Depreciation is a harsh reality facing most car owners. The moment you drive your new car from the dealer’s lot, its value drops.
Although depreciation cannot be stopped, it makes sense to buy a car that will not lose value rapidly.
Porsche vehicles offer an attractive combination of performance and luxury, but do they hold their value? Let’s find out in this article.
Do Porsches hold their value?
Compared to other brands, Porsches retain their value for longer. Strong demand and historical reliability mean Porsches depreciate slowly and typically have high resale values. Also, Porsche is the top luxury car brand in terms of resale value by many used car dealers.
Below is a list showing average depreciation rates for various Porsche models.
These numbers are based on the results of extensive research, not official statistics.
They are merely to give you an idea of how each model depreciates value and guide your Porsche-buying experience.
|Model||Value lost year 1||Value lost year 3||Value lost year 7|
These Porsche Models depreciate the LEAST
While all Porsche models retain their value well, some do so better than others. Here are the Porsche models that depreciate the least:
1. Porsche 911
Arguably Porsche’s most iconic car, the 911, has built a cult following among car enthusiasts worldwide.
The 911 is popular for several reasons. First, it is one of the few sports cars practical enough for daily driving. It has a rear seat compartment, and two trunks for carrying small loads features absent on most sports cars.
Porsche’s decision to offer the 911 in multiple trims and variations also increases its appeal to car buyers. The reason is that it increases the range of options and allows people to choose their ideal 911 based on their preferences.
Strong demand for both old and new 911 models has ensured high resale values for the model. For example, owners of old 911 models such as the 996 and the 964 have seen a 5X or 10X increase in the value of their cars. This, in particular, results from the modern thirst for classic cars and a burgeoning vehicle auction market.
Newer 911 models hold their value well too. The 911’s average three-year depreciation rate of 23.62% is one of the lowest in the sports car segment.
Automotive critics and car review sites such as Kelley Blue Book and Edmunds often rank the 911 high in terms of resale value. Kelley Blue Book, in its 2018 Best Resale Value Awards, ranked the high-performance car with the highest resale value. Similarly, automotive research iSeeCars, in 2019, declared the 911 sports car with the lowest depreciation rate.
Already prized for its performance prowess, the 911’s ability to retain value solidifies its reputation as the best sports car on the planet.
2. Porsche 718 [Boxster/Cayman]
The Boxster was Porsche’s alternative to the Porsche 911, which people felt had become too expensive.
Billed as Porsche’s entry-level sports car, the Boxster offered the same performance and handling associated with the 911, albeit at less cost. Unsurprisingly, the mid-engine Boxster became a hit and outsold the iconic 911.
The Cayman, introduced in 2006, is the coupe sibling to the convertible Boxster.
The Cayman is among the list of popular cars going electric.
Although different in its design philosophy, the Cayman has the speed and handling prowess of its soft-top sibling.
Critics, however, note that the Cayman and the Boxster are aimed at different markets. With a stiffer chassis and stronger body structure, the Cayman is for Porsche purists who cannot afford the more expensive 911.
The Boxster is the more modest and affordable of the two. Its MSRP [$96,300] is lower, compared to its counterpart, which has an MSRP [$99,200]. The Boxster is also slower, and its top speed of 187 mph is lesser than the Cayman’s top speed of 188 mph.
Despite the differences, the Boxster and the Cayman are both impressive sports cars that offer value for money. They also have high resale values and do not depreciate quickly like other high-performance cars.
According to estimates, the Boxster and the Cayman have 3-year depreciation rates of 28.3% and 27.59%, respectively.
In its 2020 Best Resale Value Awards, Kelley Blue Book ranked both cars second-best and third-best sports cars with the best resale value.
3. Porsche Macan
First launched in 2014, the Porsche Macan proves that a car can offer luxury, performance, and utility all at once. Some consider it a small-sized version of the bigger Cayenne SUV, as both vehicles share many characteristics.
Perhaps the Macan’s biggest selling point is its ability to appeal to different sections of the car-buying public. Families love the Macan because of its expansive and comfortable cabin, state-of-the-art infotainment features, and decent fuel economy. Its impressive storage capacity also makes it perfect for family outings or camping adventures.
