[My718isPorsche#5]

I saw on my dealers web they have a new 2018 Cayman S with a factory discount until Nov 30. With all the political goings on I thought I'd trade my 2017 base with 6,000 miles in on it. MSRP on my 2017 was $66,400. they want to give me $45,000 for it on trade. That's a loss of $21400 or about 32% in 15 months. My car and over $32.000 and I can drive the S home. For $32,000 I could probably get the S engine install in my 718. I would do it if the S didn't have so many things I do not want starting with color, wheels, LCA, enter & drive, etc.. I think it's a car nobody wants so the factory lowered the price.

 

[hkginlax]

Don't all cars, not only the 718s, lose 20-25% of their value for the first year? In addition, I guess the dealer was not going to trade for free just because he is a nice guy; therefore, a few more percentages for him as well.

 

[Porsche2018]

Sounds reminiscent of my 2018 CS the trade back to the dealership was not pretty. The only thing that improved their offer a bit is they deducted the price from my 3RS so I saved another 4.5K in taxes.

 

[Wine.O]

Dealerships often don't want to be bothered w/ CPOing a used car when they've got new inventory from the last MY to move. When I traded in my BMW to pick up my 19BS, I actually got a better offer from CarMax than the BMW dealership.

 

[RussellHodgson]

I get emails from my dealership every 3 months or so asking if I'd like to trade in my car for a new one because "my car is worth more now than it ever will be". I'm sure they'd give me a great trade in!

 

[Beardy]

That trade in value sounds about par for the course of any vehicle.
They will need to put it on the lot for midpoint between what you paid and what they are offering you and cover costs and margin.

 

[GTS]

I agree, it's probably a fair trade-in offer. For reasons like this, I always try to negotiate the new car sale price before mentioning a trade. Dealers will tend to discount a sale price more when they know they can build more margin back into the deal with a low trade-in offer. It makes the buyer feel like they got a great deal on the new car, while simultaneously absolving the dealer of any fault when "the book value" tells them all they can offer for your trade. Also, try to get them to compete for your trade by getting quotes from Carmax, TrueCar, or KBB instant cash offer, first.

 

[Baka1969]

Cars are not investments. They depreciate. Quickly and steeply.

 

[trusted]

Although a $66K MSRP car is what would be considered a low spec base, $45K offer is still too low. Based on current auction results they should give you at least $50K (give or take depending on your unknown region) IF the car is immaculate. Assuming you got at least 5% off when new the car lost like what...$13K in 2 model years? That's not super great for a Porsche but also not super bad either.

 

[trusted]

Cars are not investments. They depreciate. Quickly and steeply.

I paid over MSRP for my used 2016 GT4. I must be insane...

 

[Baka1969]

I paid over MSRP for my used 2016 GT4. I must be insane...

The GT4 is more the exception that proves the rule. Certainly any volume production car will most likely depreciate. That's the luxury one pays for buying a new high-end expensive sports car.

 

[Beardy]

Although a $66K MSRP car is what would be considered a low spec base, $45K offer is still too low. Based on current auction results they should give you at least $50K (give or take depending on your unknown region) IF the car is immaculate. Assuming you got at least 5% off when new the car lost like what...$13K in 2 model years? That's not super great for a Porsche but also not super bad either.

But aren’t you comparing a retail price at the auction to a wholesale price which is what the dealer will want to buy it for? He wants to then sell it for the retail price.

 

[trusted]

The GT4 is more the exception that proves the rule. Certainly any volume production car will most likely depreciate. That's the luxury one pays for buying a new high-end expensive sports car.

I totally agree. I took somewhat of a bath on my higher spec 718. But generally Porsche do depreciate better then most brands. I drove my Macan GTS for more then a year and made money on trade in. Not much - but still.

But aren’t you comparing a retail price at the auction to a wholesale price which is what the dealer will want to buy it for? He wants to then sell it for the retail price.

I was looking at black book dealer trade in numbers which are based on what dealers pay at auction for cars they intend to resell. Black book dealer retail is around $58K for a '17 base with 6K miles.

 

[Semitone]

Of course cars depreciate, particularly if you drive them.

GT4s are no where near selling for MSRP, even if vacuum bagged.

Macan depreciation for the first year was low because of temporary supply/ demand. Looks to me like most of that has been rectified and they are back to “ typical” depreciation.

I think a lot of people neglect the overall wealth effect and stock returns have on luxury cars like Porsche in the good times. It’s going to be interesting to watch the nonsense that goes on with the GT3 models given the absurd number of low mileage “ used” cars sitting on lots.

 

[JakiChan]

It’s going to be interesting to watch the nonsense that goes on with the GT3 models given the absurd number of low mileage “ used” cars sitting on lots.

