New GTS depreciation

[RGS]

According to "What Car" Macans retain over 60% of their value after 3 years and 36K miles. They will always retain a good value because unlike other popular makes, Porsche are not volume manufacturers (one of the reasons I left Mercedes after 25 years of loyal service and realised the depreciation they now suffer). Another thing, Porsche keep their manufacturing close to home unlike BMW for example whose latest EV is manufactured in China, so people buying a "German" car may be surprised to discover it was made on the other side of the world ! Even Macan's have some parts made in China, but so far not the whole vehicle, that's the price European car manufacturers have to pay to gain access to the Chinese market.

[Deleted User 2325]

I spent about £80k on my GTS including a full extra set of winter clad spyders and as many extras as I wanted. I knew I’d never get the extras back and I don’t care. I bought the car I wanted to enjoy it and have no intention of selling it. Over 10-15 years, if it survives that long, the depreciation evens out... to scrap value?

[Elrao]

Most cars lose most in the first 12 months, the the next 12 and so on - as I'm sure you know.

I had a similar dilemma, new for £65k or 12 months / 6k miles for let's call it £60k. I plan to keep the car for 2 years and do 10k miles.

So the depreciation question comes from looking at the price of a 2yr old 10k mile car vs 3yr old 16k mile car. Will the 2yr old car be worth £5k more or not? Strong argument that the 1yr old car is overpriced at the moment due to demand, but that would also mean price of that car was not a good indication of the depreciation on a new car...

At this point I decided f%^£ it and paid a deposit on the new one.

[MikeM]

Most cars lose most in the first 12 months, the the next 12 and so on - as I'm sure you know.

I had a similar dilemma, new for £65k or 12 months / 6k miles for let's call it £60k. I plan to keep the car for 2 years and do 10k miles.

So the depreciation question comes from looking at the price of a 2yr old 10k mile car vs 3yr old 16k mile car. Will the 2yr old car be worth £5k more or not? Strong argument that the 1yr old car is overpriced at the moment due to demand, but that would also mean price of that car was not a good indication of the depreciation on a new car...

At this point I decided f%^£ it and paid a deposit on the new one.

GTS? make sure you get your preferred spec right first time, delivered before year end and enjoy picking up mine this Friday, build to delivery was 6 weeks

[Elrao]

It's due to be built November 6th, OPC said they'd expect to have it about 2 weeks later. Hoping to have it early Dec

[mcnallys]

Most cars lose most in the first 12 months, the the next 12 and so on - as I'm sure you know.

I had a similar dilemma, new for £65k or 12 months / 6k miles for let's call it £60k. I plan to keep the car for 2 years and do 10k miles.

So the depreciation question comes from looking at the price of a 2yr old 10k mile car vs 3yr old 16k mile car. Will the 2yr old car be worth £5k more or not? Strong argument that the 1yr old car is overpriced at the moment due to demand, but that would also mean price of that car was not a good indication of the depreciation on a new car...

At this point I decided f%^£ it and paid a deposit on the new one.

GTS? make sure you get your preferred spec right first time, delivered before year end and enjoy picking up mine this Friday, build to delivery was 6 weeks

Need pics

[jone66]

I've had the similar thoughts about new/ 2yr old with regards to the topic subject. The wear and tear with upcoming costs is always the unknown and even with other manufacturers, buying 2nd hand I would always consider warranties, that's another cost to factor. For me, the GTS will be my first ever "NEW" car, it will be fully loaded and I will absolutely love the ownership, I've been drooling over the Macan ever since they came out and if my first is the journey i am hoping for I will am totally pleased with the experience, will be a Porsche owner for many years to come. With luck they will also venture into the mobility sector.

[jaffacake]

Worth pointing out the VAT "scam" here.

All new cars are sold inclusive of 20% VAT. There is no VAT on used cars - hence you can sell them privately without worrying about it.

If you spend £100k on a new car, the car was actually only worth £80k - the rest was the VAT.

If the same car sells "used" for more than £80k, it's actually gone up in value.

However dealers do have to pay VAT on the margin they make on a used car, at 20%. So if they buy a car at auction for £70k and then sell it for £80k retail, they are liable for VAT on the £10k profit - i.e. £2000.

On paperwork day when buying a used car with a trade-in, you often see dealers adjusting the price of the trade-in vs the sale price to reduce their VAT liability if possible.

e.g. you negotiate to buy a car for £60k and trade in your old one for £40k. You have to add £20k to make the deal.

On the day the dealer might say that he actually wants to sell you the car for £70k but he'll give you £50k for your old one, so you still only have to pay the £20k difference. All is the same on the day.

But he's given you £50k for your old one, so that is his purchase price for that car.

If he then sells your old one for £60k, he's made £10k on that deal - not £20k. So he's only liable for £2k VAT, not £4k.

As a result of all this, depreciation and trade-in values can be hard to gauge.

I've simplified above but you'll see why it makes pre-reg cars very profitable for dealers.

[Deleted User 3304]

Worth pointing out the VAT "scam" here.

All new cars are sold inclusive of 20% VAT. There is no VAT on used cars - hence you can sell them privately without worrying about it.

If you spend £100k on a new car, the car was actually only worth £80k - the rest was the VAT.

If the same car sells "used" for more than £80k, it's actually gone up in value.

However dealers do have to pay VAT on the margin they make on a used car, at 20%. So if they buy a car at auction for £70k and then sell it for £80k retail, they are liable for VAT on the £10k profit - i.e. £2000.

On paperwork day when buying a used car with a trade-in, you often see dealers adjusting the price of the trade-in vs the sale price to reduce their VAT liability if possible.

e.g. you negotiate to buy a car for £60k and trade in your old one for £40k. You have to add £20k to make the deal.

On the day the dealer might say that he actually wants to sell you the car for £70k but he'll give you £50k for your old one, so you still only have to pay the £20k difference. All is the same on the day.

But he's given you £50k for your old one, so that is his purchase price for that car.

If he then sells your old one for £60k, he's made £10k on that deal - not £20k. So he's only liable for £2k VAT, not £4k.

As a result of all this, depreciation and trade-in values can be hard to gauge.

I've simplified above but you'll see why it makes pre-reg cars very profitable for dealers.

Well said but your maths isn't correct.

If you spent £100k on a new car, it is actually worth £83,333.33 - add 20% VAT to this figure and you'll get back to your £100k.

The VAT on £80k is "only" £16k, which only adds up to £96k.

I know that I'm being picky but I just couldn't keep quiet!!

[Elrao]

He's also sold the 60k car for 70k...so paying more VAT on that one