A new Porsche typically loses around 25% of its value within the first three years of ownership. Porsche has average depreciation rates for a top luxury car brand.

Used cars aren’t as valuable as brand-new cars, but some cars keep their value longer than others. If you’ve got your eye on a new Porsche, it pays to learn about each model’s depreciation rate. You could score better deals, keep track of your loan payments, and figure up the car’s resale value.

In this article, we’ll go over Porsche depreciation, a huge but often hidden cost of car ownership.

Do Porsches hold their value?

Yes! Porsche is a great brand if you’re looking for a luxury car that boasts a high resale value for years to come. The

Porsche 911 Carrera

frequently tops luxury car lists for models with one of the best depreciation rates—somewhere in the ballpark of 45% after five years. Not bad for a car with an MSRP over $125,000!

Porsche capitalizes on its brand loyalty. After all, this is the go-to luxury name that most car dealerships highlight. The strong demand for Porsches and their reliability contributes to their lower-than-average depreciation rates.

What does “depreciation” mean?

We’ve all heard how a car starts losing its value the second you leave the car dealership. This refers to depreciation—the difference between what you paid for the car and the value it has left. A few things factor into depreciation rates, including:

The price you paid

Mileage

Ownership history

Condition of the vehicle

You can expect new vehicles to depreciate at a rate of around 40%. About 20% of that value disappears in the first year of ownership! It can be tricky to calculate depreciation because of the factors we listed and because different calculators use different variables. Don’t be surprised if you see slightly different depreciation rates for the same vehicle.

A few things can make your car depreciate faster. For instance, if your car is in an accident, you drive it a lot, or you don’t maintain it regularly, it will depreciate faster.

You might not realize it, but a car with an elite reputation (we’re looking at you luxury vehicles), will also depreciate faster than your standard family car.

It might not seem like it, but depreciation is considered part of car ownership costs. Sure, there’s

car insurance

maintenance

, and repairs, but depreciation is a big part of the price of owning a vehicle.

Why does this matter? Well, if you’re shopping for a used car, it helps to know a car’s value by the end of the financing period.

Do Porsches depreciate faster than other luxury vehicles?

Actually, Porsches hold their value better than luxury competitors, especially

BMW

and

Audi

. Luxury vehicles typically have higher depreciation rates than most cars, trucks, and SUVs. Drivers shopping for luxury cars want the newest offering—they don’t want to pay premium prices for a dated model.

However, the iconic Porsche 911 has a cult-like following. It’s luxurious yet sporty enough to drive around every day. Not surprisingly, it’s got one of the lowest depreciation rates among luxury vehicles.

That being said, other Porsches don’t fare quite as well (larger Porsches, we’re looking at you). The controversial

Porsche Panamera

and

Porsche Cayenne

have alarmingly high depreciation rates—around 55% after five years. Porsche owners tend to place a higher value on smaller, sportier models than the roomier SUVs and midsize sedans that Porsche has debuted recently.

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Porsche depreciation rates

To give you an idea of how much popular Porsche models depreciate, check out the data from Edmunds. We’ve listed the average one-year, three-year, and five-year depreciation rates.

The estimates are based on 15,000 miles of use per year and regular maintenance. The depreciation rate is listed as a percentage, and the residual value is based on the purchase price for the 2022 base model (listed at the top row of each table).

Residual value isn’t quite the same as resale value. What you can actually sell the car for depends on the model year, MSRP, trim level, options, and condition of your vehicle.

Porsche 718 Cayman depreciation

Years old	Depreciation rate	Residual value
0	0%	$74,380
1	21.98%	$58,033
3	34.96%	$47,233
5	47.50%	$39,248

Porsche 911 Carrera depreciation

Years old	Depreciation rate	Residual value
0	0%	$127,958
1	18.61%	$104,150
3	32.57%	$86,276
5	45.77%	$69,385

Porsche 718 Boxster depreciation

Years old	Depreciation rate	Residual value
0	0%	$77,775
1	22.36%	$60,383
3	35.29%	$50,330
5	47.50%	$40,835

Porsche Panamera depreciation

Years old	Depreciation rate	Residual value
0	0%	$78,163
1	18.93%	$63,363
3	39.16%	$47,555
5	55.09%	$35,106

Porsche Macan Series depreciation

Years old	Depreciation rate	Residual value
0	0%	$67,800
1	22.36%	$52,638
3	36.41%	$43,116
5	49.67%	$34,127

Porsche Cayenne depreciation

Years old	Depreciation rate	Residual value
0	0%	$84,838
1	21.30%	$66,764
3	38.55%	$52,136
5	54.83%	$38,323

How to find out how much your Porsche has depreciated

There are a few times you might want to know your car’s depreciation rate. For instance, you could be wondering how much insurance you really need to carry, or you might be figuring out how much you still owe for the Porsche compared to how much it’s worth.

To easily find your car’s depreciation rate, find the fair market value. Then, subtract that number from the original purchase price. The result is how much your vehicle has depreciated since you bought it. Check out

Kelley Blue Book

or Edmunds’ cost-to-own calculator to factor in things like mileage, vehicle condition, and color (all of which affect the car’s value).

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How to limit Porsche depreciation

Okay, we’ve just thrown a lot of statistics your way. Your mind might be reeling. Is it worth it to buy a luxury vehicle?

The answer comes down to your vehicle needs. If you’re looking for a stylish car that you enjoy driving, Porsche is generally a great brand to go with. Plus, there are things you can do to limit the depreciation of your new toy.

Storage: Protect your Porsche from the elements! Hail, bright sunlight, and weather extremes all speed up the aging of your luxury car. To keep it looking its best (and retain its value), park your Porsche in a garage or covered parking place.

Mileage: All of those depreciation numbers in our table were based on driving a Porsche 15,000 miles a year. Drive less, and your Porsche will depreciate less!

Maintenance: Follow the Porsche maintenance schedule religiously, and you’ll be rewarded with a higher car value. We’re talking oil changes, tire rotation, car washes, and detailing.

Color: This one might be out of your control, but if you have your choice of Porsche colors, pick a plain color like black, gray, or blue since these command better resale prices. You can also choose a bold sporty color if you’re shopping for a zippy little Porsche. Carmine red on your 911 sports car? Yes, please!

Modifications: Resist the urge to update the sound system or swap out your tires for alloy wheels. Modifications might seem like a good idea at the time, but they don’t add value and can make it harder to sell your Porsche down the road.

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Why you should buy gap insurance for your Porsche

When you’re at the dealership, they might mention optional

gap insurance

. Gap, or “guaranteed asset protection,” covers the difference between what you owe on your car loan and the

actual cash value

payout.

So, you buy your Porsche and after a few years, you’ll probably owe more on your car loan than your car is worth (because of depreciation). If the worst happens and your car is totaled before you’ve paid it off, the insurance company will pay you the difference in what you owe minus the actual cash value.

The insurance company uses depreciation to determine how much to pay you! The actual cash value is simply your Porsche’s replacement cost minus depreciation.

If you’re still on the fence about gap insurance, consider that it also covers vehicle loss if your Porsche is stolen. If you also have

comprehensive

or collision coverage, you can rest easy knowing that your car will be taken care of for any reason!

Whether you accidentally hit something, hail damages your car, or someone breaks your windshield, a great insurance policy makes owning a Porsche affordable.

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