In the ever-evolving landscape of electric vehicles (EVs), one name stands out for its rapid depreciation: the Porsche Taycan. What factors contribute to this staggering loss in value within just four years of ownership? Let’s dive deeper into the intricacies of this phenomenon and understand why Taycan Turbo models are experiencing such huge depreciation rates.
The evolution of the Taycan: a brief overview
Launched in 2019 as Porsche’s answer to the Tesla Model S, the Taycan made waves with its blend of performance, luxury and cutting-edge technology. However, its initial release saw high prices, before optional extras, starting prices for the Turbo and Turbo S variants were $151,000 and $185,000 respectively.
Turbulent zone of depreciation
Factors accelerating depreciation
Several factors contribute to the rapid depreciation of Taycan Turbos:
- Technology Advancements: The automotive industry is witnessing rapid advancements in EV technology. With each new model year, increases in battery efficiency, charging capabilities, and autonomous driving features make older models look outdated, leading to faster depreciation.
- Price fluctuations: The introduction of new models often results in price adjustments to the lineup. As Porsche unveils upgraded versions of the Taycan with improved performance and features, older models lose their appeal in the eyes of potential buyers, reducing their resale value.
- Market demand: Despite initial hype, demand for high-end EVs like the Taycan has not lived up to expectations. The combination of limited charging infrastructure, range anxiety and competition from established players like Tesla has depressed demand, leading to further depreciation.
Comparative depreciation analysis
To illustrate the magnitude of depreciation, let’s examine three- to four-year-old Taycan Turbo and Turbo S models:
2020 Taycan Turbo (Certified Pre-Owned):
- Mileage: Slightly less than 15,000 miles
- Asking price: $89,998
- Original MSRP: $179,630
- Depreciation: $89,632
2020 Taycan Turbo S (Certified Pre-Owned):
- Mileage: 21,635 miles
- Asking price: $105,900
- Original MSRP: $206,950
- Depreciation: $101,050
2020 Taycan Turbo S (Certified Pre-Owned):
- Mileage: 24,265 miles
- Asking price: $112,890
- Original MSRP: $222,770
- Depreciation: $109,880
Taycan vs 911: A tale of two depreciation trends
Interestingly, the Taycan’s depreciation trend is the exact opposite of Porsche’s iconic 911, especially the current generation 992 series. While lightly used 911s often sell at or above their original sticker prices, the Taycan experiences a rapid decline in value. This discrepancy highlights the unique challenges EVs face in maintaining their value over time.
Conclusion: Dealing with the Depreciation Dilemma
As Porsche enthusiasts eagerly await the arrival of the updated Taycan in 2025, it is necessary to accept the realities of depreciation in the EV market. While technological advancements and performance upgrades foster innovation, they also contribute to accelerated depreciation rates. For potential buyers, exploring the pre-owned market offers the opportunity to purchase a high-performance EV like the Taycan at a significant discount. However, it is important to take depreciation into account when making a purchase decision to ensure a good investment in the rapidly evolving world of electric mobility.