|
The cost of maintenance over the life of the hybrid is not expected to be any higher than conventional cars and you can certainly check costs with the dealer. Some reports claim the special battery that has been developed to perform optimally in HEVs may cost several thousand dollars to replace, on the other hand, most manufacturers are offering a generous warranty.
The Prius batteries and hybrid components are covered for eight years or 100,000 miles, Honda’s is 80,000 miles and Lexus claims their hybrid’s battery is intended to last the life of the car. Lexus also states their hybrid will have no additional general vehicle maintenance needs than non-hybrids. And if you’re a true environmentalist, you’ll be happy to know that the new rechargeable nickel-metal hydride batteries are fully recyclable.
Tax Benefits
In mid-2004 the U.S. government was still providing tax benefits to purchasers of hybrid cars and will be through 2006. Whether it continues beyond then remains to be seen. The one-time deduction is dependent on which year you file. If you purchased a new HEV in 2003, you could have claimed a deduction of $2,000; in 2004 it dropped to $1,500, in 2005 it will be $1,000 and just $500 in 2006. A great incentive to buy NOW!
Some states are offering their own tax advantages, including New York, California, Utah, Maryland and Oregon. Colorado offers a larger tax credit of between a low of $2,430 for the 2004 Honda Civic hybrid manual transmission to a high of $4,310 on the 2004 Honda Insight automatic—the 2004 Prius gets a $2,678 credit. A good reason to move to Colorado.
Some states like Connecticut are offering exemptions from sales tax on the purchase of a new HEV with a U.S. Environmental Protection Agency fuel economy rating of at least 40 mpg. A few states including New Jersey offer rebates to certain businesses that purchase HEVs, such as universities and city offices. And several states have other incentives like being able to drive in carpool lanes with your hybrid car.
Contact your state tax department to see if you are entitled to additional benefits or go to www.eere.energy.gov/cleancities/vbg/fleets/ state_incentive.html. Current HEVs are not entitled to the electric vehicle tax credit, which was designed for all-electric vehicles, however, there’s always the possibility of future energy bills being passed to offer further economic advantages.
Resources
Fuel cost calculator: www.fueleconomy.gov/feg/savemoney.shtml
State benefits: www.eere.energy.gov/cleancities/vbg/fleets/ state_incentive.html
Tax incentives for hybrid cars: www.fueleconomy.gov/feg/tax_hybrid.shtml
|
