Resale / Depreciation?

[Stevendom1987]

I spent 31 years selling new & used high end Mercs & Porsches before retiring 7 years ago.
Ist year or 1 day old ( get the tires dirty) typical depreciation is about 30%, 2nd year 20% & after that about 10% a year leveling off @ about 7 years to virtually 0 or condition & mileage dependent. You pay a lot for new car smell.
Bought my 2016 Hyundai Genny Luxury 3.8 AWD @ 10900 Kilometers 18 months old in January this year for $31000 tax included retail from local Hyundai Dealer. Original Window Sticker $50460 MSRP new. Thats how I buy a car. Went in shopping for a new Loaded Elantra Sport & came home with lots more car for less than the Elantra.

So if you must own brand new then lease? I feel like you lose the value either way?

 

[rroyce46]

So if you must own brand new then lease? I feel like you lose the value either way?

Lease to me is really just an expensive rental or allows you to drive more car than you really can afford.
I always buy almost new & pay cash. I HATE car payments unless @ legit 0 percent finance rate.

 

[canucklehead604]

Lease to me is really just an expensive rental or allows you to drive more car than you really can afford.
I always buy almost new & pay cash. I HATE car payments unless @ legit 0 percent finance rate.

^ +1. i hear you. it killed me paying full freight for this G70 brand new. i've always bought 1-2 year old as-new cars for a substantial savings, and i pay cash. i know i'll take a big depreciation hit, but this is a long ways off (i keep my cars more than 5 years) and somewhat offset by a very reasonable purchase price with added incentives and reduced finance rates. also the cost certainty for the next 5 years knowing that maintenance is included has added value.

my problem is that a pre-requisite for my vehicles is to be a sedan with a manual gearbox. that selection is rapidly diminishing. my last vehicle had to be shipped across north america from Baltimore to the west coast of Canada after a 6 month search. i don't want to go through that again. and as much as i'd loved to find a lightly used G70 6MT in my area in a year or two, i wasn't willing to gamble on that. the take rate will be 5% at most for the 2.0T 6MT around here, and the chance of finding one at the right time with an agreeable colour combo is beyond a long shot in my opinion. i've made my own problem and am not willing to compromise, so it is on me to bear the cost of my choice.

a few of my friends think i'm nuts not to consider the newer DSG or 7-8 speed autos. i know they are much better than they used to be and get better fuel economy and acceleration, but that's not the point. i want the control and connection with the driving experience.

i also didn't want to go with a used BMW 2 or 3 series out of concern for long-term ownership costs. last car i had i kept for 8 years and i can't imagine not being burned by a used german car over that length.

 

[Stevendom1987]

^ +1. i hear you. it killed me paying full freight for this G70 brand new. i've always bought 1-2 year old as-new cars for a substantial savings, and i pay cash.

my problem is that a pre-requisite for my vehicles is to be a sedan with a manual gearbox. that selection is rapidly diminishing. my last vehicle had to be shipped across north america from Baltimore to the west coast of Canada after a 6 month search. i don't want to go through that again. and as much as i'd loved to find a lightly used G70 6MT in my area in a year or two, i wasn't willing to gamble on that. the take rate will be 5% at most for the 2.0T 6MT around here, and the chance of finding one at the right time with an agreeable colour combo is beyond a long shot in my opinion. i've made my own problem and am not willing to compromise, so it is on me to bear the cost of my choice.

a few of my friends think i'm nuts not to consider the newer DSG or 7-8 speed autos. i know they are much better than they used to be and get better fuel economy and acceleration, but that's not the point. i want the control and connection with the driving experience.

i also didn't want to go with a used BMW 2 or 3 series out of concern for long-term ownership costs. i keep my vehicles more than 5 years - last one was 8 years.

I wish I had your confidence. I kept my last car 8 years but doubt I want to do that again. I just hit 30 and have considerably more disposable income. I figure I should just lease and pay up for the flexibility. Even if it's a bad deal to keep my own car I can likely find a used g70 probably for a great price in 4 years. Then again I lose that 100K warranty so I am really torn.

If anyone has had any experience buying the car instead of returning the lease let me know if it's usually a terrible deal or not?

 

[rroyce46]

^ +1. i hear you. it killed me paying full freight for this G70 brand new. i've always bought 1-2 year old as-new cars for a substantial savings, and i pay cash.

my problem is that a pre-requisite for my vehicles is to be a sedan with a manual gearbox. that selection is rapidly diminishing. my last vehicle had to be shipped across north america from Baltimore to the west coast of Canada after a 6 month search. i don't want to go through that again. and as much as i'd loved to find a lightly used G70 6MT in my area in a year or two, i wasn't willing to gamble on that. the take rate will be 5% at most for the 2.0T 6MT around here, and the chance of finding one at the right time with an agreeable colour combo is beyond a long shot in my opinion. i've made my own problem and am not willing to compromise, so it is on me to bear the cost of my choice.

a few of my friends think i'm nuts not to consider the newer DSG or 7-8 speed autos. i know they are much better than they used to be and get better fuel economy and acceleration, but that's not the point. i want the control and connection with the driving experience.

i also didn't want to go with a used BMW 2 or 3 series out of concern for long-term ownership costs. i keep my vehicles more than 5 years - last one was 8 years.

If you must have Stick & RWD Lease it. I think despite your desires it will be pretty Saleproof as a used car. So many today don't even know how to shift gears. I keep my 79 Alfa Romeo Spider to enjoy 3 pedal motoring & usually get tired of shifting after an hour or 2 or if I get in a stau !

 

[Stevendom1987]

If you must have Stick & RWD Lease it. I think despite your desires it will be pretty Saleproof as a used car. So many today don't even know how to shift gears. I keep my 79 Alfa Romeo Spider to enjoy 3 pedal motoring & usually get tired of shifting after an hour or 2 or if I get in a stau !

It's funny you say that because the RWD stick leases are some of the worst in the market. The leasing companies know those cars won't sell.

 

[canucklehead604]

If you must have Stick & RWD Lease it. I think despite your desires it will be pretty Saleproof as a used car. So many today don't even know how to shift gears. I keep my 79 Alfa Romeo Spider to enjoy 3 pedal motoring & usually get tired of shifting after an hour or 2 or if I get in a stau !

^ yeah, that's the thing though. i've never had any issue selling RWD 6MT vehicles so i am not concerned. usually on the first day to the first buyer and for a premium price as opposed to the garden-variety slushbox trims which are dime a dozen. there will always be a market of fiends like myself - albeit a small market - who must have things their way. many of them wait patiently for the right car to pop up and then they jump on it. call it a calculated risk i suppose.

 

[ikonn]

I like you ikonn, you’re almost as stubborn and persistent as I am LOL Like I have stated before, almost every car manufacturer tarts cars up. Let’s not run in circles trying to prove points we’ll never agree on.

Keep in mind Genesis will not flop. I am confident that when dealer networks make mainstream news, that will be “thé” pivotal moment for them. Honestly, I think they’ll have a platform that is used in Hyundai or Kia. That’s not a bad thing. These cars are not made cheaply anymore. The quality has already surpassed American vehicles (mostly).

The business of marketing a product and marketing it effectively is worth millions in the company. I don’t think for one second Genesis will be an Acura equivalent which is why they are taking the chance.

Thank you for being generous with the B+ but, I’ll keep my A. Trying and accomplishing are on different spectrums, as are our opinions.

That authenticity gets you an A-. At least from me, for what it’s worth.

 

[JayceM]

I wish I had your confidence. I kept my last car 8 years but doubt I want to do that again. I just hit 30 and have considerably more disposable income. I figure I should just lease and pay up for the flexibility. Even if it's a bad deal to keep my own car I can likely find a used g70 probably for a great price in 4 years. Then again I lose that 100K warranty so I am really torn.

If anyone has had any experience buying the car instead of returning the lease let me know if it's usually a terrible deal or not?

It really depends on how much you drive it and the type of vehicle you have. If you're way under the miles then it'll be a good deal, if you're over it'll be a worse one but you would be paying for the mileage overage too. You'll see the price you can buy it for at the end when you lease.

 

[mikemu30]

I spent 31 years selling new & used high end Mercs & Porsches before retiring 7 years ago.
Ist year or 1 day old ( get the tires dirty) typical depreciation is about 30%, 2nd year 20% & after that about 10% a year leveling off @ about 7 years to virtually 0 or condition & mileage dependent. You pay a lot for new car smell.
Bought my 2016 Hyundai Genny Luxury 3.8 AWD @ 10900 Kilometers 18 months old in January this year for $31000 tax included retail from local Hyundai Dealer. Original Window Sticker $50460 MSRP new. Thats how I buy a car. Went in shopping for a new Loaded Elantra Sport & came home with lots more car for less than the Elantra.

This really depends on brand. I mistakenly purchased a Honda - hated it and dumped it after 9 months. I took less than a 20% haircut on that one. Not saying its justified, but Toyota, Honda - they just dont depreciate initially like a Hyundai for example.

