On 28% of its value in 4.5 years??

[REMIX]

Either this car is the biggest steal in automotive history as a used purchase, or one of the worst investments you can make in a vehicle. I'm not sure at this point.

My car stickered at $56,600, it's a Parisian Gray 2015 V8 tech and pano roof with 43k miles. It is in near flawless condition inside and out. And I'm not kidding, you would be hard pressed to find one this age in this kind of shape. Anything that's needed to be replaced has been replaced, too - B/C pillars, wheels were recently powder coated, it has been paint corrected, etc. It just sparkles. Interior is a 9.5/10.

I've been looking at replacing it and I've gotten two quotes, one for $17k on a trade and the other for $16k (Carmax appraisal). That's insane depreciation, on par with AMG cars. I paid around $27k in July of 2018 and, at this rate, it'll be worth about $5,000 in 18 months LOL. I'm really shocked.

To out this into perspective, it is apparently worth less than a brand new, completely stripped down Nissan Sentra.

 

[rickkapur]

Yup, it is both. You did a smart thing buying used, so your hurt is still less than an original buyer. Have you looked at private party sale? Issue there is that most people are not aware of the Genesis quality, and the Hyundai brand scares them with the expected price.

 

[carsareus]

You will always get lowball offers on trade in. Do a private sell and you won't get hurt as much,

 

[TinsleyC]

This is a 2015 Genesis V8, correct? Does it have the Ultimate package? I was trying to price it out on kbb.com. If it's not the Ultimate, it comes in around $22.7k.

 

[TinsleyC]

You will always get lowball offers on trade in. Do a private sell and you won't get hurt as much,

True, I just sold my G37 yesterday for $9k to a private buyer. The Genesis dealer had offered me $6k on the trade in.

 

[Mcc]

On a trade, the dealer can make the value of that car be anything he or you wants It t be. He just moves the costs back and forth between the car you are buying and the car you are selling.

 

[nwhit]

Please be aware, of course, that a trade-in offer is a wholesale price that allows the dealer to buy your car, then run it through their used restoration dept. before then selling it at a retail price that pays marketing costs, commissions plus a profit that allows the dealer to stay in business. CarMax, on the other hand, uses a business model of buying vehicle from consumers at far less than even wholesale. They can then resell it at auction and still make a profit. CarMax is a “last resort“ for selling your car.

As stated above, if you want the true value for your used vehicle, you need to sell it yourself. More convenient to trade, but more money if you sell it at current retail book value.

 

[EdP]

As stated above, if you want the true value for your used vehicle, you need to sell it yourself. More convenient to trade, but more money if you sell it at current retail book value.

I sold my first car in a private sale after 18 months and took a 50% hit on depreciation.

I guess some cars don't hold their value. I paid $200 in 1962 for a '53 Mercury

 

[carguy75]

Either this car is the biggest steal in automotive history as a used purchase, or one of the worst investments you can make in a vehicle. I'm not sure at this point.

My car stickered at $56,600, it's a Parisian Gray 2015 V8 tech and pano roof with 43k miles. It is in near flawless condition inside and out. And I'm not kidding, you would be hard pressed to find one this age in this kind of shape. Anything that's needed to be replaced has been replaced, too - B/C pillars, wheels were recently powder coated, it has been paint corrected, etc. It just sparkles. Interior is a 9.5/10.

I've been looking at replacing it and I've gotten two quotes, one for $17k on a trade and the other for $16k (Carmax appraisal). That's insane depreciation, on par with AMG cars. I paid around $27k in July of 2018 and, at this rate, it'll be worth about $5,000 in 18 months LOL. I'm really shocked.

To out this into perspective, it is apparently worth less than a brand new, completely stripped down Nissan Sentra.

Most luxury car values depreciated quickly in the first 3 years. To prove my point, look at the deprecation on BMW,Mercedes,Jaguar,etc models from 2015. Some of the those cars retailed for about $90k+ new and are now only worth about $30-40k used.

New cars purchases are usually never a good long term investment unless they are special editions that may boost the cars desirability(and value) over the years. However, many new cars are just poor financial investments other than fulfilling owner desire and satisfaction.

