Dismal Resell Value Now Makes Used Plug-In Vehicles A Cost Effective Option

There is one place where sales of plug-in vehicles are heating up: on the newly used car market.

Electric vehicles and plug-in hybrids classified as one-to-three years old are some of the hottest sellers and best deals, according to a new study by used car aggregator, iSeeCars.com.

“The market may have hit a sweet spot where the pricing has dropped enough to make these cars more desirable,” says Phong Ly, CEO of iSeeCars.com

The average price of near-new electric cars has dropped $3,830 on average year-over-year, whereas the average for gas cars has dropped just $242.

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MDarringer - 7/29/2016 10:54:34 AM

0 Boost

I don't know why anyone would want to own a NEW hybrid, PHEV, or EV. Leasing and ditching them makes more sense given that these technologies will be like computers that quickly become outdated.

With gas prices low, sales/leases of electrified cars is a bit soft. Buying a lease return electric is the smarter way to own one if owning is a goal.

Ford Credit in particular is taking it in the shorts because of overestimating resale value on their lease offers and that has been a boon to customers, but has kept margins thin.

It appears they are going to tighten up this fall.

TomM - 7/29/2016 12:33:19 PM

+3 Boost

Based on the additional cost - there is currently almost no way to economically justify buying a new hybrid - YOU will NEVER come out ahead - and especially not during a 3 year lease.

THe only way to justify the purchase is if you are trying to be green - but we already know that this is not necessarily true - when you take the emissions of the power plants into account

I doubt that this will change until after the election at the earliest - and probably not for years

MDarringer - 7/29/2016 1:24:47 PM

+1 Boost

If a person is going into a lease looking to come out ahead they are being foolish. The payout price at the end of the lease when added to the lease money paid can easily cost more than buying up front.

On rare occasion a leased vehicle is worth more than the agreed-to residual. If that is the case, you still have to pencil out how much interest will be on the load to buy the vehicle and whether breaking even is possible.

Many short-term leases are aimed at producing CPO models for brands like BMW, Lexus, etc. Other short-term leases--like say on a Fusion--is aimed at being able to get someone to lease again so as to prop up sales.