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G70 Resale value

Buckdes

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I know its early in the game here but i would like to know what people think the resale will be like on the G70 a few years down the road.

My mind track was that on a 7 year finance plan at 1.9 interest after 3 or 3.5 years i should have enough paid on the principal of the loan that i may be able to get what i owe on a trade in on a new model G70 or if i went somewhere else.

Any thoughts ? i know there is a good chance i may be upset when the time comes and i am still upside down but i have heard that the G80 holds value pretty good
 
My mind track was that on a 7 year finance plan at 1.9 interest after 3 or 3.5 years i should have enough paid on the principal of the loan that i may be able to get what i owe on a trade in on a new model G70 or if i went somewhere else.

Low interest rates don't give a lot of incentive to pay ahead, but I always do. Put a few extra bucks on the payment and you can be balanced in about 2 years. I don't know if it makes the most financial sense, but you have the peace of mind you can trade or sell with no lat minute hits. If the washing machine breaks down you can skip a payment to replace it with no cash flow interruptions.
 
As far as reliability, Hyundai/Kia/Genesis have already proven they are competitive in that regard, so I personally think our resale is going to depend mostly on how Genesis Canada evolves over the next few years. What I mean is that so far with this car I have been blown away by the purchase experience but I have yet to experience the actual valet service. If they can deliver as promised, that will convince more people that Genesis really is a luxury brand and they will be interested in used cars. Also, before these cars are off warranty, I think Genesis needs to have dedicated service centers at least in the major cities. I will hit 100,000km in around 3.5-4 years and if at that point I have to start dealing with an idiot service adviser in a Hyundai dealership, it will 100% hurt the resale of my car because few others will want that either.

Also, if the reviews on this car keep coming in as positive as they are, and there starts to be some head to head reviews with German's and it does well there, then that will help with resale as well. I know with the G80 and G90, aside from some early reviews they seemed to die off and never seem to be included in multi car reviews in the bigger mags (like Motortrend, and Car and Driver). Hopefully that isn't the case for the G70

Personally I am hoping that in spring 2022 when my car has passed 100,000km I can sell this car for close to $30K. I think the fact that we purchased 2019's very early will help as well. Since if I sell in early 2022, it will look like I am selling a 3 year old car with high mileage.
 
Not sure how long I will keep mine, I usually drive a vehicle for 3 or 4 years. I will be interested in the smaller of the two SUVs when it comes out. I'm guessing the trade in value will be there.
 
I think it's just to early to say.

The car isn't available yet in the US. The reviews thus far have been from (1) brief drives, (2) manufacturer-managed events, (3) enthusiastic early purchasers, or (4) YouTube testers who have gotten access to the car through the good graces of a dealership and aren't likely to jeopardize that relationship by either over-taxing the car or giving it a terrible review. But what information we have so far is certainly positive. I don't anticipate that full-blown road tests by automotive journalists will contradict early impressions, but we just don't know.

The main factor driving resale value will be demand. We just can't say now what demand will be for these a few years down the road. New cars tend to generate demand. As time passes, the demand can either decline, remain the same, or increase. If Genesis gets established as a premium brand, that bodes well. If the release of SUVs/CUVs from Genesis saps all of the demand away from sedans (to consider one possible scenario), that won't bode well.

And, of course, the whole dealership thing in the US needs to get sorted out to everyone's satisfaction.

I see no reason why resale value wouldn't be at least decent, unless some unanticipated and thus far unidentified problems pop up.

But such things can and do occur. Consider a few examples (I'm sure there are lots more out there):

(1) According to a Car and Driver article from a few years ago, new models had 14% more initial quality problems than models that were returning unchanged from the previous model year or merely updated. So, as time passes, later models may be perceived as better than the originals.

(2) In 1978, I bought a Volkswagen Scirocco based on the Golf platform. The car had gotten rave reviews and was an Editor's Pick by Consumer Reports. Within a year, a whole bunch of unforeseen problems cropped up, including catastrophic drive belt failures that could drop valves into the oncoming path of the pistons and destroy the engine. Although I avoided the engine's complete demise, I did have the belt failure, along with a whole bunch of other issues that plagued that car. Consumer Reports issued damning criticism of the car -- way too late for a lot of people -- and warned against purchasing it used. Nobody saw that one coming in advance. I've not trusted Consumer Reports since.

