Genesis Depreciation

[Imbuer]

For fun, I took a look at depreciation rates of the Genesis 4.6 vs the BMW 550i and Infiniti M45 for the 2010 model year.

Based on Edmunds, the Genesis is now worth in the low 20's vs the others that are all worth in the mid-20's. (based on 30k miles)

So, it appears that cars that cost around $20k more new, are now worth only about $7k more than the Genesis, after 4 years. The Lexus GS460 only did a few $k better.

So, the pontificating of those brands regarding their lesser depreciation really doesn't hold water, does it?

Am I making any sense?

 

[Mark_888]

These are the prices I found on Edmunds for a "clean" car with 30K miles, silver. Under the "options" section, I selected what I thought were standard options on the Genesis 4.6, and the comparable options on the BMW. If no options are selected, the numbers for the BMW are less, because BMW doesn't have a lot of standard options (unlike the Genesis 4.6). However, I noticed that the Edmunds estimator adjusted the price upwards when the options like "Surround Sound Audio" or "Adaptive Cruise Control" or "Bluetooth" were added to the Genesis 4.6, but I believe these were all standard equipment on the 2010 Genesis 4.6, so I question the Edmunds pricing methodology.

2010 BMW 550i
Trade-in $$28,953
Dealer Retail - $34,227
CPO - $36,743

2010 Genesis Sedan 4.6 V8
Trade-in $19,103
Dealer Retail - $22,179
CPO - $23,798

 

[Jimmmmbo!]

A different way to look at this is to go to a place like LeaseCompare.com and see what they are offering for residual values on their leases. Since these companies are in the business of making money off the lease itself alone, their residual values are pretty accurate representations of what to expect for depreciation.