As Jalopnik’s resident car-buying expert and a professional car shopper, I get emails. Lots of emails. I’ve picked a few of your questions and will try to help out. This week we are predicting deprecation on Genesis G70s and how dealer convenience plays into your car purchase.
I am hoping you can offer some insight on projected values of G70s in 2022. I’d love to buy one coming off a lease in 2022 and will have $15-20k to put down on one. I’m currently driving an Accord and this would be a nice step up for me — just want to see if it is potentially feasible.
I see 2019 models with the V6 and AWD for $37,000 right now (you probably see better than I do). What do you think values may be in 2022? Is there a fatter part of the year that I should be aware of where more cars come off lease?
The G70 is a great sport sedan, though finding a three-pedal version is next to impossible. I’m going to start with the “off-lease” thing. Not every three-year-old car is coming off lease; some are just bought and traded in. So don’t get too hung up on the off-lease status.
In regard to predicting depreciation: Historically, higher-end Korean cars tend to drop pretty fast. We can use the G70’s Kia cousin as a bit of a benchmark since that car has been out for a few years. A Kia Stinger GT2 AWD has an MSRP of around $53,000. From a scan of the market I see 2018 GT2 AWD models with mileage between 25,000 and 35,000 generally hovering between $30,000 and $35,000 on the pre-owned market. That looks to be about a $20,000 drop within three years. So a drop of only 40 percent is better than expected for a car like this. Perhaps the G70 may fall a bit harder, especially since the all-new model seems to be a big upgrade over the first-generation car. Therefore, you could be looking at a 45 percent to 50 percent depreciation after three years.
I will also remind you that if you like red, there are a number of “almost new” super low-mile G70s with some hefty savings off the MSRP.
I would like to hear your thoughts on buying from a brand that has no dealer close by.
For example, the nearest Porsche, Land Rover, Infiniti or Acura dealer is two hours away from me. This would make any dealer maintenance or warranty work pretty time-consuming and inconvenient. As a result, I don’t consider these brands to be valid options. I do regularly see these vehicles in my area, so people must be managing it.
You bring up a good point; this is a factor that buyers sometimes don’t think about. The convenience aspect of a dealership really depends on the type of driving and ownership experience you are going for. Keep in mind that with most cars using full-synthetic or synthetic-blend oil, oil change intervals have been greatly extended. Some cars may only require oil changes every 8,000 to 12,000 miles. So for some folks that would only require a trip to the dealer once a year.
When it comes to routine maintenance, dealer service is not necessarily required to maintain the warranty. If there is a local shop that services your brand of choice, a long trek to the dealer may not be necessary. Local shops are likely the better choice for folks buying used cars that are outside the manufacturer’s warranty coverage. However, if you do have a warranty claim or a recall that will require you to use the dealer network, a long-distance drive would be a hassle.
I would say the ease of service is likely more of a factor for people buying higher-end cars, but it’s also an issue for buyers considering electric vehicles, as it may be the case that not every dealer within that brand has the training and equipment to service EVs.
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