Run The Numbers

Increase Gas Mileage

Most of us drive large sedans, if not SUVs, with an average gas mileage of 15-20 miles per gallon.  Hybrid sedans, on the other hand, average about 40 miles per gallon, and most hybrid SUVs get upwards to 30 miles per gallon. By switching over to a hybrid, you stand to increase gas mileage by 10-20 miles per gallon. That adds up quickly when you're driving 25,000 miles or more a year.

Check out this handy online Gas Mileage Calculator to do your own calculations.

For a side-by-side vehicle comparison, check out the EPA'S Fuel Economy Web site.

Earn Tax Credits

In 2006, the federal government's Energy Policy Act began awarding tax credits to consumers buying hybrids. Most states have rolled out similar plans. Consequently, the gap between the out-of-pocket costs of a new hybrid versus a conventional car begins to narrow when hybrid owners are receiving $2,000 - $4,000 in state and federal tax credits.

Take Advantage of the Market

Buy New

It's a good time to buy a new car. Dealers are anxious to move vehicles off their lots and are offering some great incentive programs. With the recent drop in fuel prices, there is also speculation that price breaks on new hybrids might be coming down the line.

Buy Used

But if you're still concerned about the sticker price, consider a used hybrid. Until recently, you had to buy new when it came to hybrids. No more. Used models are just coming on the market – an easier, more cost-effective way to make the switch. A used hybrid will run about half the cost of a new model.