Heres a current list of cars that depreciate quickly

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Actually Eric - not so tongue in cheek. I'm getting to the point where I'm really getting tired of working on cars. I have 5 to maintain in my household plus all of the "friends and neighbors". I'm really starting to see some value in simply driving them. Sometimes it seems that all you do is bend over an engine compartment, or lay underneath a tranny, or wet sand a body, or...
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I have four to work on myself. I loved doing it back when I had the time. I would still love it, but with two toddlers running around, and a third on the way, I love playing with them more than working on the cars. And, personally, I think spending time with them is more important. Plus, sleep deprivation can make you do some weird stuff :-)
I still do my own oil changes, and I will spend the time to at least diagnose a problem before I take the car somewhere to get fixed, but doing the work myself is a last resort. Plus, with the Hyundai warranty, I haven't had to do any myself for financial reasons.
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'I drove it off the lot after paying $7,500 for it brand new now has 210,192 miles on it. With an average mpg around 40 miles/gallon, I figure I got my money's worth and could care less about depreciation'
REPLY: Ill second that ! Boy, you cant complain about that car .
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Hyundai and Kia suffer from one specific disadvantage in resale value: their warranty. Your shiny new Hyundai is a used car the moment you drive it off the lot. That means when it's sold, the 10/100 powertrain warranty evaporates, leaving you with the basic 5/60. Ever tried to purchase a 5 year powertrain warranty on a used car? That is the equivalent value lost in the transition between new and used.
Chris
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wrote:

That's still better than the 3/36 on many new cars. I am more inclined to believe that Kia and Hyundai take a big depreciation hit because many people still think of them as being junk, they're not anymore, at least not all of them, But that reputation is hard to shake. That coupled with the fact that for whatever reasons, it seems like Hyundai and Kia dealers bend over backwards to try to void the warranty and make you pay for everything. My sister has a 2000(?) Kia Rio with 15,500 miles on it that has been trouble from the day she purchased it, and she swears she will never buy another. I have a 2005 Hyundai Accent, My first Hyundai, Probably will be my last, Great little car, lousy dealer. My brother lost one Hyundai in hurricane Katrina, and traded the other one in shortly after, Neither replacement is a Hyundai. In my opinion, Hyundai has come a long way but needs to clean up its act with many of their dealers, It's hard to build customer loyalty when the dealers try to screw everybody.
Jack Cassidy
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wrote:

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Huh? You lost me with that logic Chris. The Hyundai comes with the 5/60 power train warranty used, and you would have to purchase that with most other used cars. How is that a depreciation factor? Hyundai and Kia suffer steep depreciation because of the reliability issues in their earlier years. The quality of these cars has come up enormously in the past few years and as a result the depreciation is starting to reflect that. In a short time you will see them depreciating no more steeply than any other car in their class.
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Remember, depreciation counts how much value you lose from its purchase price. Hyundai warranties are priced into the car when purchased. You already paid for it. The value of a depreciated Hyundai is its value to a used car buyer. Suppose you bought a brand new Hyundai:
Value of brand new Hyundai to you (what you paid) = (value of 100/10 warranty) + (value of 5/60 warranty) + everything else
Value of your brand new Hyundai to another buyer = (value of 5/60 warranty) + everything else
Notice the absence of (value of 100/10 warranty) in the second equation. So even before taking regular depreciation into account, you're out a chunk of change. Manufacturer warranties are not worthless. I myself have used it for an Accent's exhaust repair worth $300, and I know someone who used her warranty to fix a busted Tiburon transmission at 80K. It's that kind of value that should be priced into the depreciation equation.
Chris
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On Thu, 18 May 2006 17:01:02 -0500, snipped-for-privacy@webtv.net (Dave in Lake Villa) wrote:

I wonder if they base their depreciation calculations on List Price or the Actual Price Paid. If they base the depreciation calculation on List Price, then the results are meaningless because many car brands (such as Hyundai) sell well below list price whereas other brands (such as Honda) sell at about List Price.
If would be incredibly stupid to base the depreciation calculation on List Price rather than Actual Price but I would not be surprised if they did.
Darwin
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(Dave in

You make an excellent point, but how would they possibly calculate it on price paid? They would have a different number for almost every car sold.
Eric
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(Dave in

To follow up on this, I visited http://www.kbb.com and http://www.nada.com and did a search on my car ('06 Sonata GLS V6). Both sites came up with just about $16,100 on a trade-in in "good" condition. That is exactly what I paid for my car brand new in September, 2005.
Eric
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what
Sorta puts a dent in the depreciation story doesn't it Eric?
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Mike Marlow wrote:

Except that you can't confuse those values with what you could actually sell the car for. Unless you find a real idiot, which is always possible, nobody is going to pay that much for a used car when they can buy a new one for a few hundred more given the current new car incentives.
I'm just glad that depreciation isn't a factor for me. :-)
Matt
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Matt, if you go to the sites and try it, the price I gave was for a TRADE-IN. That would be what a dealer would supposedly give me for my car to trade it in. The full retail price was shown as $21,000 and change. Which I believe is only a few hundred below what the window sticker was.
Although I think these might be a bit on the high side, these are sites I have used in the past to negotiate with the dealer, and I have always come pretty close.
Yup, so much for depreciation.
Eric
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Eric G. wrote:

If you can get a dealer to give you that price for your trade-in and still give you a price well below sticker, then you are doing a good job of negotiating. I've found I can get a great deal on a new car, or I can trade in my old car, but it is hard to do both. The good thing is that I've never had any problem selling my old cars privately. Usually relatives but them as I maintain them well and they are usually in very good shape for their age and mileage.
Matt
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Absolutely valid point Matt. Like you, I seldom trade. My cars have a lot of life left in them at over 200,000 miles and they still look good, so they go to someone who can use them. They wouldn't bring squat for trade anyway. But you're right - you're typically only going to get one thing from a dealer - a decent trade in value or a decent negotiated price.
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The people who spend $15000 on a hyundai have more to lose then the person who spends $30000 on an infiniti/lexus/acura when they trade it in every 2-3 years, simply because the person buying the higher priced car ussually doesn't care how much money they are spending.
Then there are those people that stretch to afford the $30000 car, and then skimp on maintenance and insurance and either end up wrecking their car and having to scrape to get the deductable together, or skip every few oil changes, transmissions flushes, etc...
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Paradox wrote:

What? Whether you care about the money or not doesn't change how much you lose.

Those who skip transmission flushes are just skipping getting ripped off for an unnecessary service. Nothing wrong with that. Now skipping oil changes is a different matter... Though most folks I know who own expensive cars take them back to the dealer for service so, assuming the dealer is competent and conscientious, those cars are probably very well maintained.
Matt
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http://www.nada.com
Well, that doesn't really play Matt. It's a used car so it's only reasonable that it won't sell for what you necessarily paid for it. That does not change the fact that the average national trade in value is approximately what Eric paid for his. That's about as good as one can really hope for.
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