Study funded by diesel proponent finds that Hybrids, especially the Prius, retain high resale values

Re: Study funded by diesel proponent finds that Hybrids, especially the Prius, retain high resale va

Higher resale value or lesser depreciation does not necessarily imply cheaper TCO. Consider two cars that only differ in original purchase price and depreciation.

Car #1 cost 20k to buy, and is sold for 80% of initial price;
Car #2 cost 10k and is sold for 65% of initial price;

Obviously car #2 is cheaper to own, even before we include the higher opportunity cost of the more expensive car.

 

Re: Study funded by diesel proponent finds that Hybrids, especially the Prius, retain high resale va

For whatever reason, IIRC VWs (including non-TDIs) have traditionally held their resale value fairly well.

I wouldn't buy one until they've improved their reliability considerably but I think it might be due to VW generally not putting much in terms of incentives on their cars coupled w/the German engineering mythos.

 

Re: Study funded by diesel proponent finds that Hybrids, especially the Prius, retain high resale va

I considered these figures when I looked to buy our car. Too many people lac the ability to quantify a purchase and so have to resort to anecdotes and FUD.

That said, I was surprised how cheaply I can get an 07 Prius for, like $13k locally for quite a few of them and not with a ton of miles.

 

Re: Study funded by diesel proponent finds that Hybrids, especially the Prius, retain high resale va

This ^^^ is an important point not often discussed nor understood by the automotive press.

As noted above the choice to purchase a vehicle on a TCO basis would always direct the buyer to purchase only the lowest price econo-box mini-strippper with a manual transmission. There's no way when comparing new vehicles to fit a $25000 vehicle into a $12000 budget so-to-speak. That's why all the comparo's implicitly assume that buyers are looking at vehicles in the same general price range..and always NEW vs NEW.

But as you noted when shopping by comparing respective UTILITIES it might be very normal for a buyer to compare say a 2 y.o. Prius with 24000 miles to a NEW Elantra or NEW Yaris, all in the $13000 price range. All three vehicles will last another 10 yrs easily and the Prius will cost far less in the long run than either of the new smaller vehicles.

It's true though that the buyers do go out to shop based on what they expect to spend. Elantra buyers don't cross-shop with Lexus and HD truck buyers don't cross-shop with Prii. The public self-limits itself into pricing strata when shopping.

Whenever an organization publishes one of these comparo's one has to read between the lines that the writers are always comparing NEW vs NEW and always vehicles in the same general pricing stratum. When the Prius was first out the most common rejoinder to the Prius claims was 'Why spend $24000 for a Prius to go from A to B when you can spend $15000 for a basic Corolla which will also get you from A to B?' But that horse has been beaten to death.

 

Re: Study funded by diesel proponent finds that Hybrids, especially the Prius, retain high resale va

i think idea was to compare to comparable non-hybrid and non-tdi cars... Not to Tata Nano.

And this is true in Europe already, Diesels are a LOT more expensive that same cars with petrol engine, and only way it works is when you consider resale value of the car, which is significantly higher... and hence, we now have >40% diesel share out of all cars sold in EU.

 

Re: Study funded by diesel proponent finds that Hybrids, especially the Prius, retain high resale va

The 40% diesel share is in large part due to 1) taxpayer subsidized cost of diesel in many countries; and 2) consumer preference to support local manufacturers that market their diesel autos more aggressively than the petrol offerings.

I may be wrong or not up to date, but I think the UK is the only EU country where diesel competes favorably against petrol cars without a tax advantage.

 

Re: Study funded by diesel proponent finds that Hybrids, especially the Prius, retain high resale va

Honestly, I was a little surprised that I got $18.5k resale (that was very close to all recommended values) to private party Jan 3rd, 2011 on my '09 Prius pack 5 w/ 14,900 miles. It was pristine condition (I knew I had to keep it that way to get $$ out of it).

I advertised the car on Tuesday Dec 28th, 2010 only in autotrader (had posting problem with Craigslist, you know, make post, but doesn't post).

On Dec 31st morning, got call from autotrader ad. While they were coming over, I posted up to Craigslist again. First party was ok, 25 y/o guy wanted it, only offered $16.5k tops, 2k under my price.

so within 3 hours of posting on Craigs, got call from 2nd party. 60 y/o couple, homeowners, established. One of the first things they said is ...

