Taking Uncle Sam for a Ride | Green Energy News

March 19, 2006 – Vol.10 No.52

TAKING UNCLE SAM FOR A RIDE?

According to Wards Auto.com Honda sold 1,780 Civic Hybrids in February, up 31.6 percent compared with February 2005. Calendar year-to-date Civic Hybrid sales are 96.1 percent ahead of a year ago, with 4,945 units sold.

Toyota Prius sales dropped for the first time in February by 7.5 percent, but overall, sales by the end of February were 12.3 percent ahead of last year for the same period, to 14,201 units sold.

Sales of new Civic Hybrid and the Prius send significant tax credits to their buyers: an estimated $2100 for a 2006 Civic, $3150 for a 2006 Prius.

But, the tax credits may be driving owners of nearly new hybrids to trade early: Trade the low mileage car now when demand is high and the car’s resale value is solid and profit next year from the tax credit.

The numbers of used Prius and Civic Hybrid numbers seem high especially when demand for the new cars is high and so many of the available used cars have such low mileage.

Browsing Cars.com revealed more than 1300 Prius pre-2006 sedans for sale, mostly at dealerships. More than 750 were second generation, low mileage cars.

A similar tale for Civic hybrids on Cars.com. There were 472 going back to 2003. That seems like a lot, but fewer than the Prius because fewer have been sold overall.

In all there were no bargains on low mileage hybrids. Current high gas prices are keeping upward price pressure on those popular, high fuel economy models.

However, new methodology in determining U.S. Environmental Protection Agency (EPA) fuel economy ratings might do damage to sales of new hybrids that get only moderate improvements in fuel economy, such as Ford’s Escape Hybrid and Saturn’s upcoming Green Line Vue hybrid.

For hybrid vehicles in general the new EPA City MPG estimates would drop 20-30 percent from today's estimates. For the Escape the EPA City estimate could drop as much as 10 miles per gallon, putting the SUV into the Why Bother? category. Conventional cars will see a 10 percent or more drop in EPA estimates. Visit Cars.com at http://www.cars.com/ .