Economic Effects of Hybrid Vehicles

This is a guest article submission on the economic effects of driving a hybrid vehicle.

Nowadays, hybrid car is very common. Hybrid cars are not only driven by environmentalist like in the past but they have become wide spread on the motor highway. Hybrid car is appealing to consumers because it helps them to save money on fuel at the petrol station. In addition, it helps to reduce the dependence on imported oil from foreign country and the fuel price fluctuations.

Buying hybrid car will significantly reduce the air pollution by 80 – 90 percents. It will produce a higher positive outcome in urban places that often experience traffic congestion such as London.

Many car rental companies now offer chauffeur driven hybrid cars. For example, you can book a hybrid sedan from Hybrid are especially efficient in urban region due to the frequent stop and go conditions. With hybrid cars, you can significantly reduce harmful pollutants in the air.

Hybrid car consume less gasoline so they offer greater mileage. Hybrid cars do not depend on the gasoline because it is powered by electricity. As a result, consumer can save on fuel and lower the imports of oil in United States. The United States is the world’s largest oil consumer so hybrid cars will help to reduce the import of oil from unstable region such as the Middle East.

Although hybrid cars offer great fuel economy, it is expensive. You will have to use the car for 10 years before you can cover the car’s purchase price. In 2004, the federal government offers tax credit incentive for people who wish to purchase hybrid cars.  However, the government has phased then out in 2006. Tax credits for hybrid cars are available in certain states including Colorado, Oregon, South Carolina and Louisiana. There are also other states that offer tax and fee exemption to encourage people to buy hybrid cars. Hybrid car is more robust than a standard car so less maintenance is required. The battery of hybrid car can last for long time and the brakes will cost much cheaper to repair.

Buyers of hybrid car are qualified for a tax exemption of $2000 from the IRS. Some states offer incentives consumers of hybrid cars so you should check with the state’s offices. Maine offers partial sales exemption of up to $500 for buyers of Toyota Prius. New Mexico offers 3% of tax excemption on hybrid car that has an EPA rating of 27.5 mpg. Oregon offers a tax credit of $15000 for certain hybrid cars. Pennsylvania offers grants to lower the cost of the new hybrid cars with conditions applied. Maryland and Virginia exclude hybrid car buyers from undergoing the mandatory emissions testing.

In some cities, the municipal had joined effort with the state and federal government to encourage people to use hybrid cars. For example, in Los Angeles and San Jose, the court pass a ruling which allows people to park their hybrids for free of charge at any car park. You should always check with the local state government for renewal on the regulations.

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