(3) Tesla has recalled 123,000 Model S cars (the pricey sedans) for a corrosion-related power steering belt issue. It's eminently fixable but was certainly unexpected. Stuff like this just goes wrong sometimes. Tesla seems to survive all sorts of missteps but Genesis may not be so lucky if problems arise.

(4) Ford will be discontinuing a bunch of models in the near future, which could impact sales of those models adversely. What if, after the SUV's come out, the G70 gets axed? Will they go up in value? Down? Stay the same? For many, a perceived lack of enthusiasm for a model from the manufacturer will dampen their desire to get that model, especially if they're uncertain (as most people would likely be) about why it was discontinued. Now, we don't foresee the discontinuation of the G70 as in any sense planned in the near future, of course. But we really don't know what will happen, do we? We're not even confident when the car will appear in dealerships, even though the company is committed to a US release.

It's always a bit of a gamble with a new model from, essentially, a new car company. That's why pricing is often (wisely) aggressive when such cars are first released. Once they've proven themselves those cars can command higher prices. But initially, they carry some uncertainty, which essentially diminishes their value somewhat until they prove themselves. Again, I don't see any signs that problems that could occur will occur in the case of the G70. Early signs point to it being a solid car and people who see and drive it generally like it. But early adopters always take something of a risk. Sometimes that works out well and sometimes not.
 
I agree the sedan to SUV shift in the market might be one of the biggest factors on our resale. But that will impact all brands and not just Genesis. I am more concerned with how the resale of the G70 compares to the German's or Lexus in 3-4 years.
 
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all cars, regardless of make/model will lose 50% within the first 2.5 -3 years.. they will level out around the middle of the 3rd year into the 4th..

some will lose more, some marginally less, but since leases are typically 3 years, and the residuals are based on estimated wholesale value at the end of that term, all of them anticipate a 50% loss in value within that time frame.

There are always ebbs and flows, and some vehicles especially those you don't see high levels of fleet sales (rental cars and the like) such as Honda and Lexus' tend to fair a little better.. But not enough to really make a difference.

advertisements claiming "highest resale value over XXX years" are nothing more than marketing gimmicks, of the near 100 cars I have owned in the past 35 years I've never seen one maintain more than 50% after 3 years especially on a trade-in.
 
I have recently been in the market to buy a new car and have been extremely disappointed in the quotes I am getting on trading the car in. I have a 2013 6 cylinder Genesis purchased the care new December 2013 for $37700 with the tec and premium packages. My car has 69000 miles and after going to 4 different dealers I was offered $10000 at each of them which is a depreciation of 73.4% after 4.5 years which I think is stunning.

The car itself has been great and I still enjoy driving it, but I would never buy another one just because of the depreciation. I guess if you were planning to keep it 10 years it wouldn't matter, but trading it in somewhere in the 2 to 5 year range plan on taking a financial bath.
 
My car has 69000 miles and after going to 4 different dealers I was offered $10000 at each of them which is a depreciation of 73.4% after 4.5 years which I think is stunning.

but trading it in somewhere in the 2 to 5 year range plan on taking a financial bath.

First, it is not 4.5 years. 2018-2013=5 and soon will be 6. Model years count, not the actual purchase date.

Cars are not a good investment. I don't have comparisons of other 2013 model year cars and depreciation but they all have. Did you look at others? I don't worry too much about depreciation, I look at the cost of transportation in real time. It has cost you $513 a month so far. If you feel it is worth that for comfort, then you got a good deal.

If you want to get a better value in your cars, look for a 1 year old Corolla. You can get one for $17,000 and reduce your monthly cost for the same time to $314 or less.

Factor in everything else too. To get the same level of luxury and performance in 2013, what else was equal to the Genesis? How much did it cost? Where does it stand with depreciation today? That will give you a better idea of how much value you have.

