Trade Value = no bueno

[Cgo]

Just for curiosity,

I shopped for trade value. Checked Carvana, Carmax, BMW, Acura, Lexus, and even Kia...

Best offer I got was $36k, worst was Carvana for $29k! Wow.

I thought my Chevy Camaro was bad. I was surprised given all the good press and awards. Genesis has a long way to go to break the mold and be recognized as a true luxury brand.

For context, my car has 2500 miles, is perfect, and is a 2019 3.3T sport with all the packages minus AWD which hurt the value for my area. MSRP was $51k and purchase price was $45k (luckily).

Looks to be about a 10 to 20k depreciation right off the lot depending on how good a deal you get.

Plus, cars are not popular right now.

I need to stop buying brand new cars...

 

[FastEddie]

No loss unless you sell it. Just like stocks. The price goes down but you only would loose money if you actually sold. I’m keeping mine till I retire in 6 years and then till I croak.

 

[danygenesis]

Very old rule of thumb. If you change cars frequently just lease them. If you buy them, the only way to make some money or at least not to loose it, is to keep them for more than 5-6 years.

 

[CoconutRob]

My last new purchase is 18 years old and still in great shape less than 100k miles. Paid 32k for it in 2002. Now worth about 2k but to me priceless and I plan to do the same with my G70. No reason to purchase a new car if you want to sell it or just have too much money, if that's the case can you send me $10k lol

 

[Regor60]

No loss unless you sell it. Just like stocks. The price goes down but you only would loose money if you actually sold. I’m keeping mine till I retire in 6 years and then till I croak.

So, when the stock price goes up you haven't made money if you didn't sell ?

There is no such thing as paper losses

 

[NLJ]

I’ll get rid of mine in another 5 years. Hopefully there will be a bunch lots electric car options by then or Tesla gets their shit together and make a car that doesn’t look like it was assembled by toddlers!

 

[ventogt]

Just for curiosity,

I shopped for trade value. Checked Carvana, Carmax, BMW, Acura, Lexus, and even Kia...

Best offer I got was $36k, worst was Carvana for $29k! Wow.

I thought my Chevy Camaro was bad. I was surprised given all the good press and awards. Genesis has a long way to go to break the mold and be recognized as a true luxury brand.

For context, my car has 2500 miles, is perfect, and is a 2019 3.3T sport with all the packages minus AWD which hurt the value for my area. MSRP was $51k and purchase price was $45k (luckily).

Looks to be about a 10 to 20k depreciation right off the lot depending on how good a deal you get.

Plus, cars are not popular right now.

I need to stop buying brand new cars...

Very old rule of thumb. If you change cars frequently just lease them. If you buy them, the only way to make some money or at least not to loose it, is to keep them for more than 5-6 years.

Depreciation is a B. Even Land Cruisers and Tacomas depreciate, they just level off quickly. Since I tend to change cars every 3-4 years, even though I always say to myself I'm keeping my car for good, I'm going to start leasing everything, and then at end of lease decide if the resid is better than or in line with market pricing if I want to keep it. It's what I did with the GX460 but not, unfortunately, my cheap and unreliable Golf which has depreciated 60% in less than 18K miles. I bought my prior car, an Audi S8 with 45K miles for $28K -- sticker was $115K. Why not let the bank take the risk instead of you and only pay for the usage?

 

[EdP]

Looks to be about a 10 to 20k depreciation right off the lot depending on how good a deal you get.

Plus, cars are not popular right now.

I need to stop buying brand new cars...

No, you need to stop checking the value for no good reason. It can make you crazy. Does not matter if 2500 or 25 miles, it will still be a B title and have a bunch of depreciation. If you decided to waste time and get the same information for other brands you'd find they look a big hit too.

Best thing you can do is get in the car, go for a nice ride and enjoy it.

 

[Toddasaurus]

I can't say I'm too surprised... Nevertheless, it's quite the bummer to see it.

Gotta admit I'm toying with the idea of trading my G70. It's up and running now; but, I'm just so soured in my repair experience (both from the dealership and how tedious it was for me to do it on my own) that I'm really turned off on the car right now.

I was hoping that at least 42k was realistic (3.3 AWD Sport) but it looks like I'm just dreaming.

I've got high hopes for the possibility of a new Mazda sports car.... (Again, still probably dreaming).

Here's a rumor...

Rumor: 350-HP Mazda 4-Door Coupe Coming 2022, Debut Just Months Away?

 

[Mr. Incredible]

All vehicles loose 20-30% in the first year, and will loose 50% by the third year because initial leases are 36 months and residual estimates are based on a 50% loss, which directly effects resale.

vehicles that retain a higher than normal resale do so after year 3. No point in being concerned with the resale of your vehicle until that point.

