Hybrid, Conventional, Prius, Pious, Oh My!

Last chance to get a tax credit on the purchase of a Honda Civic hybrid. The current tax credit of $525 is expiring by December 31 of this year. This reflects a phase out because Honda met its sale of 60,000 of these in the third quarter of 2007. Many other models of hybrids have not met the quota and thus still qualify for a larger and, for now, ongoing credit. Unfortunately the credit on the Toyota Prius, because of its popularity, ended last year. A friend of mine said awhile back that Toyota should have named it the “Pious” rather than Prius. I have to admit that made me chuckle a little. Financially, purchasing a hybrid is a poor decision. It would take 10 years in most cases to recoup the price premium with fuel savings, even with the tax credit. Also, the current falling fuel prices increase the disparity even more. Now, if you are purchasing the vehicle for environmental cred, then that is a different story. You place a high value on the car and don't mind paying the premium because you are helping the environment. However, I remember reading somewhere that the battery disposal poses its own environmental issue, but I am not sure how valid that claim is. I haven't done enough research on the subject. I know lots and lots of folks who own Priuses and they all love their cars. I have yet to ride in one, but they all say that they are roomier than you would expect for a small car. A lot of people who enjoy their conventional trucks and SUVs will have a difficult time buying into that philosophy, as long as it is still cost effective to purchase those vehicles. They want to pay as little as possible for a vehicle large enough to haul the family and gear. We have the freedom to decide what kind of vehicle works for us in our individual situations. The government does not dictate (yet) what type of vehicle we drive. SUV and truck sales dropped and hybrid and small car sales soared during the gas crunch, but it will be interesting to see if that trend reverses with the recent fall in fuel prices.