so i'm planning on getting married within two years. i currently drive a 06 s2k. i signed up for that honda lease special. i pay roughly $650/month on car expenses (gas, payment, ect..). my goal right now is to save as much money as i can until we i married. i want to start off strong by minimizing payments and purchasing a house.

currently, my company is paying their employees $3000 to purchase a new hybrid vehicle. on top of that, depending on the vehicle, you are awarded a federal tax credit ($2100 for the civic hybrid). thats $5100 of free money i can receive. not to mention the state tax incentives.

i crunched up some numbers and it seems like roughly, i can save about $200/month if i go with the civic hybrid (put $5100 down). that is if i get the full trade-in value of the s2k and the civic is purchase at $20k. or my car payment will go up $150/month (zero-down) but i have $5100 in my pocket.

has anybody put a claim on a federal tax credit? is it easy to obtain or did they make it impossible for you to get? i read that if you make too much money (not me), you do not qualify for the tax credit.

so what do you guys think? keep the s2k and enjoy it for 2 more years and just keep saving money the way i am now? or take the plunge in to the mundane world of hybrid vehicles for the sake of saving some money?

 

I got my tax credit easily....we file our own taxes. Got the full 2100 on our 06.

I doubt you will get full trade in value for your car....since it never happens. I work at a dealer...

I doubt you will get your civic hybrid for 20k, since invoice is roughly 21k and change, unless they are selling them differently out there.

Hope that helps....

 

The Fed doesn't just GIVE you $2100... They give you a tax break on $2100... So if your taxable income was otherwise $50,000, now your taxable income is $47,900... Considering a 30% tax bracket, you're looking at "saving" roughly $630.

So, is a total "savings" of $3630 enough to make you sell your car and switch?
Do the fuel savings and emissions and other planet-friendly aspects make you feel all warm and fuzzy?

 

Hybrids are all hype. Go pick up the current issue of Motor Trend.. VERY good article about hybrids with the Camry, Altima, and Aura. If you want to save fuel go with a Fit or a VW with a TDI.

 

but a hybrid's not just about saving fuel, it's about emissions.

 

Hybrid's get great fuel economy, particularly in city drving.

Not "all hype", but of course you have to do the figuring yourself to see if it's worth the extra cost for you.

If you can find a used mid-90s Civic VX, they get KILLER gas mileage, better than a hybrid Civic on the highway.

PS: Daft Punk = +++, Motor Trend = ---

 

I'm no tax expert but I'm an accounting major and taking a tax class right now. Since it's a credit, it is essentially like getting $2100. Deductions lower your taxable income but credits lower your tax liability. So if you owe $2100 in taxes and have this $2100 credit, your liability would be $0 and you would owe nothing.

 

I stand corrected! Thanks for clarifying. I was under the impression that it was a credit against income vs. straight up credit against liability. What happens if your tax liability is $0? They send you a check for $2100?

 

Hybrid makes you look gay man. Get a Prius...

 

i thought tax credit of $2100 meant that when i get my tax return, i will get $2100 more on my tax return.

unfortunately, i dont give a damn about the saving the world part. i'll only do this if it makes financial sense.