Hybrid and Electric Cars Take a Downturn in the Used Car Market

It's not just Americans favor SUVs and light truck over compact cars, but that a majority of EV and hybrid owners who have traded in their cars are opting for all-gas vehicles, and that spells trouble for meeting President Obama's climate goals.

2 minute read

June 27, 2016, 6:00 AM PDT

By Irvin Dawid


Electric Car

Matej Kastelic / Shutterstock

Recent research from the University of Michigan Transportation Institute (UMTRI) shows indicates that the single most effective way for American to reduce their personal greenhouse gas emissions is by changing their transportation behavior, particularly by driving less (or not at all) or driving vehicles that are fuel efficient (or emission-free).

The February report, "What Individual Americans Can Do To Assist In Meeting The Paris Agreement" [PDF] list six behavioral options (Table 2, page 9 of 28). The top two items listed by authors Dr. Michael Sivak Brandon Schoettle in reducing driving emissions are:

  • 50% reduction: Buying a vehicle that gets 50 mpg (2.00 gal/100 mi) instead of a vehicle that gets 25 mpg (4.00 gal/100 mi).
  • 10% reduction: Reducing the amount of driving by 10% without replacing it with other motorized transportation.

But since gas prices began their steady, consistent decline in the summer of 2014, vehicle efficiency has been going the wrong way. Consumers are responding to low gas prices, and it's particularly illustrated when they trade in their vehicles.

"So far this year, nearly 75 percent of the people who have traded in a hybrid or electric car to a dealer have replaced it with an all-gas car, an 18 percent jump from 2015, according to Edmunds.com, a car shopping and research site," writes Matt Richtel, technology correspondent for The New York Times.

The changing consumer patterns are in plain view at swapalease.com, a marketplace for people who want to get out of a car lease by transferring it to someone else. Dozens of hybrids and electric vehicles are available, in some cases languishing without bites from buyers.

2015 was a banner year for SUVs. Conventional hybrid vehicle sales have been on the wane since 2013 when they composed 3.19 percent of new car sales.

File:US HEV market share 1999 2014.png
Credit: Wikimedia Commons

As Dr. Sivak often reminds uscheap gas defeats fuel efficiency goals.

Richtel ends his piece on a hopeful note, pointing to the more affordable electric vehicles with extended range, such as the Tesla Model 3 and Chevrolet Bolt, entering the market next year that could change the paradigm.

Another positive note was in a June 2 email from the University of Michigan Transportation Research Institute which reports on month fuel efficiency changes.

"The average fuel economy (window-sticker value) of new vehicles sold in the U.S. in May 2016 was 25.4 mpg—up 0.2 mpg from the value for April 2016," wrote researchers Sivak and Schoettle.  "This improvement likely reflects the increased price of gasoline in May, and the consequent increased interest in more fuel-efficient vehicles by buyers of all vehicle classes."

 However, they also put that efficiency improvement in perspective.

"Fuel economy is down 0.4 mpg from the peak reached in August 2014, but still up 5.3 mpg since October 2007 (the first month of our monitoring)," they add.

Click here for a description of their calculations and the recent fuel efficiency values.

Friday, June 24, 2016 in The New York Times - Science

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

Close-up of white panel at top of school bus with "100% electric" black text.

Driving Equity and Clean Air: California Invests in Greener School Transportation

California has awarded $500 million to fund 1,000 zero-emission school buses and chargers for educational agencies as part of its effort to reduce pollution, improve student health, and accelerate the transition to clean transportation.

April 30 - California Air Resources Board

Aerial view of Freeway Park cap park over I-5 interstate freeway in Seattle, Washington at night.

Congress Moves to End Reconnecting Communities and Related Grants

The House Transportation and Infrastructure Committee moved to rescind funding for the Neighborhood Equity and Access program, which funds highway removals, freeway caps, transit projects, pedestrian infrastructure, and more.

April 30 - Streetsblog USA

"No Thru Traffic - Open Streets Restaurants" sign in New York City during Covid-19 pandemic.

From Throughway to Public Space: Taking Back the American Street

How the Covid-19 pandemic taught us new ways to reclaim city streets from cars.

April 30 - Next City