Remarketing Hybrid Electric Vehicles a Good Way to Go, Says Three Reports

hybrids_best22

by Jon LeSage

  • There have been quite a few reports on used hybrid elec­tric vehi­cle mar­ket – from Edmunds.com and Kel­ley Blue Book to Black Book.
  • The mar­ket­ing side is very strong for con­sumers and deal­ers, says John O’Dell, green car edi­tor at Edmunds.com. There’s about 415,000 used hybrids on the mar­ket right now, mainly Toy­ota Prius mod­els. More than 2 mil­lion have been sold since their launch in the US mar­ket about 12 years ago with Prius launch.
  • More hybrids are becom­ing avail­able as used cars offer­ing con­sumers a wide range of options at com­pet­i­tive prices.
  • Hav­ing the right mechanic inspect and ser­vice the car is crit­i­cal, as the car uses some com­plex tech­nol­ogy. Auto Career Devel­op­ment Cen­ter lists qual­i­fied hybrid repair shops.
  • 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.
  • Black Book also took a look at where hybrids have been going in value reten­tion, and also found strong results for the seg­ment – but pay care­ful atten­tion for real­is­tic fore­casts for value reten­tion for each hybrid model. “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,” Beggs said.
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