You are forgetting that eventually the tax incentives would disappear because the cost of the car would go down.

People are already raising the price of their car by putting luxury items in it. So it makes sense to get rid of it.

 

Could have fooled me.

 

All I know is that, when my car ultimately need to be replaced, I'm going to want something better suited to my fuel economy standards. Truth be told, my driving style would be a whole lot simpler in something like an HCH-II. So if they make something equal or better by that point you better believe that's what I'll be shopping for, tax incentive or no tax incentive as long as the price isn't truly outrageous. And personally, that's not going to change even if gas magically goes back to the "glory days" of $2. (Remember when that was considered expensive? )

 

Nah. If he were a Libertarian, he wouldn't be driving, he'd be complaining that the Constitution doesn't specifically empower the Federal Government to create a system of roads.

 

I bought my Insight on September 9, 2000 (I fondly remember "9/9" )

Too early for tax credits, but figured I've broken even.

Insight: 105,000 miles / 58.5mpg = 1,795 gallons consumed

If I'd kept a CRX HF in bad condition: 105,000 miles / 35mpg = 3,000 gallons consumed (it could get over 50mpg when new)

Gallons saved: 1,205

Savings at $2.10 a gallon (approximate average of those six years): $2,530.50

Savings if gas was $3.00 those six years: 3,615.00

Savings if average gas price averages $4.00 next six years: $4,820.00

_______________________________

Worst case is I'll break-even from that $3,000 hybrid premium at year's end.

 

I thought, right now, only the Primus hit the magic 60,000-car-sold trigger. And even then, its tax credit only slowly decreases, and it doesn't even start to decrease until October 2006.



All other hybrids are still getting the full tax credit.

 

Its the entire Toyota hybrid line, not just the Prius, the will experience the phase-out of tax credits starting 10/1/06

 

OOPS I meant the Toyota hybrids are not going to qualify for further tax incentives by 10-1-2007 because they sold their 60,000th hybrid in May or June 2006........

See the IRS.gov page and search Hybrid for a detailed esplanation.....

http://www.irs.gov/newsroom/article/...157557,00.html

Here is the example which indicates that the Toyota hybrid incentive will expire by 10-1-2007:

For example, F Company is a manufacturer of hybrid motor vehicles, but not advanced lean burn technology motor vehicles. F Company sells its 60,000th hybrid car on March 31, 2006.

• Ms. Smith buys an F Company hybrid car on June 30, 2006, and claims the full credit.
• Ms. Maple buys an F Company hybrid car on Dec. 31, 2006, and claims 50 percent of the credit.
• Mr. Grey buys an F Company hybrid car on June 30, 2007, and claims 25 percent of the credit.
• Mr. Green buys an F Company hybrid car on July 1, 2007, and is unable to claim the credit, because the credit has phased out for F Company vehicles.

Expand that example FORWARD one quarter because Toyota sold the magic vehicle in the 2nd quarter of 2006, not the first as in the example...

 

Actually, it's one step further, it's corporate Toyota. So it includes Lexus hybrids as well.

 

Ok, so let's go over the rate of hybrid tax subsidy durations:

- Toyota -> already over 60,000, aging out rapidly
- Honda -> probably coming up on 60,000 (anyone know?), aging out next
- Ford -> probably has 3-5 years before aging out
- Other -> . . . What is the 'Silverado hybrid' tax credit???

The subsequent hybrid sales will really confound the skeptics. By then, the manufacturing costs will be way down the learning curve.

Initially, electric lights were expensive due to the wiring and startup costs. But Edison said that with the invention of the electric light, only the wealthy would be able to burn candles. With hybrid electrics, only the foolish will be able to run a non-hybrid vehicle.

Eventually, with plug-in hybrids leading the way, we will transition to electric vehicles. But when crossing a fast-flowing stream, it is best to go from rock to rock, one at a time and not try to jump the whole flow.

Bob Wilson