FI showroom red and grey logo
MenuMENU
SearchSEARCH

Hybrid Electric Vehicle Sales Soften, NADA Reports

Hybrids retain less of their original value than their non-hybrid counterparts, and steady gas prices and improving fuel economy will make hybrids less appealing to consumers, the NADA reports.

by Staff
July 8, 2014
2 min to read


MCCLEAN, Va. — Vehicle sales for both new and used have more than weathered the harsh winter storms from earlier this year. The one segment that hasn’t, according to the National Automobile Dealers Association, is hybrid electric vehicles.

The new vehicle seasonally-adjusted annual rate (SAAR) from March through May averaged more than 16 million units, the first time such a streak has occurred since the onset of the recession. The report also noted that May’s SAAR of 16.7 million was the highest figure recorded in more than seven years.

Ad Loading...

New-vehicle sales, overall, were up 5% in the first five months of 2014, while used-vehicle demand drove up the average price of used vehicles up to 8 years old by 0.5% from April to May. The prices of used cars in that time were nearly 3% higher than they were last year.

Sales of hybrid electric vehicles, however, were down 10% year to date. Sales of Toyota’s Prius were off by 19% and deliveries of the smaller Prius C were down by 1%.

“The drop in hybrid sales amid a market that’s expanding overall means that share for the group has also contracted,” the report read, in part. “Hybrid share of total new-vehicle sales has fallen from 3.1% in 2013 to 2.9% this year, which is the first non-production related decline recorded since 2010.”

Hybrids also retain less of their original value compared to internal combustion engine (ICE) models, with the Prius usually being an exception. That has since changed. Last year, one-year-old Prius retention fell to 70%, three points lower than the Corolla’s 73%. And so far this year, Corolla retention stands at 75%, six points above the Prius’ 69%.

“The recent softness in new hybrid sales and the moderation in used-price depreciation over the past couple of years can largely be tied to relatively consistent gasoline prices and the improved fuel efficiency of ICE models,” the report said.

Ad Loading...

Going forward, the NADA forecasts that hybrid depreciation will remain higher than depreciation for ICE vehicles. Gas prices are expected to remain at current levels, and with the push for all vehicles to improve fuel economy, “hybrids will likely be more challenged to woo new consumers into the EV fold over the coming years.”

More F&I

Photo of notepad and pen next to computer keyboard on desktop
F&IApril 13, 2026

Control in Sales Is an Illusion

Some of it should be given to the customer, but that doesn’t mean the F&I office relinquishes the process. In fact, a different approach both builds trust and boosts sales.

Read More →
Photo of external keyboard on office deak next to window
F&IApril 7, 2026

The Limited Warranty Game

Bringing it in-house benefits the dealership and its customers.

Read More →
Woman in casual clothing sitting at a desk
F&Iby Rick McCormickMarch 31, 2026

Curb The Confusion

Talk to F&I customers like you’d talk to a friend, without industry lingo or sales-like questions, and use hard proof to show, not tell, them about a need.

Read More →
Ad Loading...
Photo of man's hand on laptop computer keyboard with blank screen
F&IMarch 16, 2026

There Is Always one More Product

Helping F&I customers understand complementary offerings is likely to lead to more sales, based on the success of a high-performing practitioner of the philosophy.

Read More →
REGISTER FOR EFI 2026
F&Iby Kate SpataforaMarch 16, 2026

EFI Conference Extends Early Bird Discount as Room Block Nears Capacity

Ethical F&I Manager's Conference will take place at The Cosmopolitan Las Vegas on April 13–15, 2026.

Read More →
Industryby StaffMarch 6, 2026

Explore the 12 Rules for an F&I Life at EFI

EFI 2026 will take place April 13–15 at The Cosmopolitan Las Vegas.

Read More →
Ad Loading...
F&IMarch 4, 2026

Creating Your Own Economy

In this video, Reese Dailey explains how effective follow-up drives better results across the dealership, including increased sales, higher F&I penetration, and stronger customer retention.

Read More →
Industryby StaffMarch 2, 2026

Prove You Can Do F&I at EFI

‘So You Think You Can Do F&I’ is a live role-play contest taking place at the 2026 Ethical F&I Managers Conference.

Read More →
Image of two human hands, one holding the word yes, the other the word no
F&Iby Hannah MitchellMarch 1, 2026

Expect Yes in the F&I Office

It may be human nature to back off when a customer seems to say no to a product or service. But experts say F&I managers should operate as though the answer will be the opposite.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →