Hybrid Car Advantages – How to Save Money with Easy and Less Frequent Fill Ups

January 28th 2006

Toyota Highlander

There are many advantages to the hybrid car. This year the US Treasury has offered a tax credit when drivers purchase a hybrid car. Last year, only a tax deduction was available. Hybrid cars will save you money on gas, compared to conventional models. Also, the hybrid car provides fewer emissions, improving the air quality.

Unlike hydrogen or natural gas cars, the hybrid can be filled-up at any gas station. They use regular gasoline. You don’t have to charge the batteries every night like electric cars. In fact they operate almost identical to conventional gas powered cars.

Hybrids use the breaking power to help charge the batteries, thus conserving energy.

They also turn off at intersections or when you are completely stopped in traffic. This will save hybrid users lots of gas. According to the Federal Highway Administration, American drivers burn 753 million gallons of gasoline while stopped at intersection, or while idling.

Hybrids will cost you an average of 10% more than conventional gas cars. The Feds are hoping the tax credit will make up the difference, and in many cases the savings in gas and the credit will more than make up the difference. It all depends on how much you drive and the model car you get.

The Federal Government has not published the exact tax credit number as of yet, but the car manufacturers have extrapolated estimates based on the program guidelines. Check with your tax preparer or advisor before making your final decision.

If you have a very long commute and are able to save just $5 per day, this works out to about $1,250 per year. If you were to buy the 2 wheel drive Toyota Highlander hybrid for may pay $40,000. This is about $4,000 more than the conventional gas powered Highlander (lets say $36,000 for the conventional model).

According to estimates from the American Council for an Energy-Efficient Economy Website, the tax credit should be about $2,600 for that model. Add that to the $1,250 in gas savings and you have a total savings of $3,850.

Remember, you will be saving money on gas every year. According to some analysts, gas prices are expected to go up, allowing you to save even more money every year you own your hybrid. Plus you will be doing your part to help the environment.