Fast depreciation...

[Hawaii 5ooohhhh]

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.

I didn’t know usaa still had an extended warranty. How long ago did you purchase it?

 

[carguy75]

I didn’t know usaa still had an extended warranty. How long ago did you purchase it?

I purchased the car in 2018. USAA has provided the warranty through a 3rd party company called Assurant. USAA offer the protection which can be purchased out-rite or written into the auto loan. USAA seem to have a lot of services provided by 3rd parties, but are good to resolve any issues you have with them when they do occur. I personally have used the Assurant company before to fix another car with similar coverage and it went farily smooth so hopefully nothing changes.

 

[OMG70]

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...

I feel like this is more of an advertisement to negotiate the trade-in after you negotiate the price or to sell privately instead. Its pretty well documented that car dealers generally want to pull a fast one to make a buck, but we all have to play the game if we want to buy from em. Just gotta read up and be willing to walk away if they start spewing too much bullshit

 

[Gone With The Wind 2]

I've bought many used and new vehicles over the years. Sure, used vehicles have taken the most depreciation hit and represent the best "value." But to some, purchasing a car is more than a dollar figure. Personally, I like having newer technology as well as knowing the "history" of the vehicle. And having the best car I can get within my budget. Otherwise, I end up spending even more money to "upgrade" the older vehicle, as I have in the past. And still not be where I would have been had I simply purchased new.

For example, the '17 -> '18 G80 Ultimate added LED headlights and Android Auto. I could have saved thousands by going with a used or left-over new '17 model. But I already knew I "needed," said technology, which would be very difficult (or impractical) to add later. Or just be sad without it. Yep, life is tough.

Heck, I even looked at other comparable manufactures new and used. They just didn't meet my requirements as the new G80 did. Which admittedly, being super particular about a vehicle, is never cheap. I mean, have you tried looking for a luxury AWD V8 in the south?

After barely over a year of ownership, looks like I've taken about a ~24% depreciation hit were I to trade it now. That's based on an actual trade-in offer; about average for a luxury vehicle. Not terrible, not great. Yet it is the cost one accepts when you know what you want and are willing to pay for it.

Unless you just keep it much longer, at which point depreciation becomes more of a non-issue.

 

[Scamp]

It's the main reason I didn't go for a new G70. The depreciation has a lot to do with the brand's lack of presence and appeal against its competitors. The quality is there, but why would a BMW/Audi/Mercedes owner give up the status over a few thousand dollars difference? That's at least half the reason most of them buy those cars. Genesis is going to have to price their cars much more competitively in order to establish itself more, and while I like what they're doing with the complimentary maintenance and keeping owners away from the dealerships, they've come into the market with a bit too much self-assurance about who they are while remaining largely unnoticed by the luxury market.

 

[EdP]

It's the main reason I didn't go for a new G70. The depreciation has a lot to do with the brand's lack of presence and appeal against its competitors. The quality is there, but why would a BMW/Audi/Mercedes owner give up the status over a few thousand dollars difference? That's at least half the reason most of them buy those cars. Genesis is going to have to price their cars much more competitively in order to establish itself more, and while I like what they're doing with the complimentary maintenance and keeping owners away from the dealerships, they've come into the market with a bit too much self-assurance about who they are while remaining largely unnoticed by the luxury market.

Oh, I think they will be noticed.

First, we have to put this into proper perspective. In the US most corporations are focused on the next quarter. In the Orient, they are focused on the long term and have the patience to do it. More likely to have a better 5 year plan.

Genesis is not ready to strike yet. Sure, there were problems with the roll out and dealers, but that is pretty much figured out. New models are coming. It has been suggested they gussy up a Santa Fe and put a Genesis bade on it, but that is not the way to go. Long term they will have a proper RWD SUV to complete with other brands.

The dealers will soon be in place. The line of cars offered will be in place. Yes, to make the dealers profitable the prices will have to be adjusted too. Once that is all set I think we will see increased advertising both from the brand and local dealers. Just a guess, but a year from now things will be much different.

 

[carguy75]

It's the main reason I didn't go for a new G70. The depreciation has a lot to do with the brand's lack of presence and appeal against its competitors. The quality is there, but why would a BMW/Audi/Mercedes owner give up the status over a few thousand dollars difference? That's at least half the reason most of them buy those cars. Genesis is going to have to price their cars much more competitively in order to establish itself more, and while I like what they're doing with the complimentary maintenance and keeping owners away from the dealerships, they've come into the market with a bit too much self-assurance about who they are while remaining largely unnoticed by the luxury market.

You are right in my opinion about many consumers buying BMW/Audi/Mercedes for the badge prestige and status. Genesis is a great product with similar features for the cost, but Genesis does not have the same presence as those luxury brands. The Genesis is nice until you actually do a real side-by-side comparison to a nicely equipped BMW. The difference is night and day when you look at the details. I know for fact that my local Mercedes dealership offer much better service than the local Hyundai dealership, so that alone will keep most potential upscale car owners away from the Genesis brand in my opinion.

