Prius Future Resale Value

[Prianista]

The Washington Post's Warren Brown is not the most popular automotive writer in the PriusChat community, but does he have a good point?

"What, then, will happen to the resale value of the nickel-metal-hydride hybrids? No one seems to know. Or if they know, they are not willing to give a definitive answer, which leads me to believe that today's hybrids will be as valuable at resale as yesterday's laptops."

[PA Prius]

<div class='quotetop'>QUOTE(Prianista @ Oct 20 2007, 05:23 PM) [snapback]528253[/snapback]</div>

The Washington Post's Warren Brown is not the most popular automotive writer in the PriusChat community, but does he have a good point?

"What, then, will happen to the resale value of the nickel-metal-hydride hybrids? No one seems to know. Or if they know, they are not willing to give a definitive answer, which leads me to believe that today's hybrids will be as valuable at resale as yesterday's laptops."
[/b]

Just like the prices of non-hybrids plummeted when hybrids came on the market?!?

If this is your fear and you want to dump your '07 with leather and nav now for $12k before it becomes worthless, just drop me a line.

PA P

[priusenvy]

See thread with title "Clueless Journalist".

[paprius4030]

PA P that was a GOOD ONE you had me chuckling! If the resale of my Prius isn't any good then I'll just drive it into the ground. I'm sure it will last along time.

[MikeSF]

I'm going to drive my Prius into the ground even if the resale is high! I wish I was rich enough to plonk down another "half car" amount of money ever few years or so just to have a "new car"

[joe1347]

<div class='quotetop'>QUOTE(Prianista @ Oct 20 2007, 05:23 PM) [snapback]528253[/snapback]</div>

The Washington Post's Warren Brown is not the most popular automotive writer in the PriusChat community, but does he have a good point?

"What, then, will happen to the resale value of the nickel-metal-hydride hybrids? No one seems to know. Or if they know, they are not willing to give a definitive answer, which leads me to believe that today's hybrids will be as valuable at resale as yesterday's laptops."
[/b]

It's amazing that Warren Brown could be an automotive journalist for decades and still be this clueless (IMHO).

Personnally, I would think that the Prius's resale value will be primarly determined by two factors.

1. The price of gas. If gas prices spike to say >$3 or >$4 a gallon (a.k.a., superspike). Even Warren might actually catch on that high mileage cars will command a premium price if oil superspikes - especially considering that the supply of both new as well as used 50mpg Prius's are limited. Granted if Gas drops below $2 a gallon for an extended period of time, then Prius demand and it's resale price will certainly drop.

2. Introduction of a new and improved Prius and/or better competition from other automakers. For example, if Honda (or Toyota) starts shipping a 50+mpg car comparable in size to the existing Prius, that offers improved handling and/or better acceleration. Then the value of both new and used Prius's will likley drop. Of course if gas prices spike and the demand for ANY 50mpg cars exceeds supply from all automakers, then all bets are off regard Prius resale value.

Side notes: High mpg diesels such as the upcoming 2008 common rail diesel Jetta should be included along with hybrids. Possibly VW will be able to deliver the new common rail diesels in volume (in the USA). But from what little I've read on tdiclub.com, it looks like VW is planning on loading up the common rail diesel Jettas with options and then sell them at a premium price instead of offering a stripped down (and low cost) diesel rabbit that certainly would offer strong competition (to a Prius). Also, Warren implies that biofuels will hold down gas prices. Obviously, Warren hasn't caught on that ethanol produced using current technology has absolutely no hope of significantly increasing the US domestic fuel supply.

[boulder_bum]

<div class='quotetop'>QUOTE(Prianista @ Oct 20 2007, 03:23 PM) [snapback]528253[/snapback]</div>

"What, then, will happen to the resale value of the nickel-metal-hydride hybrids? No one seems to know. Or if they know, they are not willing to give a definitive answer, which leads me to believe that today's hybrids will be as valuable at resale as yesterday's laptops."
[/b]

The thing about old laptops is that software advances so fast that an old laptop can't run the latest greatest stuff. Vista, new games, and other programs demand more and more resources and newer better parts (USB 2.0, bigger hard drives, media readers, DVD burners, 802.11h capabilities, Bluetooth, HDTV tuners) that collectively render older hardware pretty useless.

Laptop batteries have very little to do with the resale value of old laptops. It's all about compatibility with advancing technology. If you have an older wireless card in your laptop, your computer may not work as well with your new router, if at all. If you only have a 3.5" floppy drive, then you won't be able to install the 200MB program on a burned CD. If you only have a 10 GB hard drive, you may not be able to store all of the music and movies you download from iTunes.

With the Prius, it's very different. You don't have to worry about a car no longer being compatible with anything. You will still be able to get from point A to point B and do so with greater efficiency than most of the other cars on the road.

It's sort of like asking if the non-hybrid resale market would completely dry up with the introduction of hybrid vehicles. It hasn't; people are still willing to buy a used sedan and the fact that the conventional vehicle market still accounts for 90% of new sales is pretty telling.

Granted I'm sure that the newer hybrids will be in much bigger demand, and the old Prii may not have quite the used car pricing magic they once had, but I have no fear that it will still sell for a reasonable price.

[snakeman]

I'd just like to point out that this journalist, and anyone who is concerned that he might be right, might want to do a quick internet search for the Blue Book value of the Prius. I'm sure it varies from area to area, but I've had to do it recently when my '04 was in an accident. I had just over 45,000 miles on an '04 (package 4 I think it was at the time - didn't have SKS) that was sticker at $23,000. The Blue Book ranged from $16,000 to $21,000 for that car and the insurance settled for just over $19,000. If that's "losing value like last year's laptop" then I need to go find my old computers and make a fortune.

Seriously, in the mid-term I double these cars will lose their resale value at a rate greater than standard gasoline vehicles (and will likely stay higher longer if gas prices keep the demand up) and if you drive it for 10+ years until the body falls apart around the engine, who cares if the resale value is low.

My two cents anyway....

[dogfriend]

<div class='quotetop'>QUOTE(joe1347 @ Oct 20 2007, 07:24 PM) [snapback]528320[/snapback]</div>

It's amazing that Warren Brown could be an automotive journalist for decades and still be this clueless (IMHO).

Personnally, I would think that the Prius's resale value will be primarly determined by two factors.

1. The price of gas. If gas prices spike to say >$3 or >$4 a gallon (a.k.a., superspike). Even Warren might actually catch on that high mileage cars will command a premium price if oil superspikes - especially considering that the supply of both new as well as used 50mpg Prius's are limited. Granted if Gas drops below $2 a gallon for an extended period of time, then Prius demand and it's resale price will certainly drop.


[/b]

Our gas prices in Northern Cal (Sacramento) are at $3 / gallon right now. I expect to see $4 / gallon sometime next spring if not sooner.

I expect that the resale value of large pickups and SUVs will go into the toilet once we see $4 to $5 / gal. Maybe Mr. Brown should write an article about that.

[usbseawolf2000]

When did laptop use NiMH battery by the way? I only remember them using Li-ion.

The way laptop and Hybrid use battery are very different. Laptop charge and discharge while hybrid use short burst and maintain at ideal state of charge.