xcel
04-13-2007, 09:15 AM
“You need to decide whether you'll make the extra cost back in gas savings over the next few years.” (http://www.ajc.com/living/content/living/stories/2007/04/11/0414sbeclark.html)
http://www.cleanmpg.com/photos/data/501/Prius_II.jpgClark Howard - Atlanta Journal-Constitution - April 11, 2007
With gasoline prices hovering at or around $3 a gallon and no relief in sight, a hybrid is a better deal then you may have thought previously.
If you're thinking about buying a new car and are dreaming of ways you can help the environment at the same time, here's a tip for you: Hybrid cars are one of the best deals in the industry right now.
A hybrid vehicle has both an internal combustion engine that runs on gasoline and an electric motor that recycles energy that's usually
For the first time, we're starting to see ads for Toyota Prius hybrids with prices listed. This is a huge departure from the past, when the ads only said, "We have them available!" That was when the company couldn't make them fast enough to meet demand and getting a Prius involved ordering one and waiting for it to roll off the production line. But now, with more of them coming onto the market, dealers are getting a bit more competitive.
There are also more hybrids to choose from. Along with Toyota's Prius and Camry hybrids, there's the Highlander hybrid; the Lexus sport utility hybrid; Saturn and Nissan hybrids; a Ford Escape hybrid; and Honda Civic and Accord hybrids. As the number of models continues to grow, prices are moving down as much as $4,000 off last year's peak prices. Carsdirect.com is now quoting discounts below the manufacturers' suggested retail prices.
Hybrids are a good buy now because the demand for them has slacked off. There's a certain percentage of people who are into new technology and the environment, and they've already gotten their hybrid cars. The market has moved on, and it now has to attract ordinary car buyers.
But what stands between many buyers and a hybrid is, in most cases, the money. I had a question about this just last week. A listener of my radio show was trying to decide if it was worth spending an extra $5,500 to get a hybrid instead of a standard car. So let's do the math.
Look at the hybrid you're interested in and see how many miles per gallon it gets. Let's say it gets 40 mpg, and you drive about 15,000 miles a year. Take the 15,000 miles and divide by 40 to see that you're using 375 gallons. If gas costs $2.50, you'll spend $937.50 a year on gas with the hybrid.
Now let's say you're also looking at a gas-engine car that gets 20 miles per gallon. Driving 15,000 miles a year, you'll put 750 gallons in the tank. At $2.50 a gallon, you'll spend $1,875 on gas.
Compare the gas savings and see how they measure up against the price difference. Also, figure in how many years you're likely to keep the car. Right now, people do have a good chance of making up the price difference, since it's likely that gas prices will trend higher and higher. So there is a point at which the extra cost for a hybrid is worth it. You need to decide whether you'll make the extra cost back in gas savings over the next few years.
Another factor that may sway you is that you can get a temporary tax break for buying a hybrid. The amount you actually save depends on the vehicle you buy. It can be as high as $3,000 or as low as $250, depending on the make and model. To see the list, go to www.irs.gov and type in the search area: "hybrid tax credit."
Because hybrid vehicles cost more than vehicles with equivalent gas engines, they are harder to sell. But that price gap is slowly shrinking. And if gasoline prices go up significantly, buyers will clamor for the hybrids again. So right now, there's a sweet spot in the market for anyone considering the purchase.
http://www.cleanmpg.com/photos/data/501/Prius_II.jpgClark Howard - Atlanta Journal-Constitution - April 11, 2007
With gasoline prices hovering at or around $3 a gallon and no relief in sight, a hybrid is a better deal then you may have thought previously.
If you're thinking about buying a new car and are dreaming of ways you can help the environment at the same time, here's a tip for you: Hybrid cars are one of the best deals in the industry right now.
A hybrid vehicle has both an internal combustion engine that runs on gasoline and an electric motor that recycles energy that's usually
For the first time, we're starting to see ads for Toyota Prius hybrids with prices listed. This is a huge departure from the past, when the ads only said, "We have them available!" That was when the company couldn't make them fast enough to meet demand and getting a Prius involved ordering one and waiting for it to roll off the production line. But now, with more of them coming onto the market, dealers are getting a bit more competitive.
There are also more hybrids to choose from. Along with Toyota's Prius and Camry hybrids, there's the Highlander hybrid; the Lexus sport utility hybrid; Saturn and Nissan hybrids; a Ford Escape hybrid; and Honda Civic and Accord hybrids. As the number of models continues to grow, prices are moving down as much as $4,000 off last year's peak prices. Carsdirect.com is now quoting discounts below the manufacturers' suggested retail prices.
Hybrids are a good buy now because the demand for them has slacked off. There's a certain percentage of people who are into new technology and the environment, and they've already gotten their hybrid cars. The market has moved on, and it now has to attract ordinary car buyers.
But what stands between many buyers and a hybrid is, in most cases, the money. I had a question about this just last week. A listener of my radio show was trying to decide if it was worth spending an extra $5,500 to get a hybrid instead of a standard car. So let's do the math.
Look at the hybrid you're interested in and see how many miles per gallon it gets. Let's say it gets 40 mpg, and you drive about 15,000 miles a year. Take the 15,000 miles and divide by 40 to see that you're using 375 gallons. If gas costs $2.50, you'll spend $937.50 a year on gas with the hybrid.
Now let's say you're also looking at a gas-engine car that gets 20 miles per gallon. Driving 15,000 miles a year, you'll put 750 gallons in the tank. At $2.50 a gallon, you'll spend $1,875 on gas.
Compare the gas savings and see how they measure up against the price difference. Also, figure in how many years you're likely to keep the car. Right now, people do have a good chance of making up the price difference, since it's likely that gas prices will trend higher and higher. So there is a point at which the extra cost for a hybrid is worth it. You need to decide whether you'll make the extra cost back in gas savings over the next few years.
Another factor that may sway you is that you can get a temporary tax break for buying a hybrid. The amount you actually save depends on the vehicle you buy. It can be as high as $3,000 or as low as $250, depending on the make and model. To see the list, go to www.irs.gov and type in the search area: "hybrid tax credit."
Because hybrid vehicles cost more than vehicles with equivalent gas engines, they are harder to sell. But that price gap is slowly shrinking. And if gasoline prices go up significantly, buyers will clamor for the hybrids again. So right now, there's a sweet spot in the market for anyone considering the purchase.