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A Couple Common Misconceptions About Hybrids

Capitalism is amazing because the people have the ability to control its direction. By people, of course, I mean consumers. As modern society has become environmentally conscious and gas price savvy, the hybrid vehicle has appeared.

While hybrids have certainly become a popular alternative to big gas guzzlers, there are some definite assumptions that simply are not true. The assumptions are both positive and negative, so let's take a closer look at two of the big ones.

Everyone hates taxes, but not when it comes to hybrids. The common myth is you can get a huge tax benefit if you buy a hybrid. As with anything involving taxes, you should know this is sometimes true and sometimes not.

Well, there are a few rules. First, you have to buy a new hybrid from a dealer. Second, you can only claim a tax credit if you buy an IRS approved hybrid. Third, you need to figure out the tax credit amount available when you actually buy the hybrid.

Most people do not realize the tax credit you get for buying a hybrid is actually a moving scale. It is initially set by the IRS at an amount up to $4,000. Each quarter thereafter, the IRS reviews the sales figures and may or may not lower the tax credit.

The interesting and scary thing about the tax credit is it is designed to disappear for each car after a certain number have been sold. For instance, Toyota hybrids are about to lose their tax benefits entirely. Yes, there will be zero tax benefit.

Many people are outraged by the phasing out of the tax credit available for hybrids, particularly the manufacturers. Talk about a selling point! The credit, however, was never meant to support an industry, only generate interest in it.

A second area of misunderstanding with the hybrid vehicle has to do with the batteries. Obviously, the car requires special batteries. There is a myth that they have to be replaced every 40,000 miles. This is alleged to be a big problem because they are expensive.

The great hybrid conspiracy is truly funny once you look at a key fact. Each new hybrid comes with a battery warranty between 80,000 and 100,000 miles. This would suggest that they last a long time, no?

Is a hybrid for you? Maybe it is and maybe it is not. The important thing is to ignore the myths, get the facts and then make a decision you can live with happily.