Wednesday 13 June 2012

Hybrid car vs Normal car resale mismatch

Hybrid cars are the current wave and the buyers who were willing to try out new technology bought hybrid cars. In Malaysia it can be seen as an upcoming trend however there is a gross mismatch.
What I mean by mismatch? I mean the mismatch in resale of the hybrid cars versus resale of normal gasoline powered cars. The problem here in Malaysia is with the used car dealers. The new car dealers are busy promoting hybrid cars as it helps them boost their monthly sales but they also need the used car dealers to do the trade-in for older cars. This is not a problem when the car to be traded in is a normal gasoline powered car. The problem comes when the car to be traded in is a hybrid. This also applies to people trying to sell their hybrid cars.
Used car dealer usually refuse to accept used hybrid cars or offer very low trade in values for hybrids because they do not want to bear the risk of a hybrid car with a dying hybrid battery or a hybrid battery that is due for replacement. As we all know the cost of replacing a hybrid battery can run anywhere between US$2,000 to US$3,000. This will effect the profitability of the used car and also whether the buyer of a used hybrid car is willing to bear the risk themselves. This is an ongoing debate and very serious impending problem.

Many people may not realize this now but when they try to upgrade or buy a new car by trading in or selling their current hybrid car will face this problem. My question is, how long will it take before the used car market will accept hybrids without the massive reduction in residual value? And for those car owners who are very concerned about residual values, will this make them think twice about buying a hybrid car?

No comments:

Post a Comment