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[KusaKusa]

If it matters at all for the G70, I've been looking into prices for used 2018 G80 Sports. The selling price is about 20-25% less than MSRP, so it hasn't been depreciating very hard especially considering the missing warranties. This could be a result of lacking supply though.

 

[rroyce46]

@KusaKusa - You are correct but don't forget that 20-25% less than MSRP would be an asking price including profit to the dealer who usually make more on used cars than new ones. Pity the poor sap who wants to trade in. Difference between trade in & selling high priced used cars could be in the $10000 range @ this level.
I spent 31 years in the motor trade as a high end salesman/sales manager. I speak with some level of experience.

 

[EChua5]

I have a 2012 Hyundai Genesis 3.8 V6 Premium + Tech. Took it to Carmax at 6 years old (2018). I bought it as a CPO from the original owner, and have owned it about 3.5 years. Went from $45k to $22,500 (the time I bought it). It's now worth a bit less than $10,000.

2/2012: $45,000
5/2015: $23,995 (42,269mi)
6/2015: $17,439
10/2016: $14,099
11/2017: $12,036
10/2018: $10,000 (70,000mi)

 

[NLJ]

I have a 2012 Hyundai Genesis 3.8 V6 Premium + Tech. Took it to Carmax at 6 years old (2018). I bought it as a CPO from the original owner, and have owned it about 3.5 years. Went from $45k to $22,500 (the time I bought it). It's now worth a bit less than $10,000.

2/2012: $45,000
5/2015: $23,995 (42,269mi)
6/2015: $17,439
10/2016: $14,099
11/2017: $12,036
10/2018: $10,000 (70,000mi)

Resale value tends to plateau at around the 7 year mark. But 10k does suck considering there isn't that much mileage on it!

 

[Toddasaurus]

I have a 2012 Hyundai Genesis 3.8 V6 Premium + Tech. Took it to Carmax at 6 years old (2018). I bought it as a CPO from the original owner, and have owned it about 3.5 years. Went from $45k to $22,500 (the time I bought it). It's now worth a bit less than $10,000.

2/2012: $45,000
5/2015: $23,995 (42,269mi)
6/2015: $17,439
10/2016: $14,099
11/2017: $12,036
10/2018: $10,000 (70,000mi)

Ouch... That's brutal!

I'm hopeful the G70 won't drop in value that quickly, as it seems to be more focused on luxury than the Genesis Coupe, along with receiving several significant auto awards.

Even so, I'm not holding my breath...

 

[danygenesis]

Ouch... That's brutal!

I'm hopeful the G70 won't drop in value that quickly, as it seems to be more focused on luxury than the Genesis Coupe, along with receiving several significant auto awards.

Even so, I'm not holding my breath...

The Hyundai Genesis 3.8 is not a Coupe. Its a Luxury sedan, I would say it is more luxurious than the G70. Numbers are awful though.

 

[Toddasaurus]

The Hyundai Genesis 3.8 is not a Coupe. Its a Luxury sedan, I would say it is more luxurious than the G70. Numbers are awful though.

Ah, sorry - thought he was referring to the Coupe.

 

[50jae]

My trade in of the 2015 Genesis was not pretty either, its value dropped like a rock during the past few months presumably due to influx of returned 2015 leased models.

I'm glad I leased the G70 this time around, won't face the same problem down the road.

 

[danygenesis]

My trade in of the 2015 Genesis was not pretty either, its value dropped like a rock during the past few months presumably due to influx of returned 2015 leased models.

I'm glad I leased the G70 this time around, won't face the same problem down the road.

I have a 2016 Hyundai Genesis lease, I'm planning to lease a G70 but waiting almost exactly to the end of the lease because I know depreciation is atrocious and nobody is gonna give me the buyout quote.

 

[mikemu30]

I have a 2012 Hyundai Genesis 3.8 V6 Premium + Tech. Took it to Carmax at 6 years old (2018). I bought it as a CPO from the original owner, and have owned it about 3.5 years. Went from $45k to $22,500 (the time I bought it). It's now worth a bit less than $10,000.

2/2012: $45,000
5/2015: $23,995 (42,269mi)
6/2015: $17,439
10/2016: $14,099
11/2017: $12,036
10/2018: $10,000 (70,000mi)

I just traded a 2014 Azera I bought new - sticker was roughly 38 and I think I paid 33 or so. They just gave me $10K. Not as bad as your but these cars just don't retain good value.