All I know is that I ran the cost number fo my situation and was better off going hybrid, and that was BEFORE the 2006 credit was offered. I bought a 2005 Honda Civic Hybrid (HCH) and paid $2,700 more than a similarly equipped non-hybrid version. Connecticut residents pay NO SALES TAX on hyrbid cars that get more than 40 MPG highway (EPA number). That saved me 6% on the purchase price or about $1,300 right off the top vs. a standard civic. I got the $2000 federal tax deduction which saved me $600 more. I am not sure about the depreciation numbers for my car, but I do know that in Connecticut the sales tax savings also applies to used car sales so that when I sell the car later, the person that buys it won't have to pay the state a sales tax, which, believe it or not, they would charge otherwise (robber barrons). This should help hold the value up somewhat better, for what it is worth.

Anyway, $2,700 more at purchase - sales tax saving of $1,300 - fed tax deduction saved of $600 = only $800 more for the HCH and that doesn't include the gas savings!

I drive about 25,000 miles per year or 10,000 more than consumer reports assumes, and I am averaging 48+ MPG lifetime on the car without too many shenanigans This saves me at least $400 per year over a non hybrid civic with gas prices at least $620/yr (according to hybridcars.com) assuming a gas price of $2.25 which when Katrina and $3.50/gallon gas rolled through the car was like the goose that laid the golden egg. If i keep the car for 4 years that adds up to a conservative gas savings of nearly $2,500, which completely washes out the $800 of added cost for the HCH that remained after subtracting the tax savings. If i drive the car longer than 4 years, I win even more.

I suppose Consumer Reports needs to at least acknowledge that the hybrid cost savings would not be there for those that live in states that do not have these types of incentives or for folks that drive average or below average milage each year, but they should also at least point out that for many folks that do decide to make the hybrid purchase, it can be the smart move financially as well as environmentally, rather than simply discrediting the option based on average drivers.

Who ever said hybrid drivers were average anyway?