Gas prices are on everyone’s minds today. Both here at home and across the Atlantic, the unprecedented rise in fuel costs in the United States is an extremely hot topic. In the past month alone, drivers of SUVs and luxury cars have swarmed dealerships, eager to turn in their gas guzzling vehicles for something a bit less expensive to operate. Highly fuel efficient cars, particularly hybrids, are flying out of dealerships faster than they can be restocked.
On the surface, this makes sense. However, if you have a late-model SUV or other inefficient vehicle, experts have begun to suggest slowing down. The reason is the way that vehicle depreciation is figured. Everyone knows that a new car loses value the moment it is driven off the lot. What is not as well-known, however, is the way that value is calculated after that.
The first three years of a car’s life are marked by rapid depreciation. If you have financed the car, then this is compounded by the fact that in the first years of your loan, your monthly payment consists of mostly interest. Adding to the problem is the fact that inefficient cars have taken a massive downturn in public interest, in turn further lowering their value.
If you complete a trade-in too quickly, you are likely to face the same upside-down problem that the housing market currently faces: your trade-in value may be lower than the amount that you still owe on the vehicle.
Instead, it may be better to wait another year. The market is expected to stabilize, and you will be able to get more of the true cost savings associated with switching to a hybrid vehicle . Run the numbers to ensure that you buy at the optimum time.
If your car is more than three years old, then now may be the perfect time for a trade-in. Though hybrids cost a little more initially, in less than two years you will have made up the cost outlay and have moved on to impressive savings.
Hybrid vehicles are suddenly are in massive demand. Steadily growing in popularity since their introduction in the United States in 2000, the vehicles’ demand has soared this month in the wake of steadily escalating gas prices. Now at approximately $4 per gallon in many areas, and well over that price in a few places, gas has finally become a major concern.
There is no denying that the United States is currently in the middle of a gas crisis. Prices continue to climb, topping $4 per gallon in an ever increasing number of American cities, and there is no sign of a slowdown. The new economic reality is beginning to break the long-held American obsession with gas guzzling vehicles. From the city streets of New York, where taxis and limos will soon be required to maintain minimum fuel consumption standards, to rural towns and villages, consumers are facing the reality that traditional vehicles may no longer be realistic for them.
Limos are generally not thought of as environmentally friendly vehicles. They tend to waste fuel and emit noxious fumes as they idle, sometimes waiting for long periods between runs. In New York City, however, this will soon cease to be a problem. Hybrid limos will soon become a reality in America’s busiest city, according to a recent story in the 
Hybrid vehicles first appeared in Japan in 1997 and in the United States in 2000. Yet despite a decade of history, many consumers see hybrids as new and untested technology. Although gas prices have now topped $4 per gallon in many areas, some car buyers are still reluctant to make the switch. One of the biggest fears seems to be concern over the price of replacing hybrid batteries. However, this concern appears to be unfounded due to the proven life of a hybrid battery.
Hybrid vehicles have become an excellent choice for those who are concerned about fuel prices or the environmental impact of gas-powered cars. Hybrids save money and run cleaner than traditional vehicles, and many communities have introduced incentives to encourage their purchase. However, some lawmakers are now concerned about a side effect that many would consider a benefit – when running on electric power, hybrid vehicles are nearly silent.
In 2006, the Environmental Protection Agency (EPA) announced that it would change the way in which fuel economy is measured. It is estimated that the miles per gallon announced under current testing methods is as much as 30% greater than the mileage achieved in real world driving conditions. The new testing methods will go into effect for model year 2011. The 
President Bush recently introduced a proposal to boost fuel economy requirements over the next several years. Under the proposal, vehicles that are introduced beginning with model year 2011 would be required to get at least 27.8 miles per gallon. For 2012, vehicles would need to achieve 29.2 miles per gallon, and by 2013, at least 30.5 miles per gallon. This is an excellent start, but many experts feel that the proposal is incomplete.
Historically, when we thought of environmentalism, our thoughts immediately turned to the granola culture of California and the Pacific Northwest. The hardened cabbies of New York were not generally at the top of the list. However, times change and the realities of life take their toll. Rising fuel costs and increasing concern about our impact on the environment have led many taxi drivers to make the switch to hybrid vehicles. Now new legislation will require those who have not yet converted to do so. The New York Times recently ran an article on the 
