Hybrid Buyers Hold off Purchase Until ’06 to Claim Tax Break

Washington DC December 22, 2005; The AIADA newsletter reported that buyers of the Toyota Prius are telling dealers they will wait until next month to pick up their cars due to a hefty tax break on hybrids that kicks in January 1.

Tax credits for hybrid car buyers next year could lower their income tax up to $3,150, reports USA Today. When a buyer tells a dealer they are holding off pickup of their Prius, the dealer usually sells it to someone else and contacts the original buyer when another Prius of their desired color and features comes in.

Some dealers, however are simply holding the cars because Jan. 1 is a mere two weeks away.