Hybrid tax credit
This might be veering slightly into political territory. Sorry about that. But the topic of hybrid cars is one that this blog has been following for a couple of years now. I can’t just ignore this one.
In 2006, a new tax credit will go into effect to encourage people to buy hybrid cars. This is cash back on your next tax return, not just a deduction. Some are complaining, though, that the credit favors SUVs and American car companies. You’d think they’d be happy that American companies that are just getting into hybrid cars will be getting a big boost off of increased interest and attention on their cars. You’d think they’d be happy that the worst “offenders” would consider cleaning up their cars to a hybrid system. No, they’re whining that it doesn’t reward super-high performance hybrids and those that initially revolutionized the field. Ironically, they’re asking for more money for those who would be saving the most money through greater fuel economy. Sounds a lot like “the rich get richer,” doesn’t it?
Also, the best-selling Prius is still the second-highest credit receiver. You’re getting more than $3000 cash back for buying that car. That’s nearly $1000 more than the 4WD Highlander and Ford Escape Hybrid 4WD.
Actually, the more I study the tax credit table, the less sense the arguments against it make. I think we have a definite case of “lies, damned lies, and statistics” going on here. . .
On the bright side, Toyota says they expect to sell 60,000 hybrids in the first six months of 2006. (Let’s see how many of those won’t have to be recalled.)
More hybrids is a good thing, and I’m all for encouraging it..
October 16th, 2005 at 7:49 pm
I’m all for hybrids too– but I want a hybrid pick up truck. Are those ever coming out? Or did I miss something?
October 16th, 2005 at 11:42 pm
There is one coming, yes. Either a Honda or a Toyota. I forget who it is. I want to say “Silverado,” but don’t quote me on that. It’s coming soon. . .
October 17th, 2005 at 2:24 am
Tax credits still don’t pay for the premium of those hybrids. The vehicles are still not economically viable for the vast majority of Americans who don’t live in Bel Aire, Bevery Hills, or Brentwood, California. The vehicles still don’t make economic sense until gas prices triple over what they are now.
Also, don’t believe the EPA estimates on mileage. The system is out-dated and way off… You may get 5-10 extra mpg, but I doubt 20 extra mpg.
For tall guys like Augie, the Prius is going to be like fitting into a very tight straight jacket…
October 17th, 2005 at 9:58 am
Yes, the EPA estimates are bunk, but there are places that track actual hybrid mileage. Those sites prove that they’re still very efficient vehicles, and often pay for the premium over the course of a few short years.
The Prius is fairly roomy inside, but I wouldn’t want to drive it. I test drove the Ford Escape, and it was comfortable. If I hadn’t just bought a new Jeep the year before, I likely would have picked it up — same price with 50-75% better gas mileage? Sounds like a good deal to me.
October 17th, 2005 at 1:57 pm
People don’t buy cars that make economic sense now. Why is it only an issue when it comes to hybrids?
I know people who buy pick-up trucks because they’re “cheaper” to buy than cars. (Which isn’t true in any case, but whatever.) Of course, they fail to notice that the gas mileage isn’t even roughly comparable to low end cars like Kias or Hyundais. So not cheaper at all.
People buy hybrids not because they make economic sense, they buy hybrids because they want them.
The same reason as childless 4′10″ Filipina women buy Lincoln Navigators, in other words.
October 17th, 2005 at 3:03 pm
And some people buy them just for environmental reasons.
October 17th, 2005 at 6:48 pm
Anyone who buys a hybrid “just for environmental reasons” probably has solar panels on his roof, windmill power generators in his back yard, and wears only sandals, and only sandals hewn from environmentally friendly bamboo.
No one goes from a regular SUV to a hybrid SUV strictly for environmental reasons. If that person cared so much for the environment, he/she would not be driving an SUV in the first place.
I’m looking forward to the date when environmentally friendly automobiles comprise a majority of the cars on the road. But I’m not going to kid myself into believing I’m one of the 0.00025% of Americans who can truly be called enviromentalists.
October 20th, 2005 at 1:32 pm
My wife bought a 2nd-gen Prius… And yes, if you know how to drive it, you CAN get 50+ MPG… And I don’t know how tall Augie is, but I’m 6′ and it’s a VERY comfortable drive… :)
October 20th, 2005 at 1:35 pm
P.S.
In response to Beau…
We bought it for the economic reasons, the tax credit — AND because we wanted a cool car. :)
October 20th, 2005 at 1:48 pm
I’m 6′4″. I just like four wheel drive too much to give that up entirely. I also like not sitting on the ground when I drive. Those are two very powerful reasons against the Prius for me, as unbelievable as the gas mileage can be.