Korean automakers Hyundai and Kia have made giant strides in recent years. Some of their 2010 and 2011 cars are among the best they've ever made, and are rated near the top of TheCarConnection's lists for best family sedans and small crossovers. It's showing in their sales numbers--the companies kept growing, in fact, while nearly every other car brand watched sales plummet in 2009.
That hasn't always been the case, and while the Koreans' reputation for building quality cars is rising quickly, some models have been left behind in the accompanying sales bonanza. Some budget models, designed mostly to undercut competitors' prices, remained on dealership lots for both companies through the first half of this year despite big incentives and the newfound brand luster. When analysts from Kelley Blue Book sat down to calculate the five 2010 cars expected to have the worst resale value in five years, they singled out one Hyundai and four Kia vehicles.
What goes into the calculus for the KBB list? Depreciation is already the most significant cost associated with any new car purchase, and these vehicles far exceed the industry average. Every vehicle on the list is expected to lose at least 80 percent of its value in five years.
There is hope, however. Several of the cars on the list are due for a significant redesign in the next two years, and if what we've seen with recent new designs like the 2011 Hyundai Sonata and Kia Optima are any guide, they won't stay on this list for long. For those tempted by a model on the list, with more concern for resale values, we've provided an alternative that makes just as much sense:
The worst performer on Hyundai's list is the large Azera, a competitor for the Toyota Avalon and not a bad car--just one wedged hopelessly between the great new 2011 Sonata and the more seductive Genesis. We think it appeals to sedan shoppers on a budget who value comfort and interior space above all else--and if that description applies to you, the Azera has a great value proposition. If the looks and handling dull your senses, you might want to just cross the Hyundai showroom and look at the 2011 Sonata. It's one of the most spacious cars in the mid-size class, is available very well-equipped for under $20,000, and will hold its value better in the long run.