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Low gasoline prices considerably trim hybrid and electric cars sales

02/01/2016 14:07:32
Low gasoline prices considerably trim hybrid and electric cars sales
Low gasoline prices considerably trimmed the popularity of hybrid and electric cars. Analysts give even more pessimistic predictions.

The residual values and of course market prices of used hybrids and electrics are hardly affected by falling gasoline prices. Things are going to become even worse if taking into consideration the influx of used small cars set to return to the market over the next few years.

Hybrid cars

Low gasoline prices played a big role in trimming the values of 2016 hybrid and electric vehicles sold these last months. If considering the 2013 Toyota Prius Two: in December, that midsize vehicle (Two is a trim level) retained about 46 percent of its original sticker price, down from 57 percent for the 2012 Prius Two a year earlier. That's a huge drop in just a year's time. 

Market analysts say depreciation rates for hybrid and electric vehicles ranged between 25 and 35 percent in 2015, about twice the 16.5 percent average of gasoline-powered cars and trucks. Also hurting prices of used hybrid and electric vehicles is that the number of used, fuel-efficient, compact cars is set to increase substantially. Depreciation for the compact car segment, which includes vehicles such as the Honda Civic, Ford Focus, Toyota Corolla and Chevy Cruise, is slightly smaller that that of smaller cars, such at the Toyota Yaris and Honda Fit.

electric cars


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