Hybrids - Myths and Facts
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Written by Jon Buttress
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Wednesday, 16 July 2008 |
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.
While hybrids have certainly become a popular alternative to big gas guzzlers, there are some definite assumptions that simply are not true. The assumptions are both positive and negative, so let's take a closer look at two of the big ones.
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?
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 limit 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.
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.
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.
Hybrids represent definitive progress in kicking our oil addiction. That being said, they are not the cure all to it. When deciding whether to buy a hybrid, ignore the fluff, collect the facts and then do what you think is right.
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