According to Auto Blog, the Hyundai Genesis is number one in vehicle depreciation- losing approximately $16,600 of value in the first year of ownership.
I don't understand- my only issue is an idler pulley in my '12 3.8 sedan. It's an outstanding vehicle in my opinion.
Their post is skewed.. If I remember, could be wrong, they take list price, and look at it from there..what they do not consider is purchased price.. With all the hidden incentives, and rebates, wanting to get a stronger foothold in the market, the purchase price is much lower as a percentage to list.. So, the depreciation is not nearly as bad as the portray... If one bought, say 2012 R-spec for 37-39k (very doable in those days), over $10k is saved upfront. The depreciation does not look so bad at that point... You did not lose 16k the first year on your 2012 V6.. I a, sure you have run the math..
Same type of scenario for this year, and other years past.. Hyundai is very aggressive in real street pricing to get cars out there. (Good for us).. Those that also buy used, get a good deal compared to list price (good for them).. Assuming Hyundai is able to do a "Lexus" regarding multiple years of raising prices, and getting them, resale numbers against list will shrink fast and big time.. I remember once the LS400 got traction (and that was same size as current Genny today, or possible smaller.. Check them out if you see one in the road), they raised the pricing and had no discounts... For some years, people were able to sell them for almost same as what they bought.
Also, in 80s, I was very young buck who was doing well... Mercedes had a real old fart reputation with the old looking 300D as the mid sized car... They introduced in 1986, the E class...I bought my first Mercedes with the 300e in 86... Paid 30k... Fully loaded.. Then in 1989, my "trade" was almost same as what I paid... They wanted $47k sticker.. They were getting sticker by that time around here. The popularity of Mercedes was going through the roof. And the dollar had declined verses the Marc. I paid sticker, and I think I got about 31k for the 86 on trade... Point is, as they shed their hippy diesel square box reputation, the prices exploded.. They looked real good on resale in those days.. Then in 90, Lexus came with the LS400 starting under a lowly E class... Yet, it was almost S class market. By 2000 LS series had exploded in price, jumping past price for E class, and right about mid priced S class.
It took 6 years for Lexus to be start their exploding price game..Hyundai will likely take 10-12 to do the same.. Because of no second brand, and more intense competition today (not just Mercedes, BMW has booming 5 series now, did not so much like today, Audi was a rust bucket POS at way lower sales and pricing, jaguar was still run on Lucas Electric reputation,
Cadillac was in the tank, Acura was much smaller cars then, Chrysler had Corinthian Leather POS,
Infiniti was produced in smaller numbers then,
Buick was broken as was rest of GM, and of course Lexus IS big today). Speaking of
Infiniti and Acura.. The Legend was way under BMW 3 series cost at the beginning.. And raised way up in a decade..
Infiniti did the same thing as Lexus. The Q45 was amazing.. And way under same featured i6 Mercedes, or BMW..and it too had a DOHC V8.. They too Over time carried decent resale because of sustained price increases.
Also, Toyota, and "Datsun" had overcome their "cheap" reputations long before they had their luxury brand.. Hyundai is not regarded as "cheap POS anymore, but still has a past too recent (compared to Toyota of the day that Lexus introduced) where they had that reputation. The Koreans have more competition globally and in U.S. than other emerging luxury brands. They did not come out with new brand name with Genesis and Equus.
Hyundai have had mostly bad advertising over the years which did not make a play for the cars as a brand or what they stood for.. Only since the had the driverless commercial, did they start with something. Remember the "Lease a Equus for $599" ad? No mention of why or how the car was worth anything.. They had some talk in the ad as though it already had status.. Which is does not.. And the waste of money on the KIA 900 with Morpheas, that was poorly written, produced, and did not sell the car for what it was.. Again, a ad like it already had a assumed reputation.. It still does not... Certainly not Mad Men quality promotion on any of the high end Korean products.. The Lexus and
Infiniti ads, and also Acura in their early days were bold, and showed people the cars, how good they were, and why someone should buy them.
So, this will take much longer.. But one day, your car will jump up in value when you are ready to trade. In the meantime, we can be almost cult like in our zeal for our steeds. Like early 2002ti owners. I knew several as a kid.. BMW did not know how to promote their value back then.. Well, look at the value of a 2002ti today.
Subaru has taken 30+ years to put a mark on their brand... Now they are finally selling 300k cars in U.S. last year, should be at 375k in 2015 calendar year. For them, that is big change. And they had a quirky, yet long term effective branding model. From mountain 420 smoking hippies in Colorado driving them, to soccer moms today...
In the mean time enjoy the exclusivity, lack of lemming buyers flocking to our amazing steeds.. And the great value.. Which allows many of us to get into a class of car, would not be able with the close to century mark pricing of the German brands.. If Hyundai keeps going, we will wish "for the good old days of deals and amazing cars".
