By Leftlane Staff
Tuesday, Aug 29th, 2006 @ 8:17 am

A new study published this week indicates a hybrid can save you money, but only if you’re willing to hold on to the vehicle for a while. The best hybrids in this regard on the Toyota Prius and Ford Escape hybrid. The Escape premium is only about $1,200 when taking into account the $2,600 federal income tax credit offered by the U.S. government. Analyst Alex Rosten says individuals who like to trade cars every two or three years won’t be able to recoup the added cost of a hybrid, with one possible exception being the Toyota Prius. The 2.1-year recovery period for the Prius assumes that the car is driven 15,000 miles a year, that gasoline is $3 a gallon and that the vehicle will achieve the EPA’s average city/ highway combined fuel-economy rating. But even the time needed for the Prius to save money could be erased this fall when tax credits are reduced from $3,150 to $1,575.

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