Hybrid Car Review

The new 2007 Camry Hybrid has been priced at $25,900, $5,400 more than its all gas counterpart. That's a lot more than most people will pay for driving a hybrid. You won't be saving enough on gas to justify the cost, and so Camry Hybrid buyers are going to need other reasons to shell out 25% more than they have to.

The problem with hybrid sales in general (not that there are a lot of problems selling hybrids) is the cost difference between their gas sisters and themselves. In order to capture more than 1% of the market, the hybrid will need to be cost effective, not just environmentally effective.

That's why the tax credit this year is so important. But, according to the rules, the tax credit is available across car makers. And since Toyota sells more hybrids than any of the other car makers, they will most likely run out of tax credits in the third quarter this year.

Meaning, consumers who purchase the 2007 Toyota Camry Hybrid won't be eligible for the tax credit, making that bigger up front cost a harder pill to swallow. We'll have to wait and see how this will effect overall hybrid sales next year.