No surprise: high-MPG vehicles expected to retain more value
Both lease finance companies and owners trying to sell gas-guzzling trucks have been taking a bath on re-sale values of those vehicles. With so many trucks and SUVs suddenly showing up on auction lots and used car lots, the value of these vehicles has simply tanked as supply far exceeds demand. We've already seen exactly the opposite be true for smaller more efficient vehicles as people snap up nearly 20 year old Metros for up to $7,000.
Over the course of 2008, as gas prices have spiked and dealers have sold off every Civic, Prius and Focus they could lay their hands on, the residual values have jumped. The Prius has gone form 58.9 to 62.2 percent of its value retained after three years while the Civic hybrid has gone from 60.1 to 62 percent. Currently, diesels are doing even better with the 2005 VW Jetta TDI still worth 82.8 percent of its original value. Edmunds is projecting that over the next five years diesels will hold their value better than hybrids because of concerns with long-term durability of the batteries. This is a highly dubious argument since current hybrids, especially the ones being used in taxi fleet service have been holding up very well. Manufacturers have generally developed the nickel metal hydride batteries to maximize service life at the expense of energy capacity. If anything, battery quality is more likely to be an issue for the first generations of plug-in vehicles which will be much more dependent on the batteries.
Gallery: 2009 Ford Escape Hybrid
[Source: Green Fuels Forecast]
Reader Comments (Page 1 of 1)
Stefan 11:26PM (8/23/2008)
Since global warming is the justification being given for the call for all of us to change so much in our daily life, I believe that both sides of the debate have to be equally examined and scrutinized. So I'll post an article here from the global warming disbeliever camp on the science of global warming, or is it lack of?
http://warofillusions.wordpress.com/2008/04/18/they-blinded-us-with-pseudoscience-the-global-warming-con/
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dm789 11:33PM (8/23/2008)
Ah cheap SUV everywhere... a good time to buy SUV guys hahaha avoid small cars they charging arm and legs for those small underpowered cars.
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calguy 5:27AM (8/24/2008)
Uh, even if you don't believe in global warming, you can't ignore the virtue in avoiding the gas station as much as possible. Never mind keeping some of your hard earned cash in YOUR pocket instead of the CEO of Exxons pocket.
It's always impressive (or depressing) to see exactly how small-minded and myopic the hybrid haters are. Quite stunning.
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CNCMike 1:32PM (8/25/2008)
While they may hold or be said to hold a higher value in some areas, I stopped at a local used car dealer to look at at a Prius or 2 that had been on his lot for about 6 months. He told me that nobody will touch them because they are 4 years old and have over 80,000 miles and everybody knows that the battery is near the end of it's useful life and they will have an expensive battery to replace in a year or 2. He is asking $17,000 and a new Prius here sells for $26,000
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Chris 1:28PM (8/26/2008)
The 2004 Prius has a 8yr/100,000 mile warranty on the hybrid components (including the battery) unless you're in a "green state" and then it's covered for 10yr/150,000. (ref:http://www.vfaq.net/docs/ExtendedWarranty.html)
To say the battery pack is near the end of it's life at 80,000 when Toyota has to warranty them to almost twice that is ridiculous. Take a look on eBay and you'll find plenty Prius for sale with over 100,000mi and no mention of replaced packs. Please don't spread FUD...
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