SMCU Money Matters - Fall 2007 - (Page 8)

the motley fool HYBRID CARS So things are changing. An article in the Tulsa World quotes statistics from the National Automobile Dealers Association: “Industry-wide sales of hybrids increased about 22 percent last year, climbing from 206,000 units sold in 2005 to 252,000 in 2006.” What to Consider When you’re doing your own math, consider how many miles you drive per year. The more you drive, the more attractive a hybrid becomes. The Prius reportedly gets up to 60 miles per gallon (though when I poked around online, I found owners professing to be getting around 38 mpg to 52 mpg instead). Consider also where you think gas prices are heading. If you expect them to rise significantly and for the long haul, then hybrids are much more compelling. If you want to drive either a hybrid or a Hummer, the hybrid should prove much more economical. If you’re comparing a hybrid with another fuel-efficient vehicle, such as a Civic, the decision is less of a slam-dunk. Other considerations include insurance costs — which could be either higher or lower with a hybrid — and expected repair costs. Looking More Attractive In the Meantime Even if you dismiss or delay buying a hybrid, you can still save money on gas. Just employ a few good habits, such as keeping your speed down, accelerating slowly and not braking too hard, keeping your tires inflated properly, putting your gas cap on tightly, having a clean air filter and spark plugs, getting tune-ups on schedule, and not driving around with your anvil collection in the trunk. Many of us have at least daydreamed about buying a hybrid vehicle. By Selena Maranjian So why haven’t more of us snapped up these vehicles already? Well, for one thing, they tend to cost more than their conventional counterparts. That hasn’t changed much lately, but what has changed is the cost of fuel — it just keeps rising. The more it does, the more financially attractive hybrids become. Breaking even on a hybrid purchase takes less time today than it did even a few years ago. In the past, auto research firms calculated it would take up to 15 years, depending on the model, of gas-pump savings to offset hybrids’ higher sticker price. Today, it could take less than a year to break even, when you compare the cost of a Toyota Prius hybrid with a gaspowered Camry LE — based on driving 15,000 miles per year. Longtime Fool contributor Selena Maranjian owns shares of CarMax, which is a Motley Fool Inside Value recommendation. The Motley Fool is Fools writing for Fools. MAKING DISCOUNTS COUNT As hybrids become more widely available, the landscape of incentive programs is changing. Government rebates are still available on many 2008 models: Check www.irs.gov for up-tothe-minute information. Carmakers, too, are offering more discounts and promotions to entice hybrid buyers. Toyota’s once scarce (and scarcely incentiveized) Prius is now in wider distribution and — as of this writing — comes with up to $2,000 in buyer incentives. Cash back or low APR financing were available on Ford and Mercury hybrids. To find out about current promotions — and get the most competitive deal — check manufacturer websites for the latest information. 8 FALL 07 http://www.irs.gov

Table of Contents Feed for the Digital Edition of SMCU Money Matters - Fall 2007

SMCU Money Matters - Fall 2007 Contents Community Connection Responsible and Beneficial e-Cycling Live a Greener Life! Motley Fool: Hybrid Cars Jean Chatzky: Reduce, Reuse and Simplify Green Investments It’s Easy Being Green

SMCU Money Matters - Fall 2007

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