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A Couple Common Misconceptions About Hybrids

by Jon Buttress

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.

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.

Most people do not realize the tax credit you get for buying a hybrid is actually a moving scale. It is initially set by the IRS at an amount up to $4,000. Each quarter thereafter, the IRS reviews the sales figures and may or may not lower the tax credit.

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.

Why does the tax credit phase out for hybrids? Well, you have to realize why it was put into law in the first place. It was intended to motivate people to buy such vehicles in light of our oil and environmental problems. It was not intended to be a windfall for manufacturers.

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.

The truth will set you free! In the case of hybrids, this is particularly true. The simple facts are the batteries last for well over a hundred thousand miles. Most car companies even give you a warranty for this mileage.

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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