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

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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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