Genesis is nice "budget" luxury brand, but it will never actually be a true competitor for BMW or Mercedes because those owners are not concerned about saving money as opposed to the prestige of owning a certain badge for maintaining a certain image of success.

I used to be one, until I wised up and it has saved me some money over the years. My last true luxury car was an 2011 Mercedes E350 4matic that purchased near new with less than 10k miles and it was nice but I decided to buy cheaper more optioned out "budget" luxury cars to save money as i noticed that many of the 2014 "budget" luxury cars were better optioned. Most of my coworkers gave me flack about trading it for an new 2014 KIA Optima SXL, but the Optima had better options like heated and cooled seats and a better audio system. I just got over the badge identity. Now, I just buy a used car that is quick and fully optioned out for the best price regardless of the badge like my current 2015 Genesis.

Note: My Mercedes depreciated alot in the three years I owned it. I paid about $45k for it used with 10k miles and it was only worth about $32k when I traded it with only about 25k miles three years later.

My old 2011 Mercedes E350. Very nice looking, but had dated technology and was a bit slow off the line.



The 2014 Optima SXL I traded it for. Quicker and had better tech like blind-spot monitoring and power folding mirrors that my 2011 Mercedes did not have.

 

[rroyce46]

@ carguy75 . I retired 8 years ago from selling Mercedes Benz & other German luxury brands for over 31 years. Many of my customers were not all that happy with our service dept & they cost me lots or repeat business due to arrogance, cost of servicing & upselling maintenance. I won't even bring up the quality & reliability issues MB has gone through where they didn't help the Owner with any financial assistance. BMW is even worse.

My current Hyundai dealer has been great with my 2016 Genesis bought used 14 months ago from them. Cured a creaking sunroof & took care of usb port replacement without any issues & even washed my car.
Hopefully Genesis will be like Lexus not the Germans in a few years. Not as dynamic a drive as an MB or BMW but a better ownership experience. I have never met anyone with a Lexus who didn't think their car & dealer were not the greatest.
I hope Genesis will have as good coffee as Lexus :>).

 

[EdP]

@ carguy75 . I retired 8 years ago from selling Mercedes Benz & other German luxury brands for over 31 years. Many of my customers were not all that happy with our service dept & they cost me lots or repeat business due to arrogance, cost of servicing & upselling maintenance. I won't even bring up the quality & reliability issues MB has gone through where they didn't help the Owner with any financial assistance. BMW is even worse.

My experience is limited to only two Mercedes dealers and understand they are not all the same. I guess if you equate luxury with arrogance, they give you that luxury experience. I won't buy another.

 

[carguy75]

@ carguy75 . I retired 8 years ago from selling Mercedes Benz & other German luxury brands for over 31 years. Many of my customers were not all that happy with our service dept & they cost me lots or repeat business due to arrogance, cost of servicing & upselling maintenance. I won't even bring up the quality & reliability issues MB has gone through where they didn't help the Owner with any financial assistance. BMW is even worse.

My current Hyundai dealer has been great with my 2016 Genesis bought used 14 months ago from them. Cured a creaking sunroof & took care of usb port replacement without any issues & even washed my car.
Hopefully Genesis will be like Lexus not the Germans in a few years. Not as dynamic a drive as an MB or BMW but a better ownership experience. I have never met anyone with a Lexus who didn't think their car & dealer were not the greatest.
I hope Genesis will have as good coffee as Lexus :>).

Well ,I can not speak for any other Mercedes service department, but my local service department was great by providing decent snacks and drinks while you waited to be served. My local Hyundai wailing area is smaller and it took a while to get a part(oil filter) I needed. The experience was not bad, but I did not get that same VIP feeling as the Mercedes dealership gave me. The Mercedes dealer had a weird name, but top notch facility. I bought my car in to replace faded interior trim under warranty and they repaired my front control arms as well. Detailed the car and I was good to go. The gave a me nice loaner as well. I felt like a VIP.
New Mercedes-Benz Inventory Near Atlanta, GA | In Duluth, GA | Atlanta Classic Cars

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[carguy75]

My experience is limited to only two Mercedes dealers and understand they are not all the same. I guess if you equate luxury with arrogance, they give you that luxury experience. I won't buy another.

Not arrogance, but feeling successful. I used to feel that I made it in my career when I was able to buy a new Mercedes E-class. However, I have wised up and will now buy any brand car that has an nice car that fit my desires. Used or new, mostly likely used. Plus, new luxury cars lose value fairly quickly in which I learned first hand.

 

[EdP]

My local Hyundai wailing area is smaller and it took a while to get a part(oil filter) I needed.

Well, not many dealers provide a wailing area where you can cry about the bill you just got. That is a nice touch.

 

[carguy75]

@ carguy75 . I retired 8 years ago from selling Mercedes Benz & other German luxury brands for over 31 years. Many of my customers were not all that happy with our service dept & they cost me lots or repeat business due to arrogance, cost of servicing & upselling maintenance. I won't even bring up the quality & reliability issues MB has gone through where they didn't help the Owner with any financial assistance. BMW is even worse.

