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.
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 
Hybrid vehicles can be a great alternative to traditional gasoline engine vehicles. Environmentally friendly with excellent fuel economy, hybrids are a terrific solution to the problems of rising gas prices. However, many consumers are unaware of how the hybrid engine works and ways that they can maximize the efficiency of their vehicles. This week, we have taken you inside the hybrid to give you a deeper understanding of the vehicles. Today we will talk about things that you can do to further enhance your hybrid’s fuel economy.
