Very Disappointed with the Resale Value

[Boulderado]

Hey everyone,

I wanted to do a little car shopping over this past Memorial Day weekend and test drove a few fun cars (the new Camaro SS, ND Miata etc). While they had good deals on the new cars, all the dealers said they can't even come close to my lease payoff, which is within the KBB trade-in value range. So I just did a quick online research to see what the used 2015 Genesis are being sold for and couldn't believe my eyes. This is an almost brand new AWD Ultimate listed more than $20k below MSRP!

http://www.autotrader.com/cars-for-...[GENESIS%7C3.8]][]]&listingId=425235024&Log=0

There are other listings in my area for well-equipped 2015 cars all of them in the low to mid $30k range. Now I know that there are still a few new 2015s left in dealer lots with deep discounts but 35-40 percent depreciation in a year is plain ridiculous imho. I wonder if Hyundai has just oversupplied the American market and we will be stuck with fast depreciating cars...

 

[Mark_888]

Hey everyone,

I wanted to do a little car shopping over this past Memorial Day weekend and test drove a few fun cars (the new Camaro SS, ND Miata etc). While they had good deals on the new cars, all the dealers said they can't even come close to my lease payoff, which is within the KBB trade-in value range. So I just did a quick online research to see what the used 2015 Genesis are being sold for and couldn't believe my eyes. This is an almost brand new AWD Ultimate listed more than $20k below MSRP!

http://www.autotrader.com/cars-for-...[GENESIS%7C3.8]][]]&listingId=425235024&Log=0

There are other listings in my area for well-equipped 2015 cars all of them in the low to mid $30k range. Now I know that there are still a few new 2015s left in dealer lots with deep discounts but 35-40 percent depreciation in a year is plain ridiculous imho. I wonder if Hyundai has just oversupplied the American market and we will be stuck with fast depreciating cars...

For various reasons, dealers are unloading brand spanking new 2015 Genesis models for about $13K - $14K off MSRP. The rest is normal depreciation.

 

[jimb100]

Hey everyone,

I wanted to do a little car shopping over this past Memorial Day weekend and test drove a few fun cars (the new Camaro SS, ND Miata etc). While they had good deals on the new cars, all the dealers said they can't even come close to my lease payoff, which is within the KBB trade-in value range. So I just did a quick online research to see what the used 2015 Genesis are being sold for and couldn't believe my eyes. This is an almost brand new AWD Ultimate listed more than $20k below MSRP!

http://www.autotrader.com/cars-for-...[GENESIS%7C3.8]][]]&listingId=425235024&Log=0

There are other listings in my area for well-equipped 2015 cars all of them in the low to mid $30k range. Now I know that there are still a few new 2015s left in dealer lots with deep discounts but 35-40 percent depreciation in a year is plain ridiculous imho. I wonder if Hyundai has just oversupplied the American market and we will be stuck with fast depreciating cars...

Anyone who buys a luxury car and thinks they will turn it over in 2 years without taking a beating should know better.

However, the person who buys that almost new AWD for $30K or so will probably be happy with the depreciation over the next two years.

My 5.0 Ultimate is almost 2 years old and is worth about $42k. From what I paid for it, that's about $8K over two years which I don't consider good but certainly not awful.

 

[Boulderado]

Anyone who buys a luxury car and thinks they will turn it over in 2 years without taking a beating should know better.

However, the person who buys that almost new AWD for $30K or so will probably be happy with the depreciation over the next two years.

My 5.0 Ultimate is almost 2 years old and is worth about $42k. From what I paid for it, that's about $8K over two years which I don't consider good but certainly not awful.

I think you are being very optimistic, brand new 2015 V8s are available for way less than $42k:

http://www.autotrader.com/cars-for-...[GENESIS%7C5.0]][]]&listingId=382513834&Log=0

 

[Genentec]

its hyundai unloading their 2015 inventory.

it puts a lot of downward pressure on price.

 

[5 Timer]

If you read though the Sellers Comments for the link you posted you would see this:

"This car has a Branded Title"

That makes a huge difference in the asking price.

 

[Boulderado]

If you read though the Sellers Comments for the link you posted you would see this:

"This car has a Branded Title"

That makes a huge difference in the asking price.

Ah good catch! That was one example though, this here is my car (awd with signature and tech packages) that stickers at $49k. Less than 5k miles on it and has depreciated 30% in one year:

http://www.autotrader.com/cars-for-...rd=0&searchRadius=0&listingId=424666925&Log=0

 

[PinkFloyd]

What was the purchase price that was used for your lease? How long have you been leasing?

Trying to trade out of most leases anytime sooner than the last few months is going to mean that you take a significant hit. When I bought my leftover 2015, I was nearing the end of a lease on a 2013 Altima SL. Even though I was way under the allowable miles and the car very clean, the trade-in value was over $1500 under the payoff so I simply got it inspected, turned it in and paid the $395 disposition fee.

Calculating depreciation of the Genesis based on MSRP (who pays that on any car not highly sought-after?) isn't going to give you a clear picture. Those who bought these cars new at $10-15K under MSRP will likely come out OK on the resale if we wait at least a few years.

