America’s Hybrid Hype Has Hit the Used Market Leave a comment
Standard knowledge is that automobiles are unhealthy investments. Drive one off the lot, and it begins dropping worth the minute its wheels contact the street. That makes what’s taking place with the 2026 Toyota Rav4 downright bizarre.
Some used autos are itemizing for $3,000 to $6,000 above brand-new dealership costs, in keeping with new knowledge from the net automotive market CarGurus. The months-old automobiles are getting old like high-quality wine.
The crossover SUV—one of many top-selling within the US—went all-hybrid final yr, after Toyota introduced it could drop the gas-powered mannequin from its lineup. That’s probably why we’re catching a glimpse of an financial Upside Down. Kevin Roberts, director of financial and market intelligence at CarGurus, says the scenario reminds him of the pandemic-era chip scarcity, when a provide crunch for brand spanking new automobiles additionally drove up used costs, and patrons flipped them months later for a revenue.
“Hybrid demand is so sturdy, the Rav4 remains to be in that 2021 world,” he says. Toyota can’t make new fashions quick sufficient.
The leaves are altering, and America’s sizzling hybrid summer time has turn into a toasty hybrid autumn, for brand spanking new automobiles and for previous ones. Toyota reported this month that its hybrid gross sales are up 29 p.c within the third quarter of 2026; Kia mentioned its gross sales greater than doubled. Practically one in six new US automobiles bought is a hybrid, in keeping with Cox Automotive knowledge.
“The American market has a fame for gasoline guzzlers, however we’re beginning to shake that fame due to how a lot we like hybrids,” Roberts says.
The most important driver is gasoline costs. They’ve skyrocketed for the reason that begin of the Iran conflict and the following battle within the Strait of Hormuz, a world middle of oil and gasoline manufacturing and delivery. Nationally, a gallon prices a median of $4.40, up 40 p.c from this time final yr, in keeping with AAA; Californians pay a median of $6.36. Automobile patrons are a easy bunch, Roberts says—when costs begin rising, they instantly search for extra fuel-efficient automobiles. Quickly, drivers truly begin shopping for them.
For now, struggles within the US electrical car market are hybrids’ acquire. New EV gross sales are down by nearly half from final yr, after the Trump administration minimize a federal tax credit score that made the often-expensive powertrains extra reasonably priced. In contrast to electrics, hybrids don’t essentially power drivers out of their acquainted gasoline station routines. (Even plug-in hybrids generally want a gasoline top-up, although good house owners rely totally on electrical energy.) Lastly, extra hybrids can be found now than earlier than. A purchaser fascinated with almost each main form of passenger car—three-row SUVs, pickups, minivans, or luxurious automobiles—can discover one with the powertrain
Curiosity has unfold to the used market, the place hybrid costs are up nearly 5 p.c over final yr, in keeping with the automotive knowledge web site iSeeCars.com. At $34,500, the typical value of used hybrids is greater than used EVs or gas-powered automobiles. Used patrons appear to be particularly eager on long-term gasoline financial savings.
