A popular question with early hybrids was, “How long will my battery last?”
Trust in battery durability played a significant role in determining the vehicle’s value as the miles piled on.
Now that hybrids are proven, their post-lease values are approaching those of gasoline-only models.
“There’s generally more acceptance of plug-in and hybrid cars, narrowing the gap between gas and hybrid prices,” said Ricky Beggs, managing editor of Black Book. “We’re seeing no issues with durability or batteries retaining their strength. After the cars come off lease, there is still pretty good interest on the used side.”
In 2007, hybrid cars retained, on average, 47.9 percent of their new car value after the end of the lease, compared with 52.2 percent for gas cars. That 4.3 percentage point difference narrowed to 2.9 percentage points in 2010, and is expected to practically disappear in 2013, when post-lease hybrid values are predicted to climb to 50.6 percent of new car value compared with 50.5 percent for gas-only cars.
Manufacturer incentives, such as the $4,000 cash on the hood that Chevrolet is offering to buyers of the Volt, affect prices, as a lower new price translates into a lower used price.
According to Beggs, $1,000 in incentives can lower used car prices $700 to $800, although the trade-in value of the car would not be affected since it is set at the lease initiation.
Going forward, what would most help hybrid values is if gas prices increase to $5 a gallon and stay there — though there is no indication that will happen, Beggs said.
With more than 40 hybrids to choose from, he said, the gap between gas and hybrid could further narrow as competition causes new hybrid prices to drop.
