Used hybrid values have "fallen off a cliff"
As we're sure you've noticed every time you've gone to refill your gas tank in the last few months, gas is once again relatively cheap. Just under a year ago, the price for a gallon of fuel was about double what it is today in most parts of the country, and those high costs were driving the sales of hybrids – both new and used – to record levels. Now? Well, not so much.
According to Kelley Blue Book, used hybrid prices have fallen by an amazing 23.5 percent since last summer, and 4.5 percent of that has come in the first two months of 2009. It's not just fuel prices that are causing hybrid values to plummet. Due to the lack of discretionary spending money and despite the savings on each tank of gas, the extra cost associated with a hybrid at the time of initial purchase is something that many buyers are unwilling to consider.
Perhaps there's a positive side to this story. Buyers looking to get a good deal on a used hybrid should have plenty of options to consider. Then, when the price of fuel inevitably climbs back up, you can laugh all the way to the bank.
[Source: USA Today]
Reader Comments (Page 1 of 3)
Larz 7:37PM (3/07/2009)
Where others see disaster, I see opportunity. I always wanted that funny-looking
car.
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Mazas 4:13PM (3/08/2009)
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Luke 9:38PM (3/07/2009)
My guess is that the issue in price-related, only. The cars selling better are probably just cheaper, in general. The buyers are aware that they can use the $7,000 saved on $2 per gallon gas over the remaining 4+ years of the life of the car.
As usual, nearly everyone prefers the car that saves them the most gas. But the math has to make sense.
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scammer-killer 4:20PM (3/08/2009)
I'd love to buy a nice clean used Insight but they seem to still be selling for a premium here in the south. It's a shame. I'd rock one for sure!!
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Max 10:37PM (3/08/2009)
Insights have a battery warranty up to 140,000 miles. Just buy a used one that has less miles and damage the battery, you'll get a new one.
Also....since the Insight's motor only works at light loads, it's expected to last a lot longer too.
scammer-killer 11:55PM (3/08/2009)
I'm not much for fraud but it's not a bad idea if I were to buy one with 70k miles for $9k knowing it would last a while longer. Is there a maximum year allowed for the warranty? like 10yr 140k miles??
win39 12:22AM (3/08/2009)
I checked the Carmax shops within 50 miles of where I live. 132 Toyotas. Only 3 of them are late model Prius ranging from $17K to @22K which seems not especially low compared to normal resale, depending on how they are equiped. Obviously people are buying them or there would be more, but careful of their money. Still going in that direction, but without the panic.
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Luke 12:32AM (3/08/2009)
You're assuming "hybrid" only applies to Prius.
Max 12:55AM (3/08/2009)
The data point that would make this more meaningful is what the drop in value of non-hybrids was during the same period. I'm sure used cars in general are taking a beating.
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Dave 3:19AM (3/09/2009)
Actually, what I think most people are failing to consider is that last summer, fuel prices were absolutely sky-high and thus used hybrids were impossible to find unless you were willing to pay a premium.
If used hybrid prices have "fallen off a cliff" it's just a reflection of the cost of fuel and the fact that most people can't look farther than the tip of their nose when making long term financial decisions.
Max 3:25AM (3/09/2009)
That may be so, but still, without making a comparison we can't draw any conclusion. Let's say used hybrid sales are down 23.5%, but used non-hybrids are down 40%. Without a comparison the number alone is meaningless.
kballs 10:50PM (3/09/2009)
What about this?
http://www.autoblog.com/2009/03/08/as-new-vehicles-sales-fall-used-car-prices-go-up/
So which is it? Up or down? Or did they drop over the last year, but have hit bottom and are coming back up?
But who knows what the hybrid vs regular numbers are.
L3 12:28PM (3/08/2009)
My observation is that we seem to assume that fuel prices will rise, but are generally negative on the prospects of the Dow's return to previous levels.
The adoption of a positive attitude coupled with constructive criticism and inspection is the key to our return to financial strength.
Note: Used hybrids do not qualify for tax credits.
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seadoo doug 3:37PM (3/08/2009)
AOL almost always reports the back side or far side of any story, at times AOL is very misleading.
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Richard 3:48PM (3/08/2009)
Do people not realise that when the economy recovers gas will REALLY go out of sight.. There;s only so much. It seems like people forget and then they get mad and talk about how we need to come up with a solution when it's to late.. THE TIME IS NOW......
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floorman56 11:38AM (3/09/2009)
Do people not realise that when the economy recovers gas will REALLY go out of sight
Wait ..What?...
I thought the only reason gas was at $4 a gal last summer was because there were EVIL OIL MEN in the white house. Now we don't have any and now you are saying the price of gas is going up again???
So ether you were wrong about Bush being a EVIL OIL MAN or Obama is A EVIL OIL MAN TOO!!
Joe 5:43AM (3/09/2009)
I keep my cars for 10 to 25 years and get 125,000 to 300,000 miles on them! I've had all Fords. How? I don't beat them! I also get 20 percent better gas mileage than Ford says I should and 75,000 to 150,000 miles on a set of brakes! I don't run up to red lights. I don't floor it on green. If the light is red, I let somebody pass me and let HIM trip the sensor in the road and I back off the gas. By the time I get to the light, it turns green and I zoom right by him and he has no clue I used HIM to save gas and brake wear by not stopping and idling! Also, I've been paying $30 a year on my property taxes and peanuts on my insurance! Take your new cars and shove 'em! Besides, I can fix my old cars myself. Can you fix your new car yourself? I doubt it!
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moms63nova2 4:06PM (3/08/2009)
i hate blue book values, they are for dealers wanting to rip you off ona trade in only. they give you 1600 on a 3-4000 dollar car so they can make a profit.
say for instance a mint 70 mustang, goes for 20-30 grand if the numbers match low miles etc. in blue book it goes for like 3500 what you paid for it as new in 70.
on the flip side sometimes such as a cadillac might be a big piece of junk shouldnt sell for more then 2000 at best blue book has it at 5000 or higher. the people behind blue book should pick a car and try going out and finding it for the price they have listed.
another good one is a 96 mustang convertible they have it i think around 1100- or 1400 have any of you been able to find a nice one for less then 2600? i mean a really nice one. i would love to find one for that price range convertible or not that isnt beat up by some kid..
blue book is a joke
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Greg Gebhardt 4:07PM (3/08/2009)
I prefer to drive my 6000+ lb Lxus LX570 instead. Mass always wins when interfered with.
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Sparkles Pederson 4:28PM (3/08/2009)
Well, that's not exactly true. There is mass and then there is mass. I can tell you from personal experience that modern technology has a lot to do with it. The airbags, crumple zone, anti-lock brakes and the latest seatbelts saved my life and the lives of my children. The other vehicle, a 23 year old POS Chevy pickup truck, was thrown onto it's side. It's occupants needed to be removed by the jaws of life. My family and I walked away. For the record: the other guy ran a red light.