Buying a New Hyundai Genesis Could Be a Horrible Financial Decision
Depreciation is something any responsible car buyer considers when buying a new car. Although some folks think buying any car brand new is a bad financial move, not all car values were created equal. There are specific makes, like Jeep Wranglers, that historically maintain their value well. The Hyundai Genesis is not one of those makes and may, in fact, be the worst car to buy brand new.
The Hyundai Genesis earned the number one spot on Unpuzzle Finance’s list of highest depreciated values for new cars. Now, there are a few things happening here to land the Genesis on this list.
Is it true Luxury if it’s used?
Across the board, higher-end luxury cars and trucks tend to not fair well with resale. Bently, Ferrari and Rolls Royce often see dramatic drops in value on the used market. But it makes sense for cars at that level. The amount of money it requires to get into such high-brow cars is high enough that the people buying them aren’t looking to save money. If someone is looking at a half-million-dollar car, those people likely aren’t too worried about finding the best deal around by getting one slightly used. No, those brands are built on the belief that the more money you spend, the better product you will get.
Is it “budget” or “luxury”?
Hyundai is clearly not on that level. In fact, they aren’t even close, but the principle still applies to a certain extent. The Hyundai Genesis line is reported to depreciate, on average a brutal 38 percent within the first 12 months of purchase. Now, I believe there are two things happening here. The first thing is the Hyundai Genesis is marketed as a luxury model and folks who buy them want to feel that luxury status. Not dealing with a stained seat or a funny smell from a previous owner.
Starting around the $35,000 mark with the Hyundai Genesis G70 and extending up to the flagship G90 at around $75,000, there is clearly a large range of buyers here. But, from top to bottom it is meant to be a luxury, sports sedan.
A used “sports” car has connotations
The second piece of the puzzle here is the “sports” part of the Hyundai Genesis branding. People understand what most drivers do with a “sports” car; they drive them fast and hard. There is assumed wear and tear for any car that supposed to be fast and sporty. Although the Hyundai Genesis tends to receive great marks across the board by reviewers, these cars still show a massive depreciation on the used market.
Unlike the more famous, purpose-built exotic sports cars like Ferrari, Lamborghini, or McLaren, Hyundai doesn’t have the reputation of finicky and expensive repairs like those others. A used Ferarri will typically dip in price dramatically after 50,000 miles or so because expensive problems are likely inbound. Hyundai isn’t really that way, but the cars still depreciate dramatically. It is sort of hard to put a finger on exactly why this is but in some ways it still makes sense.
Hyundai is rapidly changing and maybe even has completely transformed from a cheap economy car to a marque that makes high-quality, luxury drivers cars. The Hyundai Genesis just hasn’t quite grabbed the used car markets attention, but who knows, maybe it will. But until then, if a Hyundai Genesis catches your eye, maybe consider snagging a used one for much cheaper.