nsxt2000
11-04-2007, 02:15 AM
"Hybrids Can Depreciate Fast" is the feature article in today's Atlanta newspaper. According to a new study by Automotive Lease Guide most new hybrid vehicles will hold less of their value in the long run than their gasoline-only counterparts.
According to the study 2008 gasoline-electric hybrids will be worth more after three years than their gasoline bretherns because they cost more when new. However the percentage of their retail value they maintain will be lower than the gas model. Automotive Lease Guide, which sets residual values for the industry, is estimating long range hybrid values for the first time.
In considering values for 17 of the 2008 model hybrids only two versions of the Ford Escape Hybrid have higher residuals after 36 months than the gas version.
Officials indicate used vehicle buyers tend to be more concerned with price than with long-term fuel economy or environmental issues. That makes the hybrid relatively less valuable to them.
When I read this report I was surprised by two facts - first the results that the hybrid depreciates faster and secondly that this is the first time hybrids have been considered in determing depreciation. Could it be that few people finance a hybrid for 36 months, but instead pay cash? I don't know...What do you think?
-Mike S.
According to the study 2008 gasoline-electric hybrids will be worth more after three years than their gasoline bretherns because they cost more when new. However the percentage of their retail value they maintain will be lower than the gas model. Automotive Lease Guide, which sets residual values for the industry, is estimating long range hybrid values for the first time.
In considering values for 17 of the 2008 model hybrids only two versions of the Ford Escape Hybrid have higher residuals after 36 months than the gas version.
Officials indicate used vehicle buyers tend to be more concerned with price than with long-term fuel economy or environmental issues. That makes the hybrid relatively less valuable to them.
When I read this report I was surprised by two facts - first the results that the hybrid depreciates faster and secondly that this is the first time hybrids have been considered in determing depreciation. Could it be that few people finance a hybrid for 36 months, but instead pay cash? I don't know...What do you think?
-Mike S.