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Being "upside down" on a car loan is almost automatic for the first two years if you finance the entire cost of the car. That is why it's usually smarter to buy a used car - especially if you are in a situation where you might have to default on your loan or sell the car quickly. Also, if you tend to get bored with your cars and want to trade for something else often, going the 'new car' route can bankrupt you pretty quickly
I bought my Rio5 as a commuter that will get tons of miles in the next 5 years, then I'll give it to one of my kids and get something else new. Depreciation makes no difference to me.
Similar with me. I kept my last car for 12 years and right now I don't see why I would not keep the little Rio for at least 10 years so I don't worry about the depreciation. If this would have been a factor, quite frankly, I would not have gone for a Kia to begin with.
And "if" I may add the KIA "brand" is no longer a "bad name" and their styling and reliability are on par with the Japanese or better...
Things changed dramaticly around 2004~2005 with the settling in of Hyundai partnership... We have more bang for the buck with our Spectras with features and reliability... Read about the "OLD" (1995) Sportages still running strong and the people still searching them out and rebuilding them (from wear)...
Be PROUD that you own a KIA!
I am proud to own a Kia. For me a car is not a status symbol but a tool that brings me from one point to another and for that the Kia is great. From design prospective Kias are some of the best (thinking of Rio, Optima, and Soul). But for many people (I admit I was one of those until a bit more than a year ago) Kia is still a cheap car. It will change but it's still gonna take a bit.
So I bought my SX w/Navi about 7 months about. I just hit 8000km.
I was with a friend at a dealership and she was getting a new car.. because of the ups and downs I have had thus far I thought, Hey why not just see what I can get for it..
I bought the car for $23000 after taxes and bla bla bla.
Another $1500 for winter rims and rubbers and $300 for the custom fit winter floor mats in the front back and trunk..
I was offered $15599 for the car.....Thats not including the extra set of tires and accessories... That roughly $7500 deprecation in 7 months. If it continues this way in another year I will upside down on the car. WTF.
I have to wonder who you talked to. I noticed you were in Edmonton as well and I ended up finding I LOVED the Kia Rio but wouldn't do business with one of the dealerships in the city because of the horrific service and information provided.
That being said my fiance and I did do a little research on the depreciation of the Kia Rio in Edmonton and found something out. They hold vehicles resell value according to the "Auction" value of the vehicle. So if the vehicle was entirely a write-off due to heavy smoking or something how much would it be worth in the Black Book (something I have come to acknowledge as a load of ludicrous).
That being said the value they offer you for your vehicle is approximately 75% of what they intend to sell it for. The always budget about $1400 for minor repairs, safety inspections, etc.
So your vehicle would be worth approximately $20,800 before added items. So a 9.5% depreciation in 8000KM which seems pretty good for the market.
At the very least that is my two cents on the discussion
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