Trade Value = no bueno

[TO Genesis]

For a couple hundred bucks a year I'd rather have the car I really want.

This.

 

[IV2019]

Look at total cost of ownership. What will you pay for a G70? What will you pay for a comparable car? Good chance is will cost you about 10k more up front for a competitive other brand. When you trade or sell them in five years, what did each cost you to own? Even with a 10% difference over 5 years the cost of ownership is pretty close. For a couple hundred bucks a year I'd rather have the car I really want.

If cost is the rational decision maker, best buy is probably a four year old Corolla.

Thanks for pointing it out this way in terms of total cost of ownership. I wasn't thinking of it that way and was focused on the g70 being more bang for your buck based on a lower msrp.

However, in running rough numbers, it looks like for a 3 year lease, the total cost of ownership for a $52k G70 is within $1000 of the cost for a $62k BMW M340i (higher residual value). Based on that, as you said, I should focus on getting the car I really want. It also has me thinking I really should be keeping the G70 longer than 3 years to get the most value out of the lower MSRP. Ideally at least 7 years...

 

[ventogt]

I agree that it seems premium cars lose value much faster. Prior to my current car, I had two performance oriented cars. I sold one after it was 5 years old and only lost 35% off original purchase price brand new. The more recent car, I kept for 7 years (also bought it new), and it only lost 35% of its value (65% residual value after 7 years is amazing). I was shocked to see my current car worth barely over 50 percent after 4 years and with barely over 20k miles on it.

Hesitant to buy a g70 new seeing the depreciation, especially if I don't end up keeping it for a long time. I'm still debating...

Lease it--you pay less, take less risk, and at end of lease if you like the car and the resid is in line or better than market, you've got upside there.

 

[Rmsanger]

The stinger GT2 values have been dropping like a rock... I’ve seen a few relatively low mileage version CPO list in the low 30’s. I’m assuming you could find a private sale GT2 for $28k - 30k easily; looking forward to G70 used buying opportunities next year.

 

[IV2019]

The stinger GT2 values have been dropping like a rock... I’ve seen a few relatively low mileage version CPO list in the low 30’s. I’m assuming you could find a private sale GT2 for $28k - 30k easily; looking forward to G70 used buying opportunities next year.

Yeah, Kia was offering well over $10k off so you could get a Stinger GT2 in the low 40's. That included 7700 in lease cash. A lot of people were leading, then buying out the lease a month later. Genesis hasn't done such huge incentives but maybe next spring if sales languish. Which unfortunately would not bode well for the G70 - I want it to do well but also want a great deal. The main in incentive to buy new is the 10 year warranty if I end up wanting to keep it long term.

 

[MG8]

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...

keep in mind those places are all low balling you there just out to make money. when i sell a car i go by market value honestly and then private sell it . if you sell market value price, it still will be a great deal for the buyer consider he or she will not be paying any tax or fee's .ect........

 

[NLJ]

Here, Auto Trader or Canadian Black Book gives you a trade in view that is decent. But the dealer will give you an auction value which is much lower.

 

[MG8]

every car drops truth is purchasing a brand new car is a all around bad investment, unless you work for a dealership and get employee incentives. depreciation is normal for example look at a mercedes benz S class brand new $120k ish look at them used 2 or 3 years old its like half the price. THATS JUST SICK!

 

[Bourbonncigars]

I always buy either slightly used or very used. I love depreciation.

OP, did you happen to see what trade in at a Genesis dealership would be (to see if it's truly a branding stigma)?

 

[Edmguy]

I think it is still a bit early to really tell how the G70 will be resale wise. I think cars in general are having a hard time so that will weigh on the G70 just as it will on other cars in its class. I think Genesis and the G70 is still relatively unknown which also hurts but they have been getting good reviews and the reliability ratings from JD Power should also help with resale going forward.

I typically keep my cars about 4 years or 100,000km so when that point comes (2.5yrs from now) I will worry about resale on the car. Until then I will have fun and just be happy with how "cheap" the car was to purchase and the fact I don't have to pay for any maintenance for 100,000km.

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[ventogt]

...purchasing a brand new car is a all around bad investment, unless you work for a dealership and get employee incentives. depreciation is normal for example look at a mercedes benz S class brand new $120k ish look at them used 2 or 3 years old its like half the price. THATS JUST SICK!

Big expensive sedans historically have the worst depreciation, so if you like those, they are great buys used [probably because those original buyers are the types to either pay massive lease money for a few years or just buy and trade to get the newest one every model refresh].

Just don't forget, when it comes time to fix them, they are still $120K cars even if you paid $40K for it.

 

[CVDH-TN]

If you want to look at steep depreciation, look at a used Alfa Giulia... That being said, when I was shopping for my G70, I thought about hiring Tom Mc Parland to shop for my car and when talking to him over the phone, the first thing he told me was to be aware that the resale value of the G70 was going to be atrocious. Not a problem for me since I plan to keep the car for a while. That being said, I am over cars that are supposed to retain their value as it never works as planned when it is the time of the trade-in. My previous car was a 2011 BMW 128i manual with 77k miles in mint condition and I did not even consider trade-in since NO ONE was willing to have it on the lot (manual, RWD, Coupe, not what their average buyers are looking for), I ended up selling it for a decent price to an enthusiast via a BMW forum but it required some work and efforts. As others said before: if you plan to keep it for a short time: lease it and better, lease a Mercedes C43 AMG or an Audi S4...

 

[ventogt]

Tom McParland is the man

 

[Comrade904]

When I was considering trying to decide whether to buy the G70, I sent the info over to "give me the Vin" and got an offer of 39,000 for a Dynamic that I told them had 2k miles. Maybe try something like that?

 

[Cgo]

After my last two new car purchases I have learned to just be able to live with buying a used car with low miles that is about 2-3 years old, since I will still have modern ride at a discount price. I only paid about $25k on my 2015 Genesis 5.0 Ultimate with 45k miles in 2018. The car was in nearly new condition. However, I swap cars a lot(every 5 years or so) so buying new usually just set me up to be upside down on nearly all my trades. I only started to break even on trades after i started to trade in used cars when my last new car purchased was totaled out in an accident and I started to buy used.

New cars are nice to own, but are bad investments if you swap cars often. In that case it would be better to lease if you must have the newest ride every 3 years or so.

Yeah, I swap cars every year or two... leasing is the better option except that I commute 100 miles per day. So, leasing mileage would end up costing me in the end and would be almost as bad as my purchase losses.

 

[Cgo]

I always buy either slightly used or very used. I love depreciation.

OP, did you happen to see what trade in at a Genesis dealership would be (to see if it's truly a branding stigma)?

Yeah, genesis offered 36k.

 

[cappuccinoman]

The stinger GT2 values have been dropping like a rock... I’ve seen a few relatively low mileage version CPO list in the low 30’s. I’m assuming you could find a private sale GT2 for $28k - 30k easily; looking forward to G70 used buying opportunities next year.

I have seen brand new at this price.

 

[danygenesis]

These are the numbers from KBB for a used 2019 G70 3.3T Sport RWD with 13,000 miles in "Excellent" condition.

 

[Toddasaurus]

Good to know.....also a tough pill to swallow!

 

[Cgo]

Same for one with 3,000 miles.