Compared to their gasoline-powered counterparts, hybrid will hold less of their value over the long term, a new report finds. The study — which estimated the value 17 2008 hybrids models after 36 months — found that while hybrids will be worth more after three years — due to their higher initial price — they actually retain a smaller percentage of their original sticker.
According to Automotive Lease Guide, the company responsible for the report, the only hybrid with a higher residual than its gasoline-only model after three years is the Ford Escape Hybrid — true for both two and four-wheel drive configurations.
However, for most hybrids, this is not the case. The study found that after three years, a four-door 2008 Civic EX Hybrid — which stickers for $23,195 — will retain 58% of its original sticker price. In contrast, the gasoline-only version of the Civic — costing $20,105 — will retain 60% of its value.
John Blair, CEO of Automotive Lease Guide, says the discrepancy in residual value is because the average used car buyer is more concerned with price rather than long-term fuel economy or environmental issues. “When you look at the ( Honda ) Civic Hybrid and how much money it’s going to save you a year gas-wise, the numbers aren’t staggering,” Blair told Automotive News. “The used-car buyer is looking at it from a different angle.”
According to Edmund’s executive director of industry analysis, Jesse Toprak, the future of alternative fuels also causes buyers to be cautious when evaluating current technologies. “Hybrids are the only alternatives in the marketplace” now, Toprak says. “But five years from now, the landscape might be entirely different.”
