So I apologize if this question is not appropriate. After waiting forever on a possible lease, and then waiting for another ice age for a solid deal on a hybrid through some of our great brokers here, we decided we simply needed a car. I found am looking at the following pre-owned deals and just wanted to get a sanity check from the experts and prognosticators here.
Given your looking at a brand with that historically speaking is known for reliability, would perhaps a slightly older model that’s further down the depreciation curve work?
Completely understand if it’s more of a we’re looking to go new as possible. Only mentioning it as an option.
Yes pretty close to MSRP. The 2021 RDX A-Spec was stickered around 48,000.
The other issue with models in the 2019 range (the oldest of this current generation) is that lower mileage ones are still commanding between 37-43,000. The market still hasn’t adjusted and the depreciation curve is very flat.
So, what would you do? If you buy new at MSRP you’re not doing any better v. projected “real” depreciation. Current leases are full of MSRP valuations, high MF and low residuals. Used cars are inflated. Not buying a car isn’t an option.
Used cars are heading downwards. As you get closer to the end of the year it goes down.
So whatever you pay today you might see a significant discount 4 months from now.
The XC90 has some discounts going for it right? I know a few brokers here are giving some.
Yes, wish we could wait 4 months but cannot. In normal times these cars would be priced closer to 40K for a lightly used car. So eating 3K of depreciation immediately isn’t too palatable, but unsure if it’s any better with buying new at MSRP. The XC90 leases are attractive and have us thinking…
I’d be looking at brand new vehicles in that price range instead, something I’d be comfortable owning for 3-4+ years. Take the lower APR on a new car loan; more tech and newer tech; have a warranty and low maintenance needs the entire time.
I think if we stipulated that in reality an RDX isn’t any more of a luxury vehicle than a nice trim of, say, a Kia Sorento then the choice becomes obvious.
Appreciate the suggestion. I think normally I would go this route and try to get a new sorrento or sante fe in a high trim. The new ones price out a little above the RDX in price at around 44000.
The issue with this route is availability at MSRP.
The 2021 RDX is on their current platform and tech suite which is indeed 4 years older than the Kia or Sante age, yet still relatively modern.
Finance isn’t an issue as the spread on my CU financing is 1.99 v 2.39 and I’ll likely just pay in cash anyway.
Thanks for the suggestions. Appreciate it. I’ll continue to look for an in stock unit at MSRP and ponder the used RDXs as well.
There’s still brokers offering 10% off on in-stock Q3 (was on Q5 too, but those may be sold out now). I’d at least explore that route. Might not be a bad idea to own a new Audi SUV for less than a used RDX.
Some have 2.5% off on NX or 5-8.5% on outgoing RX, if you really want to stay with Japan luxo.
Personally I’d rather stick to new at this price point and would be willing to pay the 10-15% more to go brand new.
A Sorrento EX doesn’t have AWD, and the closest matches would be the X-Line AWD or the SX with AWD which are both around 40,000 if you can get it at MSRP in stock which is very unlikely. There is a long wait for these at MSRP and 2-5K over for in stock units.
Hyundai Sante Fe Limited is a very close analogous car with a bit more features and tech (better lane centering, infotainment and 360* parking) at a 43K which you can find at MSRP in my area.
Both good choices to look at. Now I’m curious about what you think about the depreciation of a Hyundai in a normal market is. The current 36 month lease residuals of a Sante Fe and Sorrento are at around 63% for my area, which would make the Sante Fe worth a predicted 27K and the Sorrento 25K.
The kicker which is a big positive for Hyundai is that the free maintenance does knock down cost of ownership a fair amount.
