Hybrid cars break even

The auto web site, Edmunds.com, is now saying that some hybrid cars are worth their premium price tag due to higher gas costs and tax credits from the government. "High gas prices and generous tax credits now offset the high sales prices of some hybrids, assuming owners keep their hybrids for a few years," said Alex Rosten, an analyst with Edmunds.com. Hybrids only make up 1 percent of new car sales in the U.S., but this is a significant step forward for the more fuel efficient vehicles.

The website says that assuming a Prius is driven 15 thousand miles a year, and the price of gas is $3 a gallon, the Prius would break even in three years.The Civic would break even in 6 years according to the same report. The problem that is on the horizon is the federal tax credits that are being reduced or eliminated currently. For example, buyers of a Toyota hybrid have until September 30, 2006 to cash in on the federal tax credit for that vehicle. After sept. 30, the tax credit gets cut in half. The tax credit on Toyota and Lexus hybrids is scheduled to drop to 25 percent in April 2007 and then be eliminated in October 2007. I say now is the time to get a hybrid if you are serious about one. If you are sick of gas prices and you do drive long distances each week, then you should consider the break even point and costs of a new hybrid before moving forward. It may be in your best interests to wait for a more fuel efficient and cheaper model to be released, or you can take the plunge and discover a freedom from gas prices that one can only envy.