Now May Be the Best Time to Buy a Hybrid

Edmunds thinks now would be the best time to buy a hybrid.

1. According to Edmunds.com True Market Value(R) (TMV(R)) pricing system, 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.
2. For the first time ever, incentives are being offered on many popular hybrids.
3. Certain hybrid tax credits will be lower for those who purchase later in the spring, after automakers reach specific hybrid sales targets.
4. Gas prices have begun their seasonal rise. AAA recently reported that unleaded fuel is up 32 cents per gallon compared with one month ago.

It should be noted that these benefits depend on which hybrid you buy. Although the last point applies to all cars, only Toyota is currently being affected by the federal tax credit phase out period. Honda (which is most likely to cross over the 60,000 car limit) probably won't be affected until next year.

Also, to be fair, the press release mentions solo access to HOV lanes being one of the perks of owning a hybrid. California, being one of the states that offers that perk, has run out. So, if you buy a hybrid today, you won't be able to get into the HOV lane as a solo driver in CA.

Press Release from Edmunds follows:

SANTA MONICA, Calif.--(BUSINESS WIRE)--Considering a hybrid vehicle? Now is the time to buy, according to Edmunds.com, the premier online resource for automotive information. There are four key reasons:

1. According to Edmunds.com True Market Value(R) (TMV(R)) pricing
system, 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.

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

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

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

“In the past, our research showed that the True Cost to OwnSM 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.”



“Hybrid vehicles have always been a compelling choice for drivers who want to save fuel and to drive an environmentally friendly car,” said Philip Reed, Senior Consumer Advice Editor at Edmunds.com. “While buyers used to pay a premium for hybrids, now the vehicles are more affordable and 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.