I learned that lesson the hard way, hence why I only paid about $25k for my used 2015 5.0 Ultimate. I will never waste money by paying $50k+ for a new car ever again. Therefore, I will always be the person that buys a 3 year old loaded luxury car to save money. $400 extra dollars a month goes a long way.

 

[carsareus]

New cars are a great deal if you keep them for say 10+ years. When you sell the car after 18 months then yes, not so much!

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[carguy75]

New cars are a great deal if you keep them for say 10+ years. When you sell the car after 18 months then yes, not so much!

Hell ,even selling the new car after 4 years do not give a good return on your money in my opinion. Example, even if you spend $50K on a Genesis and pay the loan off in three years. The resale value of the car would still be less than what you paid for it by nearly half based on usage.

10 years worth of depreciation? You will receive even less money for the car when you sell it. However, what one person think is a good deal varies from person to person. Losing thousands of dollar in a few years is never a good deal for me.

 

[TinsleyC]

This is taken from Wikipedia -

 

[EdP]

I learned that lesson the hard way, hence why I only paid about $25k for my used 2015 5.0 Ultimate. I will never waste money by paying $50k+ for a new car ever again. Therefore, I will always be the person that buys a 3 year old loaded luxury car to save money. $400 extra dollars a month goes a long way.

The auto industry needs both types of buyers to survive. In my younger years I was sometimes the third/fourth owner as there were other priorities for my money. I never bought used luxury cars because on a tight budget, repairs would be a killer. Eventually I bought cars a bit newer and then bought new.

I don't complain about depreciation because I knew it was a big hit up front. Just the cost of ownership. Fortunately, after about three years you will be there to buy my trade so it keeps some balance. I never bought a car thinking it was a smart investment. It was purely what I'm willing to pay for the goodies.

 

[carsareus]

I'm not a big fan of purchasing used cars but I totally understand why people do it. I just prefer to know the complete repair and maintenance history of the car I'm buying and how the other person drove it. Reliability of the car is extremely important to me. That's not to say you can't buy very good and reliable used cars. I'm just willing to pay a premium for this, however I don't flip cars every 2-3 years either.

 

[2for1]

I buy them used and cheap (under 10K). Then drive them till they almost die. Then sell them.
They have already depreciated significantly before I buy. I only look for Asian vehicles now.
Euro cars have too many maintenance and reliability issues. American cars don't do much for me.
Now my wife's Genesis is a different story. Bought it 2 years old. For about 3/5 what it cost new.
Plan on keeping it for the long term. Only puts 8K on it per year. She still loves it. If she's happy I'm happy!

 

[carguy75]

The auto industry needs both types of buyers to survive. In my younger years I was sometimes the third/fourth owner as there were other priorities for my money. I never bought used luxury cars because on a tight budget, repairs would be a killer. Eventually I bought cars a bit newer and then bought new.

I don't complain about depreciation because I knew it was a big hit up front. Just the cost of ownership. Fortunately, after about three years you will be there to buy my trade so it keeps some balance. I never bought a car thinking it was a smart investment. It was purely what I'm willing to pay for the goodies.

I agree. The car industry need to have consumers that willing to purchase new cars as well consumers that will purchase used cars. New cars purchases are made mostly as a result of desire over financial gain in my opinion. There is no better feeling like buying a new car. It is high that I still miss even though I conditioned myself to purchase used cars to save money for home improvements and boosting my disposable income. I really do save about $400 dollar a month just by driving my used 2015 Genesis.

However, I understand that purchasing a used car is not for everyone. My point is that buying a used 2015 Genesis is a great bargain since the 2015 model is still as good(looks the same as well) as the 2018 G80 models for nearly half the price.

I have decided to just stick to the used market since I wised up about purchasing used cars that are loaded with low miles(less than 50k) and buying an comprehensive extended warranty to cover any surprises. My saving account also benefits from my lower used car payments .

 

[skipgen]

Mileage isn't the only consideration - condition is key. If a dealer won't agree to a PPI, don't walk - run away. But if you do your homework you can score a good deal.

