naively hoped to have a similar experience with Porsche.

Given this comparison, I’m thrilled I leased as I don’t have a lot of faith in the car and will happily return it in 23 months. Assuming the lemon law doesn’t kick in first as we are now on day 9 of 30. And, we have to bring it in for service again tomorrow as it is only driveable if you can endure a warning alarm that won’t stop.

If I felt the car was stable, I would buy out the lease now and not worry about the depreciation. But I don’t.

 

[tmrqs]

Yeah per year

Doesn’t align with my experience, I wish it did!

 

[tmrqs]

This thread is helping me with my position (see here) - if anyone has thoughts.

 

[TomekGnomek]

There is one big unknown - battery degradation.

Let's say after 2-3 years it drops significantly and depreciation will be crazy. First gen Taycans have high battery degradation and it surely contributes to depreciation.

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