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By Erik Bateman
It may be true, but who wouldn't like to spend less on gas? Now you can. Technology has made it possible for motorists to switch to a hybrid or alternative fuel source vehicles and save money, not only at the pump, but on taxes as well. Perhaps at work you have discussed the price of gas around the water cooler after a long commute. Maybe a significant other has mentioned that the amount you are spending on gas is getting too high. Or perhaps you have been thinking about taking the bus or riding a bike because gas prices are just too much. These thoughts are not uncommon. Shad Withers is a college student that has to drive to school everyday because he does not live in an area with bus service. He is preparing to go to law school and is making plans to get engaged to his long-time girlfriend. She however, does not want get married to someone that has a high amount of debt. Since Withers has school loans, a ring to buy and law school to save for his budget is very limited. He feels that gas prices are out of control. He used many graphic analogies to describe how he feels the gasoline companies are manipulating the prices at the pump. Kathy Bateman, a recent graduate of Utah State University, feels much the same way. She admits that she owns a gas-guzzling SUV, but it is a vehicle that suits her lifestyle. As an outdoor enthusiast she likes to have the clearance under her vehicle to go the on dirt roads that lead to some of her favorite nature hikes. She has also been involved in a winter weather auto accident. She believes a four-wheel drive vehicle could have given her more traction and could have helped to avoid the incident. It snows in Utah and she feels safer having the four-wheel drive option available. As an outdoor enthusiast, however, she has a great respect for the environment. She really likes the idea of a hybrid car. "I think every one should have one," Bateman said. She however, has not been able to find a hybrid that would suit her needs. Car manufacturers have seen the need and are making new cars that are solving the gas price dilemma. Though not well advertised, many of the major car manufacturers are producing gas/electric hybrids and alternative fuel cars. They are also pursuing new fuel and electric technologies. The choices of hybrid automobiles are becoming greater and greater. It is no secret that Americans love SUVs. Ford Motor Company has announced a new sport utility hybrid that will be available in 2004. The Ford Escape hybrid will get 30 mpg in town and 40 on the highway. This marks a dramatic increase in mileage in the sport utility realm. Honda and Toyota have been forerunners in the world of hybrids. Honda's Civic hybrid gets 51 mpg on the highway compared to the regular Civic's 38 mpg. This means if you drive a hybrid it will cost you 3.2 cents a mile at a $1.65 a gallon, or $384 a year at 12,000 miles a year. The regular Civic will cost 4.3 cents a mile at a $1.65 a gallon, or $516 a year at 12,000 miles a year. This is a difference of $132 a year. If you want to see an unbiased listing of hybrids and alternative fuel cars, sponsored by the U.S. Department of Energy, one can be found at http://www.ccities.doe.gov/vbg/progs/search_class.cgi . The savings do not stop there. It is true that you can receive tax credits for buying a hybrid or alternative fuel source vehicle. The federal government is offering a tax deduction up to $2,000, known as the "Clean-Fuel" credit, for buying a hybrid or a car that emits lower emissions. The good news is that it does not matter if you itemize your taxes or use a standard deduction. Either way you can still qualify for the credit if you buy a new alternative fuel source vehicle. The bad news is the credit value is going to decrease each year. By 2006 the credit will only be worth $500. If you are serious about switching to a hybrid vehicle, check out http://www.fueleconomy.gov/feg/tax_hybrid.shtml to get detailed information on the federal tax break offered. Individual states also offer tax benefits for purchasing a low emission/hybrid automobile. To find out what each state is offering, as far as tax breaks, related to buying hybrid and alternative fuel vehicles go to http://www.ccities.doe.gov/vbg/progs/laws.cgi and select your state from the pull-down menu provided. Mark Stocking is another recent USU graduate. He feels that the new hybrid cars are a good idea, but they cost too much. He has a point. The earlier mentioned Honda Civic has a big price difference. The regular Civic starts at $13,010 when the hybrid starts at $19,650. This is a price difference of $6,640. If you took the price savings from the increased fuel efficiency and put it toward the cost of the car it would take 50 years to make up the difference at $132 a year. Even if you took the $2,000 federal tax credit it would still take 35 years to make up the difference. "It's not worth the money," Stocking said. The real value comes into play if you are in the market for a car priced similar to that of the hybrids. Also, the positive effect hybrids would have on the environment and air pollution could prove to be priceless. NW
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