I grew up with a mechanic & general car nuts, so I can pretty much tell a winner from a loser pretty quickly before I even bother having it inspected. While looking for a Genesis, I drove about 6 of them to be able to gauge what the car was supposed to "feel" like. It was pretty easy to do in the city the size of Houston...

I ended up driving cars from a range of 25K mi to 60K mi. And long story short the higher mileage one won out. It was a trade to a Mercedes dealer and the mileage was predominantly highway - Texas is a big state where distances are noted in hours & highway miles are only 20% of city miles, wearwise. I confirmed that the salesguy was playing it straight by checking the nav's previous destinations & my PPI checked out - well maintained & no stored codes! And there was small things that showed me that it was cared for - full set of WeatherTech mats, Genesis wheel center caps & etc. $20k out the door & I never looked back.

 

[Kraig Wilkinson]

Mileage isn't the only consideration - condition is key. If a dealer won't agree to a PPI, don't walk - run away. But if you do your homework you can score a good deal.

I grew up with a mechanic & general car nuts, so I can pretty much tell a winner from a loser pretty quickly before I even bother having it inspected. While looking for a Genesis, I drove about 6 of them to be able to gauge what the car was supposed to "feel" like. It was pretty easy to do in the city the size of Houston...

I ended up driving cars from a range of 25K mi to 60K mi. And long story short the higher mileage one won out. It was a trade to a Mercedes dealer and the mileage was predominantly highway - Texas is a big state where distances are noted in hours & highway miles are only 20% of city miles, wearwise. I confirmed that the salesguy was playing it straight by checking the nav's previous destinations & my PPI checked out - well maintained & no stored codes! And there was small things that showed me that it was cared for - full set of WeatherTech mats, Genesis wheel center caps & etc. $20k out the door & I never looked back.

I agree 100% with you said skipgen!! And like here in south Dakota , you can put 500 miles on in one day and use the brakes a dozen times. And with the highway miles less heat up and cool down cycles. And like you said you can tell how a car was taken care of just by looking in the right places. The first thing before I road testing my 15 5.0 was to spend about 20 mins underneath the car on the lift with a kick-ass flash light!! I love my 5.0 absolutely love the it.

 

[SuperKing]

As someone who has an interest in financial markets, I've learned to rent the things that go down in value and own things that go up in value. I never buy a new car, I always finance and trade in after 5-6 years when the warranty is up. Don't dump $50k on a car right off the bat, you'll end up losing most of it due to depreciation. Dump that $50k into a decent portfolio instead and finance/lease the car. A balanced and diversified portfolio should double about every 7 years. That'll make up for most if not all the depreciation making the car pretty much free for the time you've owned it. In practice though, I still make the car payments from my wages as taking the dividend payments out of my investment account to pay for a car every 2 weeks is too much hassle so I leave it in there and let it DRIP.

I used to buy used cars when I was younger but that was because I couldn't afford new and by the time I could, the cars I wanted were discontinued. After 15 years of that, I got tired of fixing broken things all the time and now I won't buy a car that's not under warranty... lol

 

[Whitey]

As someone who has an interest in financial markets, I've learned to rent the things that go down in value and own things that go up in value. I never buy a new car, I always finance and trade in after 5-6 years when the warranty is up. Don't dump $50k on a car right off the bat, you'll end up losing most of it due to depreciation. Dump that $50k into a decent portfolio instead and finance/lease the car. A balanced and diversified portfolio should double about every 7 years. That'll make up for most if not all the depreciation making the car pretty much free for the time you've owned it. In practice though, I still make the car payments from my wages as taking the dividend payments out of my investment account to pay for a car every 2 weeks is too much hassle so I leave it in there and let it DRIP.

I used to buy used cars when I was younger but that was because I couldn't afford new and by the time I could, the cars I wanted were discontinued. After 15 years of that, I got tired of fixing broken things all the time and now I won't buy a car that's not under warranty... lol

Yep, it's called prudence. We think very similarly. Who doesn't want or enjoy a brand new car, but those who do so are simply throwing money away or have sufficiently more than they need. Let the first buyer take the hit and then buy with warranty.