Depends on how you look at cars. Is it merely transportation that you want to buy at low cost? Are you willing to pay for extra comfort? I've known a few people over the years that can easily buy any car they want, including a Rolls from pocket change. They drive Chevy and Ford because it gets them where they want to go at modest cost.
 
I have recently been in the market to buy a new car and have been extremely disappointed in the quotes I am getting on trading the car in. I have a 2013 6 cylinder Genesis purchased the care new December 2013 for $37700 with the tec and premium packages. My car has 69000 miles and after going to 4 different dealers I was offered $10000 at each of them which is a depreciation of 73.4% after 4.5 years which I think is stunning.

The car itself has been great and I still enjoy driving it, but I would never buy another one just because of the depreciation. I guess if you were planning to keep it 10 years it wouldn't matter, but trading it in somewhere in the 2 to 5 year range plan on taking a financial bath.


Dealer trade offers do no equate to depreciation. Dealers will low ball the fair market value by 20-30%. Fair market is what you can get from a private party sale.

Take for example my 2015 Lexus RCF that I sold for my 2018 G80 Sport. Dealers trade offers were between $33k and $36k for a 3 year old Lexus that had a $79k MSRP.

I sold said car private party for $42k. A loss of about 50% at the 3 year mark as I stated in my post above. 34 months of ownership but 3 model years with 10k miles under average.
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What I've done with my last couple of trade-ins is brought the car to Carmax and gotten an offer from them. In my experience, they come in right around Kelly Blue Book value or a bit better when it's my car rather than my wife's, because I keep my cars in great shape. Then, when the dealer I'm buying the new car from makes a trade offer, I can whip out my Carmax appraisal (after I hear their offer, of course). Both times I've done this, the sales people were actually thrilled, as it allowed them to go to their used car guy at the dealership and negotiate a better trade value on my behalf. This works to the salesman's benefit because it gets me to "yes" more readily without his figures having to move further. And it gives him leverage in haggling with the used car guys who have more info about used car auction prices than the salesman does without the Carmax offer in hand. In one case, they matched the Carmax value and in the other, they came up with a value just short of it but that actually cost me less than if I'd sold to Carmax because tax was based on net cash outlay after trade, not actual selling price exclusive of trade.
 
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What I've done with my last couple of trade-ins is brought the car to Carmax and gotten an offer from them. In my experience, they come in right around Kelly Blue Book value or a bit better when it's my car rather than my wife's, because I keep my cars in great shape. Then, when the dealer I'm buying the new car from makes a trade offer, I can whip out my Carmax appraisal. Both times I've done this, the sales people were actually thrilled, as it allowed them to go to their used car guy at the dealership and negotiate a better trade value on my behalf. In one case, they matched the Carmax value and in the other, they came up with a value just short of it but that actually cost me less than if I'd sold to Carmax because tax was based on net cash outlay after trade, not actual selling price exclusive of trade.


In my experience car max is a joke, I went to them and their offer on my RCF was $33k. Blue book trade on the RCF was $39k-$41k. Private party $44k. And they had 3 RCFs inventory across the dealerships with more miles than mine that they were selling for $46k-$51k with their no haggle approach.

Car max in my experience is a rip off.
 
In my experience car max is a joke, I went to them and their offer on my RCF was $33k. Blue book trade on the RCF was $39k-$41k. Private party $44k. And they had 3 RCFs inventory across the dealerships with more miles than mine that they were selling for $46k-$51k with their no haggle approach.

Car max in my experience is a rip off.


Clearly, my experience has been better. I've always gotten offers at or typically better than KBB valuation for my model and mileage in very good condition. I tend to have unusually low-mileage cars that I'm bringing in for them to assess that I imagine they can move pretty quickly. That may have something to do with it. I also try to have the car in condition that encourages them to sell it themselves rather than auction it off. That increases what they can get and hence what they can offer me. For example, when I brought them my Z3, a had washed down the engine compartment and polished the plastic rear window to crystal clarity in addition to the usual prep. The guy fell in love with it, showed me the KBB value (which I already knew) and offered me substantially more. He said explicitly that the car would show beautifully and would sell directly through Carmax essentially as is.

