We all know even a gently used car can lose so much value in its first year that buying it sometimes seems like a good idea. But what about hybrid cars? Used hybrids are bit different atleast from financial perspsectives. Here are some factors to consider, including depreciation, maintenance costs and insurance.

Hybrids have been around long enough, and there are enough used hybrid car in the market these days. Hybrids tend to lose their value faster than conventional cars, and their value really starts to plunge as they approach the end of their “hybrid components” warranty. That is because warranties on the battery and other hybrid features are typically eight years and 80,000 miles. So sometimes it pose a financial risk to buy a hybrid vehicle.

Hybrid cars are sold at a premium price over other cars. Combined with their faster depreciation, higher maintenance costs and higher insurance premiums, that tends to eat up most or all of their fuel money you save over a few years of ownership.

Honda Civic hybrid can be worth only 60% of its manufacturer’s suggested retail price after you use it for two years. Fast depreciation is a double-edged sword. You get the used car cheaper, compared against its original sale price, but you can’t get as much when you eventually sell. That can mean a higher overall cost of ownership, which offsets any fuel savings.