Fast depreciation...

[Starflyer]

Saw the following today where it said Genesis has the 2nd fasted depreciation in the US. Guess if I buy another it, it will be "preowned". If this is true, I've taken a 21K bath on my '18 G80 Sport. Factoring in this kind of depreciaton, it must be making a monthly lease pretty expensive unless there's a big downpayment to make up the difference. Wonder how much the failure to establish separate dealer ships has effected the depreciation.

Hyundai Genesis
The next vehicle on this list is the Hyundai Genesis, which has the highest depreciation. In spite of the Genesis competing with other luxury cars, it pretty much lacks the brand appeal of the recognized luxury cars. Its price is close to Mercedes or Lexus models but it loses 38 percent of its retail value during its first 12 months. This is certainly a disadvantage if you buy the Genesis new but it could be considered a benefit if you buy this model used. Car buyers that want luxury can purchase a Genesis that is only a year old for $16k less than the original price of $52k (brand new).

 

[EdP]

Saw the following today where it said Genesis has the 2nd fasted depreciation in the US. Guess if I buy another it, it will be "preowned". If this is true, I've taken a 21K bath on my '18 G80 Sport. Factoring in this kind of depreciaton, it must be making a monthly lease pretty expensive unless there's a big downpayment to make up the difference. Wonder how much the failure to establish separate dealer ships has effected the depreciation.

Hyundai Genesis
The next vehicle on this list is the Hyundai Genesis, which has the highest depreciation. In spite of the Genesis competing with other luxury cars, it pretty much lacks the brand appeal of the recognized luxury cars. Its price is close to Mercedes or Lexus models but it loses 38 percent of its retail value during its first 12 months. This is certainly a disadvantage if you buy the Genesis new but it could be considered a benefit if you buy this model used. Car buyers that want luxury can purchase a Genesis that is only a year old for $16k less than the original price of $52k (brand new).

Depreciation affects everyone a little different. If you trade after one or two years, you get hit harder than the guy holding on for 10+ years.

You really have to factor your cost per mile driven. Yes, I can buy a car with nearly identical features and less depreciation, but pay a premium up front of about 10k to get it.

IMO, it will take at least another few years to be truly established with reliable dealers and luxury reputation.

 

[Mr. Incredible]

Not really that bad IMO, my Lexus RCF lost around the same 38% in its first year and was close to 60% by the 3rd year, now in its 4th year it has leveled out and only lost about 1%-2% since I traded it 8 months ago.

Most cars lose 50%-60% in the first 36 months then level out especially higher end cars because the standard lease is 36 months.

Even my wife’s $35k 2017 Camry Hybrid has lost nearly 50% in 3 years.

Cars are depreciating assests, the higher the cost the more you lose. It is what it is. I gave up caring about it 20 years ago, I drive what drives me and don’t worry about how much it depreciates.

 

[Joe7Bros]

Why do you think I bought used; lots of bang for the buck

 

[In-House Bob]

Also why I bought used. I nearing retirement and figure this will be about the last car I buy, as we keep them as long as they run. I've always wanted a quiet, comfortable ride, and now, because so many were coming off lease at the same time and they are a relatively unknown brand, I could get one for a good price. Maybe that's why I'm not so concerned about the roof creaking and such. I knew going in about the little things and weighed those against the price/value. Note: My fickle feelings are subject to change at a moment's notice. Stay tuned

 

[Darcgable90]

Why do you think I bought used; lots of bang for the buck

I bought the 1G which is an 09 fully loaded with 83,000 for $7300, but actually paid cash and got it for $6300.

 

[YEH]

Numerous lists for fastest depreciating cars.

New Cars That Depreciate Most

Don't want to lose a ton of money on your next new vehicle? Maybe you should avoid these cars.

www.roadandtrack.com

8 fastest depreciating cars in America - Autoblog

To save you from the hurt of a quickly depreciating new car, we collected 8 of the fastest depreciating cars in America. And here's a surprise, one of them is a Toyota. Learn more at Autoblog.com

www.autoblog.com

These Top 10 Fastest Depreciating Cars Make Tempting Used Car Buys [Video]

Let's face it: buying a new car is fun. But there's one part of the deal that almost always sucks, and that's depreciation. However, if you're looking for some

www.tflcar.com

Depending on who formulated the list and the length of time covered - the lists can vary widely (none of the above, have a Genesis model listed).

Having said that, wouldn't be surprised about the Hyundai Genesis (in particular, when it comes to 1st year depreciation) as the Genesis was available w/ pretty hefty discounts and depreciation is based off of MSRP and not avg. trans price (which it should be).

The depreciation curve should get better for the Genesis as one holds it longer (and should also be better for the G80).

 

[Prey521]

I paid 12k for my 2013 with Premium and Tech package with a little under 15k miles.

 

[Hawaii 5ooohhhh]

I paid 12k for my 2013 with Premium and Tech package with a little under 15k miles.

