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Federal Tax Incentives For Hybrid Vehicles
Hybrid Hype and a Small Price Hike
Drive by any car lot in the United States and ask to see the latest hybrid car models. Don’t be stupefied if eight out of ten tell you that they can’t seem to keep them on the lot—that they’re just selling too fast! There is reasoning behind the hype: consumers believe in one (or all) of three things, that they’re going to be getting a better deal once gas prices hit $2.50 a gallon, that they’re not sacrificing performance and that they’re helping the environment. Let’s first take a look at how these cars are put together ...
Author: Michael Walker
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The Hybrid Car
A hybrid car has a small engine
that is fuel efficient, which is combined with an electric motor
that aids the engine when additional power is needed during
acceleration. The electric motor gets its power from battery banks
which continuously charge while you are driving.
Energy is conserved when you stop because the engine is shut off
automatically. Then, when you apply gas, it automatically restarts.
The hybrid car also uses a more advanced aerodynamic lightweight
body, and combines it with low roll resistant tires that are stiffer
and narrower to help reduce drag.
In 2004, out of the 17 million vehicles sold there were around
80,000 hybrid vehicles sold. By 2005 that number had increased by
1.2% to 200,000, and it's estimated that by 2007 more than 400,000
hybrids will be sold.
There are several hybrids currently available in North America. They
include the Honda Civic, Honda Accord, Honda Insight, Toyota Prius,
and the Mercury Mariner. There are also Hybrid SUVs available - the
Ford Escape, the Lexus 400H and the Toyota Highlander, and many new
models are on the way.
The Toyota Prius holds 52% of the hybrid market with just under
108,000 vehicles. The Honda Civic is the next most popular with
25,000 vehicles.
Now that consumer support for the hybrids has arrived, auto
manufacturers are increasing the pace at which they introduce hybrid
models. Just starting to come out are the Honda CR V SUV, Saturn Vue,
Hyundai Accent, and Kia Rio are being introduced as hybrid models.
In 2007 we will see the Toyota Camry, Honda Fit, Mazda Tribute,
Chevrolet Malibu, and Nissan Altima; and 2008 will see the Ford
Fusion and Mercury Millan available as hybrids.
And as an added bonus in the United States, consumers that purchase
a hybrid will get a tax break. Those purchasing fuel-cell vehicles
will get up to $8000 in tax breaks, and those purchasing alternative
fuel vehicles that weigh less than 8,500 pounds get a $2500 tax
break. It's a nice pleasant surprise!
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