Why on earth do Hyundais lose value so quickly? After just six months, it seems like they have lost around $9,000. Should I consider this when buying a second-hand one?
You guys are all auto salesmen; it’s a Hyundai. You must have watched Glengarry Glen Ross, then. For the rest of my life, I will never ever purchase a Hyundai.
If you shop around and make sure the price is reasonable, a used one will already have the depreciation included in it. With only 26k miles on it, the 13 I purchased brand-new three years ago has lost half of its value from msrp. They simply get what the market will bear for them.
The proverb “early bird gets the worm, but the second mouse gets the cheese” applies here. Your depreciation hit was covered by the first mouse who bought his Hyundai brand-new, allowing you to keep your own cheddar.
They don’t make particularly good cars to begin with, and they are sold new for significantly less than MSRP. It doesn’t make sense to even consider used vehicles until they are still significantly less expensive than that when you can purchase one brand new for several Grand off of MSRP.
With rebates, Hyundai is very aggressive. When financed through Hyundai, I receive $6,750 in incentives for my 2.0T Sonatas. Unfortunately, even cars without incentives lose value quickly.
What do you mean, “worth it /s”? You work there; even knowing that the injustice and devaluation will crush you, did you still go through with it? Confused… Maybe I misinterpreted what you said.
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Keep in mind that manufacturers often manipulate statistics on depreciation for their own gain. Although a Hyundai loses value more quickly than a more costly brand (such as Toyota, BMW, etc.), the loss may be less overall. For instance, if the depreciation rate on a $20,000 Hyundai is 15% per year, after 5 years the car will only be worth $5,000 after $15,000 in depreciation. Consider a $40,000 BMW that loses 10% of its value annually. It is worth $20,000 after 5 years, less $20,000 in depreciation. So even though the value of the BMW increases significantly after five years, you are still $5,000 worse off (not to mention the additional interest costs for financing a more expensive car).
What factors determine the resale value of my Hyundai?
You and your Hyundai have been through a lot together, from road trips to crowded commutes. While it’s impossible to place a number on nostalgia, you may estimate your Hyundai’s resale worth using a variety of criteria. Let’s breakdown each one:
Depreciation: Your Hyundai contract’s worth decreased even before the ink had time to dry on it. A Hyundai retains a fair amount of value over time, although after three years of ownership, some models can lose up to 65% of their worth.
Mileage: The mileage of your car has an immediate impact on its condition, and if it has 100,000 kilometers or more, you may encounter difficulties throughout the resale process. It’s best to keep your annual mileage between 12,000 and 15,000 miles.
Accident history: Although accidents are unavoidable, they might lower your Hyundai’s market value. Even after a complete restoration, the value of your car can decrease by 15% to 30%.
Popular models: Do you drive an SUV or a hatchback? You all have a simpler time reselling those well-liked Hyundai vehicles for more money. Due to market demand, popular models like the Hyundai Accent, Hyundai Kona, and Hyundai Tucson frequently maintain their value.
How well-maintained is the interior and outside of your Hyundai? The more profit you can squeeze into the price of your car, the newer it seems. Your car’s value will be reduced by dents, dings, interior flaws, and unattended repairs.
Hyundai Decreasing Value
The best way to characterize Hyundai’s resale value is as average; it’s not the best, but it’s also not very noteworthy either. At years 5 and 7, the Hyundai Tucson does perform better than average, and years 5 and 7 of the Elantra also show a little improvement. However, the Sonata is not a standout in the Hyundai portfolio because it performs significantly worse than average five years after purchase.
Our top choice for the Hyundai model year with the best value is the 2020. With the 2020, you would only pay, on average, 87% of the cost when new, and the car would still have 83% of its usable life.
For the Hyundai models, the 2019 and 2017 model years are also appealing and offer a fair price. Our rankings take into account a number of variables, such as the original new price, the current price, maintenance expenditures, and the remaining years of anticipated overall spending. Our top-ranked model year is the Hyundai model that offers the best value for the money.
Luxury Car Remarketing
The highest rate of depreciation is experienced by luxury vehicles over their lifespan, and the amount of value loss can have you second-guessing your purchase. The value will depreciate faster after you leave the showroom if the car is more expensive and has more customization options. This illustrates why secondhand luxury cars are preferable because you can purchase them for a small sum and won’t object to their negative connotation.
How quickly do Hyundai cars lose value?
A Hyundai retains a fair amount of value over time, although after three years of ownership, some models can lose up to 65% of their worth. Mileage: Your car’s mileage directly affects its condition, and if it has 100,000 kilometers or more, you may experience difficulties throughout the resale process.
