Fleet News

Hybrid becomes mainstream choice

Hybrid vehicles are now being treated as mainstream choices by buyers in the new and used car market, which is driving residual values to new highs, experts claim.

Average residual values for all hybrid vehicles over the benchmark fleet replacement cycle of three years/60,000 miles are now 36.5% of new cost compared to 36.9% for petrol and 36.8% for diesel.

Mark Cowling, business development director of residual value experts CAP revealed to a group of industry experts that values for the Prius can be up to 50% higher than the equivalent diesel or petrol vehicle.

This reflects its higher front end cost, but also the confidence of willingness of buyers to opt for a green model.

The Fleet News online running costs database confirmed the claim, with figures for the base model Toyota Prius showing it is worth £7,500 or 42% of its £17,712 taxable value after three years/60,000 miles, equivalent to 17.02 pence per mile depreciation.

By contrast, the Toyota Avensis T3-S D-4D is worth just £5,350 or 30% of its £17,930 P11d price after the same benchmark, losing 20.96ppm.

Mr Cowling, speaking at the ICFM annual conference, told delegates: “The Prius has returned residual values 50% higher than some petrol or diesel equivalents.

"They can make sense.

“There is clearly an appetite for these greener cars and everyone has a role to play in talking to the industry to get the message across.”

Industry consultant Colin Tourick said: “Most of us would have been surprised to see such high residual values for hybrids and I think there is a role for CAP working with manufacturers to raise awareness of the current position.”
 

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