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I've been concerned recently that gas prices are going to have a detrimental impact on the 'perception' of hybrid value. That is to say the premium for hybrids now is close to $4k, let's say (e.g. Altima). And that value is expected to drop with improved technology of battery & other components, and increased scale. However as gas $ increases and the sales trend towards hybrid increases, and supplies are still limited, we have a fairly straightforward supply-demand issue. The manufacturers are likely to increase the profit margin, which is quite slim currently, in response to demand. Already happening with the Prius, right? So the premium may not drop significantly and that could affect the ongoing debate which is still heavily influenced by the economic 'pay-back time' issue.

I'm just worried about a backlash when hybrid prices continue to seem much higher than the nearby options.

Am I missing any important counter-points?

Rather than drop at all, I would expect hybrids to get rather more expensive if gas keeps going up. The MSRP probably won't change much, but if a dealer has a limited supply and good demand, they can hike the price as high as they want and wait for the sucker who will pay that price. You are correct, simple supply and demand.

You can get a great deal on a pickup truck. ;)

However there is a lot of tech in hybrids which is quickly getting cheaper. Right now, the manufactures are still pushing better tech, but at some point it should be getting good enough, and they can start going with cheaper tech.
If I has to buy my hybrid again today, and I actually had a choice between a better car (more battery charge; higher EV speed), or an identical car for less. I'd probably get the better car. I don't think the tech is good enough yet.

However if Toyota put the Prius and HiHy out for fairly minimal profits while the perfected the tech, I certainly don't mind them upping the price now that the cars have really proved themselves. I'm concerned that my hybrid's value will decrease as rapidly as other similar ICE vehicles once PHEV comes out. On the other hand, I really want PHEV.

The near by options may also see a climb in price too keeping the spread similar, who knows?

But at a gas price of $4 the HCH vs gas Civic comparison looks in favor of HCH even with a bigger spread, hope production can keep up.

Never pay more than MSRP on anything. And.....never buy or sell in a panic....unless what you are buying is worthless to most...or whatever you are selling is valuable to most. This is how the rich get richer, and the panicing masses become....panicing poor masses.

FYI my TDI is worth more than i paid used in early 2006. Only a fool would buy it for more than i paid, but theres a lot of fools out there.

Never pay more than MSRP on anything. And.....never buy or sell in a panic....unless what you are buying is worthless to most...or whatever you are selling is valuable to most. This is how the rich get richer, and the panicing masses become....panicing poor masses.

FYI my TDI is worth more than i paid used in early 2006. Only a fool would buy it for more than i paid, but theres a lot of fools out there.

That doesn't really make sense. The MSRP is only a suggestion. What your car is worth now is only what people are willing to pay. Your TDI is worth more because they can't get one cheaper because it is in demand.

This is unusual in automobiles, but is similiar to Real Estate. Your TDI has increased in value, because replacemet cost has risen and they aren't making any just yet. When the new Jettas come out with a higher price tag, your TDI will hold it's value not because of what you paid for it, but because of what the new one's cost.

That doesn't really make sense. The MSRP is only a suggestion. What your car is worth now is only what people are willing to pay. Your TDI is worth more because they can't get one cheaper because it is in demand.

This is unusual in automobiles, but is similiar to Real Estate. Your TDI has increased in value, because replacemet cost has risen and they aren't making any just yet. When the new Jettas come out with a higher price tag, your TDI will hold it's value not because of what you paid for it, but because of what the new one's cost.

I was responding to the fact that some dealers want $4k premiums on TDIs this fall, new Prius, new HCH, etc. That is a bad economic move if you are paying premiums on msrp.

If you think a diesel car is in high demand because there are none on the market, i think that is a false assessment.....as i drive by the pump where 87 is $3.59 and D2 is $4.39. I think its based on that fact that it gets 50mpg regardless of the fuel and its thrown in the group of cars holding (or increasing in my case since i bought used and now its worth more used) values like Prius, HCH and TDI.

whatever the prices are doing I am glad I got my two Prii and that we got decent prices. Had we watied even another month that may not have been the case.

I expect to keep both of them till 150K miles. That would be around 10 years give or take. The wifes car would take 13 or more to have that mileage. I hope they both continue to operate as they do now. If history of the cars so far is any judge then I will see just that.

Im one of the lucky ones