"we heard gas will go to $5/gal next summer"

They were very polite, the perfect people you want to buy your car. Had deposit that Friday afternoon (banks were closed on weekend). They came Monday morning, Jan 3rd with cashiers check for $18.5k. We closed the deal.

Everything worked out fine, they are happy, I moved a car that just didn't work for me.

So, yes, Prius is a good car for resale. My buyers were not worried about unintended acceleration, other problems, no. They had friends that own 2nd gen and they wanted one.

If you must, I highly recommend selling to private party, not trading in. Just keep your paperwork together, especially all your service receipts - buyers want to see those immediately. Be honest, have the car immaculate, best you can, set price no more than $500 over lowest you will take, reject offers way under your price, ask for your price. I did and got it.

 

Re: Study funded by diesel proponent finds that Hybrids, especially the Prius, retain high resale va

"we heard gas will go to $5/gal next summer"

And some doubt that Prius sales are tied to todays pump price.

 

Re: Study funded by diesel proponent finds that Hybrids, especially the Prius, retain high resale va

Not here. My buyers were also way jazzed about Prius and hybrids. Nice people they were.

 

Re: Study funded by diesel proponent finds that Hybrids, especially the Prius, retain high resale va

Just yesterday I saw a guy on Craigslist trying to trade his 2002 M3 w/ 50k miles for a Prius! There's definitely a change in the wind.

On a side note, I'd never choose to buy a car based on it's projected resale value. Resale value would probably be #70 on my list. I trust that my taste is good enough to pick cars w/ high resale value anyway.

Also, while it's great to hear that our car values are shooting up, I don't really care. I'm never planning to sell mine.

 

Re: Study funded by diesel proponent finds that Hybrids, especially the Prius, retain high resale va

Justify that claim. The numbers do not add up.

 

Re: Study funded by diesel proponent finds that Hybrids, especially the Prius, retain high resale va

are you the justify police?

 

Re: Study funded by diesel proponent finds that Hybrids, especially the Prius, retain high resale va

Well, if you assume that you can get a two year old, 24,000-mile Prius for $13,000, then it's easy to justify. Realistically, though, there's a $6000 price difference there.

 

Re: Study funded by diesel proponent finds that Hybrids, especially the Prius, retain high resale va

Claiming a 2 yr old Prius will cost far less than a brand new car at the same price is simply unrealistic. Used cars are a hit and miss, depending on how the previous owner(s) have driven them.

 

Re: Study funded by diesel proponent finds that Hybrids, especially the Prius, retain high resale va

I agree with all you say about selling your own car if possible. I have sold several cars over the years and would add a couple of things to your list that seemed to work well for me. (1) be sure that your personal stuff is out of the car and (2) have the gas gauge showing at least 3/4 full. Also, if a person gives you a deposit, or otherwise assures you that they are going to buy the car, PARK IT and do not drive it again so that they can be sure that they will get the car exactly as it was when they test drove it.

All that being said, I have to admit that I did trade my 05 Avalon in on a new Nissan Rogue a couple of weeks ago. That car had a couple of issues that Toyota could not resolve and I did not want to sell it to an individual. ( Don't buy the first year of a re-design).

Still have my 07 Prius and it will probably be around for quite a while.

 

Re: Study funded by diesel proponent finds that Hybrids, especially the Prius, retain high resale va

+1

Buyers left me a $2k personal check on Friday 12/31. I had no intentions of depositing the check as we agreed they would bring the total in cashier's check Monday. Just write up a simple agreement with VIN, names, numbers, date and mileage and yes, park the car.

>>>> receiving payment and handing over the car is not too difficult.

Make sure to get a cashier's check. Call the issuing bank/institution, give them the check number and they will confirm the check was issued and the funds are secured. Of course do some research on the institution as well, doesn't hurt.

Don't ever take a large payment with personal check, never. And, I won't ever pay for a new car with personal check. Did that in January, never again. It worked out fine, but it is nerve wracking. Pay with secured funds only - cashier's check or cash if you're into that.

Maybe I make it sound too easy as I've sold all my cars and motorcycles private party (like 21 of them, eeek), but everything else was under $10k.

 

Re: Study funded by diesel proponent finds that Hybrids, especially the Prius, retain high resale va

What do you think is wrong with paying for a new car at a dealership with a personal check?