Proud New Genesis Owner with a Question

[FreezingTaz]

I bought a 2011 Hyundai Genesis 4.6 Pearl White in June of 2016. I love the car and all my friends always want me to drive them whenever we go anywhere. The pure Power and luxury is overwhelming for someone coming from a 2001 civic. Best choice by far and I would do it over again. But I do have one question. When I bought the car in the Spring, I paid a little under the KBB value for it which was nice, however, when I checked the KBB value today, less than a year of ownership, the depreciation hit near 4k. I was wanting to know what caused this. I know there is going to be larger depreciation than a civic, but 4k seems a bit much. Would like to get some input on why this year hit the car so hard.

P.S. Best car on the street for the price by far!

 

[Ragnar]

Yep,sorry to say it comes down to Hyundai's reputation for cheaply built inexpensive cars from years past.
My wife and I like you bought our 16' Genesis Ultimate last June,and I,m telling anyone who'll listen it's the finest automobile I've owned in 40 years,.....but that reputation does tend to haunt me,
So here's to hoping it's no longer deserved......fingers crossed.😏

 

[landtuna]

Depreciation is caused by multiple factors:

Demand for the vehicle (GM can't sell Buicks)
Reputation of the manufacturer (Fiat - yeah, right)
History of high maintenance or repair costs (all German marques)
Initial price strata (the more expensive vehicles tend to depreciate quicker)
Major miscues by the manufacturer (look at VW and the Diesel fiasco for an excellent example)

I knew when I bought my R-spec the depreciation would be much faster than average BUT it won't cost you a cent if you keep the car until the depreciation runs its course. I had my Isuzu Impulse for over 22 years and my last Toyota Avalon for 14. Both cars were fully depreciated by then although both were still running excellently and were sold for more than book value.

The lesson is this - if you turn over your cars within a short period of time (3-5 years) you will take a beating on depreciation. Hold on to them until they are no longer reasonable to keep repairing and you will suffer much less.

And, if you have access to lease tables use those to see which cars depreciate less than others because depreciation is factored into lease rates and those tables will tell you what lessors expect in the next several years.

 

[dtevescar]

I have a 2011 Genesis 3.8 had average number of warantee issues, however, paint is falling off of most of the plastic painted components. I would surmise that issues with quality are beginning to become obvious to many owners, and hence, value of used vehicles are dropping. The cold start "rattling noise" caused by timing chain tension, is an issue for most of us, and Hyundai does not want to recognize that as a problem....besides, as a used vehicle, factory warrantee is only 5 years from Hyundai Corporate.

 

[Mark_888]

The cold start "rattling noise" caused by timing chain tension, is an issue for most of us, and Hyundai does not want to recognize that as a problem...

Just curious what motor oil you are using? I would highly recommend a good quality 5W-30 full synthetic motor oil. I was watching MotorWeek TV show just recently, and the tech guy (Goss' Garage) was talking about the timing chain tensioner and that it is lubricated by the motor oil, and the oil needs to get into some very small places in the tensioner system.

I use Mobil 1 EP 5W-30 and have not experienced any timing change noise (or any other excessive noise) on my G1 Genesis.