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.

.

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.

.

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.

.

Re: Value of a civic hybrid
 

Readily available electric cars are years aways. And even when they first come out they won't directly compete with hybrids -- their range will be too limiting.

Re: Value of a civic hybrid
 

A friend of my in Southern California, just paid more than $20K for a 2006 HCH with more then 40,000 miles on it. Because the HCH have a HOV Sticker! In California the HOV sticker are good til year 2011. That's reason I have no plan on selling my HCH anytime soon!

Re: Value of a civic hybrid
 

Good point, especially when Li Ion batteries come into major use in hybrids, or diesels can get 50+ mpg in zero-degree weather like we have now where I live.

Re: Value of a civic hybrid
 

When I was shopping for my car, i found that HOV stickers add an extra 1.5-2K to the value of the car in Cali. Who knew $8 stickers could be so valuable!!

Re: Value of a civic hybrid
 

Well, I can tell you that they do hold their value pretty well.

I received one of those letters that said that my 07 was in demand and they wanted to trade me into an 08 for the same payment. (yeah yeah, I know this is always a scam)

Well, long and the short of it, they did it. payment is about a buck less, and I miss on the next big maintenance charge, get new tires, the 08 dvd for the NAV, and of course a new car. Of course I have an extra year of payments, but the trade in was at $18,500 and the new one was $21,000.


So, yeah they hold their value!:shade:

Re: Value of a civic hybrid
 

Mercedes (and Lexus) consistently have the some of the highest resale values in the business. The last line is the reason - demand. You may see the $$ drop and say that resale value is low but really it is % and they do pretty well. I do think MB has been hit a bit recently b/c of reliability issues but it is still pretty good. In my mind, Civics do well because of demand and reliability (and now gas mileage). Most people have no idea if a car is technologically advanced. The 9th gen is pretty advanced even apart from the hybrid.

Hybrids will have good resale value for awhile. Buy a 2009 Civic and you may do poorly if the redesigned Prius with PHEV smokes you. But the people buying used cars are not directly competing with new cars. I also suspect that most people buying hybrids are planning at least 4-5 years with them since they a) are sensible people b) did the math on payback with a bit cheaper gas then now c) they are very happy with their cars.

There are buyers (like me) who are ready to dump my HCHII for a good PHEV and will do it even if it is a big money loser. But at least I am dumping to my wife so that she can dump her 96 Civic - so I won't add to the used car pool.

Re: Value of a civic hybrid
 

That's true. Unfortunately, they are not years away in the future. They are years away in the past. Since automakers are no longer required to make BEVs, there are only a few small companies, like Tesla Motors that makes a BEV that goes from 0-60 in 3 seconds, goes 130mph, and goes 200 mi on a charge. It will be a while before automakers mass produce BEVs, which will bring their prices down and improve the technology.
Plug in Hybrids can solve the problem of "limited" range, by allowing for EV mode for a daily commute, but the ability to travel across the country.

Re: Value of a civic hybrid
 

Oil is skyrocketing in price, far faster than most imagined. Sure plug-in vehicles are the solution, but as noted earlier they are years away. My guess is at least 10 years away from even 5% adoption.

Until then those cars that burn the least fuel will be the most sought after. The hybrid premium really makes sense at 4$+ gas if you drive 15k/year.

I wouldn't worry about your HCH depreciating due to new hybrids. Its a great commuter car and the new hybrids from Honda are going to use the same hybrid technology. So unless they're smaller (less practical) or more lightweight (less safe) they're not likely to have better FE.

Re: Value of a civic hybrid
 

I am just happy I bought a Japanese card and not an American. Regardless of the depreciation- it will never be worse than those American cars.

Re: Value of a civic hybrid
 

*cough* mitsubishi *cough* suzuki *cough*

LOL

Re: Value of a civic hybrid
 

There is about to be an absolutely huge demand for fuel efficient cars due to gas really hurting peoples budget. The newer hybrids may very well get better gas mileage ( i would hope so) but the demand for any hybrid will outstrip supply by a whopping margin. The resale values will actually go up relatively speaking,as the newer hybrids are often smaller.

So in your example, lets say that new global hybrid goes for 16,000. And I keep my car for five years ( likely). I bet I could sell it for 14,000 without any trouble, assuming no major accidents. I bought an extended warranty to help with resale actually.

16,000 today will actually probably be 17,500 in the next year or so given the dollars march towards weakness.

20 MPG vehicles no longer make any sense for your average commuter IMO. And I have long said 4.50/gal gas this year. I am more concerned about my car getting stolen than anything else. It actually makes me money strangely enough, due to its low operating expenses.

Re: Value of a civic hybrid
 

totally my opinion.

even here down south, where regular is about 2.60 US-$ / gallon, the demand for fuel efficent cars is increasing like never before.

daily I receive reasonable offers for the HCH I

best wishes

Re: Value of a civic hybrid
 

:omg: Maybe we should all head to Mexico for our gas! Lowest it is here in the states is $2.95US & highest is $4.49 with the average price being around $3.66. :cry:

Re: Value of a civic hybrid
 

if only the salaries where the same here :shade: