Value of a civic hybrid
 

From reading most news sources I see people generally saying a hybrid loses value faster than a normal car because of the still little known or unknown aging of batteries and hybrid systems. While many here might feel this fear is just idle paranoia I was thinking today about a different type of degrading factor - The 09 global honda hybrid.

With both a sports hybrid and a smaller hybrid coming within a few years could this have a negative impact on the value of our cars?

My thought was yes, but limited in notice mostly to those who just bought one, in 08 or a refreshed 09 civic. With a small platform hatchback coming it could beat our cars EPA numbers while outperforming them. The global model will at least according to the news stories cost roughly $16,000.

I feel our current hybrids offer more standard features and space than what will come with the base cost for the future hybrid. My worry is if the future hybrids beat our EPA numbers significantly then the value of our current cars will degrade further. With an 06 non-navi I don't think it would matter but for those of you with an 08 especially those who spent near 24,000+ you could find the value dropping.

I worry cars will become like computers, quickly left worthless in a few years as they are outpaced by better designs.

Any thoughts or am I just worrying over some spilt milk here :embarass:

Re: Value of a civic hybrid
 

Ryan, those are all good points to worry about.

However, it helps to place such speculation in a proper context as well. For instance, the CRZ derivative will have a market all of its own which I suspect will have minimal (or even negligible) impact on the current (or 9th gen) Civic used prices. Also, the global sub-compact hybrid family vehicle may affect the Civic sales to some extent but then again, it will be a smaller vehicle as well as will not sport the same equipment levels mostly becuase of the targeted MSRP among other reasons.

According to the last investor releases, the Civic Hybrid will continue as the Honda's flagship hybrid implementation even though the generational upgrades by be introduced with a different model. Unless a change in strategy says otherwise, there's no reason to doubt it.

It is an exciting future we have ahead of us, but regardless of the hybridization progress Honda makes in the next three years, I bet it will not be that bad at all for owners of the gen 2 HCH. BUT, if that was even remotely the case and the gas prices keep rising, just imagine what any other non-hybrid used vehicle (regardless of age) will be worth?

Cheers;

MSantos

Re: Value of a civic hybrid
 

Demand for hybrids remains well beyond Honda and Toyota's ability to produce them. Detroit is AWOL, so no market pressure there.

The only thing that could hurt the value of hybrids would be a drastic drop in the price of gas. If it goes back to $1.20/gal., hybrids will become essentially worthless.

Of course, I'm not losing sleep over THAT possibility.

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Re: Value of a civic hybrid
 

I checked the KBB value of my cars the other day. The trade-in was around $17k! I was suprised, but I guess I shouldn't have been. They still seem so new.

My CRZ and GSC will have to wait.

And that's really for the best. For the environment (and for your wallet) we should try and drive these cars 'til the wheels fall off.

Baring twins or triplets, I planning on keeping these cars just that long.

nf

Re: Value of a civic hybrid
 

Cars depreciate in value, hybrids are not immune to that. As better battery and technology come out, these hybrids will suffer more. It is similar to luxury cars like S Class Mercedes and Lexus. Some people don't want last year's technology. So those cars tend to have low trade in value / resale value. Cars like the Civic retain a better resale overall because they are neither technologically advance or considered luxury vehicles. They are also in demand. Similar cars like the Chevy Cobalt drop in value because they are not popular cars.

Re: Value of a civic hybrid
 

Actually, the used hybrid market in my area (cheacked via Autotrader) is high.

While there will always be the "drive-off-the-lot" depreciation, there are several HCHI's that have stickers much higher than I would expect -- one at $19k.

That next technology hasn't hit the lots yet and I imagine, esp with the tax credit phase-out, 1-2 year old hydrids will be in demand.

nf

Re: Value of a civic hybrid
 

Just did a nationwide search on autotrader.com. The hybrid market is strong.

An average 2006 HCH2 with 30K miles goes for $17,000.

An average 2007 with 15K miles goes for $19,000.

That's not bad, considering that Edmunds.com says an average '08 HCH is selling new for $22,500. It means a depreciation of 15% the first year, and another 10% the next year.

A previous post mentioned that the shrinking tax credits help the used market. That's certainly true. Until this year, new HCHs had a $2,100 bonus vs. used ones.

Another post mentioned that improved technology will reduce the value of today's hybrids. That's true, too. But that new technology is YEARS away. By then, we'll all have gotten our money's worth from our hybrids, and we'll be looking for new cars.

Also, years from now, gasoline is likely to cost $4 per gallon. That definitely won't hurt hybrid values.

Meanwhile, hybrid buyers can remain confident that they won't find themselves "upside-down" in their cars. I put ZERO down on mine, and according to autotrader and KBB.com, it's still worth more than I owe on it.

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Re: Value of a civic hybrid
 

"Also, years from now, gasoline is likely to cost $4 per gallon. That definitely won't hurt hybrid values."

Uh... how about months :) 3 years ago gas prices in the Washington DC area got up to 4.25 a gallon in some places. I remember paying that much when I was commuting from Rockville to Ashburn...

:)

Re: Value of a civic hybrid
 

Gas is 4.60 a gallon when your passing the Mobil station inside the tribal lands where Mohegan Sun casino is located

The stations along route 2 going to Foxwoods resorts has the same trend. 4.40+ gas prices.

I never head down that way on an empty tank!


Back to the topic: I still think the value of our hybrids will drop sharply when a selection of full electric cars is available. At least normal cars have the performance that can attract buyers, but my civic isn't going to be getting any interest for its 0-60 time.

Re: Value of a civic hybrid
 

"... gas prices in the Washington DC area got up to 4.25 a gallon ..."

"... Gas is 4.60 a gallon inside the tribal lands where Mohegan Sun casino is located ... Foxwoods resorts has the same 4.40+ gas prices ..."


I believe you, but Indian casinos and Washington, D.C. are two places that actively defy reality. That said, I see your point.

I should also point out that the current price could skyrocket overnight because of another terrorist attack, a hurricane that devastates Galveston, TX, or any event that the oil market can use for its own profit.

$5/gal. in a few years is a best case scenario.

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