I don't have a great deal of fundamental trust in the integrity of Carmax. They make money by paying less for cars than they're worth. I first went to them with considerable skepticism but equal skepticism for trad-in offers from dealers. Carmax pretty consistently made the better offer when I compared. I've been able to arrive at prices that met my expectations and were satisfactory relative to the hassles of selling privately (gone down that road before, too). These days, I find that the best of both worlds is to trade the car for the tax advantage but have the Carmax estimate secreted away for comparative purposes. In fact, even when I sold privately, I got a Carmax appraisal to document to potential buyers that the car was in good shape (had been cleared by the Carmax mechanic) and to be able to peg the wholesale price and ask for something between that and full retail for the private sale.
 
Low interest rates don't give a lot of incentive to pay ahead, but I always do. Put a few extra bucks on the payment and you can be balanced in about 2 years. I don't know if it makes the most financial sense, but you have the peace of mind you can trade or sell with no lat minute hits. If the washing machine breaks down you can skip a payment to replace it with no cash flow interruptions.

This is kinda like asking how long a piece of string is. You might check the following for general estimates.

Car Depreciation Calculator - Omni

My previous Acura RDX tricked out to the max was $45.5k. The above cauculator shows the estimate to be $26.7 after 3 years and my Genesis dealer gave allowed $31K on the trade. My RDX was like new for a 3 year old vehicle and it only had 18k on the clock whereas more normal annual mileage of 12-15K would have put 36-45K on the clock. That definitely played a part on my tradein worth of the RDX.

I'm guessing after 3 years on a 7 year deal, you probably would be able to trade after 3 years withou adding more to pay off the original loan. I've never leased a car, but if you knew going in that you're going to walk away after a 3 year lease, you might be better than buying for 7 years. The major caution on leasing is to not go over the max yearly mileage or you'll take a BIG hit when you walk away.
 
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The 100,000 mile powertrain warranty does not transfer to the 2nd owner, so that value disappears. Also, the pickup/delivery service and maintenance is part of the purchase price, and is used up in 3 years. I think this may explain why the resale drops quicker, because the original buyer is essentially prepaying for that value. Does this make sense?
 
The 100,000 mile powertrain warranty does not transfer to the 2nd owner, so that value disappears. Also, the pickup/delivery service and maintenance is part of the purchase price, and is used up in 3 years. I think this may explain why the resale drops quicker, because the original buyer is essentially prepaying for that value. Does this make sense?
Where's the documentation for what is included with the US G70? Basically it appears that it will start around 33K. I don't think at that starting price you can look forward to pickup/delivery service. Guess we'll just have to wait for the debut.
 
Where's the documentation for what is included with the US G70? Basically it appears that it will start around 33K. I don't think at that starting price you can look forward to pickup/delivery service. Guess we'll just have to wait for the debut.
Pickup/delivery is for ALL Genesis cars...that’s part of their whole shpeal.
 
Well, it's a service I doubt most people would use. Still, I find it hard to beleive if I buy an boot feeder G70, a little over 30K, Genesis will send someone out with a loner and then return my vehicle when the service is finished. Costly to say the least, considering paying the driver's time both ways.

Maybe it just cost more to break in to the Lexus/Infinity market.
 
Well, it's a service I doubt most people would use. Still, I find it hard to beleive if I buy an boot feeder G70, a little over 30K, Genesis will send someone out with a loner and then return my vehicle when the service is finished. Costly to say the least, considering paying the driver's time both ways.

Maybe it just cost more to break in to the Lexus/Infinity market.
Not sure what you are getting at? Find what hard to believe? It's a FACT...that is what Genesis does. And I think MOST people will use it.

Why would you go to a dealer knowing they would come to your home or business?
 
If I worried about resale value I would buy a Honda Civic. If you intend on staying under the Gensis umbrella, trade in value will always be good. There is one video where the guy from Genesis Canada talked about developing brand loyalty and how the G70 fits into that strategy. If this car treats me well I will buy another and when it's time to trade in my 2017 Honda CRV Touring I will be looking to replace it with the smaller of the two SUVs that are yet to be released.
 
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