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2013 Rio SX Nav Silver/Black
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Discussion Starter · #1 · (Edited)
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.
 

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2013 Rio5 EX w/ Convenience & ISG
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293 Posts
In mainstream English, the infinitive "to deprecate" means, simply, "to strongly disapprove of (something)".

But if you're talking about depreciation, I'm with you 100%. I'd kill myself if I had a 7 year loan.

Only way to win with depreciation is to buy a car that appreciates immediately. I'm thinking Ford GT was the last one?
 

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former owner of a 2016 Soul SX 2.0L - Caribbean Blue
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8,523 Posts
there is nothing abnormal about the depreciation, particular the first year or even the second. This applies to any make of vehicle. You are competing against a new vehicle and price, so why would a dealer give you top dollar when he knows people are going to compare the price to new and even more so with new not increasing much from one year to the next and new discounts etc.
Also you did not state whether that is a trade value or an outright purchase (which is rare) you also did not state what dealership brand, nor if a trade, trading against what? You would get much less trade value against a low price model as opposed to a high price one.
 

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2006 Kia Rio5
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44 Posts
I've heard you lose roughly 1/3 of the purchase price just by driving it off the lot. Which is almost exactly what the case seems to be for your vehicle.

Of course I'm sure you could sell it privately for a lot more than what the stealership is offering. Just checkout out www.AutoTrader.ca to see what they are selling for. Looks like, in my area, they are selling for $16k and up and with your trim level I'd bet you could do better than that.
 

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2014 Sportage SX Luxury Inferno Red
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122 Posts
It is the unfortunate side effect of buying new. This is why a lot of folks will research what car they want, the resale value, and wait for someone looking their relatively new car around the 1yr mark. You still end up with a decent warranty and a great savings on what is essentially a new car.

The number of people who buy new and sell/trade up within the first 2 years always amazes me. I understand if it is a lemon or your needs change. It is more the people who just like to have new all the time. In this case you are always eating that initial drop is value within the first year.

It is also commonly understood that anything you purchase after the initial sale is at your loss and cannot be counted towards overall value of the vehicle. This rule of thumb applies to items such as winter tires, floor mats, and an upgraded audio system. Other items of course will reduce your sale price such as giant spoilers, body kits, and other unnecessary add-ons.

I would say your value is close to accurate for first year depreciation. If doing a trade-in you can always negotiate a better resale value. Private sales will almost always net the most return on value.
 

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14 Forte SX Koupe,15 Soul EX,58 & 90 Rolls Royces,92 Mercedes 500SL
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Depreciation is usually 30/20 & 10% for the 1st 3 years & 10% per year after that.Accessories,Snow tires & rims etc are worth nothing on trade.Life is cheap it's the accessories that will kill you :).I speak from 31 years selling new cars(Now retired).& why did I buy a NEW car if I know this? There was nothing avalable used that offered all the features, fuel economy & style that my Rio SX sedan offers. I consider my car to be a Mini S Class Mercedes. The Mercedes doesn't even have the automatic heated driver's seat than comes on below freezing! Also no risk buying used & getting a lemon.I plan to drive this little gem for 10 years so depreciation isn't that much of an issue to me.
 

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2013 Kia Rio 5 SX UVO, 2012 Cadillac Escalade Ultra Luxury
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116 Posts
I agree.... i bought this car thinking " long term for a city hauler and drive until it falls apart..." didnt care about trade in, but i did know it would be a crappy trade in since the brand isnt one that people are waiting in line for.... but i do like the little features of the rio! (still hate the traction control in the winter though arghhh!!)
 

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NA V, K3
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259 Posts
In mainstream English, the infinitive "to deprecate" means, simply, "to strongly disapprove of (something)".

But if you're talking about depreciation, I'm with you 100%. I'd kill myself if I had a 7 year loan.

Only way to win with depreciation is to buy a car that appreciates immediately. I'm thinking Ford GT was the last one?
I know the scion tC was more expensive than new for a while, and I'm pretty sure the FR-s appreciates after a week (retail, not what you'd get when trading).

Don't worry about being upside down in 1 year. It's not going to happen.

Besides, remember the dealership wants to make money reselling the car. They're not going to buy it from you at 22k and resell it at 22. So, even if it was an outright, figure in 5000 in profit for the dealer if they can sell it at their retail value they set it at, and the rest in actual depreciation and going through the check to make sure it's safe because it's used. Of course rarely does someone buy a used car at a dealership for the stated price, so look for the dealership to drop the price and will make 2500-3000 on your car.
 

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'13 Rio5 LX Manual, '15 ZX14R, Honda VFR800, Ducati 748, '87 Buick Grand National, '13 Subaru BRZ
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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.
 

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2012 Kia Rio 5-Door LX
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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.
 

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2008 SpectraSX, 2014 Optima LX,2006 Jeep Liberty, Linux Mint Mate
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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!
Dave
 

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2012 Kia Rio 5-Door LX
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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.
 

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2012 Kia Rio 5-Door LX
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and to add to this, buying a BWM, Mercerdes, or Lexus the day you leave the dealers parking lot you lose a lot more money.
 

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2012 Rio5
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....
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.
same idea - give it to the kid in few years...

I did, however, go to a dealer 6 months after I had the car.
I got the same treatment - about 30% 'lost' in value.
...didn't hurt to ask...:blush:
 

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'12 Kia Rio LX. '11 Toyota Tacoma, '07 Honda S2000, '11 Husaberg FS570, KTM 990 Adventure
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i have lost about 15% so far, and for a car that i put 30,000 miles on, that is not bad at all.

key is to get a good deal on a new car, otherwise it will make more fiscal sense to buy used. i bought my rio for $13056, and current kbb private party value is $11587, so 11k realistically.
 

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2013 Kia Rio 5 SX UVO, 2012 Cadillac Escalade Ultra Luxury
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and to add to this, buying a BWM, Mercerdes, or Lexus the day you leave the dealers parking lot you lose a lot more money.
K, relax. You cant't ut those vehicle in the same category... the Kia Rio is nice, but now we are getting out of hand here. Its still a kia.
 

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2012 Kia Rio 5-Door LX
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K, and you also have to consider a dealer would not give you a great price on your car. They still want to make money with it.
 

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2013 Kia Rio5 EX UVO + Active ECO
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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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