Hybrids Doing Well in Used Car Values – Much Better than EVs

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Hybrid elec­tric vehi­cles are doing much bet­ter at retain­ing their used car val­ues than are plug-in elec­tric vehi­cles, accord­ing to the Blue Book Used-Car Mar­ket Report for May. Used elec­tric vehi­cles are retain­ing nearly 55% of their orig­i­nal MSRP, while hybrids are much higher with retained aver­age value at 74.3%.

Kel­ley Blue Book expects the hybrid mar­ket to out­per­form the EVs for quite some time. The EV charg­ing infra­struc­ture is still in early stages and con­sumers are still get­ting used to the idea of try­ing out that new tech­nol­ogy. For dri­vers with short com­mutes, the pur­chase is much eas­ier, but that’s not the case for every­one else. When EVs are higher in price than hybrid coun­ter­parts, that also hurts EV sales value. Incen­tives for new EVs is help­ing but they don’t apply to the used side of the sale.

Black Book also took a look at where hybrids have been going in value reten­tion, and also found strong results for the seg­ment. “As this por­tion of the mar­ket has grown in both the num­ber of play­ers and the reten­tion, accept­abil­ity of the hybrid mod­els has improved,” said Ricky Beggs, Senior Vice Pres­i­dent and Edi­to­r­ial Direc­tor of Black Book. “Closer pro­jec­tion vari­a­tions will con­tinue, along with more play­ers being avail­able. The level of gas prices, closer to cur­rent lev­els or reach­ing near the $5.00 level, will ulti­mately be the dri­ver in the same level or more inter­est and actual retention.”

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