Why is the Hyundai Genesis priced so low?
The criticisms of the original iDrive were much, much worse (perhaps worse than those of the Ford SYNC or Cadillac CUE systems).
1. Hyundai avoids adding the cost, which would add an additional $7-8k to the list price, by forgoing the separate luxury brand and dealer network approach (as the Japanese had done).
2. Hyundai doesn’t provide the same level of servicing on the Genesis as it does on the Equus or the luxury brands.
No free planned maintenance, no valet pick-up/drop-off for service calls (unlike the Equus), no free loaner cars, etc.
The Equus’ pricing is therefore closer to that of the LS460 than the Genesis is to the GS.
For the following Genesis, Hyundai will likely provide loaner cars and perhaps planned maintenance (Kia does so for the Cadenza, a premium but not luxury sedan). The price will reflect this.
3. Hyundai offers a number of alternatives in pre-packaged sets rather than the customisation that the Gemans do.
4. The Cadenza, although being in a lesser sector, has superior leather; it appears that Hyundai will primarily correct this with the next generation model, and the pricing, again, will reflect that. The present Genesis simply lacks an interior with materials that are up to level with the segment. The Prada Genesis would be an exception to this rule, but it isn’t provided here.
5. Hyundai offers many fewer technologies on the Genesis than the Germans do, and even fewer than what the Genesis offers in other markets (such as not having a cooled front passenger seat).
6. As previously mentioned, Hyundai makes savings in areas like holding a stake in a cutting-edge steel mill.
7. Hyundai is prepared to accept a lower profit margin, much like the Japanese before it, in order to get a foothold in the luxury market.
Recall that the original LS400’s MSRP of $35k caused the Germans to believe that Toyota was losing money on every transaction.
Toyota most likely didn’t lose money, but they also most likely didn’t make any either since they were essentially maintaining the Lexus dealerships at the time.
8. Currency exchange.
However, during the past year and a half, things have somewhat evened out. Previously, the Korean Won had a favorable exchange rate versus the US Dollar whereas the Euro did not.
— As I’ve previously mentioned, the 2G Genesis will probably experience a rather big price increase, with the base price jumping to somewhere between $39 and $40k.
This price rise will be brought on by better interior components, more upscale services, more technology and comforts (it’s hard to see the front passenger seat not being cooled), etc.
The 2G Genesis will still cost about $7-8k less per vehicle than the Lexus GS and the Infiniti M despite the price increase, which is roughly the cost of a distinct luxury brand and dealer network.
Are Hyundai vehicles as durable as Toyotas?
For many years, Hyundai and Toyota have been fierce rivals, and both of them provide many of the appealing features that buyers seek in their next new vehicle, crossover, or SUV. With its industry-leading 10-year/100,000-mile powertrain limited warranty, Hyundai enjoys a significant advantage over the Toyota brand. With a much shorter 5-year/60,000-mile powertrain limited warranty, Toyota lags far below Hyundai. Hyundai is the brand to choose if you’re seeking for a new car that is incredibly dependable and has the longest manufacturer support. Hyundai’s cutting-edge technological innovations and ground-breaking safety features, which assist keep passengers occupied, connected, and safe while driving, also helped it defeat Toyota in this comparison.
Hyundais have frequent breakdowns?
According to Consumer Reports, Hyundai cars are “excellent all-around performance, with straightforward controls, impressive fit and finish, and helpful amenities.” The company is renowned for building vehicles with powerful engines, svelte interiors, and a ton of affordable standard amenities. Numerous Hyundai models are listed as “recommended” by Consumer Reports due to their high overall ratings for dependability, customer satisfaction, safety features, and road test results.
RepairPal also gives Hyundai high marks for dependability. RepairPal offers car owners peace of mind by providing free, bespoke repair estimates, automobile reviews, and referrals to nearby, honest auto repair shops.
The Hyundai ranks fourth out of 32 automobile brands on RepairPal, with a dependability rating of 4.0 out of 5.0. This evaluation is based on the average of 345 different models. Hyundais typically cost $468 annually for repairs, compared to $652 annually for all other vehicles. Both large planned maintenance and unforeseen repairs fall under this category.
How durable are Hyundai Genesis?
With regular maintenance and cautious driving, a Genesis G70 should normally last between 200,000 and 250,000 kilometers. If you drive 15,000 miles per year, you should expect to get between 13 and 17 years of regular use before needing significant repairs.