Hybrid Car Prices

Used-Car Prices Set to Plunge for High-MPG Cars

As gas prices rose toward $4 a gallon, prices soared for used cars with high gas mileage. But now with pump  prices having fallen back, those used-car prices have backed off and could be down by 15% by the end of the year, according to analysts at Kelley Blue Book.

It turns out that Americans’ focus on high-mileage cars has been, typically, short-lived: Edmunds.com reports that June sales of hybrid and electric vehicles like the Toyota Prius (right) were down 17% below May sales, hitting the lowest level in more than six years.

The Kelley Blue Book web site reports that prices for fuel-efficient compacts and subcompacts dropped 1% to 2% in June — about in line with the overall used-car market. But analysts project that overall prices — which have been up sharply this year — will go down only about 3 to 5% more by year’s end, while small, high-MPG models will drop an average 15%.

Why the turnaround? Used-car prices rose this spring in reaction to both near-record gas prices and supply shortages resulting from the Japanese earthquake and tsunami. Those shortages hit high-MPG cars produced in Japan in particular; as a result, prices on fuel-efficient used cars jumped. Now, however, Toyota, Nissan and other Japanese automakers say they expect to resume full production by September — hence the falling price forecast as supply eases.

The Kelley Blue Book projections are based in part on past sales patterns. “If we look back at 2008, when gas prices hit $4 a gallon, we can foresee drops during the next few months,” says Alec Gutierrez, KBB’s manager of vehicle valuation. After gas prices peaked in 2008, used, fuel-efficient models dropped some 40% in price. However, there are significant differences now from 2008:

But even a 15% drop is good enough reason to bide your time if you are in the market for a high-MPG used car, says Gutierrez.

Elsewhere in the high-mileage market: Edmunds.

bmw data » Used Hybrid Cars

Used Hybrid Cars

Hybrid cars are fast gaining popularity nowadays. That would not be surprising considering the significant savings a car owner could generate through reduced and lesser oil and gasoline expenses.

For quite some time, car makers who develop and distribute hybrid cars in the market have been enjoying rapid growth in their already robust sales figures from hybrid cars.

That would not be surprising on the part of the industry observers who think the rising popularity of the hybrid cars are timely and long overdue.

Every week, there are almost always new rounds of oil or gasoline price hikes, making consumers and car end users want to save more and lessen their stress through investing or replacing their current cars with the new hybrid car models.

The environmental factor of the hybrid cars also make up for greater interest and eagerness on the part of the car buyers to acquire their own hybrid cars.

Hybrid cars

In the past decades, no one have imagined that the car industry segment would attain the status it is enjoying right now. Years ago, people were just dreaming of cars that would save them enough from oil and gasoline savings.

Now those fantasies are realities. Hybrid cars are starting to fold up the niche once dominated and solely dominated by the traditional and conventional cars.

Hybrid cars are easily accessible and available in the market today. It would just take a few time, probably a matter of minutes or hours to get or purchase one.

Hybrid cars are now sold in car dealers and show rooms all over the world, along with the traditional cars. Car manufacturing firms must have really been inspired to take the queue from great reviews and rising popularity of the hybrid cars among consumers and car aficionados.

Prices

Of course it follows that prices for hybrid cars are also higher and at premium compared to the prices of their traditional and conventional gas-powered counterparts.

That is because the technology used in the development and assembly of hybrid cars are still raw. Experts believe that it would still take some time before the prices for hybrids finally come down.

Hybrid car prices are really astronomical that not all consumers who plan to acquire one would be privileged enough to complete the purchase transaction.

But no worry. The hybrid cars are now also traded just like traditional or gasoline powered cars. Because there are used cars out in the market today.

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