Resale three years out????

[Marylandrauder]

Any ideas on what a Genesis 5.0 Ultimate that goes for $51,000 today, would go for three years from now with under 30,000 miles and excellent condition?

 

[kev4]

Any ideas on what a Genesis 5.0 Ultimate that goes for $51,000 today, would go for three years from now with under 30,000 miles and excellent condition?

I would think 20% first yr. 10% second and 10% third year, which would get you about 30000$ if in pristine condition on a private sale only. The stealership will give you about 24000$ on a TRADE.

 

[brfatal]

My car just turned 3 and is fast approaching a resale value of half the original MSRP.

 

[ksoze]

Some clues what Hyundai thinks it will be worth based on the current 36 month lease offer on a 2015 3.8:

• If using MSRP $38,950 - in three years the depreciation is 42%
• If using selling price of $35,464.31 - in three years depreciation is 33%

Buyout is fixed at $22,591.00

https://www.hyundaiusa.com/financial-tools/special-offers.aspx

 

[bmbutler]

What Hyundai thinks and what is reality are two entirely different things. Hyundai has always had horrible residual values, and I don't expect it to change any time soon. The Hyundai name is a HUGE lead weight.

 

[ksoze]

What Hyundai thinks and what is reality are two entirely different things.

Ok. Share some data on the new model - the OP asked a question, I supplied a sourced answer, not saying its wrong or right. You may not like it, but it's data.

BTW, a 2014 BMW 535i with the same factors (36 mos.) depreciates 39% from MSRP according to BMW's lease terms. However, BMW traditionally will at times boost residuals (lower the depreciation) to create lower advertised lease payments.

 

[italiabrain]

This is almost impossible to predict with precision. There is certainly a component of direct supply and demand on the car's merits though, and the '15 seems to be doing pretty well out of the gate. I would not be surprised at all if the '15 had better residuals (both as absolute numbers and %) than the outgoing model.

What exactly they will be is about as predictable as the stock market is 3 years in advance. Hyundai could continue to gain ground in being considered a serious luxury make, maybe place well in a publicized MotorTrend E,A6,5,CTS,Genesis,GS roundup, etc. Then again gas could hit $10/gallon and not having a forced induction engine line including a 4cyl could completely obliterate resale. The Koreas could go to war in the next three years for all we know...

 

[bmbutler]

Ok. Share some data on the new model - the OP asked a question, I supplied a sourced answer, not saying its wrong or right. You may not like it, but it's data.

BTW, a 2014 BMW 535i with the same factors (36 mos.) depreciates 39% from MSRP according to BMW's lease terms. However, BMW traditionally will at times boost residuals (lower the depreciation) to create lower advertised lease payments.

I am really getting so tired of how nasty and mean spirited people have become. Like you, I gave my opinion based on facts. You may not like it either, but don't get snarky and rude. Totally uncalled for.

 

[Mark_888]

Resale values are a guess. Often times the marketing people (who establish the residual value on a lease) are under a lot of pressure to sell new cars, so they are overly optimistic on residual value because that lowers the currently month payment for leases. It depends on how good of job the company management does in keeping these marketing people in line so that they don't get burned down the road when the lease is up.

Other things that affect residual values are:

• Discounts offered on new cars - The $10K discounts on current inventory of 2013/2014 really hurts residual values of other Genesis used cars.
• Number of fleet sales - Hyundai sold many Genesis to rental companies who dump them at auction after a couple of years.

 

[BacktoHyundaibychoice]

I am really getting so tired of how nasty and mean spirited people have become. Like you, I gave my opinion based on facts. You may not like it either, but don't get snarky and rude. Totally uncalled for.

Well, I don't see any facts you provided. Please repeat them for me.
Here's some for you:
When my '09 Gen's lease was up I had $4k positive equity which I applied to my '11 Equus. I'm sure you know the term positive equity, but for those that don't...
I could've bought the car for $24K and sold it to Carmax for $28K.
When I traded my '11 Equus for the '14, same thing. Reducing my price to about $55k from $61K sticker. And that was a year ago, before "deals" were on the table.
Anecdotes, sure. But facts for me nonetheless.

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[ksoze]

I am really getting so tired of how nasty and mean spirited people have become. Like you, I gave my opinion based on facts. You may not like it either, but don't get snarky and rude. Totally uncalled for.

Relax. You gave no facts or you typed them on a different board. Just saying Hyundai depreciation sucks is more useful with some facts.

 

[CC4.6]

I have the "Hyundai Assurance Trade-in Value Guarantee" which came with my 2012 4.6. If I trade in at a dealer for a new Hyundai, it states the trade-in value for months 31-36 (from date of purchase) is $24,131.00.

 

[PMCErnie]

I am really getting so tired of how nasty and mean spirited people have become. Like you, I gave my opinion based on facts. You may not like it either, but don't get snarky and rude. Totally uncalled for.

