Tips and TricksJuly 16, 2006 8:05 am

I had assumed that it was common knowledge that you could get discount auto insurance if you drive a hybrid vehicle. However, I’ve received a couple of emails about it - so thought it was worth clarifying.

In the United States there are a number of insurance companies that will offer you a 10% discount if you take out auto insurance with them.

One well-respected group is Hybrid Travellers.

While these offers are generally very competitive it still pays to shop around. Depending on the model you have purchased and your state of residence it can still sometimes be possible to get cheaper insurance (even when the discount is taken into consideration) through discount auto insurers.

 

 

UncategorizedJuly 15, 2006 11:18 pm

Michael Dawson over at the Monthly Review has an interesting piece called the “Alternative Fuel Scam.”

Michael is a sociology teacher and write for a self-proclaimed activist magazine, but he presents a cogent and at times powerful argument against the automotive industry.

In an interesting assertion when you strip away the rhetoric, he argues in part that our focus on hybrid cars and alternative fuels is a distraction. He suggests that green propaganda is misused to prevent addressing the foundational issue - that the automobile is an inherently wasteful and criminally stupid transportation system.

Michael canvasses some of the arguments that have been recently raised in this blog - arguments about fuel efficiency and the “unseen” energy used to build the specialised machinery of hybrid cars.

It’s a pertinent point - improving fuel efficiency does not address the fact that personal ownership of motor vehicles by millions of Americans is a criminally prolifigate waste of natural and economic resources.

“Green” cars only flatten the curve of that impact rather than eliminating it.

I should mention at this point that I’m coming to the issue from a distinctly different view-point from Michael so the following criticism should be viewed in that light.

The logical endpoint of Michael’s argument is almost impossible given the current social, cultural and economic topography of America. At least in the short-term, capitalism will not come crashing down - and sitting on our hands and waiting for that moment leaves the continuing consequences of our environmental impact unchecked.

In part, the hybrid car movement sits at the point where ideology gives way to pragmatism. It’s founded on recognition of the economic and environmental impacts of the automobile, and the crafting of a solution that could feasibly enjoy mass duplication across demographic groups.

Is it the best solution? Almost certainly not? However until Michael or someone else comes up with a credible solution it is one way that concerned citizens can take action. “It’s not good enough” is a mantra that the environmental movement has used in the past to justify inaction. It’s time we faced up to the fact that one step is better than no steps - that in creating momentum and inspiring action we can see something like hybrid vehicles as a small part of a broader and more gradual tapestry of change.


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Tips and Tricks 1:00 am

Ecologically, there’s no question that hybrids outshine even the most efficient economy cars in terms of their environmental credentials.

However its worth looking at some of the intangible social, economic and environmental impacts of purchasing a hybrid.

Will a hybrid be a cheaper alternative to standard fuel cars?

Answering this question is often a reflection of the writer’s political beliefs as opposed to sound economics.

See an example of how hybrids can be costed to be cheaper 

See this comment on the same post for an opposite perspective 

Establishing the economic benefits of purchasing a hybrid vehicle depends to a very significant extent on your driving habits, the vehicle you intend to purchase and the state you live in (in terms of the rebates you can access) The general consensus at the moment seems to be that its a relatively break-even proposition, improved gas mileage will off-set the greater upfront cost.

See this post for a very detailed mathematical discussion of that perspective 

What about the other intangible benefits?

There are three additional things that are worth considering that might shape your purchase.

1. Hybrid vehicles retain their value to a great extent than standard fuel cars - the resale value of a hybrid can be up to 30% higher than a comparable standard fuel model from the same year.

2. Increased demand for hybrids is leading to an expansion in the number of mechanics who can perform repairs. Most new hybrids also come with substantial warranties that give you extra peace of mind.

3. Hybrid technology is still comparatively new. As oil prices continue to increase and the technology gets cheaper the value proposition is going to look increasingly attractive.

Tax credit and purchase informationJuly 14, 2006 11:10 pm

The IRS made a very important announcement yesterday. I felt it was particularly important to bring it to your attention because of the series I’ve been running on employers offering benefits for employees who purchase hybrid cars.

Some confusion arose as to the taxable status of that bonus.

To summarise the current position:

1. Cash incentives of this nature are taxable

2. Your employer should include this amount on your year end Form W-2 earning statement

3. These bonuses are subject to income tax witholding

If you are in the position of having received one of these bonuses and feel that your tax obligations have not been met I would urge you to contact your employer or a relevant legal/financial professional as soon as possible.


