Automakers add hybrids as popularity grows

“It is the future, no way around it,” said J.R. Martin, client advisor for Reliable Lexus, which claims to have the world’s first luxury hybrid in the RX 400h.

Hybrid cars have conventional gasoline engines, aided by electric engines that kick in during stop-and-go traffic and during acceleration to improve fuel economy 5 percent to 40 percent compared to gasoline-only models.

Jeff Curtman, sales consultant at Don Wessel Honda, said hybrids are just as powerful as standard cars.

“There’s really not much of a lag time or difference,” said Curtman, comparing the acceleration of the regular Civic to that of the hybrid Civic.

“Both speedometers go to 120 miles per hour,” he said.

Hybrids initially hit the United States and Japan around 2000. Toyota released the Prius in Japan, while Honda released the Insight in the United States.

However, hybrids have a long way to go to dominate the auto market.

Curtman said Honda, with the hybrid’s new technology, started in the hole financially with the Insight.

“It was costing Honda several thousand dollars initially for each car they sold,” he said.

Now, Honda and its competitors are making headway in the auto market. Chevrolet, Nissan, Toyota, Lexus, Dodge, Ford, GMC, Mercury, Porsche and Saturn either already are offering hybrids or are preparing to do so soon.

Still, Curtman said of the 50 to 100 cars sold at Don Wessel every month, only three to five are hybrids. He said only 30,000 of the 335,000 Civics that Honda sells during a year are hybrids.

But, he said sales are picking up as more people learn about the technology.

“People that initially want (hybrids) are the type that will do the research,” Curtman said. “The early adapters will be aware of the technology and take advantage of it.”

Of course, hybrid technology isn’t the only fuel-efficient dog in the fight. It’s competing with fuel cell technology and diesel engines, which have been popular in Europe.

Hybrids also cost more than traditional cars. A conventional 2005 Honda Accord, which gets an Environmental Protection Agency-determined 21 miles per gallon for urban driving and 30 miles per gallon for highway driving, has a manufacturer’s suggested retail price of $27,365. Its hybrid counterpart, with a 29/37 split on fuel economy, has an MSRP of $30,655.

The $3,290 more a consumer would have to pay for a hybrid Accord means years of driving to recover the money difference at the gas pump.

For example, if a driver logs 15,000 miles in a year and jumps from 20 miles per gallon on average to 30 miles per gallon with a hybrid, they would use 250 fewer gallons of gas. If gas prices remained a steady $2.10 during the year, the consumer would spend $1,050 at the pump versus the $1,575 they would have paid – a savings of $525.

Consumers can offset the higher ticket price with federal a tax deduction.

Individuals who buy new 2005 hybrids can deduct $2,000 this year from their taxes as a Clean-Fuel Vehicle Deduction. However, the deduction amount will fall to $500 in 2006.

Lisa Middlebrooks, a certified public accountant in Springfield, said the tax break doesn’t help business owners since they can already write off expenses as part of Section 179 of the federal tax code.

“It’s basically something to help the regular taxpayer to get a car and not have to use it in a business to get a deduction,” she said.

State and city governments also can establish local incentives for hybrid owners, though none exist in Missouri. San Jose, Calif., hybrid owners, for example, are exempt from local parking fees.

John Millett, EPA spokesperson, said concern for the environment is incentive enough to buy a hybrid, regardless of the economic impact.

“We’re very pleased with the trend toward hybrids,” Millett said. “The consumers have cleaner and more fuel-efficient choices.”

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