Why dosen't the government give larger rebates to those who buy hybrid cars?

Question

anyone who buys a hybrid that gets gas milage over 35 per gallon should get at least a 5 or 10 thousand dollar rebate.if the really cared.

Answer 1

Why should the government reward hybrids over other high mileage cars?

Answer 2

Rebate is a bad idea in terms of economical sense.  Rebate generally only goes to the pocket of manufactures and dealers.  When there is a major rebates from the government, the dealers jack up the prices of the car to make more profit.

A great example, Prius, it was selling for $4000 over MSRP when it had $3500 rebate.  Now the rebates is gone, the car is selling near MSRP and the demand is still strong.  Previous buyer figured that the extra cost is ok because they will get a rebate from the government.

The better way to encourage the behavior is to tax the gasoline usage.  That way, it will automatically shift people's behavoir to more fuel efficent models.

Answer 3

Why mandate one technology over another?

There are already differing hybrid designs.  Some are more efficient than others (compare the barely-hybrid Chevy Silverado to the Toyota Prius, for example) - why should a label on the car immediately get you a governmental rebate?

(This is similar to how flex-fuel vehicles, where the manufacturer gets a CAFE credit for the ethanol use, used to keep them from paying fees for too low of a fleet average MPG, even though over 90% of those flex-fuel vehicles will never use anything stronger than the E10 that all cars can use...)

Yes, there is a gas-guzzler tax.  Perhaps you would want this increased?

A high fuel efficiency vehicle already pays less in fuel taxes at the pump.  (Some states already unfairly charge hybrids extra in excise taxes or licensing fees for this loss in fuel tax revenue, even though they do not charge other high-mpg/non-hybrid vehicles these higher fees...)

Besides, the fuel-efficient hybrid models are already selling about as fast as dealers get them.  Why should the government give out money if the vehicle is going to be sold anyways?  The current system of phasing out the tax credits for hybrid vehicles after a certain number is sold is probably good enough.

Best method for saving fuel is just to mandate an across-the-board increase in CAFE standards, and not give any special attention on the type of technology used.  The current proposal, in my opinion, is a bit too modest and takes too long, but at least it finally puts trucks/SUVs at the same fuel economy standards as cars.

Answer 4

That would discriminate against the poor that can't even afford to buy regular cars.

Answer 5

Rebates are a bad idea because they only drive up the price of the product.

Answer 6

Because when the $8000 batteries fail,its more landfill waste.

Answer 7

Because many people in the government are either oil tycoons themselves or are supported by oil tycoons.  Plain and simple.