Solid deal

 

[rroyce46]

I bought my 2016 3.8 AWD Luxury with 11000 Kilometers 15 months ago from local Calgary
Hyundai dealer. It was originally delivered in August 2016 so I have full warranty until August 2021.
New MSRP was $49780. I paid $31000. Went in to buy a new Elantra Sport & asked if they had any Genny's coming in. Mine was traded in next day. I LOVE depreciation & have no regrets. I am retired so only drive between 10 to 15000 kilometers a year (now @ 25000). Will buy Hyundai CPO warranty in August this year from selling Dealer to give me full warranty 100DD until August 2026 or 120000 Kilometers for $2300, $2000 refundable if no claims by 2026. Will keep it until then as I love this car. Sure glad I passed on the Elantra Sport.

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[J Dixon]

I feel that articles written specifically about the depreciation of vehicles are nothing to get concerned about.
Cars, even higher end ones, that are daily drivers fall in the category of a need. Anyone "investing" in a needed car expecting it to maintain value or - dare say - increase in value, isn't being realistic. Apply the same mindset to other "needs" you have. Anyone here NOT have some sort of HVAC system in your home? The instant it was installed, it decreased in cash value. Might run flawlessly for twenty plus years though. Does the fact it provides the intended "need" matter? If so, doesn't that have a value you can't deduce to dollar amount?

If dollar amount is a critical factor, by all means buy pre-owned or CPO (I did). If having the newest model, factory-fresh, is important to you and you have the scratch, more power to you. Just don't expect to get the newest model at a price that won't depreciate substantially in the first year of ownership.

Lastly, if MB, BMW, Audi, or Tesla claim different, immediately call BS. If you buy a car, buy it for the "need" it must satisfy, any aesthetic preference you want, and (IMHO) the reputation of reliability. Do that, forget about depreciation, and don't look back. Quit second-guessing yourself into an ulcer for no good reason.

 

[carguy75]

Saw the following today where it said Genesis has the 2nd fasted depreciation in the US. Guess if I buy another it, it will be "preowned". If this is true, I've taken a 21K bath on my '18 G80 Sport. Factoring in this kind of depreciaton, it must be making a monthly lease pretty expensive unless there's a big downpayment to make up the difference. Wonder how much the failure to establish separate dealer ships has effected the depreciation.

Hyundai Genesis
The next vehicle on this list is the Hyundai Genesis, which has the highest depreciation. In spite of the Genesis competing with other luxury cars, it pretty much lacks the brand appeal of the recognized luxury cars. Its price is close to Mercedes or Lexus models but it loses 38 percent of its retail value during its first 12 months. This is certainly a disadvantage if you buy the Genesis new but it could be considered a benefit if you buy this model used. Car buyers that want luxury can purchase a Genesis that is only a year old for $16k less than the original price of $52k (brand new).

Most cars depreciate in value over time except for a few specialty models that are hard to acquire new cars like certain super-cars and popular special edition models with limited runs. Even cars made by Toyota and Honda which are known for great reliability loses value over time.

Luxury cars depreciate the most as an group. You can buy an $60k Mercedes E-class for about half the price in only three years with low miles.

However, all said and done buying any new car in general is not a wise move for anyone that like to trade-up cars every three or four years. Many of the new cars will become great used car deals like our Genesis models. I only paid about $24k for my used 2015 model Genesis 5.0 with 52k miles in 2018. I only had to add an extra $1500 for an extended warranty to cover the electrics and other items not covered by Hyundai power-train warranty. Therefore, I purchased a $55k car new for only about $26k used only after three years. You do the math.

I have learned that paying extra for the new car smell is a big waste of money if you do not own the car for 10 years of more to justify the purchase since you can get the same car much cheaper by being patient for a few years. However, I must add that buying older models do have it fair share of risk like buying a used model with early production issues and you may not have any real support from the auto maker depending on how old the car is when you buy it. Therefore, I usually do not buy a model that is older than three years and is prepared to fix minor wear and tear items.

 

[LD5050]

We started off trying to find the right used ‘13-‘15 Equus, which led us down the rabbit hole that eventually ended with buying a new G80.
We fully understood how much depreciation we’d face in the first few years of ownership, but because we plan on having it for several (5+) years, two main factors weighed in: knowing EXACTLY how the car has been treated/maintained, as well as the 10yr/100k warranty being non-transferable to subsequent vehicle owners.
We were actually ready to pull the trigger on a slightly used ‘18 until we found out about the warranty.

Buying used is still a very smart move, and we might still end up with a high mileage, low cost Equus as a backup vehicle.
We’ve fallen in love with the brand, have enjoyed seeing what it’s done in the recent past and are looking forward to what the next few years will bring.

 

[Mcc]

Therefore, I purchased a $55k car new for only about $26k used only after three years. You do the math.

The math is that you are always driving a three year old used car. Who wants that? If that is your taste then fine for you. But you really cant say buying any new car in general is not a wise move for anyone that likes to trade-up cars every three or four years. If as J Dixon said above “If having the newest model, factory-fresh, is important to you and you have the scratch more power to you,”. You are just plain kidding your self by rationalizing that it is just for the new car smell.

