Many people can’t wait to get the latest model SUVs and cars. For those considering their first hybrid SUV or car, the high resale value of many hybrids might come as a surprise.
In fact, the top three hybrid SUVs and cars are expected to retain more than 40 percent of their value after five years. And some will retain nearly half their value. For example, the 2013 Lexus RX 450h hybrid SUV is expected to retain 45 percent of its value over five years and 64 percent of the value over three years, according to Kelley Blue Book. In contrast, the average five year resale value for most brands and models is typically in the 30 to 35 percent, or lower range.
Given the estimated high resale value of many hybrids, industry experts say buyers should take value retention into account when buying a hybrid SUV or car. Certainly, when buyers consider the higher initial cost of most hybrids compared to their gas-only counterparts, they often look at a variety of total lifetime ownership costs. For some alternative fuel vehicles (i.e. Chevy Volt) part of that higher purchase price cost is often negated with government or state tax credits. Many buyers also factor in the lower fuel costs over the lifetime of driving a hybrid. High resale value can also help offset that initial higher price.
To put the higher resale value of some hybrids into perspective, consider the results of the new Kelley Blue Book 2013 Resale Value Awards. The awards recognize vehicles that best retain their value over the first five years (60 months) of new-vehicle ownership. For all vehicles designated award winners, Kelley Blue Book also provides an estimate of the resale retention value after three years.
The top hybrid SUVS include many driver favorites. Coming in at number one for the second year in a row is the Lexus RX 450h. As noted above, a driver buying a 2013 model can expect the SUV to retain 64 percent of its value after three years and 45 percent of its value after five.
Very close behind is the 2013 Porsche Cayenne hybrid. This hybrid SUV is expected to retain 63 percent of its value after three years and 44 percent of its value after five. Next is the 2013 Toyota Highlander hybrid, with an expected 58 percent three year resale and a 43 percent resale value after five years.
Top hybrid cars (non SUVs) are the 2013 Ford Fusion Hybrid (59 percent after three years, 45 percent after five), 2013 Lexus ES 300h (44 percent after three years, 61 percent after five), and the 2013 Honda Civic Hybrid (58 percent after three years, 44 percent after five).
According to KBB, the top 5 new vehicles (for 2013) with best overall resale value after 5 years are as follows:
- Toyota FJ Cruiser (63%)
- Toyota Tacoma (57%)
- Jeep Wrangler (55%)
- Honda CR-V (51%)
- Toyota 4Runner (49%)
As you can see, the list is dominated with pickups and sport utilities. The top sedan was the Honda Civic (#9 on the list) at 47%.
Do you consider resale value when buying a car?Hybrid SUV Resale Value