Can't Sit at the Cool Kids Table!

[GenFan]

I wanted to. I really wanted to. I still want to. I just couldn't do it!

I have studied the Genesis for months. It is the car I want! It is, by far, the best value on the market. I want one. Unfortunately, I just couldn't pull the the trigger on it.

I just bought a '06 Infiniti M45. This car had a sticker price of $52,750. It has 16K miles. I paid $27K.

The issue is not so much that the M was $13K less expensive than the Genesis I wanted. The reality was the depreciation factor. If this M drops almost 50% of its value at 16K miles, what will the Genesis do? I busted by butt for the past few years to get to a place where I can finally pay cash for cars and I just couldn't swallow that kind of depreciation.

I don't know whether or not the Genesis will see this kind of depreciation but I am not prepared to take the chance.

I envy all you guys with your Tech Package Genesis (though I do have 2 cooled seats). I will join you one day!

I will stick around on the forum, mostly reading and digesting all the greatness of the Genesis.

Now, one of you run out and buy a V8 Tech Pack Genesis (blk/blk). Then trade it in at about 20K miles! I will be there, Battlestar Galactica lunchbox in hand, ready to be invited back to the cool kids table.

 

[jwaters943]

Congrats!

No need to feel bad about getting the M45. The M is a great vehicle (if a bit too thirsty). Don't you love the throttle response of the M? It feels more powerful off-the-line than it really is IMO.

Either way, I hope it treats you well! As for the cooled seats, the one's in the M rock! They're very powerful unlike the ones that came in my Lexus. Enjoy your "new" car.

 

[Coug]

I wanted to. I really wanted to. I still want to. I just couldn't do it!

I just bought a '06 Infiniti M45. This car had a sticker price of $52,750. It has 16K miles. I paid $27K.

Now, one of you run out and buy a V8 Tech Pack Genesis (blk/blk). Then trade it in at about 20K miles! I will be there, Battlestar Galactica lunchbox in hand, ready to be invited back to the cool kids table.

That was a great post....
Nobody can fault you for deciding to buy used and getting such a nice car for such a good price. That's only a year's worth of miles! I seriously looked at the M35 before I got my Genesis. It really is a nice car. Stick around here; you'll be the most Genesis-savvy Infiniti owner in town!

 

[Samifumi]

The depreciation factor has influenced my purchasing options substantially as well, but in a different way. For the Genesis, we are likely to keep the car for a longer duration, so while the depreciation would hurt if we were to sell the car after 1-2 years, we intend to keep the Genesis for the long term considering there is a 10-year, 100,000-mile warranty on the drivetrain, and the warranty is non-transferable.

On the other hand, the depreciation factor has greatly influenced how I would buy a car like a 2008 BMW M3. The car is taking a $15-20k hit in its first year: there is no way I could bring myself to buy it from a dealer knowing this. And since the warranty is fully transferable, it is in my best interest to purchase a slightly used M3 and a brand new Genesis.

Heavy depreciation isn't a Hyundai phenomenon. It's a industry-wide phenomenon, especially now.

 

[Simonwpb]

A cost-conscious buyer will often get a late-model used car for a lot less than a new one. We all know how much a new car depreciates the day you drive it off the lot. Economically you will save lots of dollars no matter what make.

That being said I think the Genesis will hold up well on the resale.
- Volume is low on the new model so consequently the used inventory will be limited
- Prices may increase next year if Hyundai is successful, or wholesale costs continue to rise. This will also raise residual values.
- GenFan will not be the only one looking for a good late model Genesis in a couple of years!

 

[Sal Collaziano]

Congratulations, GenFan! The M45 is a REALLY nice car.. It's crossed my mind plenty of times... No big deal. I don't own a Genesis yet either.. I'm simply very intrigued by it.. So (of course) you're welcome to hang around with us. Keep learning! The Hyundai Genesis just may be your next vehicle...

 

[Samifumi]

A cost-conscious buyer will often get a late-model used car for a lot less than a new one. We all know how much a new car depreciates the day you drive it off the lot. Economically you will save lots of dollars no matter what make.

That being said I think the Genesis will hold up well on the resale.
- Volume is low on the new model so consequently the used inventory will be limited
- Prices may increase next year if Hyundai is successful, or wholesale costs continue to rise. This will also raise residual values.
- GenFan will not be the only one looking for a good late model Genesis in a couple of years!

Part of the problem in assessing the health of the resale market for the Hyundai Genesis will be the fact the 10-year, 100,000-mile drivetrain warranty will not be transferable. Off the top of my head, it would seem as if the non-transferability would drive buyers interested in the car to just purchase new from the dealership if the resale value of the Genesis is too high.

 

[cabz]

Part of the problem in assessing the health of the resale market for the Hyundai Genesis will be the fact the 10-year, 100,000-mile drivetrain warranty will not be transferable. Off the top of my head, it would seem as if the non-transferability would drive buyers interested in the car to just purchase new from the dealership if the resale value of the Genesis is too high.

I was worried about that too - how much of the warranty is transferable? I assume it isn't void on resale, but reverts to a lower number of years/miles?

 

[jwaters943]

The 10yr/100k mile Powertrain warranty reverts to 5/60k for subsequent owners. All the other coverage remains the same from what I can tell.

http://www.hyundaiusa.com/global/warranty/warranty.aspx