Hybrid News: Honda, Chrysler & Tax Credits
Thursday July 3, 2008
- If you're planning to knab a Honda Civic Hybrid soon, you'll have a few extra hundred to put back in your pocket--but only if you act fast. The tax credit on Honda's popular Civic has just about hit its limit: As of July 1, it's dwindled to $525 and will be phased out to $0 by the end of 2008. This is according to the 2005 establishing federal law that requires the tax break to gradually diminish and ultimately discontinue after a manufacturer has sold 60,000 qualifying vehicles. Toyota long ago reached that plateau (thanks to the Prius)--and will soon be joined by Honda, but there are still quite a few other manufacturers that offer gas-electric hybrid rides with a qualifying credit--check out the current 2008 hybrid tax credit list here. And as most everyone knows, hybrid technology costs a couple thou more than your standard set of wheels (and most folks aren't into absorbing that price differential--see the results from our recent poll), so these tax credits have helped shorten the payback period (while in effect). Otherwise, the difference in hybrid gas savings can take years to make up ... of course, the more eco-driving techniques the driver employs, the quicker that happens.
- While the Dodge Durango Hybrid and Chrysler Aspen Hybrids are coming to dealers later this summer (look for them in August), recent reports are that Chrysler will be expanding the two-mode hybrid system into more rear-wheel drive sedans and trucks. Could we see hybrid versions of the popular Ram pickup, Chrysler 300 or Dodge Charger? Although Chrysler has not confirmed the specific details of the up-and-coming hybrids, their strategy of moving hybrids from their largest vehicles on down is not a bad idea, said Jack Nerad, executive market analyst for Kelley Blue Book (and author of The Complete Idiot’s Guide to Hybrid & Alternative Fuel Vehicles), in a recent article in The Detroit News: "The ultra-environmentalist would say if you have to drive, you should drive the most fuel-efficient car possible," he said. "But if the goal is to cut fuel usage, hybridizing a Dodge Durango saves a lot more oil than moving from a gas (Toyota) Corolla to a Prius, and some people are still going to want SUVs."
Well said, Jack. Now, we'll just have to see if folks are willing to put the cash up for these newest fuel-saving two-modes. What say you--would you consider a hybrid SUV? And are you counting on getting that tax credit too?
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