I just got an email from a local-ish dealer today of some “amazing opportunities”. He’s got 2 used 991.2 GT3s sitting there. They’ve been there for a while. Both have about 5k miles and are asking more than MSRP.

Sure, buddy. Good luck with that.

 

[TEST DRyVer]

I totally agree. I took somewhat of a bath on my higher spec 718. But generally Porsche do depreciate better then most brands. I drove my Macan GTS for more then a year and made money on trade in. Not much - but still.
I was looking at black book dealer trade in numbers which are based on what dealers pay at auction for cars they intend to resell. Black book dealer retail is around $58K for a '17 base with 6K miles.

I had a client in the other day. He had bought his 2017 718 Cayman at a dealer auction 2 weeks ago. He had 6k miles on the clock, and the car was in good condition, but not a great color combo for Arizona (black on black). The original build was $68k. We offered him $46k. Here's the rational behind this; we can buy that car at a Porsche dealer only auction for less than our offer, but we rarely buy auction cars where I work. He paid $55k for the car at auction, which is not a bad price if you plan on keeping the car for 2 or more years. The client was here on a visitor visa, and was to go back to his homeland in 6 months. So paying $55k for that 718 and trying to immediately trade it was a bad idea. Paying $55k then all the export, transport, etc... was a bad idea. Bottom line, if we bought the car at $46k (let's pretend the car was perfect and needed nothing), and we certified it (which is highly probable), that costs us just over $3k. We have a dealer pack fee of $1k. That means we would own the car for $50k. We would list the car for $55k, and someone would come in and negotiate $2k off, leaving us with $3k in profit. Of course that IF everything went perfectly smooth... That's a lot of work for $3k in profit. Unfortunately, the $55k list price on that car is probably the most we could ask for it and still get attention, and the $46k we would offer to buy the car for is pretty much top dollar. Sometimes, it doesn't matter what the book says. It's what someone is willing to pay for it.
The $58k you mentioned is high, unless there was something really special or unique about that build... The Macan GTS is different. ANY Porsche with a GTS badge brings in more money. And almost any Porsche with a GT badge holds near MSRP. Anything with an RS badge will bring in over MSRP. The rule I mentioned above stands for older pre-owned models as well, not just near new cars...

 

[Porsche2018]

And almost any Porsche with a GT badge holds near MSRP. Anything with an RS badge will bring in over MSRP.

Though an observation, I am looking at quite a few of the GT car owners like the owners of the GT3s and 3RSs and they don't drive their cars much at all. It seems some owners are cautious about racking up the miles and actively trying to keep it under 10K miles to avoid taking a significant hit on resale. So I am not sure why many of these people buy the GT cars. Is it just to have a brief/limited experience with a GT car? That approach just seems like a waste. So the RS cars may be able to bring in a price above MSRP but only if you act more like caretaker than an owner.

 

[Baka1969]

Though an observation, I am looking at quite a few of the GT car owners like the owners of the GT3s and 3RSs and they don't drive their cars much at all. It seems some owners are cautious about racking up the miles and actively trying to keep it under 10K miles to avoid taking a significant hit on resale. So I am not sure why many of these people buy the GT cars. Is it just to have a brief/limited experience with a GT car? That approach just seems like a waste. So the RS cars may be able to bring in a price above MSRP but only if you act more like caretaker than an owner.

This is unfortunate. This condition is largely the same with Ferrari and Lamborghini owners. Particularly their special edition cars.

I understand that these are toys for the people who own them. Also, many have multiple cars. So I can (sort of) understand why these don't get driven much.

That said, to not drive them to keep values up is disappointing. These are some of the most fun cars ever built and they deserve to be driven. And driven often. They shouldn't only be for special occasions driven only a few times per year. Then locked away in a warehouse for most of its life.

My condolences to those cars.

 

[trusted]

Sometimes, it doesn't matter what the book says. It's what someone is willing to pay for it.

True. But the book does say what someone was willing to pay for it somewhere. Of course there are regional deviations and not every deal and car will be the same. In any case the $45K offer for OPs car is on the low end when compared to actual numbers (black book). That's all I wanted to communicate really.

 

[Olympic Blue]

This is unfortunate. This condition is largely the same with Ferrari and Lamborghini owners. Particularly their special edition cars.

I understand that these are toys for the people who own them. Also, many have multiple cars. So I can (sort of) understand why these don't get driven much.

That said, to not drive them to keep values up is disappointing. These are some of the most fun cars ever built and they deserve to be driven. And driven often. They shouldn't only be for special occasions driven only a few times per year. Then locked away in a warehouse for most of its life.

My condolences to those cars.

I agree...


I never buy a car or refrain from doing certain mods, based on what the value would be to the next owner.


The analogy I have heard is like, not having sex with your girlfriend because your saving her for the next guy.