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http:// --> Ashland, Oregon HOME Valley & State Sports Nation & World Opinion/Editorial Classifieds Business Columnists Local Issues Obituaries Weather Archive Revels Etcetera Backpage Hot Topics Most Viewed Forum Photo Galleries Video Readers Polls O-Zone Online Games Movie Preview Special Sections Real Estate Guide Menu Guide Shakespeare Subscribe Contact Us Rate Card Place an Ad Top Galleries: February 26, 2007 Incentives abound for hybrids By Vickie Aldous Ashland Daily Tidings Hybrid vehicles usually cost a few thousand to several thousand dollars more than their conventional counterparts. But lower fuel costs, tax breaks, reduced maintenance costs and now cheaper car insurance rates are making hybrids more affordable. Paul Volz, owner of the Farmers Insurance office on Siskiyou Boulevard, is offering a 5 percent discount on car insurance to hybrid owners. "We want to help promote people investing in these types of cars," Volz said. "The 5 percent discount might sway someone to buy a hybrid." Farmers Insurance was the first major insurance company to offer a discount to hybrid owners in California, where the discount was well received. The company began offering a discount in Oregon late last year, Volz said. He said he has yet to see a big response from Ashlanders, but plans to continue advertising the discount. The offer makes environmental sense, and may also make business sense for Farmers Insurance. There is not enough data yet to prove if hybrid drivers are safer drivers. But some insurers believe that hybrid owners may be "more conscientious" drivers, said Jim Burgett, the personal line agency consultant in the Farmers Insurance state office. The car insurance discount is just the latest in a string of incentives to buy hybrid vehicles. The state government allows a tax credit of up to $1,500 for a person who buys a qualifying hybrid, according to the Oregon Department of Energy. The state tax credit for a business that buys a hybrid can be even more generous. A business can get a credit for 35 percent of the cost difference between a conventional vehicle and its hybrid match. For example, the state estimates that a Toyota Camry hybrid can cost $6,525 more than a gas-powered Camry. The credit would equal $2,283.75 for the Camry hybrid. Nonprofit groups that don't pay taxes and businesses that don't owe taxes — and therefore can't benefit from a tax credit — can sell the tax credit to a business or individual for cash under state rules. The federal government offers a variety of tax breaks, from $250 for qualifying light trucks to $2,600 for the Toyota Camry hybrid and Ford Escape hybrid. Other incentives are available for businesses that buy heavy-duty hybrids. However, the federal tax breaks will be reduced after a manufacturer, such as Toyota or Ford, sells 60,000 qualifying vehicles. Tim Storfjell, a sales consultant at Butler Ford in Ashland, said Ford has sold about 30,000 vehicles so far that qualify for the federal tax breaks. Butler Ford sells the regular Ford Escape as well as the hybrid version. The small SUV is in one of the fastest growing vehicle categories — cross-over vehicles that combine features of SUVs and cars, Storfjell said. He said that back when gas prices were at their highest, dealers saw a surge in consumer interest in hybrids. Demand then slacked off as gas prices fell, but is now holding steady. "Sales are fine here in Ashland. We have more early adopters of hybrids in this Valley," Storfjell said. Currently, Butler Ford does not have any Ford Escape hybrids on the lot. It usually receives two or three hybrids in every order of 10 Ford Escapes. Butler Ford can order a hybrid for a customer or arrange a dealer swap, he said. Hybrids generally get eight to 10 miles more per gallon than similar regular vehicles, Storfjell said. There are other cost savings as well. Many hybrids need oil changes only once per year or after 10,000 miles. And because hybrids capture energy during braking, there is significantly less wear on brake pads and rotors, leading to lower maintenance costs, Storfjell said. For more information on tax breaks, visit oregon.gov/ENERGY/TRANS/hybridcr.shtml or call 1-800-221-8035. Information from the state government is not intended as tax advice, so check with an accountant before purchasing a vehicle. Staff writer Vickie Aldous can be reached at 479-8199 or [email protected]. To post an on-line comment, visit www.dailytidings.com Current Comments: The article mentions the braking energy re-capture attribute of hybrids, but fails to stress it. It IS the central virtue of the machine. A regular car wastes all energy needed to STOP, which is similar to the energy needed to GO. A hybrid, as well as being just incredibly well-engineeered, recovers a decent fraction of braking energy. This is the MAIN POINT, the fundamental purpose, of hybrids. We get over 50 mpg with my wife's superb Honda 2002 Civic. Tom Marvin - Ashland - February 27th, 7:32 AM Leave a Comment: Advertisement: Advertisement: Paid Advertising: Debt Help Inkjet Printers Payday Loans Free Ringtones Debt Consolidation Security Systems Debt Relief New Hampshire Primary Advertisement: Copyright © 2007 Ashland Daily Tidings and Ottaway Newspapers. All Rights Reserved. Del.icio.us