Sell my hybrid car on Motorway

If you’re thinking of buying a hybrid, then it’s worth considering their depreciation and resale value.

Recent research shows that hybrid vehicles do have a good resale value, as they typically retain around 47% of their value after three years and 30,000 miles. Whereas petrol models only retain around 43%, and diesels about 40%.

The best performing model in 2021 was the prestige Porsche Taycan Cross Turismo – which retained more than 71% of its market value after the first three years. However, less premium models, such as the Toyota Prius and the RAV4 generally hold their value well too.

The UK Government announced in February 2020 that it will ban the sale of new fossil-fuelled vehicles, including hybrid cars, by 2030.

The decision to bring forward the deadline from 2040 was reportedly made after taking soundings from scientists on the Committee on Climate Change, who suggested that, if the UK were to meet its own decarbonisation goals, then an outright ban on non-electric vehicles and hybrids needed to be implemented by 2032 at the latest.

Following protests from hybrid car manufacturers, who must meet the tight deadline, the government relented and gave conventional models a ‘stay of execution’ until 2035. However, these models will need to demonstrate that they can achieve a ‘significant’ zero-emission distance.

This means now could be a good time to sell, as hybrids are likely to become less desirable as the 2035 cut-off approaches.

The resale values of hybrid cars are not the same as their fossil-fuel engine counterparts – largely because they achieve greater fuel mileage. Consequently, sellers of hybrid models can expect a better return than if they were selling a purely fossil-fuel car.

For example, look at the current Toyota Yaris, you can pick either petrol only or hybrid, both have the same 1.5-litre petrol engine. The automatic petrol-only model costs £17,770, add in the hybrid, and the price rises to £19,340.

Miles per gallon (MPG) for the petrol model is quoted at a minimum of 44.8. However, the hybrid is 56.4. That’s an increase of 11.6 MPG.

Whilst hybrids are cheaper to run because they’ll save you fuel, it’s not a massive amount in the grand scheme of things. However, because they are seen to be both fuel-efficient and ‘greener’ than their purely fossil-fuel counterparts, they will typically resell at a premium.

Due to their higher complexity, hybrid cars are more expensive than their fossil-fuel counterparts.

Aside from the higher purchasing cost, added tech in a hybrid car can affect maintenance costs – and if parts of the hybrid system sustain damage, they can be extremely costly to fix or replace. Most car manufacturers will offer comprehensive warranties for the hybrid parts. However, if you’re buying a second-hand hybrid vehicle and don’t have coverage, the cost of maintenance will be something you will need to consider.

Whilst the added complexity, extra weight, and higher purchase price of hybrid vehicles can be an issue, they do have higher fuel efficiency – and warranty coverage can usually remove the maintenance downsides.

Plug-in hybrid vehicles (PHEVs) are often a good option for buyers that want the fuel and emissions benefits of electric cars on short drives, but also want the peace-of-mind that comes with the support of a fossil-fuel engine for more sustained journeys.

PHEVs obviously cost more than normal fossil-fuel models, but PHEV drivers will generally not pay road tax, avoid congestion charge costs in major cities, and – assuming they keep their car’s batteries charged and only do shorter journeys – spend only about 50% of the normal petrol or diesel costs of purely fossil-fuel vehicles. They also have a ‘back up’ combustion engine, which for many drivers is reassuring. For all these reasons, PHEVs remain desirable, and most will hold their value longer than their pure fossil-fuel counterparts – therefore, they tend to resell at a premium.

When hybrid vehicles first came onto the market, they were expensive to buy due to their high-tech components and the increased cost of production. Although hybrid prices have come down, the high purchase prices are usually reflected in the sale prices of used hybrids.

Many hybrid cars offer drivers savings in running costs that make the increased purchase price worthwhile. However, some hybrids – particularly older models – will not. Consequently, these can be hard to resell without dropping the price.

As hybrid technology advances and their MPG improves, the value proposition that hybrids have seen will almost certainly increase. Which will mean that the hybrid depreciation rate will fall.

Hybrids have also been on the market for a while now and this has quelled some of the initial consumer fears about electric reliability. As the electric switchover approaches, the shifting consumer mindset towards electrification will mean that the depreciation rates of traditional fossil fuel vehicles will increase.

Recent research shows that this process has already begun – and that hybrid cars already have a better resale value – holding around 47% of their value after three years and 30,000 miles. Maintaining significantly more of their original sale price than equivalent petrol models (about 43%) and diesels (approximately 40%) over the same period and with the same number of miles on the clock.

The best performing model hybrid is the prestige Porsche Taycan Cross Turismo – which typically retains more than 71% of its original sale price after the first three years.

Cars depreciate for several different reasons – the passage of time, general wear and tear, mileage, and their technology becoming redundant will all see them lose value. Hybrids will typically do the same – and for the same reasons.

However, some hybrids – especially prestige models – can hold their value very well. The Porsche Taycan Cross Turismo typically maintains more than 71% after the first three years. This is quickly followed by the Porsche Taycan RWD at 66% over the same period.

On the more affordable side of things, the Vauxhall Mokka-e also has a slow depreciation rate, losing only around 64% in the first three years. The Volkswagen ID.4 will also maintain about 63% of its original sale price after the critical first three years.

Recent research shows that hybrids do typically have a good resale value. Normally, they retain around 47% of their value after three years and 30,000 miles. Whereas, under the same conditions, petrol models only retain around 43%, and diesels about 40%.