Hybrid Economics – No

From 3arf

No, in fact, all data shows that hybrid cars have a lower resale value. While there are some rational reasons why some people decide to purchase hybrids, the only economic sense that can be made is if there are enough artificial incentives piled on the deal to make it advantageous for in a particular set of circumstances. No one has commented that hybrid cars have a higher resale value because there are no facts or evidence that they do. Even with the recent $4-dollar-a-gallon-plus event, the payback over time for purchasing a hybrid vehicle over a gasoline-burning vehicle far exceeded normal logic. I am assuming that we are also including battery-powered plug-in vehicles in this subject, even though they are not hybrids and have their own set of reasons why they are not an economical alternative.

With the exception of gasoline-engined and diesel-engined vehicles, the hybrid and electric vehicles are in an immature state of development, if not as vehicles alone certainly from the perspective of the infrastructure to support them. As an example, in the early 1980's I drove a prototype small motor-home which was diesel-powered. I had to learn which gasoline stations in my area also had diesel, and cross-country trips were planned around truck stops as most normal stations did not carry diesel. Additionally, as owners of more obscure brands know full well, if you are driving a vehicle that is not a normal high-volume model you can count on being at least temporarily stranded in the event of a failure on the road.

Even the somewhat common 2000 Chevrolet Corvette presented me with an issue when a large chunk of concrete destroyed on of its run-flat tires. Because no normal tire store stocks these items, a Saturday morning blow-out turns into a weekend stay and a Monday afternoon or Tuesday resumption of the weekend drive. Can we imagine what faces the driver of a helium-powered car; or one who bought one of the multiple variants of battery or hybrid-stack powered alternatives. Even closer to home, the electrical power grid is not capable of absorbing more than a few (statistically) recharging vehicle units in a period of time, and since to efficiently recharge the battery plug-in versions a 240-volt circuit is recommended, most homes will require some requiring in order to handle the load and type of plug.

The free market has spoken to us about this over the last months, and while it is admirable that those who are interested in ecology, global warming, green power and the like have ventured down that sparky road; the economics of hybrid or electrical personal daily use vehicles have leveled out such that resale values (and indeed the sale of new cars powered with these choices) have dropped below that of the good ol' gas-burner and its soot-belching cousin the diesel.

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