• Jun 6th 2006 at 11:05AM
  • 17

As far as the Internal Revenue Service is concerned, Toyota Motor Company has hit the magic number. The company is expected to announce the sale of its 60,000th hybrid vehicle, coincidentally the same number at which tax incentives to buy such vehicles is reduced or disappears. Those tax benefits, which range from $650 for a Honda Accord hybrid to $3,150 for a Toyota Prius are often a big factor in consumer decisions to purchase these models, so it will be interesting to see if their sales taper off this year as a result.

Toyota Camry hybrid is just hitting dealers now and will fetch a $2,600 tax credit from Uncle Sam.

[Source: the Cherry Hill Courier Post]

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    • 1 Second Ago
      • 9 Years Ago
      Cid do your homework first before you spew your 1 sided bs. The saturn hybrid is the VUE SUV which gets better mileage than both the Highlander hybrid and escape hybrid.
      • 9 Years Ago
      I bought a 2002 Prius, new, and got excellent gas mileage for $22,000 and got a tax rebate of $2000, which in my tax bracket corresponding to $3000. I sold it in 2005 for $16,5000 (I bought a 2005 Prius). So in three years the depreciation was only $2,500. However, it hard for some people to realize I brought both cars to make a statement. I don't really care for the statement " how many miles I have to drive to break even". I feel that anything I can do to cut down our dependence on foreign oil is good for us.
      • 9 Years Ago
      "Those tax benefits, which range from $650 for a Honda Accord hybrid to $3,150 for a Toyota Prius are often a big factor in consumer decisions to purchase these models, so it will be interesting to see if their sales taper off this year as a result."

      Ya think??!!
      • 9 Years Ago

      Prius drivers are not driving them for ecenomic reasons. They drive them as a political statement. People with common sense know that sub-compacts are a far greater value than hypebrids and true enviros know that it's better to buy a used sub-compact and reduce industrial pollution by reducing demand for the manufacturing of new cars.
      • 9 Years Ago
      I found the answer to my own question.

      Basically, the credit is based on savings over the class of vehicle. So SUV's get compared to SUV's and compacts to all compacts, mid-sized to all mid-sized and so on.

      Apparently, according to a source I spoke to at Honda, Toyota pushed this formula, Honda did not. Additionally, it is based on City EPA MPG estimates, not Highway or combined (again Toyota).
      • 9 Years Ago
      #11: I suggest YOU do your own research. The Ford escape Hybrid gets 36/31 MPG, far better than the VUE Hybrid.

      The Highlander gets 31/28 MPG with a 3.3L 6 cylinder and far more weight. The VUE is a joke.

      Seriously fokes, is it that hard to head on over to edmunds to do some research??
      • 9 Years Ago
      The Camry hybrid is definitely on the market. There are two white ones
      sitting on my local Toyota dealer's lot. My friend test drove one this
      weekend. It will be very interesting if the $2600 credit loss will
      change whether she buys it or not.

      Joel, these tax credits available for cars from ANY manufacturer who sell hybrids, so GM AND Ford hybrid buyers get these as well.
      • 9 Years Ago
      Check this out...scoll to the "When will Toyota hit the 60,000 hybrid threshold?" header.

      • 9 Years Ago
      The credits continue at 100% into the next Calendar quarter (July 1-September 30, 2006), then at 50% for purchases made from October 1-December 31, 2006. THen at 25% for purchases made from January 1, 2007-March 31, 2007. Anytime after that-the credit is gone.

      What shocks me, as a Civic Hybrid owner, is that the Camry gets a $2,600 credit but the Civic Hybrid only gets a $2,100 credit with better gas mileage and emissions!!
      • 9 Years Ago
      IMHO the hybrid tax credit is unfair to all the people who buy an efficient diesel, carpool, or take other measures to reduce our impact on fuel reserves.
      • 9 Years Ago
      My daughter & son-in-law definitely didn't buy Prius as a status symbol. Their last car was a very old wagon with a large, home-painted, 60s style message on the back. They bought the Prius for the side-curtain airbags and gas mileage, for both economic and enviro reasons. But their mileage has not been near as good as predicted. I hope they got the tax credit.
      • 9 Years Ago
      There's still time to collect the some or all of the credit once the official announcement is made...the following is from the IRS website...

      Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
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