Porsche Taycan - How Did It Go So Wrong?

hi guys hope you're all doing well we are in a taon lovely car terrible depreciation and that is going to be the subject of this video we're going to be looking into the details here trying to understand just why it's gone so terribly wrong and yes it has at the moment EV is on the whole not looking great tyon especially bad you might have taken your tyon down to a Porsche dealer asked how much it's worth and left in tears and contemplated life they really are not holding up well in terms of the residuals but why have we gotten here how have we ended up in this situation a Porsche that you'd kind of hope would do pretty well isn't doing well at all they really have declined in value and I think there's not one primary reason here there are a number of contributing factors as to why we've ended up in this situation I've kind of landed on five that I think are some of the reasons why these cars aren't doing so well right now I'm going to be trying to understand if there's anything you can do to protect yourself going forwards now please do comment on this one if you have your own thoughts and opinions because you know these are mine and I'm sure plenty of other folk out there have their opinions as to why these aren't doing so well but the first reason I'm going to touch on today as to why I think these cars aren't doing well is simply the price when new it is far too high and it's gotten even higher with the release of the new taon the facelift version they pumped the prices up even more why is that well you kind of think battery EVS are simple to make that the technology has come on the manufacturing processes have streamlined and these things can be knocked out quickly very few moving Parts Etc economies of scale but no it continues in an upward Direction which is the wrong trend for the market right now all other manufacturers are getting their EV prices down they are lowering them Porsche completely bucking the trend here by heading in the wrong direction and if you look at for example a Panamera turbo e hybrid it's 141k I think about their list which is to me represents pretty good value in terms of a very versatile car but think of all the parts that have gone into that you got an engine you've got battery you got Motors all of that Tech probably more so than the tyon you could potentially argue I don't know maybe people would disagree but it is representing quite a good price point whereas you've got the Turbo S the new tyon 161 base you know so it has absolutely gone upwards and why has it gone upwards why Porsche have you put the price upwards there's maybe a couple of reasons I think one we'll come on to later in this video but the other is when you're pricing a car you have to price in the projected cost of warranty repairs right to come to that cost that's one of the areas that you look at as an accountant what are the what is the projected returns rate the cost of warranty repairs and then you bake that into the price where new it's just a a way of business and the tyon has really struggled right I mean mine's not been too bad but pretty much everyone has been back for a new heater at some point so the of that the Workshops the new heaters the the loan cars that have to go out the insur all just just an absolute nightmare in terms of what that is costing Porsche as a manufacturer right now and that's just the heater there's been plenty of other recalls and other issues with these cars we know it's the first attempt so yeah fair enough it's going to have these hopefully the facelift will resolve a lot of that but that's one of the reasons I think you know that the price has just simply continued to creep up the second reason for me right now is simply the market the market as AO is really taking a massive correction people say correction I just say it's getting back to normality right uh kind of more normal depreciation I'm like a kid in a sweet shop at the moment looking at the used cars the secondhand cars out there it is crazy some of the offerings you can get for very little money are so tempting indeed I recently picked up an cell 55 just because hey why not it represented good value and I love them I saw as well a 612 scaglietti £53,000 for a V12 Ferrari admittedly one of the ugliest Ferraris ever made in my opinion but still £53,000 for that car it is crazy so the market on the whole right now is just looking good and bad good if you're a buyer bad if you're an owner and looking to sell right so we're going through this kind of huge shift in the market in general and we've also had this situation of significant over Supply uh all of this Revenue was brought forward during lockdowns and and supply chain shortages right where we had huge backlogs and it's not just the car industry you'll see a lot of cycle manufacturers now bicycle shops all struggling because all of this was pushed forward and in lockdown you know people had nothing to do nothing to spend on and now we're in a situ sitation where everyone is okay in that respect and nobody's buying anything right so we have significant over Supply as well in the U sector there is no denying that right now and it's crazy it is crazy 150,000 taans made to date which is quite a hefty number of cars at Porsche have shifted but I looked at AutoTrader which is a perfect weather barometer if you like of where the industry sits right now uh about a month ago and it was 700 cars we're now at 761 cars so it is really going in the wrong direction more Supply means more Choice more cars sat around on Four Courts more price reductions bther snowballing that effect that significant effect of price decreases across the board from a youth perspective so this oversupply has really I think hurt Porsche in in the long run indeed now we're starting to see I've just seen recently McLaren have come forward