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[IV2019]

So, when the stock price goes up you haven't made money if you didn't sell ?

There is no such thing as paper losses

That's correct. Until you sell, you have made no money even if stocks go up significantly. Take bitcoin investments as an example. Some people could have made a ton of money but either sold too early or held on for too long. No profit or loss until you sell. Same is true for cars. My last car that I sold has actually gone up in value since I sold it 4 years ago. Should have just kept it.

 

[TurtleBoy]

That's correct. Until you sell, you have made no money even if stocks go up significantly.

I don't think that is the correct way to look at it. When the stocks in your portfolio increase, your total assets/net worth increase. For example, if you buy 100 shares at $10 and they go up to $20, you have made $1,000. You don't realize those gains until the shares are sold but you definitely "made money" when they went up.

 

[EdP]

I don't think that is the correct way to look at it. When the stocks in your portfolio increase, your total assets/net worth increase. For example, if you buy 100 shares at $10 and they go up to $20, you have made $1,000. You don't realize those gains until the shares are sold but you definitely "made money" when they went up.

On paper. Unless you sell them you made nothing. Hold too long and they may go to $5 or they can go to $40. In reality, your net worth is just on paper too, unless it is liquid. Even real estate fluctuates.

I will concede one possible gain with the increased net worth. Good chance a bank would be willing to lend you more if you were looking for a loan.

 

[TurtleBoy]

On paper. Unless you sell them you made nothing. Hold too long and they may go to $5 or they can go to $40. In reality, your net worth is just on paper too, unless it is liquid. Even real estate fluctuates.

I will concede one possible gain with the increased net worth. Good chance a bank would be willing to lend you more if you were looking for a loan.

I think you are confusing realized and unrealized gains. They are both real gains it is just a matter of how they are accounted for. "Paper" gains are just as "real" as actual gains when an asset is converted to another asset type.

 

[EdP]

I think you are confusing realized and unrealized gains. They are both real gains it is just a matter of how they are accounted for. "Paper" gains are just as "real" as actual gains when an asset is converted to another asset type.

Semantics. It is all just paper until you have cash in hand. The grocery store does not care how much your portfolio increased. Those gains you had in 2007 would not buy you too many cans of beans in 2009.

 

[TurtleBoy]

Semantics. It is all just paper until you have cash in hand. The grocery store does not care how much your portfolio increased. Those gains you had in 2007 would not buy you too many cans of beans in 2009.

Much more than semantics unless cash is the only asset that you think can be used to gauge value.

 

[EdP]

Much more than semantics unless cash is the only asset that you think can be used to gauge value.

Gold and silver are good too. Sure, they fluctuate but can be traded. Value is subjective and can change, sometimes quickly and drastically. Sure, if a stock goes up it looks good on paper but did you make a profit? You don't know until you sell it. If you have a painting you paid $100 and appraised at a value of $1000, did you really make $900 while it hangs on the wall? If you sell it for $200 did you make $100 or lose $900?

 

[IV2019]

Much more than semantics unless cash is the only asset that you think can be used to gauge value.

I would say cash is one of the very few liquid assets that are relatively stable. Houses and cars take time to sell. Stocks can drop significantly in a single day. I personally don't count on them for determining near term liquidity. If I were forced to sell stock in order to have enough cash to buy something, I might have to sell for a significant loss.

However, I will say that a well balanced investment portfolio, especially in retirement accounts, is a good overall indicator of net worth.

 

[TurtleBoy]

Gold and silver are good too. Sure, they fluctuate but can be traded. Value is subjective and can change, sometimes quickly and drastically. Sure, if a stock goes up it looks good on paper but did you make a profit? You don't know until you sell it. If you have a painting you paid $100 and appraised at a value of $1000, did you really make $900 while it hangs on the wall? If you sell it for $200 did you make $100 or lose $900?

Never mind, I see you are just trying to be a troll and not actually have a conversation. Profit and loss are only done when you sell an asset but that is not what we have been talking about. The term "made" was being used in the common reference which is "increase" or "return". as in "My portfolio made 10% last year". That would have nothing to do with whether any of the assets were sold.

 

[EdP]

Never mind, I see you are just trying to be a troll and not actually have a conversation. Profit and loss are only done when you see an asset but that is not what we have been talking about. The term "made" was being used in the common reference which is "increase" or "return". as in "My portfolio made 10% last year". That would have nothing to do with whether any of the assets were sold.

So if someone does not see as you they are a troll?
My portfolio increased last year too but right now the value is on paper. If goes up and down and is only paper until cashed in and sold.
I see you had no comment about the gain or loss of a painting with an appraised value. You would have made money even if sold much lower than "value".
Time to let it go as neither is changing the mind of the other.