My current Hyundai dealer has been great with my 2016 Genesis bought used 14 months ago from them. Cured a creaking sunroof & took care of usb port replacement without any issues & even washed my car.
Hopefully Genesis will be like Lexus not the Germans in a few years. Not as dynamic a drive as an MB or BMW but a better ownership experience. I have never met anyone with a Lexus who didn't think their car & dealer were not the greatest.
I hope Genesis will have as good coffee as Lexus :>).

My wife likes the coffee at the Lexus dealer as well.

 

[rroyce46]

I still have a 1992 MB500SL that I have owned for over 11 years. Back in the day it was " Engineered like no other car in zee vorld". Now MB offers "Car wash mode".What a great idea ??

The New Mercedes-Benz GLS Has a Special Carwash Mode—Now That's Luxury

 

[Engineerist]

I am shopping for a G70 now and I agree with the opinions that Genesis currently is not stealing any customers away from the big luxury brands. I think if anything their pricing is helping them lure people away from the mainstream brands and move a little upmarket. People who own luxury brand cars seemed to get hooked to the status symbol it brings and are probably hard to bring downmarket for a badge that many people know is associated with Hyundai (gasp).

 

[OMG70]

I am shopping for a G70 now and I agree with the opinions that Genesis currently is not stealing any customers away from the big luxury brands. I think if anything their pricing is helping them lure people away from the mainstream brands and move a little upmarket. People who own luxury brand cars seemed to get hooked to the status symbol it brings and are probably hard to bring downmarket for a badge that many people know is associated with Hyundai (gasp).

I'm sure there's quite a few people on this forum that would disagree, but to each their own.

 

[rickkapur]

I am shopping for a G70 now and I agree with the opinions that Genesis currently is not stealing any customers away from the big luxury brands. I think if anything their pricing is helping them lure people away from the mainstream brands and move a little upmarket. People who own luxury brand cars seemed to get hooked to the status symbol it brings and are probably hard to bring downmarket for a badge that many people know is associated with Hyundai (gasp).

I am in that category, since 2015. And yes, I have many friends who are brand conscious at the higher price points (say above $30K), and would never buy a Genesis...and have gotten Merc, Lexus, etc. Now, curious, was it similar in 1990 or so, when Lexus was introduced?

Now, besides the worse of gas mileage, i doubt that I would like to ever go back to a mainstream mid-size like a Camry/Accord/Sonata....the value equation is just better with a Genesis (ideally as 2-3 yr old one, so the depreciation slows down after that). The only thing that may push me back to perhaps a hybrid (not an electric; had a Leaf, sold it), would be gas at ~$8/Gallon

 

[J Dixon]

I've never given a tinker's damn about perceived "status". I buy a car to provide the needs and wants I deem necessary at a price I can afford. Period.
I shoot rifles, specifically long-range rifles. I have shot next to $8000 rifles (not counting optics) with some much less expensive models (like a Savage Model 12 BVSS) and convincingly outshot them. While some are proudly announcing they put three rounds within a half inch at 100 yards during sight-in (which is good), I just sit there knowing I just put FIVE rounds in a third of an inch. I have more expensive rifles too, but higher price doesn't guarantee better performance. Too many factors can change that, and what I prefer is a rifle that performs consistently...every time. I look for the same thing in a car. Everything else is secondary.

The status BS reminds me of an old Benny Hill skit where the "tough guy"Mike walks into the pub and proceeds to get in the face of every guy claiming he's the toughest. He asks "whose the toughest bloke in this pub?", and every one of them backs down to Mike saying he is, until he approaches the little old guy and tries the same. The little old guy responds by kicking the crap out of Mike and then Mike, from the floor, slowly gets back to his feet and tells the little old guy, "Well you don't have to get angry just because you don't know the answer."

Yeah, that's a good analogy of how I feel about status symbols in the car market.

 

[imarkvideo]

I’ve never bought a used car until my 2015 5.0 Ultimate. I always bought new every 3 to 4 years. I bought my 2014 R-SPEC new and still have it due to the depreciation. I wasn’t going to take a $25K hit on a 2.5 year old car. It’s paid off so I keep it as a spare for my wife and I. My 2015 was an off lease driven by a older female lawyer who only put 12k miles on it. It was as clean as a new one. She had a minor accident that barely scratched the number. Zero frame damage. New bumber (her insurance) and negotiated lower price due to car fax reported accident. Picked up for $23k. The older I get the less I care about prestige. I now like saving $30k to drive practically the same car I was going to buy new.

 

[rickkapur]

I’ve never bought a used car until my 2015 5.0 Ultimate. I always bought new every 3 to 4 years. I bought my 2014 R-SPEC new and still have it due to the depreciation. I wasn’t going to take a $25K hit on a 2.5 year old car. It’s paid off so I keep it as a spare for my wife and I. My 2015 was an off lease driven by a older female lawyer who only put 12k miles on it. It was as clean as a new one. She had a minor accident that barely scratched the number. Zero frame damage. New bumber (her insurance) and negotiated lower price due to car fax reported accident. Picked up for $23k. The older I get the less I care about prestige. I now like saving $30k to drive practically the same car I was going to buy new.

23k is an awesome price for that! What year did you buy that 2015 used?