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June 30, 2010
Item #2: Hybrids Suck
Posted by Gregory of Yardale at June 30, 2010 4:42 AM
So here's the deal with a hybrid --- you pay a massive premium up front (versus the cost of a non-hybrid) --- and depreciation rapes you when you get rid of the thing.
According to a report from the UK's Glass Guide, unless manufacturers properly address customer concerns regarding battery life and performance, the new breed of electric vehicles (EV) soon to be launched will have residual values well below those of rival gasoline and diesel models, with a typical electric vehicle retaining only 10% of its value after five years of ownership, compared to gas and diesel-fueled counterparts retaining 25% of their value in that time period. According to Andy Carroll, managing director at Glass's, the alarming rate of depreciation is a function of customer recognition that the typical EV battery will have a useful life of up to eight years and will cost thousands of dollars to replace.
Where's the sense in that? After eight years, the hybrid is worth less than the mandatory Obama sticker on the bumper.