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If you demand it, companies will come up with it. This has never been more apparent than with hybrid autos, the companies answer to a consumer nation that has become more environmentally aware.
The day you knew hybrids were here to stay was the day car companies started announcing hybrid SUVs. Imagine, all the size and little of the guilt. That being said, there are some misconceptions about hybrids, so lets address the big two.
Buy any old hybrid and you will get a major tax credit. This is the first myth that arises around the hybrid. Can you get a tax credit? Yes, but you must comply with certain requirments issues by none other than the Internal Revenue Service.
If you want to claim a tax credit for buying a hybrid, you have to comply with a few regulations. First, you have to purchase a brand new hybrid. Second, the IRS must have ceritifed the car. Third, you can only claim the amount then available.
The funny thing about the tax benefit of purchasing a hybrid is it is a moving target. The IRS initially sets an upper limi and then has the option to lower that amount each quarter of the year after it analyzes the number of cars sold.
This lowering of tax credit amounts can be a real shock to someone that purchased a hybrid. As of the writing of this article, the famous Toyota Prius is about to lose all of its tax credit. One has to think that fact is going to hurt sales.
Many people are outraged by the phasing out of the tax credit available for hybrids, particularly the manufacturers. Talk about a selling point! The credit, however, was never meant to support an industry, only generate interest in it.
A second area of misunderstanding with the hybrid vehicle has to do with the batteries. Obviously, the car requires special batteries. There is a myth that they have to be replaced every 40,000 miles. This is alleged to be a big problem because they are expensive.
In truth, there is no requirement that hybrid batteries be changed every 40,000 miles or so. Most brands come with warranties of up to 100,000 miles. Although hybrids are fairly new, the batteries are reported to last well into the hundreds of thousands of miles.
Should you make your next vehicle a hybrid? If you want to cut your driving costs and help the environment, then the answer is definitely yes. Just make sure to buy it new and check with the IRS on your tax credit amount.
Want to see how you can get hybrid-like fuel economy out of your current vehicle? Click Here for my best tip on how to improve fuel economy for your current vehicle - hybrid or not!
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1 user responded in this post
I recently purchased a Prius, and indeed did not qualify for any tax credit. That said, I went for the Prius anyway, and not for any other hybrid that still gets the credit. The Prius is low maintenance, runs smoothly, has horse power, and is really spacious. In addition we really do 40 miles per gallon, which is great since we drive the car mostly in San Francisco, a city with over 40 hills, some really stiff.
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