In An Ultra Hot Used Car Market, Why Are EVs and Hybrids Losing Up To 80% Of Value In The First 3 Years?

Used vehicle sales are soaring these days, and so are their prices. Though it tends to counter the conventional wisdom that only highly valued collectible cars ever increase in value, Edmunds.com reports that used car prices jumped by 7.6 percent in the second quarter of 2015 to reach a record average high of $18,800.

While this tends to make bargain hunting among late-model pre-owned models difficult, there’s one segment of the used-car business that’s actually headed in the opposite direction as far as pricing is concerned.

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xjug1987a - 8/27/2015 1:09:01 PM

+4 Boost

Create an artificial market for something the market doesn't want and then subject it TOO that market.. this is what happens... folks should have leased these things then let someone else worry about the rest...

Agent009 - 8/27/2015 1:16:45 PM

0 Boost

The Fed is pushing EV and hybrid sales without regard to demand or value.

They simply are not a wise choice for most individuals and the resale is reflecting this.

knowitall1985 - 8/27/2015 1:59:51 PM

+1 Boost

That is not happening with Lexus hybrids, but low gas prices doesn't help. People are short sighted and don't realize gas will go up!!

TheSteve - 8/27/2015 2:32:04 PM

+2 Boost

It's a combination of several factors:

- Low actual demand (this is masked by subsidies to promote sales)

- Subsidized purchase price, which also affects a lease cost masks the true car cost. If you buy a used 10-year-old Aston Martin with low miles for $25,000, the maintenance and repairs for the inexpensive used car will in line with the purchase price of $100,000 when it was NEW, and not your low, used-vehicle purchase price. The same applies to EVs and Hybrids (not just gas-powered cars).

- Concerns about battery life and the cost to replace them.

- Low gas prices. Many folks are now enamored by big, gas-guzzling vehicles.

TomM - 8/27/2015 6:11:56 PM

+3 Boost

TheSteve has it right
The fact is - it is one thing for the rich green people to put out for heavily subsidized vehicles when they also probably have another regular gas vehicle for longer trips. People who want a car to cover all their wheeled transportation needs are not best served by an Ev - and only slightly better by a Hybrid. The basic lack of space in Hybrids limit their use as a vacation car - and most people do not "rent" for longer trips - the mileage charges get pretty high.
Plus - there is simply NO need to do so - there is no shortage of Oil - and it will not come back until long after I have expired.

W124E320 - 8/27/2015 7:02:49 PM

0 Boost

BULLS EYE!!! - - Plus - there is simply NO need to do so - there is no shortage of Oil - and it will not come back until long after I have expired.

Dexter1 - 8/27/2015 7:04:55 PM

+1 Boost

Because they suck?

MDarringer - 8/27/2015 8:15:07 PM

0 Boost

EVs and hybrids are old technology the minute they are produced. Who here wants to spend 80% of the original price of a 3-year-old PC? 20% MAYBE. It's the same with EVs and hybrids AND because they are not time-tested technology who knows what longevity issues they will have?