4 Unexpected Ways to Save With a Green Vehicle

What's Hot


2 Types of Black Marks Might Vanish From Your Credit File SoonBorrow

6 Ways the Obamacare Overhaul Might Impact Your WalletInsurance

7 Dumb and Costly Moves Homebuyers MakeBorrow

This Free Software Brings Old Laptops Back to LifeMore

Obamacare Replacement Plan Gets ‘F’ Rating from Consumer ReportsFamily

Beware These 12 Common Money MistakesCredit & Debt

21 Restaurants Offering Free Food Right NowSaving Money

17 Ways to Have More Fun for Less MoneySave

House Hunters: Beware of These 6 Mortgage MistakesBorrow

30 Household Uses for Baby OilSave

25 Ways to Spend Less on FoodMore

Nearly Half of Heart-Related Deaths Linked to These 10 Foods and IngredientsFamily

5 Surprising Benefits of Exercising Outdoors in WinterFamily

10 Ways to Save When You’re Making Minimum WageSave

Boost Your Credit Score Fast With These 7 MovesCredit & Debt

7 Painless Ways to Pay Off Your Mortgage Years EarlierBorrow

The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

The True Cost of Bad CreditCredit & Debt

10 Companies With the Best 401(k) PlansGrow

This Scam Now Tops ID Theft as the No. 2 Consumer ComplaintFamily

6 Stores With Awesome Reward ProgramsFamily

6 Ways to Save More at Lowe’s and The Home DepotSave

6 Healthful Treats for Your DogFamily

New Study Ranks the Best States in the U.S.Family

Thousands of Millionaires Moving to 1 Country — and Leaving AnotherGrow

Strapped for College Costs? How to Get the Most From FAFSABorrow

6 Overlooked Ways to Save at Chick-fil-AFamily

Ask Stacy: What’s the Fastest Way to Pay Off My Mortgage?Borrow

Where to Sell Your Stuff for Top DollarAround The House

8 Ways to Get a Good Price on a Shiny New AutoCars

Ask Stacy: How Do I Start Over?Credit & Debt

Secret Cell Plans: Savings Verizon, AT&T, T-Mobile and Sprint Don’t Want You to Know AboutFamily

30 Awesome Things to Do in RetirementCollege

14 Super Smart Ways to Save on TravelSave

The Rich Prefer Modest Cars — Should You Join Them?Cars

You’ll Soon Pay More to Shop at CostcoSave

10 Ways to Save When Your Teen Starts DrivingFamily

Buying a environmentally friendly vehicle could earn you tax credits, rebates and other discounts.

By buying a green vehicle you can save far more than a fistful of dollars at the gas pump. Instead, you can fuel up your bank account with thousands of dollars in savings.

Green vehicle sales have been in the fast lane so far this year, surpassing 450,000, according to AutoblogGreen. That’s up 26 percent from the first eight months of 2012. And August sales are charged up even more, reaching more than 72,000 units. That’s up nearly 50 percent from the year before. The Toyota Prius continues to lead the pack when it comes to sales of green vehicles, accounting for more than 35 percent of sales of hybrids and alternative-fuel vehicles in August alone.

The surge in green vehicle sales comes at a time when auto sales in general continue to climb. Overall, more than 1.5 million vehicles were purchased in August, up 17 percent from the year before. While the growth in overall auto sales figures is impressive, it pales in comparison with those of green vehicles.

While hybrids and alternative-fuel vehicles generally cost more than their gasoline-powered counterparts, there are a number of unexpected ways to add a stack of green to your bank account by buying a green vehicle.

1. Federal tax credits

If you buy an electric vehicle, you’ll get plenty of bang for your buck in the form of a federal tax credit. The tax credit for purchasing an electric vehicle is a whopping $7,500 and includes such popular models such as the Ford Focus EV and Nissan Leaf

The U.S. Department of Energy website has a list of autos that qualify for the electric vehicle tax credit.

You also can score a tax credit if you purchase a plug-in hybrid-electric vehicle, which combines the features of a traditional hybrid vehicle with an electric vehicle.

Those credits range from $2,500 for a Toyota Prius plug-in hybrid to $7,500 for a Chevrolet Volt. You can get details on the plug-in hybrid-electric vehicle tax credits on the U.S. Department of Energy website.

2. State rebates

Certain states also offer rebates on green vehicles, so you need to be sure to check with your home state to see what is available.

In California, for example, you can get a rebate of up to $2,500 for buying or leasing a zero-emission vehicle or plug-in hybrid vehicle.

Pennsylvania provides a $3,000 rebate for purchasing a plug-in hybrid electric vehicle or electric vehicle, and smaller rebates for other types of vehicles.

3. Auto loan savings

This is another one you’ll have to scout around for, but a number of banks and credit unions offer discounts on auto loans if you buy a green vehicle. These often are available for gas-powered vehicles with good fuel economy, hybrids or alternative-fuel vehicles.

Discounts are generally 0.25 percent or 0.50 percent off the interest rate of your auto loan.

Many financial institutions use the U.S. Environmental Protection Agency’s SmartWay Vehicle certification to determine if a vehicle is eligible for a discount. Information is available at www.fueleconomy.gov.

4. Insurance discounts

Some auto insurance companies offer discounts if you drive a green vehicle. Discounts on your premium will vary based on the state you live in and other individual factors.

Travelers offers a discount if you own or lease a hybrid, while Farmers offers a discount for hybrid or alternative-fuel vehicles.

Have you found other ways to save by owning a green vehicle? Share what you know on our Facebook page.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: Lookin’ Good! How to Get a Killer Deal on Eyeglasses

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,898 more deals!