Do hybrid cars hold their value?

If you are thinking of buying a hybrid car, you may be wondering if it will hold its value. Do hybrid cars depreciate faster than petrols and diesels? Or do hybrid cars have good resale values? This Carwow guide will give you the answers.

Do hybrid cars hold their value?

The short answer is, yes, hybrid cars hold their value. The longer answer is that whether a hybrid holds its value depends on all sorts of factors – being a hybrid is just one of them.

An added complication is that there are several different kinds of hybrid. You may have heard some cars referred to as mild hybrids. These don’t run on electricity, even for short distances, but the starter-generator can take some strain from the engine to improve fuel economy and lower emissions.

Hybrids that have an electric motor and a petrol or diesel engine are often called full hybrids or self-charging hybrids. These can travel short distances on electricity, but more often rely on a combination of electric power and the internal combustion engine, usually a petrol.

Plug-in hybrids are much like full hybrids, but with bigger batteries that allow for travelling tens of miles on electricity alone. Unlike self-charging hybrids, you can plug these in to top them up from your home, workplace, or dedicated public charger.

Used values will vary between these different types.

Factors affecting hybrid car value

There are many factors which affect the value of hybrid cars. Some are the same as those that apply to all cars, some relate to the hybrid system.

Make and model
All hybrids are not created equal, and some models are more popular on the used market than others. Prestige hybrids and hybrids with an SUV body tend to hold their value well, for example.

Range
For plug-in hybrids in particular, range can be a big factor in a buyer’s decision. The longer the all-electric range, the more appealing a plug-in hybrid will be. So, all else being equal, a hybrid with a long battery-powered range will be worth more than one with a short range.

Reliability
Used car buyers tend to be more conservative than new car buyers and need a bit of convincing to go for something different. This type of buyer will be more comfortable buying a hybrid from a car maker with a good track record for reliability, such as Toyota.

Fuel economy and emissions
Low fuel bills and a smaller carbon footprint are key reasons for choosing a hybrid over other types of car. The better the economy and the lower the emissions, the stronger the appeal of a hybrid model to used car buyers.

Warranty
Demand is stronger for used hybrids with some warranty remaining. So, if you are buying new but with one eye on the future resale value of your car, compare the warranty duration before settling on a particular make and model.

Service history
Those conservative used car buyers generally want the reassurance of a comprehensive service history if they are going to switch to a hybrid car. Servicing the car on time will help keep the resale value healthy.

Condition
Just like any car, a hybrid that looks clean and cared for inside and out will be worth more than one that shows signs of a hard life.

Which hybrid cars have the best resale values?

1. Land Rover Defender

Land Rover was late to the hybrid party, but now that petrol-electric models are available there’s a willing queue of buyers. For a big, heavy 4×4, the Defender hybrid has low emissions and sensible running costs. It’s a highly desirable car, whatever type of engine drives the wheels, which helps minimise depreciation and keep resale values healthy.

2. Toyota RAV4

Toyota has been building hybrids much longer than most other manufacturers. The RAV4 is Toyota’s hybrid SUV, a style of car that’s popular with new and used buyers alike and so holds its value well. The RAV4 also has the reassurance of a warranty that can last up to 10 years so long as the Toyota is serviced by a main dealer.

3. Honda Jazz

The Honda Jazz holds its value well. The petrol-electric hybrid delivers excellent fuel economy for running costs that other small cars struggle to match. It’s also a very reliable car. Both factors help keep used values strong and make the Jazz an excellent choice if you are looking for a small hybrid car with slow depreciation.

Benefits of hybrid cars

There are many benefits to choosing a hybrid car. Here are some of the most important advantages:

Fuel economy
Hybrid cars are typically very economical, especially around town where the cars can top-up their batteries while slowing down and braking. The fuel efficiency argument isn’t so compelling if you regularly tackle long motorway journeys – although out of favour, a diesel may be more economical than a hybrid on a lengthy drive with sustained high speeds.

Emissions
By capturing energy that would otherwise be lost while braking and using it to help power the car, hybrids have low carbon dioxide emissions because the internal combustion engine doesn’t have to work so hard.

Long range without recharging
Unlike electric vehicles, hybrids can refuel quickly with petrol or diesel. There’s no need to interrupt journeys for long periods to recharge the battery.

Strong resale values
Hybrids in general enjoy a more positive reception on the used market than electric cars, which some drivers still view with suspicion. This contributes to strong resale values for hybrids, as buyers like using less fuel and reducing emissions without taking on the compromises (whether perceived or real) of running an EV.

Hybrid car value FAQs

Do hybrid cars depreciate faster?

No. Hybrid cars don’t depreciate quicker than other cars, the opposite is more likely. Hybrids may have been out of the ordinary 20 years ago, but they are firmly within today’s motoring mainstream. There’s strong demand for an efficient used hybrid, so they don’t depreciate quickly.

Do plug-in hybrids hold their value?

Yes, like other types of hybrid, plug-in cars tend to hold their value well. However, to make the most of a plug-in hybrid it’s important to have somewhere to recharge regularly and cheaply. It really helps to have a driveway or garage where a charging point can be installed.

Are hybrid cars expensive to maintain?

You might think so. After all, having two sources of power means twice as many parts to be serviced, doesn’t it? In practice that’s not the case. The electrical components need very little maintenance and take the strain off the engine, reducing wear and tear to mechanical parts.

Looking for an easy way to change your car? Then Carwow is the place to go. You can sell your old car for a great price, and get the best deals on a new one. All through our network of trusted dealers and all from the comfort of your home. Tap the button below to get started today.