Performance enthusiasts will also find the Macan an attractive option because of its superior handling and speed. For a small-sized SUV, the Macan is incredibly fast, and with a top speed of 167 mph, it is suitable for the occasional road race.
The Macan’s blend of performance and utility has made it a hit among car buyers, and it is now Porsche’s highest-selling model. More importantly, the high demand has enabled the Macan to maintain better-than-average depreciation rates.
Because of the high demand for Macan models, they possess strong resale value, and used versions typically command high prices.
The average Macan is expected to retain over 50% of its value over five years, making it a good buy for anyone who plans to resell later.
Also read our article on Can I Afford a Porsche? 6 Things to Consider
These Porsche Models Depreciate The FASTEST
While Porsches hold their value well, some models are often affected adversely by depreciation than the others. Here are the Porsche models with the highest depreciation rates:
1. Porsche Cayenne
Apart from the 911, the Cayenne SUV is perhaps Porsche’s most groundbreaking vehicle. The result of Porsche’s decision to expand its production line, the Cayenne, created a stir upon its release.
Porsche purists decried the company’s decision to create an SUV, and critics waited to see if the Cayenne would be a failure.
To the dismay of Porschephiles, many found the Cayenne attractive because of the luxury, comfort, and performance of the model. The Cayenne has since become one of Porsche’s second bestselling models after the Macan.
Despite its high points, the Cayenne is the second-worst Porsche model in terms of resale value. Its three-year depreciation rate of 44.84% makes it one of the fastest-depreciating Porsche models on the market.
Experts have suggested several factors for the Cayenne’s dismal depreciation rate. One is that the popularity of the model has led to an increase in the number of used models available to buyers. Because supply exceeds demand, the value of used models falls, and the rate of depreciation on new models increases.
Another likely factor for the Cayenne’s high depreciation is its luxury SUV description.
German luxury vehicles [sedans, SUVS, etc.] often have steeper depreciation rates than most automobiles, and this affects resale value.
Because the Cayenne cost more to maintain, demand for it is less, causing new models to depreciate faster than normal. In addition, used car buyers do not want to spend money on outdated luxury cars; hence the demand for these vehicles remains low. This translates to higher depreciation on new models and reduced resale values on used versions.
Read our article which explains about Do Porsches have Backseats?
However, the Cayenne’s depreciation rate, while the low for a Porsche, is one of the best in its luxury SUV segment. In fact, the 2020 KBB Best Resale Value Awards ranked the Cayenne the best midsize two-row SUV with the highest resale value.
2. Porsche Panamera
Porsche’s luxury sedan completes the trio of new vehicles created by Porsche as part of its expansion efforts. The luxury sedan has hatchback and station wagon variants and is the third highest-selling Porsche model, according to sales data.
Reflective of its Porsche heritage, the Panamera is one of the fastest sedans available. The base model’s engine produces up to 330 horsepower while the Turbo S E-Hybrid Executive model delivers some 680 horsepower.
Other high points of the Panamera include its luxurious and comfortable interior, expansive storage space, and impressive drive quality.
However, like the Cayenne, the Panamera’s luxury car description makes for a higher than normal depreciation rate. The car’s three-year depreciation rate of 55.01%, makes it the fastest-depreciating Porsche model currently.
Although disappointing for a Porsche car, the Panamera’s resale value is one of the highest in its class. Kelley Blue Book, in its 2020 Best Resale Value Awards, ranked the Panamera the best high-end luxury car with the best resale value.
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Does The Classic Porsche 911 Hold Its Price Well?
For years, the 911 model has remained Porsche’s most renowned brand and one of the most versatile. A superb performance car, it is practical and comfortable enough for daily urban driving.
It also holds its value well and depreciates less quickly than its other sports car counterparts.
Many 911 models, especially the classic 911 models, such as the 993 air-cooled versions, have seen their value appreciate. Because of Porsche’s reputation for practicality, reliability, and performance, collectors are willing to paying a premium for these classic 911’s.
