With rising gas prices and climate change concerns, hybrid SUVs have become an increasingly popular choice for car buyers looking to save on fuel costs while still having the cargo and passenger space of an SUV. Many automakers now offer hybrid SUV models, but not all are created equal when it comes to long-term value retention and return on investment. When purchasing a hybrid SUV, it’s important to consider resale value, reliability, maintenance costs, and technology. By evaluating these key factors, buyers can determine which hybrid SUV models are likely to offer the best long-term investment in 2023 and beyond.
Toyota hybrid SUVs offer strong value retention
Toyota has been a leader in hybrid technology for over two decades, and their expertise shows in the resale value of their hybrid SUVs. The Toyota RAV4 Hybrid, Highlander Hybrid, and Venza consistently rank among the highest for retained value after five years of ownership according to Kelley Blue Book. This is attributed to Toyota’s reputation for reliability, lower maintenance costs, and high consumer demand even after years on the market. The RAV4 Hybrid in particular stands out, retaining around 60% of its original value after 5 years. For those looking to invest in a hybrid SUV that will minimize depreciation, Toyota models are a smart choice.
Upscale luxury hybrid SUVs bring premium features
Luxury car makers like Lexus, BMW, Mercedes-Benz, and Audi offer hybrid SUV models that provide upscale amenities and features while still offering improved fuel efficiency over their gas-only counterparts. These premium hybrid SUVs come at a higher upfront cost, but can be a wise investment for those who prioritize comfort, technology, brand prestige, and driving performance. The Lexus RX 450h and NX 450h+ stand out with their ultra-quiet cabins, cushy ride quality, and standard advanced driver assistance features. The BMW X5 xDrive45e also earns high marks for its engaging driving dynamics and zippy acceleration. While more expensive, luxury hybrid SUVs often retain value well and provide an elevated ownership experience.
Newer hybrid SUV models maximize efficiency
Automakers are continuing to refine hybrid SUV technology, with newer models like the Ford Escape Hybrid, Hyundai Tucson Hybrid, and Kia Sportage Hybrid offering improved fuel efficiency over earlier hybrids. These latest hybrid SUVs can deliver EPA ratings over 40 mpg combined, meaning greater potential savings on gas. Newer models also come with the latest tech features like large touchscreens, advanced safety equipment, and smartphone integration. Opting for a 2022 or 2023 hybrid SUV model can provide better fuel efficiency and a more modern ownership experience compared to hybrids from just a few years ago. This makes newer hybrid SUVs like the Escape and Tucson strong investment options.
Used hybrid SUV values dip after incentives end
One aspect to be aware of with hybrid vehicle values is that resale prices may dip a few years after release when tax credits and purchase incentives expire. For example, used values of the Toyota Prius dropped more quickly after the federal tax credit was phased out. With used hybrid SUVs, targeting models that are 3-5 years old when tax credits have expired can represent good value. The vehicle will likely have taken the biggest depreciation hit already, while still having plenty of useful life left. Those looking for the best hybrid SUV investment value may want to focus on gently used models rather than brand new.
Hybrid SUVs can be excellent investments in 2023 and beyond due to their fuel efficiency, retained value, and lower environmental impact. Models from Toyota, Lexus, Ford, Hyundai and Kia stand out for their combination of lower ownership costs, utility, and increasingly advanced technology. Savvy hybrid SUV buyers should consider resale value, reliability, tax credit eligibility, and overall ownership costs when choosing which hybrid SUV investment makes the most financial sense for their needs.