(originally posted to Edmunds.com discussion board on 2005.01.14)
Let’s say gas is more like $2.50/gallon, which it now is in some markets, and you have a longer commute, say, you put 15,00 miles/year on the car.
20 mpg = 750 gal = $1875/year in gas cost
28 mpg = 535.7 gal = $1340/year in gas cost
$535/year savings. In seven years, that’s $3745. If there’s still a tax break when you buy it new (I’m not sure what the status of that is these days), then you’re paying virtually nothing to get all of the aformentioned benefits plus, of course, reduced environmental impact.
Obviously, if you live somewhere where gas is much cheaper or put less miles on your vehicle, it makes less finiancial sense, at least purely on gas price. But for some poeple, the math already pretty much works out right now.
The tax credits are still in effect and are up to $2000 for a new, approved hybrid vehicle. There is a link on the Toyota website to IRS pubs regarding these credits. It is rumored to be going away at the end of this year, or at a minimum, to be reduced a couple of times until it is gone.
The Highlander is one of the most obvious choices for a Hybrid as it is aimed at errand runners in town- Moms in particular, and therefore, will provide the most dramatic increase in savings.
Good info on the tax status, thanks.
On the other hand, what’s with the 1950s gender role assumptions? My wife, mother of two, commutes almost 50 miles a day round trip to her full-time job (one which requires a graduate degree), and I do just as much errand running in town as she does.