America’s Hybrid Hype Has Hit the Used Market
Used hybrid vehicles are seeing a surge in demand and price, with some models selling for more than their new counterparts. This trend is driven by rising gas prices and a supply shortage of new hybrid models.
Why it matters
The shift highlights how economic pressures and fuel costs are fundamentally altering consumer behavior in the automotive market.
Some used vehicles are listing for $3,000 to $6,000 above brand-new dealership prices, according to new data from the online automotive marketplace CarGurus. The months-old cars are aging like fine wine.
The crossover SUV—one of the top-selling in the US—went all-hybrid last year, after Toyota announced it would drop the gas-powered model from its lineup. That’s likely why we’re catching a glimpse of an economic Upside Down. Kevin Roberts, director of economic and market intelligence at CarGurus, says the situation reminds him of the pandemic-era chip shortage, when a supply crunch for new cars also drove up used prices, and buyers flipped them months later for a profit.
“Hybrid demand is so strong, the Rav4 is still in that 2021 world,” he says. Toyota can’t make new models fast enough.
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