Gas Prices on the Rise, Hybrid Vehicle Prices Falling and Owner Perks Abound.
Chintan Talati and Jeannine Fallon - Edmunds - Mar. 13, 2007
2008 Ford Escape Hybrid - $25,740 TMV plus a $3,000 Federal Tax Credit makes it yet another good value in terms of “True Cost to Own” automobile ownership. If you are considering a new automobile, now is the time to consider a fuel efficient hybrid.
SANTA MONICA, Calif. - Considering a hybrid vehicle? Now is the time to buy, according to Edmunds.com, the premier online resource for automotive information. There are four key reasons shown below.
"In the past, our research showed that the True Cost to Own(SM) a hybrid vehicle was exorbitant," said Alex Rosten, Manager of Pricing and Market Analysis for Edmunds' AutoObserver.com. "However, our latest analysis indicates that, considering current hybrid price trends and rising gas prices, it is financially sound to purchase a new hybrid vehicle within the next few weeks, before the tax credits are further reduced."
- According to Edmunds.com True Market Value(R) (TMV(R)) pricing system, average transaction prices of most hybrid vehicle models are at their lowest levels in history because the supply is finally beginning to exceed the demand.
- For the first time ever, incentives are being offered on many popular hybrids.
- Certain hybrid tax credits will be lower for those who purchase later in the spring, after automakers reach specific hybrid sales targets.
- Gas prices have begun their seasonal rise. AAA recently reported that unleaded fuel is up 32 cents per gallon compared with one month ago.
The following chart sets forth pricing comparisons that illustrate the advantage of buying a hybrid vehicle today versus three months ago:
|Year||Make||Model||Dec. 2006 TMV(R)||Mar. 2007 TMV||Dec. - Mar. Change||Tax rebate available to buyers today||Tax Rebates available to buyers beginning in April, 2007|
"Hybrid vehicles have always been a compelling choice for drivers who want to save fuel and to drive an environmentally friendly car," said Philip Reed, Senior Consumer Advice Editor at Edmunds.com. "While buyers used to pay a premium for hybrids, now the vehicles are more affordable and there are a number of additional benefits."
Additional benefits of hybrid ownership include:
- Government Tax Credits and Rebates - Federal, state and local governments provide various incentives for consumers to purchase hybrid vehicles.
- HOV/Carpool Lane Driving - Some state governments permit hybrid vehicles in High Occupancy Vehicle (HOV) lanes and carpool lanes even if the driver is alone in the car.
- Free Parking - Some local governments and other organizations (such as the Fairmont Hotel in San Jose, Calif.) provide free or reduced parking for hybrid vehicles.
- Corporate Cash-Back - Bank of America, My Organic Market and other companies offer cash incentives to any employee who purchases a hybrid vehicle.
- Insurance Discounts - Insurance companies such as Farmers Insurance Group and Travelers Insurance offer special discounts to drivers of hybrid cars.
To find more information on these and other perks, read the article Finding Great Perks for Hybrid Buyers