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Depreciation

Trixie86

Registered Member
Joined
Feb 24, 2020
Messages
1,433
Reaction score
415
Points
83
Location
Chicago, Il
Genesis Model Year
2021
Genesis Model Type
Genesis G90
Stopped by a local Genesis/Hyundai dealer today to take a look at a 21 G80 3.5 Prestige. Very nice car. Sat down with a young salesman and talked about buying it. He gave me an appraisal for a trade in and purchase price. Was all good until I saw the trade in price.
$41K for a 20 G80 Sport AWD with 3800 miles. I paid $52.8 in Mar. Quite a depreciation shock, but oh well. Funny thing, 5 minutes after I left, he called and increased it to $42.
$1K a month for depreciation. 🙂
 
It's usually a shocker when a dealership lays out what they'll give you for a trade. Check out Carvana or Vroom to see what their offers are. It's all online and instant.
 
20% depreciation in the first year is very common.

Should have purchased a Toyota Tacoma or 4Runner if this is a concern.
 
Stopped by a local Genesis/Hyundai dealer today to take a look at a 21 G80 3.5 Prestige. Very nice car. Sat down with a young salesman and talked about buying it. He gave me an appraisal for a trade in and purchase price. Was all good until I saw the trade in price.
$41K for a 20 G80 Sport AWD with 3800 miles. I paid $52.8 in Mar. Quite a depreciation shock, but oh well. Funny thing, 5 minutes after I left, he called and increased it to $42.
$1K a month for depreciation. 🙂
It's a big hit on any car but others are worse.
 
I don't know where people are getting their information. The best way to tell what you can expect in depreciation (the real giant and hidden cost of owning a car) is already on the internet IF you know where to look.

I suggest caredge to start. I have found their numbers to be pretty spot on through the years. Generally speaking certain categories and brands of vehicles will depreciate faster than others. Of course how you have treated the car, mileage, color, etc.. are always big factors that will vary with each owner. and vehicle.

What I can say is that luxury brands tend to depreciate faster than mainline vehicles. Traditionally there are certain brands that tend to be costly to own such as anything made by FCA (Chrysler, Ram, etc) and German vehicles in general. They tend to have more issues and need costly repairs after just a few years. Savvy buyers already know this and tend to shy away. With less demand for the used product the depreciation is faster. The opposite holds true for the Asian brands, specifically the Toyota brand has been the most reliable over time and that is a huge factor in them holding their value better than others. Trucks and SUV's are in demand these days so hold their value better than sedans or coupes. Check Edmunds "True cost to own" to see how a specific vehicle will depreciate if you want to know more.

Unfortunately the Korean brands have had a hard time raising their "street cred". For years Hyundai offered vehicles that were on the low end of things from price to quality. They were hard to sell used and promised the next owner lots of expensive headaches. At the corporate level they decided to raise the bar significantly about 2005 with the introduction of the Tucson. Since then they have produced some really good and some not so good vehicles but the quality in general has been going up over time. And resale values have slowly increased accordingly.

When they introduced the Genesis brand several years ago it was still wore the Hyundai badge and was sold through the Hyundai dealer network. Maybe that was a mistake because in has confused the average consumer.
One must still purchase at a Hyundai dealer even though clearly Hyundai has taken the Genesis to a much higher level and by action is clearly wanting a seat at the luxury table. With the deep pockets of Hyundai I believe they will eventually succeed, but in the meantime the public does not recognize the quality and value of the Genesis brand.

Until Hyundai solves the problem with their existing dealers and takes the big step to establish separate brick and mortar stores just for the Genesis brand resale values will suffer. Again it is about public perception. The old supply and demand equation. Right now the resale market for Genesis is tiny. Few of the most recent models will be on the market for several more years. Maybe by then the demand will have grown to the point that resale values will begin to edge up. In the meantime I would only buy a Genesis if I fully intended to keep the vehicle for more than 7 years - or buy a used one if you can find it. By that time the depreciation factor will be much less of an issue and general condition will count more.
 
I don't know where people are getting their information. The best way to tell what you can expect in depreciation (the real giant and hidden cost of owning a car) is already on the internet IF you know where to look.

I suggest caredge to start. I have found their numbers to be pretty spot on through the years. Generally speaking certain categories and brands of vehicles will depreciate faster than others. Of course how you have treated the car, mileage, color, etc.. are always big factors that will vary with each owner. and vehicle.

What I can say is that luxury brands tend to depreciate faster than mainline vehicles. Traditionally there are certain brands that tend to be costly to own such as anything made by FCA (Chrysler, Ram, etc) and German vehicles in general. They tend to have more issues and need costly repairs after just a few years. Savvy buyers already know this and tend to shy away. With less demand for the used product the depreciation is faster. The opposite holds true for the Asian brands, specifically the Toyota brand has been the most reliable over time and that is a huge factor in them holding their value better than others. Trucks and SUV's are in demand these days so hold their value better than sedans or coupes. Check Edmunds "True cost to own" to see how a specific vehicle will depreciate if you want to know more.

