Capitalism is all about giving the people what they want. Well, selling the people what they want may be a better way of stating it. This is basic notion is the very reason we have hybrid vehicles today.
Any type of trend soon grows attributes that are often not exactly accurate. These can be both positive and negative attributes, depending on who is pushing the point. Two false ones have surrounded the hybrid vehicle.
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.
The funny thing about the tax benefit of purchasing a hybrid is it is a moving target. The IRS initially sets an upper limi and then has the option to lower that amount each quarter of the year after it analyzes the number of cars sold.
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.
A second area of misunderstanding with the hybrid vehicle has to do with the batteries. Obviously, the car requires special batteries. There is a myth that they have to be replaced every 40,000 miles. This is alleged to be a big problem because they are expensive.
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.
Is a hybrid for you? Maybe it is and maybe it is not. The important thing is to ignore the myths, get the facts and then make a decision you can live with happily.
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