Genesis is One of the Top 10 Vehicles with Terrible Resale Value

[MathWiz]

One of the Top 10 Vehicles with Terrible Resale Value

Kind of sucks for first owners, but for someone like me who usually looks at one owner low mileage used cars, it works out nicely.

Charles

 

[mky]

Yes that is unfortunate but people who buy keep it longterm. Resale value of luxury cars any brand is like that but it will get better down the road when genesis is forked as its own brand.

 

[Munch520]

This is common knowledge, and I definitely couldn't justify spending $53k when I could find the same thing for $34k with 10,000 miles.

Heck, they're letting new 2015s go for just about the same discount. That definitely dilutes the resale.

 

[ksoze]

That "article" has no information on the years compared or anything about the internals. Many previous lists were using the 2014 model values which did drop with the new model. Many of those values also say "predicted", so I would not take that unsourced blog with much accuracy.

 

[hokie1525]

Yes that is unfortunate but people who buy keep it longterm. Resale value of luxury cars any brand is like that but it will get better down the road when genesis is forked as its own brand.

If people who buy keep long term, then the supply of used Genesis would be less. So the demand for used Genesis must be low. Maybe a lot of people buy new because they are less expensive new than the German competition? I don't know.

 

[Jaeger]

That "article" has no information on the years compared or anything about the internals. Many previous lists were using the 2014 model values which did drop with the new model. Many of those values also say "predicted", so I would not take that unsourced blog with much accuracy.

It's on the Internet so it must be true!

But seriously, luxury sedans as a group are horrible for resale, and as a fledgling member of that group,it's hardly shocking that the Genesis sedan fares poorly in this regard.

I believe things will improve somewhat as the brand gains traction, but I think the as yet unrealized Genesis crossovers will do better than the sedans.

 

[fasteddie2]

That was one of the considerations when I bought my used 2015. 9k miles and 9 months old - depreciated about $10k.

If I was planning to sell my car in 5 years, I would have gotten something else

 

[TroyK]

As long as Hyundai continues to handsomely subsidize leases, I could care less!

 

[BrazGenesis]

As long as Hyundai continues to handsomely subsidize leases, I could care less!

Totally agree.
I leased my 2012 to buy it 3 years later.
The residual was 5K overstaded. This means a generous discount on the monthly payments.
Besides, to buy it I would have to pay next to 2K for extended warranty.
While the car was outstanding and service log was zero that would be 7k more than market value.

The alternative: a great 2015, heavily discounted and also with an overstaded residual (=discount)
Leasing APR = .5% aa

Leased the 2015...

If the car gains value maybe I buy it a lease end. If everything stays the same will lease a 2018...

On the purchase side: if nobody pays MSRP then that is NOT the price of the car. The price, a couple of years later - compared wit OTD is not that much lower.

Finally: the Germans lose less value. But discount less. Our price is lower, so is maintenance and service, leading to a much lower cost of ownership.

Overall: Genesis is a great business proposition.
BTW: Hyundai is becoming an outstanding player i cost/benefit.

 

[mky]

Most of the people who bought it recently including me got it in the price of used one which means it has already depreciated but we got brand new car. Maybe it is better to wait for sometime to get such deal but even at the original price it is much cheaper than German cars so it is anyway a steal at sticker price.

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[TroyK]

If everything stays the same will lease a 2018...

I have a distinct feeling that with the advent of the Genesis brand, good lease deals might be on the way out, at least for a while. Hope I'm wrong!

 

[Midnightsun]

I have a distinct feeling that with the advent of the Genesis brand, good lease deals might be on the way out, at least for a while. Hope I'm wrong!

Pretty sure you are right. These cars are so rock solid and once the word gets out the demand and hence the price will go up. Regardless, luxury vehicles no matter how well they are rated just do not keep the value up like your every day econo box. Just how it is.

 

[Genentec]

ya the pricing has stabilized IMO. most od the 2015 new and used have been bought and they are limiting supply on 2016.

 

[PinkFloyd]

Most of the people who bought it recently including me got it in the price of used one which means it has already depreciated but we got brand new car. Maybe it is better to wait for sometime to get such deal but even at the original price it is much cheaper than German cars so it is anyway a steal at sticker price.

This^^^^. The flaw in these articles/blogs is that they compare resale value vs. MSRP.

Many of us bought new at considerably less than MSRP, many around 27% under it. In that scenario, the resale value isn't much of an issue.

 

[ksoze]

This^^^^. The flaw in these articles/blogs is that they compare resale value vs. MSRP.

Maybe so, but it is the only real way to get a standard baseline to compare. Same concept why residual value percent in a lease is calculated off MSRP.

 

[XPO439]

Who cares, this isn't some super rare classic car, or some 1 of 1 hyper exotic. However...if the 2015 5.0 is the last of the V8...there could be some value there...or novelty piece.

The only cars that I can think of right now that still has value used is the Dodge Hellcats. That's probably because the idiots that pay an insane amount of markup over MSRP is trying to make it back lol. This goes the same for those new Shelbys.

 

[alexolewis3]

Resale doesn't matter much when you pay $39,000 for a new 2015 with a MSRP of $54,000. Even if my resale falls to the low $30's I still got a great deal.

 

[penga25]

Resale doesn't matter much when you pay $39,000 for a new 2015 with a MSRP of $54,000. Even if my resale falls to the low $30's I still got a great deal.

Truth!