Unfortunately the Korean brands have had a hard time raising their "street cred". For years Hyundai offered vehicles that were on the low end of things from price to quality. They were hard to sell used and promised the next owner lots of expensive headaches. At the corporate level they decided to raise the bar significantly about 2005 with the introduction of the Tucson. Since then they have produced some really good and some not so good vehicles but the quality in general has been going up over time. And resale values have slowly increased accordingly.

When they introduced the Genesis brand several years ago it was still wore the Hyundai badge and was sold through the Hyundai dealer network. Maybe that was a mistake because in has confused the average consumer.
One must still purchase at a Hyundai dealer even though clearly Hyundai has taken the Genesis to a much higher level and by action is clearly wanting a seat at the luxury table. With the deep pockets of Hyundai I believe they will eventually succeed, but in the meantime the public does not recognize the quality and value of the Genesis brand.

Until Hyundai solves the problem with their existing dealers and takes the big step to establish separate brick and mortar stores just for the Genesis brand resale values will suffer. Again it is about public perception. The old supply and demand equation. Right now the resale market for Genesis is tiny. Few of the most recent models will be on the market for several more years. Maybe by then the demand will have grown to the point that resale values will begin to edge up. In the meantime I would only buy a Genesis if I fully intended to keep the vehicle for more than 7 years - or buy a used one if you can find it. By that time the depreciation factor will be much less of an issue and general condition will count more.
What a car might be worth is not the same as what someone is willing to pay for it.
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What a car might be worth is not the same as what someone is willing to pay for it.
There are a lot of ways to measure the worth of something and how much someone is willing to pay for it is certainly one of them.
 
Looking to update and upgrade your Genesis luxury sport automobile? Look no further than right here in our own forum store - where orders are shipped immediately!
I don't know where people are getting their information. The best way to tell what you can expect in depreciation (the real giant and hidden cost of owning a car) is already on the internet IF you know where to look.

I suggest caredge to start. I have found their numbers to be pretty spot on through the years. Generally speaking certain categories and brands of vehicles will depreciate faster than others. Of course how you have treated the car, mileage, color, etc.. are always big factors that will vary with each owner. and vehicle.

What I can say is that luxury brands tend to depreciate faster than mainline vehicles. Traditionally there are certain brands that tend to be costly to own such as anything made by FCA (Chrysler, Ram, etc) and German vehicles in general. They tend to have more issues and need costly repairs after just a few years. Savvy buyers already know this and tend to shy away. With less demand for the used product the depreciation is faster. The opposite holds true for the Asian brands, specifically the Toyota brand has been the most reliable over time and that is a huge factor in them holding their value better than others. Trucks and SUV's are in demand these days so hold their value better than sedans or coupes. Check Edmunds "True cost to own" to see how a specific vehicle will depreciate if you want to know more.

Unfortunately the Korean brands have had a hard time raising their "street cred". For years Hyundai offered vehicles that were on the low end of things from price to quality. They were hard to sell used and promised the next owner lots of expensive headaches. At the corporate level they decided to raise the bar significantly about 2005 with the introduction of the Tucson. Since then they have produced some really good and some not so good vehicles but the quality in general has been going up over time. And resale values have slowly increased accordingly.

When they introduced the Genesis brand several years ago it was still wore the Hyundai badge and was sold through the Hyundai dealer network. Maybe that was a mistake because in has confused the average consumer.
One must still purchase at a Hyundai dealer even though clearly Hyundai has taken the Genesis to a much higher level and by action is clearly wanting a seat at the luxury table. With the deep pockets of Hyundai I believe they will eventually succeed, but in the meantime the public does not recognize the quality and value of the Genesis brand.

Until Hyundai solves the problem with their existing dealers and takes the big step to establish separate brick and mortar stores just for the Genesis brand resale values will suffer. Again it is about public perception. The old supply and demand equation. Right now the resale market for Genesis is tiny. Few of the most recent models will be on the market for several more years. Maybe by then the demand will have grown to the point that resale values will begin to edge up. In the meantime I would only buy a Genesis if I fully intended to keep the vehicle for more than 7 years - or buy a used one if you can find it. By that time the depreciation factor will be much less of an issue and general condition will count more.
Hence why I bought my 2015 Genesis 5.0 Ultimate in 2018. I saw it as a great used car value due to depreciation since I got it for only $25k with just over 40k miles on it.

However, I really do not think I would have bought it new for $55k over other luxury brands before I owned it since it is made by Hyundai. Now that I have owned the Genesis for while, I am more inclined to spend more money on a newer used Genesis model; if not a new one.

Genesis models are worth the money new if you like luxury cars; however it will take a while for the general public to realize that Genesis is actually a premium car to own new even compared to Mercedes and BMW; not just a great used car deal.

