Hybrid Car Rebates: Enough To Substantiate Purchase?

Bank of America made definite its stance regarding climate change when it launched its hybrid car rebate program last January of 2007. It was on a Friday when Bank of America spokesperson Eloise Hale had told reporters that more than 185,000 of its American employees are entitled for a $3,000 hybrid car rebate if they purchase any of the environment-friendly, fuel economy cars such as Toyota Prius, Honda Insight, or Ford Escape Hybrid. And though the number of applicants are undisclosed, spokesperson Eloise Hale was quick to impart the pilot programme had boosted sales since its inception.

However, while Bank of America’s hybrid car rebate program was the biggest, it isn’t the first. For instance, Google had been giving massive hybrid car rebates, up to $5,000, since last year. Hyperion, a software company from Silicon Valley was also putting another $5,000 worth of fringe benefits to employees purchasing a hybrid car. Yet another company, an outdoor outfitter Timberland made true to it’s calling by handing out $3,000 hybrid car rebates to employees getting these environment friendly cars.

Here we see substantial hybrid car rebates being offered, along with massive tax credits, and attractive car loan plans, all in the name of a greater cause: to shift the general American paradigm to hybrid vehicles. But the question remains: will these be sufficient to get a hybrid car with an overblown sticker price?

At $5,000, it could be beyond generous. The 2007 model Toyota Prius for instance cost $23,690 (base) and lesser, around $19,995 for the older models. The $5,000 hybrid car rebate could go a long way, considering that top tiered models of other fuel engines also falls around the $20k barrier, more or less. For instance, a Volkswagen Jetta GL TDI, which runs on diesel, has a base price of $18,670. And performance wise, I’m willing to eat my shoe that the Prius outclasses the Jetta in most aspects. Even at $3,000 hybrid car rebate, its already enough.

Then there is the new energy tax credit made available for hybrid cars. On some particular models, most especially those really fuel sparing models like the Toyota Prius and Honda Insight, tax credit could go around $1,000. Adding it up to the hybrid car rebate, you’d be paying even lesser for a really great car.

What remains to be done is for other companies to follow suit. Led by the Bank of America’s example, and Google and Hyperion, other large companies should also start their own hybrid car rebate programs.