Hybrid cars are probably cheaper than you think


Hybrid cars are more expensive than conventional cars, sometimes by $5000 or more. The obvious question is: is worth it? Do you recoup that additional vehicle cost from gas mileage savings at the pump? The answer is: almost certainly if you own the car for a while, but there are many other ways that buying a hybrid can save you money, some you may not know about.

First, let’s quickly review the inherent gas mileage savings one can enjoy with a hybrid car. With a hybrid, a battery pack provides an electric assist to the gas-powered engine and this allows the vehicle to achieve 20–35 percent better gas mileage than conventional cars. The Toyota Prius, for example, gets an average of 44 mpg in real-world driving. This alone can result in a savings depending on what you are considering for an alternative car. There are others ways to save also, for example:

Resale Value: The sales staff at www.deerybrotherschryslerdodgejeepram.com tell us that when it comes time to resell a car, hybrid owners can almost expect that their cars have held their value better than non-hybrid versions of the same car. There are several places on the internet that you can verify this, Kelly Blue Book is a good one.
Federal tax credits: Owning a hybrid may entitle you to federal tax credits. How much a given hybrid owner can expect to get from a federal hybrid tax credit depends on many factors. To see how much of a tax credit you might be able to claim, consult the IRS website as these credits change frequently.

Local tax credits and perks: Some states and cities even offer incentives for hybrid drivers, including tax credits, and the convenience of being able to drive solo in “HOV” (high-occupancy vehicle) highway lanes. Many cities also offer privileges to hybrid owners, including free or discounted parking. Find out what your state offers at the Union of Concerned Scientists website.
Loan Discounts: Financing a hybrid purchase can be cheaper than financing a conventional car. Many banks, especially credit unions, offer preferential loan rates for hybrid cars.
Insurance Discounts: A number of car insurance providers, including Farmers Insurance Group, Geico, and Travelers, offer discounted insurance rates to hybrid drivers in some states.

Workplace incentives: Some employers are encouraging their workers to commute in hybrid vehicles. At some forward-thinking companies, including My Organic Market, Patagonia, and Clif Bar, and probably others at the time of this writing, employees receive up to $5,000 for purchasing or leasing a hybrid. If your company offers a plan such as this, it essentially eliminates the price premium (gasoline vs hybrid version of the car).

So, as you can see, the value of a hybrid purchase can be far more than just the savings in gas mileage would suggest. If you are considering a hybrid, calculate the total savings over the time you anticipate owning the vehicle. Chances are that you will be pleasantly surprised with the actual savings that you could achieve.

Article Source: Derry Brothers