Genesis rated the car that depreciate the fastest

[trajan204]

Looks like Hyundai Genesis is the car that depreciates fastest.

http://www.autoblog.com/photos/cars-that-depreciate-fastest/#image-11

Things that i do not understand, Does the depreciation in first year ($16,600), does it apply to the fully loaded car?
The picture has a 2015 genesis, but does the article talk about the previous generation genesis?

With this article, it looks like it might be better to hold off the purchase for a few more months for the used cars to come in...

 

[ksoze]

Looks like Hyundai Genesis is the car that depreciates fastest.

This refers to the G1 Genesis, so has little value for determining the G2 2015 model. Too early to determine.

The studies small print says used cars were defined as vehicles from the 2013-2014 model years and the new model were ones for sale January 1, 2014 to December 5, 2014. One can make a case that since they were comparing the last years of the cars first cycle in the G1 model and the new G2 model was about to be released, the older cars probably did take a huge hit. Look at the bottomed out 2014 model prices on the dealer lots as the 2015 car neared last year.

In fact, the study notes several of the cars on the list were in model refreshes like the Genesis, so the gap would naturally be higher between the new facelifted car and the old - a little unfair and not shocking if you ask me.

 

[Mr. Dobalina]

ALG disagrees.

https://www.alg.com/residual-value-awards/

Which one is right?

 

[homeofstone]

This cannot be true if all cars are included. ie. Bentley, Mercedes S class, BMW 6 and 7 series

 

[uncarich]

My leased Ultimate 5.0 is valued at 30,000 at end of 3yrs which is a tad higher than usual 50% loss in 3 years. I think trades on the car will be decent.

 

[Genpire]

I was in my dealer this last weekend and there was a huge sign advertising the car winning best residual value award.

 

[ksoze]

While pleased, I am not sure where ALG gets depreciation figures on a car with less than a year in the market. Interestingly, new Genesis are showing up on the auction market - V6's at $38 and V8's at $42.

 

[jimb100]

While pleased, I am not sure where ALG gets depreciation figures on a car with less than a year in the market. Interestingly, new Genesis are showing up on the auction market - V6's at $38 and V8's at $42.

The problem with looking at auction prices is the incomplete descriptions. Just by looking at the model and mileage, its impossible to separate the garage queen from the dinged up parking lot warrior.

Of course the dealers like to show you auction pricing as this eliminates any risk on their part. If the car sits on their lot and doesn't sell for a couple of months they figure they can take it to auction and get what they gave you for it. If it does sell they stand to make several thousand dollars more than if they gave you "trade in" value for it.

 

[ksoze]

The problem with looking at auction prices is the incomplete descriptions. Just by looking at the model and mileage, its impossible to separate the garage queen from the dinged up parking lot warrior.

Well, sort of. These were cars with 12-17 miles on them with many listed as above average condition, which is not given out easily by Manheim and can mean new. Many were also listed as for sale by "Factory", so they appear to be new cars being auctioned off.

 

[greekgeek]

V6 auctioned for $38k? That is more than some dealers sell them for...

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[Sanguine]

Interesting catch. We know that the article states $16600 is 38.2%, so the "cost" basis would be $43,455 - so it's not just a base model, that price is pretty close to MSRP on the Signature 3.8 RWD but not exact...my guess is that it must be a blended price.

While the depreciation is very high, the lease rates I've seen don't seem to reflect that. I was told that Hyundai Finance Company requires Genesis leases be priced for a 56% residual value after 3 years. This is not much different than Mercedes or Lexus or BMW...none of them price based on higher than a 60% residual. So leases are a potential way to avoid depreciation risk.

Finally, if you think about what the article really says, it is "as a percent of purchase price (or list), 12 month depreciation is very high." While it is high as a percent, you can see that plenty of the more expensive cars have much higher dollar depreciation than the Genesis. I don't know about you but I don't spend percents...I spend dollars. Because the Genesis price is so much lower than the other guys', the dollar depreciation is less, even if the percent depreciation is more. I think the pain of depreciation needs to be measured in dollars, not percent - and in dollars, we're doing well owning the Genesis.

 

[Wacktool]

That's why I monitor Carmax since they don't haggle.. So far not impressed with the resale.

 

[BrazGenesis]

Are we talking depreciation on MSRP or OTD?
2012, 2013 & 2014 were VERY discounted from a moment on. (G2 imminent/ shipping)
Anyway, the total cost of ownership is reduced by the 5 year warranty. May be reduced even more for a 1.5K extension.
Lease contracts with higher residuals also mean discount...

 

[Midnightsun]

The only reason the gen 1 prices took a dive is because of the major improvement all around on the redesigned 2015. Heck with discounts here in the $11,000 for gen 1 it was sure to affect the residual value. Same will happen to the gen2 if they make as significant improvements on the gen 3 but honestly the gen 2 is so perfected it would be difficult if not impossible to achieve similar improvements. Therefor I predict the gen2 will be up there with the best in the luxury segment for retained value.

 

[BrazGenesis]

The only reason the gen 1 prices took a dive is because of the major improvement all around on the redesigned 2015. Heck with discounts here in the $11,000 for gen 1 it was sure to affect the residual value. Same will happen to the gen2 if they make as significant improvements on the gen 3 but honestly the gen 2 is so perfected it would be difficult if not impossible to achieve similar improvements. Therefor I predict the gen2 will be up there with the best in the luxury segment for retained value.

Perfect point!
I woul add to that the fact that there are still thousands of G1s new on sale.
That has to be "digested"
In other words: the low resale is a phase not something structural.
Why? For all that was said and the fact that G1s and G2s are GREAT cars.

 

[Alwaysforward]

Therefor I predict the gen2 will be up there with the best in the luxury segment for retained value.

Very well put. I would still like to pick up a 2014 RPEC to have share the driveway with my 2015. I likes the looks of both G's.