Study: Resale value of hybrids will pretty much suck

A study by Automotive Lease Guide says that hybrid cars will hold less value in the long run as compared to their gasoline-only counterparts.

According to John Blair, CEO of Automotive Lease Guide, used-vehicle shoppers tend to be more concerned with pricing rather than with fuel-economy. Blair feels that’s the reason that hybrid cars and trucks will have relatively less valuable to used-car buyers.

“When you look at the (Honda) Civic Hybrid and how much money it’s going to save you a year gaswise, the numbers aren’t staggering,” Blair told Automotive News. “The used-car buyer is looking at it from a different angle.”

However, Automotive Lease Guide provided Automotive News with a list of 17 2008 hybrid models that will be worth more than their gasoline versions after three years. According to the list, The Ford Escape Hybrid will have higher residuals after 36 months than the gasoline version. The Honda Civic Hybrid which has a price tag of $23,195, will be worth 58 percent of that price after 36 months. The 2008 Saturn Aura Green Line hybrid with a price tag of $23,985, will be worth 48 percent of that price after three years.

However the story is different with the Toyota Prius which has no gasoline variant. Jesse Toprak, executive director of industry analysis at Edmunds.com, says that the fuel economy and name recognition of the Toyota Prius will help it hold its value better than other hybrids.

 

Source: Automotive News (Subscription Required)

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