Past air-cooled 911s such as the 901, 964, and 973 variants now cost almost seven or ten times what they cost years ago. For example, the 1973 973 Carrera RS 2.7 Lightweight recently sold for $1.48M USD. This figure is over ten times its original cost.
Although not all classic 911s have increased in value, strong demand means they are worthy investments. If you buy a special 911, particularly a limited-edition high-performance model, you have a high chance of making a profit.
Newer water-cooled models are also holding their value well. In fact, some limited edition water-cooled models have sold for prices 10x their original price. Mass production 911s also command high resale values and have better-than-average depreciation rates.
Automotive research firm iSeeCars, in its depreciation study, ranked Porsche the least-depreciating sports car. Kelley Blue Book, in 2019, also ranked the 911 as the top high-performance car with the best resale value.
Five Factors That Determine The Price Of Used Porsches
These five factors often influence how much buyers are willing to pay for a used Porsche car:
The age and mileage of a Porsche are probably the biggest factors that determine what buyers are willing to pay. Older models, except for classics, lose their value as newer variants are released.
In addition, buyers shy away from older cars because expired warranties mean buyers have to fix faults with their own money.
Mileage also affects the pricing of used Porsches. High mileage indicates extensive wear-and-tear, which reduces the price buyers are willing to pay. Lower mileage models often command higher prices, especially the classic models. However, this is not always the case.
A regularly serviced eight-year-old Porsche with 100,000 miles may sell better than a low-mileage 911 with a sketchy service history.
Low mileage cars often develop problems from sitting too long, and sketchy service history will only scare away potential buyers.
Although the condition is associated with age/mileage, they are not correlated. There are many examples of high-mileage Porsches that are in better condition compared to their low-mileage counterparts.
The condition of your car at the time of the inspection is important. A Porsche vehicle with visible signs of wear and tear is likely to have a reduced resale value as demand for it will be low.
Torn seat clothing, faulty electronics, scratches, and dents, etc. will probably reduce the price of your used Porsche.
Although it is often a secondary consideration, color can influence the value of your car. Used car dealers say that plain colors like black, gray, and blue sell faster than bright colors such as yellow or purple.
In addition, some classic cars are more desirable when they are in certain colors. For example, white classic 911 Carreras or Yellow 1960 901s command high resale prices.
4. Service History
It is important to have a full maintenance history of your Porsche car to command a good asking price. You also want to emphasize that the car has seen regular servicing by reputable mechanics.
If the service history of your car is sketchy, or the servicing was carried out by no-name mechanics, your car’s value may be affected.
Buyers do not want to end up with lemons on their hands and are wary of irregular servicing or servicing done by unqualified mechanics.
A comprehensive service history gives buyers confidence in your vehicle and will go a long way in sustaining your car’s value.
Modifications reduce the value of used cars. Buyers believe upgrades will translate to increased wear and tear and try to avoid modded Porsches.
Moreover, insurance companies may deny them coverage if they discover the car has aftermarket modifications.
Modifications such as alloy wheels or stereo speakers help personalize your car, they don’t add value and will only decrease your car’s resale value.
How Can I Reduce Depreciation On My Porsche?
Depreciation is a scary prospect for any car owner. However, with the right strategies, you can reduce the rate at which your Porsche depreciates.
Here are some tips to increase the resale value of your Porsche car:
- Ensure your car is always in good condition
- Drive responsibly to reduce wear and tear
- Stay away from aftermarket modifications or upgrades
- Buy a plain-colored car or have it repainted if you plan to sell it
- Do regular maintenance and keep all documents relating to the service history of your car
If resale value or depreciation is a big concern for you, then you cannot go wrong with a Porsche purchase.
Porsche cars have a reputation for reliability, practicality, and performance, and this keeps demand high. As a result, they have high resale values and low depreciation rates.
That said, the resale value of your car depends on the condition of your car. Bad service history and visible signs of wear and tear will reduce the resale price for your car.
Therefore, ensure your car gets regular maintenance and keep it in good condition at all times.