with an offer on the matura Finance offer is the same situation going to happen with them too like we saw with the 570s and to a certain extent the 720s short-term gain for long-term pain potentially hurting those long-term residuals oh my God an Isuzu Piaza turbo an Isuzu PIAA turbo that is if only you'd seen that on camera that is uh probably one of the rarest cars on the road in the UK right now so yeah we are in this kind of crazy situ situation of having loads of cars Sat On dealer Four Courts and Portion at once and indeed another YouTuber quite a famous YouTuber uh wanted to get his GT3 RS allocation right and he was told he could if he brought I think 3,000 taans or something like that so A a huge desperation if you like from Porsche to shift all of this tyon stock they've got floating about everywhere right now and it is a lot of stock that is the second reason to why we're in this situation the next reason I think is kind of General infrastructure fears about EVs and kind of people thinking H you know what I just can't be bothered with an EV right now and I should rewind actually just point number one the cost of a a tyan you can get a Tesla plaid for about 85,000 list in the UK that's probably about 100K cheaper than a Turbo S a new turbos s with options 100K right so Porsche price of the tyan is too high coming back to the point about infrastructure yeah I just think people are kind of thinking you know what I don't need to bother right now also the UK has extended the state of execution for ice cars from 2030 to 2035 so people have more time to think about not necessarily having to jump into an EV right away I wanted to get an EV because I wanted to try it I wanted to see what it was like it's great fun but yeah there are sacrifices you have to make in terms of some long trips in the UK right it's just the real so people hearing all of these woes about ev's infrastructure uh you know the cost of charging them is probably far higher than they expected out and about you know the cost per kilow hour I think we're being take we're being rinsed effectively in some cases so that is another thing to bear in mind here is just this kind of infrastructure fears people stepping back from EVS continuing to Joy ice cars and why not you know I mean we're not forced down this road as yet so why why bother jumping the gun if you don't need to reason number four I think with with the Ty specifically is we're kind of in this perfect end of lease blood bath right now where you've got all of this us Stu just coming back into the market people literally chucking these back into dealers into Porsche back to the finance companies and you have all of this stock coming back to to the market which kind of exemplifies what I was talking about in point number two really but it is a really struggling situation you got this kind of cycle of all of the end of leases happening don't forget the tyon was released in 2020 so three four year leases all kind of coming to an end Perfect Storm of making things very difficult right now and the other part here is is really important it's how how Porsches are bought tyan specifically in the UK in the UK they are all bought 90% of them through companies and there are significant reductions to be made in your profitable your taxable profit if you buy a battery electric vehicle in the UK now I I will cover this in a separate video with some specific sums because you can be in a situation where the depreciation is so bad with a taon when you buy it new through a company that you end up worse off when you come to dispose of it from the company than if it was to depreciate on a slightly more normal curve they're all brought through companies and it only specifically works for new cars and this is why the fact that they are so expensive kind of Suits businesses in a way because you can offset a huge chunk of your profit against the Hideous cost of a new tyon turbos s for example There's No Limit there's no upper limit on what you can do there but you don't want a car that depreciation a load because the overall cost to you the business you know all that depreciation could outweigh the tax benefits and we'll look into that in more detail in a future video because it's quite NE reason number five I'm going to call out here with the tyon is I think potentially reliability rumors maybe starting to have an impact on taans we know they haven't been great for sure and lots of forums are light alive with people saying ah this car's been really bad for me it's all gone wrong it's failed here it's failed there you know all of these rumors or reality even about the car performance in in the wild in the market just kind of putting people off so could that be something specific at play here with the taon people generally being put off because of the reliability out there right and maybe the facelift will go some way to fix that also kind of a bonus reason six is the fact you've got the face of coming along right now the new taon better numbers across the board better range it's absolutely not going to help the the values of current tyon current preface LIF tons right no escaping that so that is it for this video quite a bit to discuss there in terms of some of the reasons I think we're in this situation but I really would like to see Porsche do a lot more in terms of their pricing strategy with the tyan specifically going forward because yeah it is it is expensive it is expensive when you start to look at what else you can buy in EV land for your money and I think the competition is going to get more Fierce as we move forward anyway Take Care thank you very much for watching stay safe see you on the next one and bye for now

Channel: TABonTV

Views: 143,877

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Id: UbofunQTMbM

Length: 12min 44sec (764 seconds)

Published: Tue Feb 20 2024