Hybrid values plummet
It is all about supply and demand. I find it amazing how often we as a nation forget that. If we would just look back at history we would see it glaring at us. Gas prices have dropped. We stopped consuming at such a high rate and started figuring out ways to save. Suddenly the demand has dropped so much that the price of gas has fallen from $4.00 a gallon to in some places $1.50. All of that screaming about windfall profits was a joke. The profits were not the problem, supply and demand was. Now that America has cut back on our fuel consumption we see gas drop and at a record rate.
This brings me to my point of this post, the hybrid. For those of you who paid crazy dollars for hybrids when gas went up don’t look now. In fact ignorance may be bliss and not reading the remainder of this post may help you. It can be very depressing. I have access to Manheim auctions. This is the largest Auto Auction chain in America. They have at least one auction in every major city in the US. Three to four months ago I watched the Toyota Prius Hybrid bringing more at auction for used vehicles than the invoice was on a new vehicle. 2008 models were selling for $28,000 at the auction simply because people would pay more for a barely used Prius to get it now rather than wait for six months to get the new one they ordered. A Prius identically equipped just four months later sold for $10,000 less. $18,000 was the consistent price for that vehicle. This means that if you gave $30,000 plus to a dealer for that over priced Prius it has dropped in value $12,000 in just four months all because of supply and demand. Trade value is now $18,000. I feel for you if you were suckered into over-paying for your hybrid, however, you can learn from this. Don’t buy with emotion. Buy smart. Be willing to wait for the best deal. You will never make up the $10,000 you wasted in fuel economy. So learn from it. If you do it won’t be wasted.
Some hybrids are getting 10 to 20 miles per gallon more than a regular gas engine. Car Parts
True, they do but at $1.50 per gallon that does not amount to a huge difference. If you buy a hybrid that will get 10 to 20 miles per gallon better it will be a lesser car. You will have to settle for lower performance and overall room in the car. If you buy a Camry Hybrid as opposed to a Camry the fuel economy will not be 10 to 20 miles per gallon better. Not even close. A Toyota Yaris for example will cost nearly half what a Prius will and will get within 10 miles per gallon of the Prius’ fuel economy. The Yaris is the better bang for the buck.
The point here was simple. Don’t get worked up over high gas prices or whatever. The system will usually correct itself if we just leave it alone. Supply and demand works.