A Couple Common Misconceptions About Hybrids |
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| Written by Jon Buttress | |
| Saturday, 19 July 2008 | |
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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 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. Everyone hates taxes, but not when it comes to hybrids. The common myth is you can get a huge tax benefit if you buy a hybrid. As with anything involving taxes, you should know this is sometimes true and sometimes not. Well, there are a few rules. First, you have to buy a new hybrid from a dealer. Second, you can only claim a tax credit if you buy an IRS approved hybrid. Third, you need to figure out the tax credit amount available when you actually buy the hybrid. 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. The interesting and scary thing about the tax credit is it is designed to disappear for each car after a certain number have been sold. For instance, Toyota hybrids are about to lose their tax benefits entirely. Yes, there will be zero tax benefit. 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. The batteries used in hybrid vehicles give us our next area of controversy. These are not the run of the mill batteries found in your average automobile or truck. Rumor has it they don't last long and are incredibly expensive to repair. 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. |
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