Hybrids - Myths and Facts

Capitalism is amazing because the people have the ability to control its direction. By people, of course, I mean consumers. As modern society has become environmentally conscious and gas price savvy, the hybrid vehicle has appeared.

Any type of trend soon grows attributes that are often not exactly accurate. These can be both positive and negative attributes, depending on who is pushing the point. Two false ones have surrounded the hybrid vehicle.

The first myth is that you will get a major tax break if you buy a hybrid vehicle. This is generally true, but not absolutely. Just to make you groan, you should know the agency that controls the issue. Yes, the IRS. So, when can you get a tax credit?

When taxes are invovled, it should be no surprise there are pitfalls with claiming a tax credit for buying one. The first requirement is you must buy a new vehicle, not a used one. The second requirement is the IRS must have approved the vehicle.

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.

Batteries. Who would have thought we would discuss them in this article, but a myth exists regarding their use in hybrids. The myth is they don’t last very long. This is suggested to be a big negative because replacement costs are high.

The great hybrid conspiracy is truly funny once you look at a key fact. Each new hybrid comes with a battery warranty between 80,000 and 100,000 miles. This would suggest that they last a long time, no?

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.