I was quite impressed when I read this! $100 rebate from the state of IL and various lending institutions. Will be very interesting when it happens...

http://www.chicagotribune.com/news/l...ck=1&cset=true

copy and paste of the trib article:


State offering rebates on hybrid vehicles

By Ofelia Casillas
Tribune staff reporter
Published July 14, 2007, 11:58 AM CDT
Illinois State Treasurer Alexi Giannoulias has announced a new $2 million effort to combat rising gas prices across the state by offering $1,000 rebates to consumers who purchase hybrid or other energy-efficient vehicles.

The plan, expected to be formally unveiled on Sunday, calls for the state to partner with banks to generate funds for the program, officials said.

In a written statement, Giannoulias said his "Green Rewards" program would entice residents to buy "fuel-efficient, clean-burning vehicles" while helping them "recoup their investment faster while they save money at the pump."

Giannoulias plans to unveil details of the rebate program during a statewide tour in his personal hybrid vehicle.

To fund the program, officials said, state funds will be deposited at local banks and credit unions at a below-market interest rate. The money that those institutions save in interest is passed to consumers in the form of $1,000 rebates at the time of purchase, they said.

To get a rebate, buyers must secure a car loan from a participating bank or credit union for a new hybrid vehicle or an eligible electric or fuel cell vehicle. Purchasers can receive one rebate per vehicle, allowing municipalities or other entities to receive additional cash back when acquiring fuel-efficient fleets.

Current hybrid cars can get up to 60 miles to the gallon on the highway and produce up to 80 percent less harmful pollutants and greenhouse gases than comparable gasoline cars, officials with the Treasurer's Office said. But the vehicles cost $1,200 to $10,000 more than their fossil fuel counterparts.

According to officials, studies show that the Ford Escape, Honda Civic, Toyota Camry and Toyota Prius all recover their price premium through fuel efficiencies after the first five years or 75,000 miles of ownership. "For every dollar that is spent on the program, drivers will save $5 on fuel over the life of their vehicle,"

Giannoulias said in a written statement. "That's a deal government should make every day of the week."

Officials said Green Rewards is the first incentive program to encourage hybrid purchases in Illinois. The program, they said, offers the largest state rebate for hybrids in the nation.

Green Rewards is one of the State Treasurer's Cultivate Illinois Agricultural and Environmental programs. For more information, contact (312) 814-1901, (217) 557-6436 or cultivateillinois@treasurer.state.il.us.

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ocasillas@tribune.com

 

Nice someone knows the TRUTH.

 

This has the makings of a good program and I'm glad the state is taking a first step. One problem with the program is that the lenders that are participating are small, somewhat random banks and credit unions. I talked to the banks in Chicago and their lending rates are TERRIBLE in comparison to the larger banks, etc.

 

I was looking at this too. If you belong to a Credit Union there is an application that they can fill out to become eligible to participate. I don't know how likely they will be to fill it out but it's worth a try. I have heard that credit unions historically have lower rates.

 

Looks like a scheme to make money for banks. How is it determined that $1000 savings is actually be passed on to the borrower? Seems the banks will both make money on the sub-rate deposit and on the loan.

The scheme also punishes anyone who saves money to buy the car with cash (encouraging debt accumulation), or wishes to borrow from a non-participating source (which might have lower rates).

And how, exactly is this the largest state rebate in the nation? I'm getting $1500 tax credit in Oregon, and it isn't tied to some loan.

I also don't get the pat-on-the-back "For every dollar that is spent on the program, drivers will save $5 on fuel over the life of their vehicle". If they spent $10 per car on the program then they could say that for every dollar spent drivers would save $500 on fuel... Wouldn't that be even better?

 

Sounds like they take it off the the finance amount when you get the loan.

"Illinois drivers seeking relief from soaring gas prices are eligible for a $1,000 rebate with the purchase of a new hybrid or other fuel efficient vehicle.

Under its Green Rewards program, the Treasurer’s Office has committed
$2 million in rebates to make high-mileage hybrid vehicles, which run on gasoline and electricity, more affordable.

Participating banks and credit unions agree to accept a discounted deposit rate from the state for one year in exchange for providing the $1,000 rebates to Illinois residents. The program is open to all banks and credit unions in Illinois.

Green Rewards:

* Allows car buyers to realize an immediate cost savings in purchasing the vehicle
* Results in lower costs at the pump
* Significantly reduces harmful emissions that pollute the environment
* Lessens America's dependence on foreign oil

Please contact our office for more information about Green Rewards by emailing cultivateillinois@treasurer.state.il.us or calling (217) 557-6436.

Amounts and Terms:

* Buyers can receive one $1,000 rebate per eligible vehicle per calendar year.
* Original purchase date must be on or after July 15, 2007.

Program Eligibility:

* Buyers must be Illinois residents.
* Buyers must purchase a new, eligible hybrid, electric or fuel cell vehicle
(see list below) with less than 7,500 miles.
* Buyers must receive financing from a participating financial institution on or after July 15, 2007.
* There are no income or price restrictions.

Eligible Vehicles:

* Ford Escape (2WD and 4WD)
* Mercury Mariner (2WD and 4WD)
* GMC Sierra (2WD and 4WD)
* Chevy Silverado (2WD and 4WD)
* Saturn Aura Greenline
* Saturn Vue Greenline
* Honda Insight CVT
* Honda Accord
* Honda Civic
* Nissan Altima
* Toyota Prius
* Toyota Highlander (2WD and 4WD)
* Lexus Rx400h (2WD and 4WD)
* Toyota Camry
* Lexus GS 450h
* Mazda Tribute (2WD and 4WD)

Compressed Natural Gas Vehicles, Hydrogen Fuel Cell and All Electric vehicles are also eligible. (Currently, Hydrogen Fuel Cell and CNG vehicles are not sold in Illinois, but may be in the future.)

How to apply:
1. Apply for a loan at a participating financial institution. If your preferred bank or credit union is not a current participant, ask your lender to sign up for the program by calling (217) 782-2072.
2. Your financial institution will complete and submit an application for deposit , acknowledgement form, and attachment 1 form.
3. The application will be reviewed by our Banking Division for approval.
4. Your financial institution will provide the $1,000 rebate at point of sale."

 

According to a GH member (HCH boards) who has taken advantage of this additional incentive there is no minimum amount to finance and it is a check back to the consumer at time of loan. Just a few additional documents to complete... One problem he found is that few people were aware of the program - dealers included.

 

I just contacted my State Farm agent to see if State Farm's Bank would participate. I will update when I get the results.

With that rebate you could basically put down an extra $1000 of your own money when you finance, which would lower you finance amount by $1000 obviously, and then stick the $1000 right back in the bank when they give you the check.

Update: My insurance agent said that the State Farm Bank stated that it would have to be a corporate decision so they would send the info/request up the chain of command and probably wouldn't hear anything for a while.


I am going to have my wife find out if here credit union will participate.

 

Just to connect everything up, here is the link to the other thread on this subject:

https://www.greenhybrid.com/discuss/...ad.php?t=14474

 

Just look at the list of places that are participating. I went with a credit union on the list and they had the lowest rates from big banks to other credit unions. They handed me a check when I went to sign loan docs there. It was really easy. There is no minimum you have to finanace. The catch is that you have to have the loan for at least 60 days. You can then pay it off. There is no penalty.