Hybrid Car Tax Credit - Gone But Not Needed Anyway

Since the hybrid car tax breaks are a thing of the past, is it still cost-effective to buy a hybrid? The answer, as you will see, is a resounding "YES." For one thing, the prices have come down considerably in the last couple years. 2011 has seen drastically reduced pricing in the hybrid vehicle industry as a whole.But the benefits don't stop there: You also stand to save money by not having to fix your engine after 200,000 miles or more. In addition, your brakes will last virtually forever - another savings. (We'll cover the reasons for this in a moment.) And don't forget your time: Your time is valuable too, and having to set aside time to fix your cars engine or brakes takes precious time.But first, a quick and interesting rundown on the now expired hybrid car tax break: The reason why the Federal government suddenly became so generous back in 2006 is because of the higher prices that buyers were faced with. This meant that far fewer cars would be sold. You see, the U.S. government felt obliged to help our automotive industry - which it had been doing little or nothing to help them keep up with Japanese automotive technology.Our Japanese friends out-engineered us shortly after President Clinton commissioned the hybrid car program back in 1993. Japan's total domination of the technology resulted in the complete withdrawal of U.S. auto manufacturers from the program by 2001. Because by this time, the Toyota Prius was everywhere, with Honda not far behind.Where was the U.S? Ford and a couple other Detroit automakers were quietly making deals with Toyota to license their technology. It's no secret that the U.S. has been playing "catch up" to Japan in nearly all automotive technologies for many years. And hybrid technology is definitely no exception.Here's why the government's hybrid car tax rebate program was bad (and was shut down prematurely): Buyers would to get a $400 tax credit for every 25% improvement in efficiency over its all-gas counterpart of the same weight. But, there was a catch:This credit was given to only the first 60,000 vehicles sold by each different manufacturer. Some--like Ford, for instance, didn't even plan on making 60,000 hybrids that year. So each and every person who bought a Ford would get the credit. But no one wanted a Ford. Toyota, however, blew through their 60,000 quota in no time flat, leaving the remaining buyers federal tax credit-less.2011, however, is a whole other story: Fast-forward to 2011: The Ford Fusion hybrid and the Toyota Prius are the #1 and #2 requested hybrids! Boy, have the U.S. automakers made a comeback.But back to why you stand to save more than gas money (which is huge by itself): Because the electric motor - which will last basically 'forever' in a hybrid - does most of the wear 'n tear work that the gas engine would otherwise have to do:Which is to get the vehicle from a stand-still up to around thirty mph. It's only then that the gasoline engine takes over. Gasoline engines get most of their wear (and guzzle gas) from zero to about 20-30 mph. After that, they are very efficient at keeping the car running at high speed.Now, the brakes: Since hybrids use a wonderful technology called "regenerative braking," the brake pads and other components get used very little; when you step on the brake pedal in a hybrid, you are 're-capturing' the energy of stopping the vehicle (via a generator) and storing that energy back into the batteries. (And the batteries then get you back up to around 30 mph using that energy stored from stepping on the brake.)So go ahead and buy a hybrid-electric car. Your wallet will appreciate it, not to mention the time savings from not having to maintain an all-gas vehicle.