Hybrid Are Cheaper Than You Think

by  |  On June 1st, 2016  |  In Tips & Guides

Hybrid cars are more expensive than conventional cars but there are some cost savings that you may not know about. We have assembled a list of ways that you can not only save money up front on a hybrid, but recurring savings also. Here’s our analysis:

Hybrid Are Cheaper

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At the pump: This one is a no-brainer. With a hybrid, a battery pack provides an electric assist to the small gas-powered engine and this allows the vehicle to achieve 20–35 percent better gas mileage than standard internal combustion engine cars. The Toyota Prius, for example, gets an average of 45 mpg in real-world driving. Over the long term, this will save quite a bit of money.

Federal tax credits: Owning a hybrid may entitle you to federal tax credits. How much a given hybrid owner can expect to get from a federal hybrid tax credit depends on many factors. To estimate the value of federal tax credits, visit the IRS website or give them a call. This savings can be significant and you can really just shave off the price of the car.

Local tax credits: Some states and cities even offer incentives for hybrid drivers, including tax credits, and the convenience of being able to drive solo in high-occupancy vehicle highway lanes. Many cities also offer privileges to hybrid owners, including free or discounted parking.
Company discounts: Believe it or not, many larger companies will actually pitch in to help employees buy hybrid cars. Patagonia will pitch in $5000 towards an employee’s hybrid. Clif bar is another company. If you work for a large company, definitely check with the Human Resource department and see if any assistance is available.

Insurance Discounts: A number of car insurance providers, including Farmers Insurance Group, Geico, and Travelers, offer discounted insurance rates to hybrid drivers in some states. The reason for this is simple. Those that drive hybrids tend to get into fewer accidents and thus a les risky to insure.

Loan Discounts: Financing a hybrid purchase can be cheaper than financing a conventional car. Many banks, especially credit unions, offer preferential loan rates for hybrid cars.

Resale value: the used car manager at Urse Honda of Bridgeport, WV, a full service Honda dealer, told us that many people overlook this factor. When it comes time to resell a car, hybrid owners can almost expect that their cars have held their value better than non-hybrid versions of the same car. Want verification, check out Kelly Blue Book and you will see that hybrid models retail their value better than their gasoline-powered brethren.

So, as you can see, the value of a hybrid purchase can be far more than just the savings in gas mileage would suggest. There are a lot of ways you save when you buy a hybrid. If you are considering one, calculate the total savings over the time you anticipate owning the vehicle. Chances are that you will be pleasantly surprised with the actual savings that you can achieve.

Aqeel Arif is fond of reading and hence writing about the fastest cars, supercars as well as love to explore about classic cars.

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