[Jamooche]

I am looking to sell our new 2018 Hyundai Sonata Hybrid Limited with the Ultimate Package with 13,000 miles. A job change has us no longer needing it.

It seems in 6 months, the car has depreciated 40-45% and CarMax will only offer $19,500.

I am well aware of car depreciation rates, but this is more of the 3 year depreciation rate in 6 months.

Does anyone know why this car depreciates so much?
Is it that undesirable?

Thanks!

 

[xaran]

That is about right, maybe a little low, carmax pays low trade in usually. They have to have room to make $ on the resale. If you private party sell it or use as a trade on a new car you will probably be in the range of $ 22,000 based on book values.

But traditionally all Hyundai take a big hit in resale (depreciation)
1. That is why they are great price new with more features than other brands
2. reputation for reliability, although it is much better that original they are still looked at as not the same quality as Toyota, Honda etc . The self destruct engines int the YF and now LF Sonata are still dragging the resale down

 

[Pool Float]

45% seems excessive, even with the YF and LF engine woes. To the best of my knowledge, the hybrid drivetrain has not been subject to exploding engines. When I traded in my 2015 Sport Ultimate 2.0T with 39,000 miles on it, I got $15000 in trade, which would have likely been around 12,500 had I been going for cash.

I'd suggest private party. Did that with mom's '06 Impala when the dealer only offered $1200 trade towards her Tuscon. Ended up getting $3400 through FB Marketplace.

Or, if you like in an area where hybrids are in demand, perhaps look into keeping the car and renting it out through a service like Turo. Let it pay for itself by renting out instead of days where it would just sit unused in the driveway.

 

[Jamooche]

Thanks for everyone's thoughts on this. Interesting you think 45% is about right, but does make sense considering the options and the low original price.

Pool Float - FB marketplace is amazing and I sell stuff there all the time. I may just try that out.

Other factor is that there are very few of these on the road, and Americans don't buy cars anymore. TrueCar.com won't even let me get a car value...says they don't have enough data for this model.

Thanks!

 

[forgeinaz]

I disagree that 40-45% should be appropriate, but it is about right when looking at how the pricing is going. Like others have mentioned, try private sale and not dealer sale unless you want to try to use it to bargain your way into another new vehicle. There is a limited number of them in Truecar data because most who bought them probably still have them and aren't looking to sell this early in addition to not many being sold at all. When the 2018 models announced, it was much later before the hybrids were confirmed.

 

[holimont]

See what Edmunds says.

 

[MButkus]

Have you tried a Hyundai dealer ? You choose a low volume car purchase, so the dealers look at the books to see how long it will sit on the lot. It lists some $34K and as they say... as soon as you drive it off the lot. A Hyundai dealer can sell it as certified, big plus !

 

[advantage]

What state do you live in OP?

I cant post links yet, but if you search for "Black book portal" you can see current trade in pricing. It looks like Carmax is giving you the value of a "rough" trade in. It might be because of low demand in your area

 

[Paul J.H.]

Seems high.....my 2015 has depreciated approx 50% (trade in value) in 3-1/2 yrs.....p

 

[Grumpy Grandad]

Same in the UK...Last Month I bought a UK version Sonata, called the i40, mid range SE Nav model. It was just over 16 months old when on a dealers forecourt and I paid a touch over half its new price. Sure it was a little up on miles but not excessive, and as its diesel powered it`s capable of huge mileage without problems. There are no petrol models sold in the UK.

Seems the depreciation might be a world wide issue with Hyundai..

 

[.1135058]

It seems in 6 months, the car has depreciated 40-45% and CarMax will only offer $19,500.

You paid retail for the car, Carmax is offering wholesale - not a good depreciation calculation. Look up the retail value, then sell to private party.

 

[Jamooche]

What state do you live in OP?

I cant post links yet, but if you search for "Black book portal" you can see current trade in pricing. It looks like Carmax is giving you the value of a "rough" trade in. It might be because of low demand in your area

There is definitely low demand in our area (MA) as most dealers don't have any Sonata hybrids on the lot. Private party seems like the only way to go and not lose out.

Interesting to hear there is similar depreciation in the UK.

 

[the_owner]

My ‘16 Sport’s MSRP was $25,505 when I went to purchase it in July of 2016. It is now worth $12,000 with ONLY 16,400 MILES. Luckily I didn’t buy the car for resale value but for those who want to trade in will be in for a surprise. Korean cars do not retain their value but maybe some day that’ll change.

 

[Grady Wilson]

Low resale value of Korean cars is why I bought 2015 Sonata when it was a little over a year old.
Much cheaper than new and it was in perfect shape.


I plan on looking into picking up a less than two year old Genesis in the next 6 months letting someone else take the massive hit in depreciation.

 

[deadrx7conv]

What was the msrp?
What did you pay for it excluding taxes dealers fees tags?

 

[.1135058]

My ‘16 Sport’s MSRP was $25,505 when I went to purchase it in July of 2016. It is now worth $12,000 with ONLY 16,400 MILES.

Who pays MSRP? MSRP is a meaningless number set by the manufacturer so that dealers can use the word "SALE!!" and still make a great markup.

You can't mix retail and wholesale values to calculate depreciation.

 

[the_owner]

Who pays MSRP? MSRP is a meaningless number set by the manufacturer so that dealers can use the word "SALE!!" and still make a great markup.



You can't mix retail and wholesale values to calculate depreciation.

I agree 100%. In reality I paid 18k out the door so that would mean I lost 6,000 in value as opposed to 12,000 from the actual MSRP pricing. Either way, I see more and more people buy these Korean cars used when they’re a year or two old after a lease term.

I follow some Hyundai/Kia owner groups on Facebook and someone bought a (practically) new Kia K500 with like 25,000 miles on it for $27K. Brand new they go for maybe twice the amount.

 

[Mainia]

Whats blue book say? Since you are wanting to cash out, I would go to Hyundai dealers and offer them a wholesale price that is fair to both. I would drive to all Hyundai and Kia dealers in a 75 mile radius of me. Here it is if you want it, I am selling it because of a job change , BUT will sell it by using my brother here in town, if I can't sell it. So "I AM IN NO HURRY TO SELL". I just thought I would make the rounds. Talk to the used car sales manager and be very low key as not to show desperation to sell. Give him a picture with whats on it and mileage and walk out. No dicken around. Start a $1,000 higher then excellent trade in and go down that $1000 to make him feel like he got something out of you. It should be way better the Carmax swindle.

 

[rmissourimule]

This is why leasing offers a way out of the depreciation debacle. At the end of the contract, hand in the keys and get a newer model.


Part of this, I believe, is that the hybrid model is not highly regarded. I'm not sure why this is but the salesman I have done business with over many years was never high on them.

 

[the_owner]

This is why leasing offers a way out of the depreciation debacle. At the end of the contract, hand in the keys and get a newer model.

For younger people like myself, leasing is the better way to go in terms of budget. I chose to finance and pay off my sonata because I have plans to keep it for as long as I could plus the deal I got for financing was a no brainer.




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