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Uncategorized 10:24 am

A break today from posting - but have put together a round-up of the last week posts to make them easier to wade through. Look for them every Friday to mark the end of the week.

About Me

Tax Credit Information

News

Organisations and State/Local authorities offering bonuses for hybrid vehicle purchases

Why are Hybrids important?

News

Alternatives to Hybrid Vehicles

Videos


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Tax credit and purchase informationJuly 13, 2006 10:33 am

In the spirit of my eternal quest to bring you the information about every single rebate, tax credit, or advantage of hybrid car ownership comes this latest piece of news from Pennsylvania.

State authorities had been running a rebate scheme for hybrid car owners - however the budgeted amount was depleted by March of this year.

The legislature announced today that an additional 3 million dollars has been set aside to continue the rebate scheme. Importantly, people who purchased a vehicle during the suspension period will still be eligible to claim the rebate. Note that this rebate scheme is separate from the Federally funded grants for their shortlist of vehicles I blogged about earlier.

Information about the Alternative Fuels Incentive Grant can be found here (note that the website is out-of-date and doesn’t reflect the new grant information.

Application forms for the grant can be found here (may require a login)

Please don’t be shocked at the size of the guidelines (38 pages!!) The complexity for applying for these kind of grants for hybrid vehicle purchases is in my opinion a major barrier to ensuring greater uptake.

I don’t think it warrants a post of its own - but if anybody would like guidance in filling out the forms - drop me an email on mark.kitchener@gmail.com and I’ll be happy to help out.


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Tips and Tricks 6:17 am

Less than 20 minutes after this post - someone emailed to ask me to justify my statement about hybrid cars being less efficient than standard fuel vehicles when travelling for long distances.

A hybrid car’s advantage in town traffic is three-fold

1. They use no fuel when coasting

2. They recover energy during frequent breaking - this can be used for acceleration

3. They don’t use any fuel when stationary.

However, in situations where a vehicle will be cruising at a standard speed for long distances they are no necessarily any more efficient than a standard fuel vehicle because they are carrying extra weight in batteries, motors and control systems.


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Tips and Tricks 4:14 am

Following up from Yesterday’s post about the dangers of over-selling hybrid technology - I felt it was as good a time as any to list the top 5 reasons you wouldn’t buy a hybrid (in no particular order)

1. The higher upfront cost (up to $6000) of a Hybrid can take over six years for the average American to recoup due to improve mileage. Most people do not keep their car this long.

2. Smaller hybrid engines operate at higher RPM’s - and therefore break more easily

3. The battery in a hybrid car lasts only 4-5 years - and is very expensive to replace.

4. Specialised drive-trains and parts means that many mechanics are unable to service hybrid vehicles.

5. Hybrids are only more efficient in urban situations - if you spend a reasonable amount of time driving long distances-  there is little difference in mileage.

Stay turned tomorrow for the top 5 reasons you would want to buy a hybrid.

About meJuly 12, 2006 10:51 am

I sat down this morning and looked over my last 14 posts. Universally positive, feel-good hybrid vibes oozing from every pore. I started to feel a little bit easy - saccharine worked for Disney - but had I lost the hard hitting edge that first gave me the impetus to investigate hybrids?

Don’t get me wrong. I’m a paid up member of the hybrid vehicle obsessives. I’ve got the bumper sticker, and the fluffy hybrid dangle for my front mirror, and the last 12 months of Green Car Magazine on the passenger seat.

But I started to think that I was guilty of one of the sins that I’ve blamed on many other hybrid vehicle pundits - universally positive doesn’t sell. We pretty much only have one chance to achieve the deep-seated cultural change that will make Hybrid Vehicle ownership a fact of life for Americans. If we create false expectations - we are going to end up with a pull of dissatisfied, negative ambassadors for the Hybrid Car movement.

We need to be realistic about the limitations of Hybrid cars - and I intend to do that in our very next post.

Uncategorized 6:06 am

I’ve received a few comments about the sign-up form that appeared on the top-right hand corner of my blog.

I decided to start an email-list because there are some more focussed and detailed resources about hybrid cars that don’t necessarily lend themselves to blogging. People who sign up will receive commentary and links to a wide range of interviews, video, audio and other resources. Signing up also entitles you to free access to "62 ways to beat the gas pump monster" - an ebook chock full of money and environment saving tips.

The blog is an opportunity for me to discuss latest news and happenings in the hybrid car world.

I would encourage you to sign up to both!