No, you gave an opinion, not facts. Please enrich the discussion with your facts.

 

[Aquineas]

I have the "Hyundai Assurance Trade-in Value Guarantee" which came with my 2012 4.6. If I trade in at a dealer for a new Hyundai, it states the trade-in value for months 31-36 (from date of purchase) is $24,131.00.

This was active for my car too, but I can't find any paperwork on it. Was there a schedule distributed with the original paperwork? Internet trails for it seemed to have dried up as Hyundai has discontinued the program. All I have is a fancy pamphlet that has "Hyundai Assurance" written on one of the pages, with "See your dealer for details."

 

[jimb100]

First off, I don't think you can compare the previous model Genesis with the new model for resale value as they are very different. Read the reviews.

My 5.0 had a sticker of $56k. The residual value on the lease after 36 months, 12k miles per year, was only 53%, which was very low compared to Audi, BMW, Mercedes, Lexus. My buyout at the end is $30K.

I didn't care about those numbers as I intend to keep the car. I pay a bit more each month but less at buyout.

As has been said, the market will determine the price 3 years from now but consider this. Hyundai leasing needs to get $30K out of the car to make its numbers work. Hyundai dealers will be able to make a nice profit selling for $34k and the car will still have plenty of warranty left.

I think that's the minimum. Could be higher, depending on how the market goes and where the Genesis fits in against Audi, Lexus, etc. over the next 3 years. I seriously doubt it will be lower unless the opec can kill the frackers quick and get the price up fast. I don't see that happening.

 

[Aquineas]

Right, not debating those details because frankly it sounds like you know more about that stuff than I. I was just looking for details on the Hyundai Assurance Trade-In Guarantee (a program they have since discontinued) because at the time I bought my car, Hyundai was guaranteeing trade-in value if you traded in your car on a new Hyundai from 24-48 months from the time of purchase; I couldn't find the document, but I have since found it.

 

[LA Genesis]

This was active for my car too, but I can't find any paperwork on it. Was there a schedule distributed with the original paperwork? Internet trails for it seemed to have dried up as Hyundai has discontinued the program. All I have is a fancy pamphlet that has "Hyundai Assurance" written on one of the pages, with "See your dealer for details."

I used the Hyundai Assurance program when I traded in my 2012 for a 2015. There is a certificate with your name and your VIN number that you should have received when you bought the car.

It's a good program. I know I saved a few thousand dollars with the program.

 

[Aquineas]

I used the Hyundai Assurance program when I traded in my 2012 for a 2015. There is a certificate with your name and your VIN number that you should have received when you bought the car.

It's a good program. I know I saved a few thousand dollars with the program.

Thank you! I finally found that certificate after tearing apart some unpacked boxes after from my last move.

 

[jjsC6]

First off, I don't think you can compare the previous model Genesis with the new model for resale value as they are very different. Read the reviews.

My 5.0 had a sticker of $56k. The residual value on the lease after 36 months, 12k miles per year, was only 53%, which was very low compared to Audi, BMW, Mercedes, Lexus. My buyout at the end is $30K.

I didn't care about those numbers as I intend to keep the car. I pay a bit more each month but less at buyout.

As has been said, the market will determine the price 3 years from now but consider this. Hyundai leasing needs to get $30K out of the car to make its numbers work. Hyundai dealers will be able to make a nice profit selling for $34k and the car will still have plenty of warranty left.

I think that's the minimum. Could be higher, depending on how the market goes and where the Genesis fits in against Audi, Lexus, etc. over the next 3 years. I seriously doubt it will be lower unless the opec can kill the frackers quick and get the price up fast. I don't see that happening.

No question the new one is a much nicer car, but within months of it coming out dealers were advertising 10% discounts on the car. The problem is still that most people spending $50,000 don't want the Hyundai name.

 

[jimb100]

No question the new one is a much nicer car, but within months of it coming out dealers were advertising 10% discounts on the car. The problem is still that most people spending $50,000 don't want the Hyundai name.

The sales manager at the dealer where I bought my car is a personal friend, we've known each other for years, been to each others houses, etc.

Hyundai dealers have a mindset, like Chevy dealers, Toyota dealers, Mazda dealers. They will all drop to invoice in a heartbeat. Whether its a $50k Genesis or a Mazda 3, they will all drop to invoice if you ask them to. They live off the holdback, service and parts.

Its just the way they do business. Its why you can't create a luxury brand in a low end environment. I don't believe Genesis will ever rival the luxury brands in sales, but I don't care.

Hyundai offers a pretty no frills environment. There's no magic in car sales. Mercedes charges more and provides a few niceties that the customer is paying for.

Lots of people who can afford the niceties are willing to pay for them.

My wife had a Benz SL and before that a Lexus and now another Lexus. She like the treatment she gets at these dealers. I could care less.