It took a while for the Lexus brand to gain traction as well from the Toyota reputation as being cheap transportation. Now Lexus models hold the best luxury model resale value of any other luxury brand I believe.
 
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Hence why I bought my 2015 Genesis 5.0 Ultimate in 2018. I saw it as a great used car value due to depreciation since I got it for only $25k with just over 40k miles on it.

However, I really do not think I would have bought it new for $55k over other luxury brands before I owned it since it is made by Hyundai. Now that I have owned the Genesis for while, I am more inclined to spend more money on a newer used Genesis model; if not a new one.

Genesis models are worth the money new if you like luxury cars; however it will take a while for the general public to realize that Genesis is actually a premium car to own new even compared to Mercedes and BMW; not just a great used car deal.

It took a while for the Lexus brand to gain traction as well from the Toyota reputation as being cheap transportation. Now Lexus models hold the best luxury model resale value of any other luxury brand I believe.

This is not a vehicle I would buy new. Just picked up my 2017 Genesis G80 AWD w/Ultimate package and only 25K miles for $27000. I did buy my wife’s Lexus RX new but I waited until end of model year and bought a leftover at a substantial discount. If you buy a new vehicle and finance it be prepared to keep it at least 3 years to break even. Ve seen people over the years that just kept rolling over negative equity time and time again until they were so deep they couldn’t find a new one with enough rebates, mark up or factory to dealer incentives to ever be able to get out of it until almost fully paid off.
 
Stopped by a local Genesis/Hyundai dealer today to take a look at a 21 G80 3.5 Prestige. Very nice car. Sat down with a young salesman and talked about buying it. He gave me an appraisal for a trade in and purchase price. Was all good until I saw the trade in price.
$41K for a 20 G80 Sport AWD with 3800 miles. I paid $52.8 in Mar. Quite a depreciation shock, but oh well. Funny thing, 5 minutes after I left, he called and increased it to $42.
$1K a month for depreciation. 🙂
Trixie, is the ashtray full on your ‘20 G80?
 
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This is not a vehicle I would buy new. Just picked up my 2017 Genesis G80 AWD w/Ultimate package and only 25K miles for $27000. I did buy my wife’s Lexus RX new but I waited until end of model year and bought a leftover at a substantial discount. If you buy a new vehicle and finance it be prepared to keep it at least 3 years to break even. Ve seen people over the years that just kept rolling over negative equity time and time again until they were so deep they couldn’t find a new one with enough rebates, mark up or factory to dealer incentives to ever be able to get out of it until almost fully paid off.
Man, I would feel a bit cheated buying a new Genesis model with the current rate of depreciation. Value wise the Genesis is worth the money new, but a consumer will save a large amount of money by being patient and picking up a low mileage 3 year old used model for a excellent discount.

These cars are a great value new, but is a steal used. Almost criminal as to how much car you can get for the money even at three years old.

However, soon the Genesis cars with start retaining their value as the good solid reputation Genesis is creating become more solidified among the consumers and the demand for Genesis models continues to grow even in the used car markets.

The one hiccup to the resale value of these cars is the recent issue Hyundai/KIA had with it 2.0T engines(maybe more) that was due to bad manufacturing, which reduced customer trust in the company about its engine build quality. Mistakes like that will reduce demand for the company's cars and lower the resale value of them.

LOL. I recently received a recall letter for my old 2014 KIA Optima SXL turbo for the engine issue and additional 10 year warranty to cover the issue. The car is gone, but it is not good knowing the I was driving a car with an engine that could have failed on me at anytime due to a defect.
 
This continued myth about Genesis allegedly having poor resale value is completely baseless, and from the few posts above, seems to be derived based almost exclusively on falsely projecting personal feelings or perception toward the Hyundai parent brand and how much someone feels that the brand is personally worth.

I've said it time and again, but Genesis's resale values are some of the best among luxury cars second only to Lexus. For example, here's the most recent measurement from J.D. Power based on 3-year values.


2017 G90 had the highest resale value in its segment, and the G80 was second only to the Lexus GS.

Obviously, luxury brands won't hold their values as well as regular brands. If anyone is buying this segment of cars with the intention of having them retain their value, they're in the wrong segment. Go buy a Camry.
 
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This continued myth about Genesis allegedly having poor resale value is completely baseless, and from the few posts above, seems to be derived based almost exclusively on falsely projecting personal feelings or perception toward the Hyundai parent brand and how much someone feels that the brand is personally worth.
I agree and I smile when I read that the depreciation is so bad on a particular Genesis model and they are going to buy used if they could only find one at a decent price or find a used one at all.
 
The above comments are accurate but apply to most, if not all, luxury cars. As Hoovii* pointed out when he was reviewing a G90, in 10 years it will only be worth $10K. But, that's also true for a 10 year old S class Mercedes which initially costs twice as much. So in the end you come out better going with a Genesis.

*Hoovi's Garage", a You Tube show.
 
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