I test drove some fun cars (Camaro SS, Mustang GT, Genesis Coupe) before buying the 5.0 Genesis. The performance coupes each were a blast on the test hops (some of which lasted over an hour w/o a salesman ), but I knew deep down inside that driving one every day would get old fast. For example, the Camaro became downright uncomfortable after about 30 min. I looked forward to getting out of it. The G2 beat them all hands down in overall driving enjoyment.

 

[balfor]

Ah good catch! That was one example though, this here is my car (awd with signature and tech packages) that stickers at $49k. Less than 5k miles on it and has depreciated 30% in one year:

http://www.autotrader.com/cars-for-...rd=0&searchRadius=0&listingId=424666925&Log=0

That's not an ultimate though, you started by comparing Ultimate pricing and depreciation. With tech it probably sold new for $42k-$45k ish, so more like a 20% haircut. Not great but about in the ballpark for 1 year old luxury cars. Look at any make, I had two Lexus GS' for example, got them both used at 1-2 years old and saved 20-25%.

Also, you need to be careful with dealer ad pricing, I bet they have hidden fees and if you tried to buy at that price the doc fees would be $1k or something.

SUVs are very popular now so that is another headwind for all sedan owners. Even accord and camry resale is not great right now as most want SUVs. New sedans are not selling well, heck Lexus LS have dropped to around 500 a month and GS around 1,000 a month. It's a tough market for the traditional 4 door.

Personally I don't get the SUV craze and do not plan to ever own one, but to each his own.

 

[Mark_888]

For example, the Camaro became downright uncomfortable after about 30 min.

I rented a car at Hertz about 20 years ago, and they asked me if I wanted a Camaro V8 (don't remember the exact trim level) at no extra charge since they ran out of the car I requested (full sized sedan). I said sure.

I lasted about 5 blocks before I turned around and asked for something else.

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[Genentec]

2015 ultimate rwd can be had for 38k easy. dont even need to haggle.

most people probably paid 48k for the ultimate in the earlt stages, so thats about a 22 pct loss off the bat.

but this is comparing with a new one, so used 2015 ultimate with 15k miles will probably be worth 32 to 33k.

 

[jimb100]

I think you are being very optimistic, brand new 2015 V8s are available for way less than $42k:

http://www.autotrader.com/cars-for-...[GENESIS%7C5.0]][]]&listingId=382513834&Log=0

I'm just going by a couple the "book" values I saw.

 

[Genesis5.0]

I plan on keeping mine, enjoying it and driving until the wheels fall off. So resale value means nothing to me.

 

[kn5owa]

I plan on keeping mine, enjoying it and driving until the wheels fall off. So resale value means nothing to me.

Amen:

People have a lot of difficulty understanding that something is worth only what somebody else is willing to pay for it.

I've seen idiots bragging all my life about what their house, car, plane, etc. is worth.

One of the most boring aspects of life.

 

[Genentec]

ya this is one of the biggest drawbacks of buying a new luxury car, the depreciation is insane.

 

[danygenesis]

I plan on keeping mine, enjoying it and driving until the wheels fall off. So resale value means nothing to me.

And you are correct. I plan to drive and enjoy mine during my three years lease, resale value means nothing to me too. Complete different approach but same result.
IMHO if your plan to not keeping your car for many years just don't buy it. Lease it.

 

[hokie1525]

I plan on keeping mine, enjoying it and driving until the wheels fall off. So resale value means nothing to me.

Well, it kind of does, in the sense that a huge drop in resale value means you could have bought the same car with some miles on it for quite a bit less. So it's not so much, "How much is my car worth if I sell it?" as much as it's, "Did I get the best price for what I got?"

When I started shopping a few months ago, I was convinced I was getting a German or Japanese luxury car, about 2-3 years old off a lease. Then I saw what they were selling the Genesis for and that's how I made my decision. Brand new for used price, and all the features and quiet comfort that I was looking for. I wasn't settling either, I actually like it better than the Lexus which was my first choice.

 

[ksoze]

IMHO if your plan to not keeping your car for many years just don't buy it. Lease it.

Or, in the case of last years deals, lease and optionally buy out the car for less than initially financing it all (due to lease incentives and interest rates).

 

[Jaeger]

When I started shopping a few months ago, I was convinced I was getting a German or Japanese luxury car, about 2-3 years old off a lease. Then I saw what they were selling the Genesis for and that's how I made my decision. Brand new for used price, and all the features and quiet comfort that I was looking for. I wasn't settling either, I actually like it better than the Lexus which was my first choice.

Same here. Except the Lexus (GS) was actually my second choice.

 

[Munch520]

2015 ultimate rwd can be had for 38k easy. dont even need to haggle.

most people probably paid 48k for the ultimate in the earlt stages, so thats about a 22 pct loss off the bat.

but this is comparing with a new one, so used 2015 ultimate with 15k miles will probably be worth 32 to 33k.

Yep, worked to my advantage. $33-34 for a 2015 awd ultimate, 11k miles. $52,xxx sticker.