March Madness: Go Green!
March 12, 2007

Now is the time to buy a hybrid vehicle, 

according to Edmunds.com. 

Average transaction prices of most hybrids are at historical lows, incentives are being offered on many popular models, certain hybrid tax credits will be lower soon, and gas prices are rising.

“In the past, our research showed that the True Cost to Own a hybrid vehicle was exorbitant,” said Alex Rosten, manager of Pricing and Market Analysis for Edmunds’ AutoObserver.com. “However, our latest analysis indicates that, considering current hybrid price trends and rising gas prices, it is financially sound to purchase a new hybrid vehicle within the next few weeks, before the tax credits are further reduced.”

Average transaction prices of most hybrid vehicle models are at their lowest levels in history because the supply is finally beginning to exceed the demand, according to Edmunds.com True Market Value pricing system.

For the first time ever, incentives are being offered on many popular hybrids. 

Certain hybrid tax credits will be lower for those who purchase later in the spring, after automakers reach specific hybrid sales targets.

Gas prices have begun their seasonal rise. AAA recently reported that unleaded fuel is up 32 cents per gallon compared with one month ago.

Edmunds.com's analysis calculated the True Market Value (TMV) pricing of leading hybrids in December of 2006 compared with 2007. Toyota hybrids have dropped the most.

The TMV of the 2007 Toyota Prius is $21,296 this month, down $3,284 from December. The current tax rebate to buyers of $1,575 now drops to a projected $788 in April.

The TMV of the 2007 Toyota Camry Hybrid is at $25,113 this month, $2,706 lower than December. Its tax rebate drops from the current $1,300 to a projected $650 in April.

The 2007 Ford Escape Hybrid and 2007 Honda Civic Hybrid have TMV prices lower by nearly $600 this month compared with December. The tax rebates on those models remain the same in April.

The recent discounts coupled with tax rebates have closed the gap between hybrids and their non-hybrid counterparts, notes Rosten. Some examples:

· The Toyota Prius is now cheaper than a comparable Camry LE sedan by $198.

· The Camry Hybrid is now $446 more than a comparably equipped Camry V6 LE sedan.

· The Ford Escape Hybrid is now $993 more than a Ford Escape XLT when the additional $2,500 cash rebate on all 2007 Escapes is combined with the tax rebates and other discounts.

· The Honda Civic Hybrid is $1,106 more than a Honda Civic EX sedan.

Rosten warns to beware of enormous discounts advertised by local dealers in print media as they are "loss leaders" and normally apply only to one or two vehicles. "They're the bait used to lure customers into the dealership where they can gaze at all the shiny, new metal. Consumers would do well to read the fine print of each ad," Rosten said.

Still, hybrid vehicles have always been a compelling choice for drivers who want to save fuel and to project an environmentally responsible image, said Philip Reed, senior consumer advice editor at Edmunds.com. “Now there are a number of additional benefits.”

Additional benefits of hybrid ownership include:

· Government Tax Credits and Rebates - Federal, state and local governments provide various incentives for consumers to purchase hybrid vehicles.

· HOV/Carpool Lane Driving -- Some state governments permit hybrid vehicles in High Occupancy Vehicle (HOV) lanes and carpool lanes even if the driver is alone in the car.

· Free Parking –- Some local governments and other organizations (such as the Fairmont Hotel in San Jose, Calif.) provide free or reduced parking for hybrid vehicles.   

· Corporate Cash-Back –- Bank of America, My Organic Market and other companies offer cash incentives to any employee who purchases a hybrid vehicle.

· Insurance Discounts –- Insurance companies such as Farmers Insurance Group and Travelers Insurance offer special discounts to drivers of hybrid cars. 

Additional information on finding great perks for hybrid buyers is available at http://www.edmunds.com/advice/fueleconomy/articles/119048/article.html. For additional information on hybrids and fuel economy, visit Edmunds’ Hybrid Buying Guide and Fuel Economy Guide.

Posted by Michelle Krebs at 7:26 AM under Analysis , Featured , Ford , Toyota | Comments (1) | digg this | Seed Newsvine