At that moment, a $30,000 hybrid car is suddenly only worth $27,000. That’s a pretty big hit for something that’s practically brand new.
While you can’t entirely stop a hybrid car from depreciating in value, some of them lose it faster than others.
How Much Do Hybrid Cars Depreciate in Value?
On average, a vehicle depreciates 15 to 25 percent for each year during the first five years of ownership. This is on top of the 10 percent you’ve already lost.
These calculations do include nearly every major make and model on the road, and there are times when some vehicles might depreciate differently than the average.
Ultimately, depreciation is a reflection of supply and demand. If supply exceeds demand, resale values fall. When it’s the other way around, and demand exceeds supply, then the hybrid car doesn’t depreciate as quickly.
Demand for Hybrids
Yes, this means in-demand models hold more value. However, it’s important to realize that other factors affect demand for hybrids.
Whenever gas prices rise, hybrids become more desirable, while low gas prices may decrease interest.
For instance when gas prices were soaring in 2013, around half a million new hybrid vehicles hit the road. But when fuel costs were lower, in 2017, only 360,000 units sold. This clearly demonstrates the shift in demand.
Hybrid Cars That Hold Their Value
According to Kelley Blue Book, the 2018 Toyota Avalon Hybrid is likely to retain its value best over the next five years, dropping only to 33 percent.
Other solid options are the 2018 Honda Clarity Plug-in Hybrid at 31 percent and the 2018 Toyota Prius at 30.1 percent.
However, when it comes to a resale value comparison, none of the hybrid cars made it into the top 10 on Kelley Blue Book’s list.
The 2018 Toyota Tacoma keeps 61.1 percent of its value over five years, showing just how different even a winning hybrid car comes in.
Currently, trucks and SUVs are in demand, so many of the most reputable makes and models outperform hybrids when it comes to depreciation.
Additionally, the average vehicle maintains 33 percent of its value over five years, and only one of the hybrid cars hit that mark.
Calculating Hybrid Car Depreciation
In some cases, you can estimate how much a hybrid car depreciates in value using a Cost to Own calculator that factors in depreciation rates.
There are also many car depreciation calculators available online, but some don’t factor in essential variables.
For example, the age of the car isn’t the only relevant point when it comes to depreciation. The number of miles on the hybrid vehicle is incredibly important.
Also take into consideration the car’s physical condition. In some cases, an estimated value calculator may be a better choice for determining your vehicle’s depreciation rate.
Try checking out what similar hybrid cars cost in your area and use that to gauge your vehicle’s worth.
You can also use an estimated value calculator is see how various factors influence depreciation. You could adjust the information about the mileage or condition and see how it impacts the final number.
Are Hybrid Cars a Wise Choice?
So far in 2018, hybrid cars are depreciating in value faster than the average vehicle as of 2018. However, if you choose one of the models that holds its value better than others, you may be able to get closer to the average.
Additionally, as time goes forward, hybrid cars may retain their value more effectively. The technology is more robust and increasingly affordable, which will help sway things in a positive direction.
Readers, do you own a hybrid vehicle that’s holding its value? Tell us about it in the comments section beneath this post.
Give the gift of savings! Learn more
Interested in more great vehicle-related articles? Give these a try:
- Cars That Don’t Depreciate in Value as Quickly
- Should You Pay for Your Child’s Driver’s License?
- 7 Ways to Improve Your Car’s Resale Value
- Your Car Might be a Death Trap Without These 7 Items in Your Roadside Emergency Kit
- Does Costco Do Brakes?
- How Much Should You Budget for Auto Maintenance?
- Renting Versus Owning a Car
- Costco Gas Stations Hours of Operation
If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.