Pay Less at the Pump: The Hybrid Revolution
(Page 3 of 8)
October/November 2005
By John Rockhold
Described by some as hollow hybrids, the Chevrolet Silverado Hybrid and GMC Sierra Hybrid have the most limited hybrid characteristics. These trucks do not have electric-only drive, but they do have idle-off and regenerative braking. However, their regenerative braking only recharges the batteries — the batteries do not store extra kinetic energy for use with hard acceleration. The batteries do help power on-board accessories, such as air conditioning, and plug-in devices, such as electric tools. These trucks have a net fuel economy increase of about 10 percent over their conventional counterparts.
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BUYING AND OWNING A HYBRID
A year ago, long waiting lists greeted those who wanted to buy just about any hybrid model. Some shoppers remained in limbo for six months or more. Demand was intense and supply was limited — looking for a hybrid became a year-round version of shopping for the hottest, hard-to-find toy of the Christmas season. Production of hybrids, though, is constantly increasing in an effort to keep up with demand. Although unsold hybrids are rare on dealers’ lots — most are spoken for before they arrive — wait time is usually just a few weeks.
High demand also has driven up the price of hybrids. Odds are you won’t successfully haggle dealers for a bargain — in high-demand areas, hybrids frequently sell for several thousand dollars more than their retail prices. Some used hybrids, especially recent years of the Prius, sell for as much or more as they cost when brand-new. That’s at least a good sign for resale value — most new cars sharply decline in value as soon as they leave dealers’ lots. To get the best deal on a hybrid, be patient and search high and low. Arm yourself with knowledge so you don’t get gouged; several Web sites list prices recently paid for automobiles. Two examples are HybridCars.com and Kelley Blue Book. Also read about others’ hybrid-buying experiences in the numerous Internet blogs and forums devoted to hybrids.
If you buy a hybrid before 2006, you can take a $2,000 deduction on your federal income taxes. Basically, this deduction will reduce your federal taxable income by $2,000. For hybrids bought after Jan. 1, 2006, the recently enacted energy bill set up tax credits — ranging from $250 to $3,400, depending on the vehicle’s fuel economy. The credit would go toward your tax liability, the amount you owe before any withholdings.
Over the long term, the credit will be more advantageous to those who buy newer hybrid models and less helpful to those who buy better-selling hybrids such as the Prius. The energy bill established a complex formula to reduce the credits once an automaker sells more than 60,000 hybrids after Jan. 1. Hybrid buyers in 14 states also can take advantage of state-level incentives, including tax credits and exemptions from sales tax. Hybrid buyers in Colorado, for example, are eligible for tax credits of more than $4,500. There also are nonfinancial incentives — such as being allowed to drive in lanes for high-occupancy vehicles and park without paying meter fees. Visit www.hybridcars.com to see if there are programs where you live.
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