 

[Hawaii 5ooohhhh]

I only had to add an extra $1500 for an extended warranty to cover the electrics and other items not covered by Hyundai power-train warranty. Therefore, I purchased a $55k car new for only about $26k used only after three years. You do the math.

I’m looking to purchase myself. Is the $1500 amount the normal price for the extended warranty? And is that the wrap plan that people talk about in this forum? Lastly is it a third-party warranty or is it directly from Hyundai? Thank you very much

 

[EdP]

Therefore, I purchased a $55k car new for only about $26k used only after three years. You do the math.

I have learned that paying extra for the new car smell is a big waste of money if you do not own the car for 10 years of more to justify the purchase since you can get the same car much cheaper by being patient for a few years. However, I must add that buying older models do have it fair share of risk

Do all the math. I bought that $55k new car for $49K while still new. That just changed your savings a bit.

I've bought plenty of used cars, one was $15. Yes, 1 and 5 not a typo. It was probably the best value of my car buying even though it cost $125 to get it running.

Once I was able to afford it, I bought new and never looked back. Depreciation is the cost of ownership, just the same as Porterhouse steak cost more than hamburgers, though both are good to eat and keep you from starving.

Whatever works for you. We need both new and used buyers for the market to work well.

 

[Starflyer]

Smoke and mirrors. While I don't have the exact numbers anymore, when I bought my '18 G80 Sport, I traded in a '16 Acura RDX. The Kelly Blue book quote for the value on my Acura was about $5K less than the paper work said I got for it on a trade in. In truth, I'm mostly sure the 5K extra was the discount from the MSRP of the G80.

Car dealers have been playing this game for over 100 years. A side benefit in my state (Washington) is that the trade-in portion of the deal is NOT subjected to sales taxes (at 10% that's a savings of $3K on my deal). This rule makes it difficult to sell a trade-in car and come out ahead of buying without a trade-in. There are voices in my state that want to change this to paying sales tax on the entire purchase price.

Smoke and mirrors...

 

[carguy75]

The math is that you are always driving a three year old used car. Who wants that? If that is your taste then fine for you. But you really cant say buying any new car in general is not a wise move for anyone that likes to trade-up cars every three or four years. If as J Dixon said above “If having the newest model, factory-fresh, is important to you and you have the scratch more power to you,”. You are just plain kidding your self by rationalizing that it is just for the new car smell.

LOL. I am only giving my opinion from my own experience. I have purchased a few cars new over the years and did not get a acceptable return in my investment over the years. If you want to buy a new car for whatever reason that is anyone choice to make. I personally decided to save money by buying used models since I get bored with a car and usually sell it in less than a couple years or so, therefore I am usually upside down in loan-trade-in value when trading a car I bought new due to depreciation.

I say not wise if you are concerned about wasting money since many older models cars are still very similar to the late model until an complete refresh occurs. Yes, my 2015 Genesis 5.0 was 3 years when I bought it, however it is practically the same as the 2018 G80 5.0 I looked at for about half the cost. Is a upgraded shifter and minor tweaks worth the $24k price difference? To me no, but maybe it does to someone else. I can easily buy a newer car, but I actually like having the extra cash on hand to buy other things without any concern. I used to believe the more income I make the more I can spend, now I make wiser choices in my purchases.

However, there is nothing like buying a new car and being the first to own it. I just got over that feeling when I purchased a couple used cars over the years.

 

[carguy75]

Do all the math. I bought that $55k new car for $49K while still new. That just changed your savings a bit.

I've bought plenty of used cars, one was $15. Yes, 1 and 5 not a typo. It was probably the best value of my car buying even though it cost $125 to get it running.

Once I was able to afford it, I bought new and never looked back. Depreciation is the cost of ownership, just the same as Porterhouse steak cost more than hamburgers, though both are good to eat and keep you from starving.

Whatever works for you. We need both new and used buyers for the market to work well.

True, we need new buyers to keep the auto manufacturing process going such as design and new innovations to attract new buyers. However, I personally have taking myself out of the new car buying bracket. I can easily buy a very very nice new car and make the loan payments, however I find it better driving an older car to save money by obtaining a cheap loan. I have learned the value of living beneath your means and it actually works well for me.

To each their own, because buying used has it own set of hurdles as well. However, most used cars can be easily traded near the purchased price unlike many newer cars which can make trading them a pain in my opinion until the depreciation levels out.

Note: A loan for $55k monthly payment is much higher than $24k if both are purchased with the same APR or close.

 

[carguy75]

I’m looking to purchase myself. Is the $1500 amount the normal price for the extended warranty? And is that the wrap plan that people talk about in this forum? Lastly is it a third-party warranty or is it directly from Hyundai? Thank you very much

I got my aftermarket warranty through USAA which gives good rates on services like that. You will have to shop around compare prices and coverage.

My coverage is 5 year/60k miles full comprehensive including electronics and hoses with my aftermarket warranty. Therefore, my Genesis is covered to a bit over 100k miles and/or until 2023. I would mostly sell the car by then based on my track record of swapping used cars.